Re: How Many Boat Owners Have Boat Insurance?
Re: tow coverage:
The insurance company doesn't come tow you; you pay the tow company and they reimburse you up to a limit (mine is $600) Unless the tow company will bill the insurance company directly. You often have the same thing with your auto policy; many people don't know it.
Your friend paid $300 for a tow. Let's say that was the first time in 5 years. If he had joined a tow group for $150 a year, he would have paid $750 for the $300 tow--an extra $450. If he had it in his insurance AND joined the tow group, he would have paid an extra $750 for the tow. Something to think about before getting additional tow coverage: assess your likely tow cost, and check the availability of your tow service where you boat--they don't go everywhere.
The problem here is that the typical tow will far exceed whatever your insurance will pay. Its better to get a tow membership that provides unlimited towing. A typical tow charges $175/mile and the meter is running from the minute they leave wherever they are at to come get you. Its not unheard of to hear of $5,000 towing bills. I typically fish 20-30 miles offshore, they would own my boat after only one break down if I didn't have unlimited coverage.
Speaking of coverage, BoatUS turned out to be awesome. I ended up getting $50K in boat coverage, $5K in trailer coverage, $5K in equipment loss, $300K in liability, unlimited towing, and unlimited trailer assist for $835/yr. Also the policy was for agreed value, not depreciated value. They also said that the coverage will cover the boat in case it gets stolen from my yard, not just when its on the water.
The only time its not covered is when I'm towing it, at which point my auto policy covers it. Now I have to worry when I'm towing it because I only have liability on my truck. Which means the boat is not covered if the accident is my fault, the other driver does not have ins, or they do not have enough insurance (underinsured). It never ends.
