In Florida, there is no legal requirement to insure jet skis and boats. However, these vehicles are highly maneuverable, and hundreds of accidents happen every year. Therefore, getting jet ski insurance is a good idea. It can protect your finances if you collide with someone and cause an injury or damage to the other party’s property, and in some cases, it can also cover damage to your own vehicle.
But what kind of insurance is best? Should you simply opt for a liability policy, or is it safer to go for comprehensive insurance? The answer is that it all depends on your individual risk profile and your financial situation. People who can easily replace their jet skis might not need as much insurance as those who wouldn’t be able to purchase another vehicle. Let’s have a closer look at your insurance options and what factors you need to take into account.
Should You Get Liability or Comprehensive Jet Ski Insurance?
While almost every jet ski owner should get some kind of insurance, there are various policies that meet different people’s needs. Liability insurance is a simpler and less thorough option, and it only covers other people’s damage. Comprehensive insurance includes not only liability, but also the loss of your own property. It is therefore appropriate for people who are more risk-averse or those who don’t have the necessary funds to replace their jet skis.
What Does Liability Insurance Cover?
Liability is when you are legally responsible for something. In the case of jet skis and other watercraft, it refers to the damage you might cause, for example when you run into another person, and they have an accident or their property is damaged. Liability insurance covers you in such a case, so you don’t have to pay for the injured party’s medical bills, their loss of income due to their injuries, or the repairs to their property.
There are various liability insurance policies, but many of them don’t come with a deductible. Therefore, your insurance kicks in immediately. Since personal injury cases can get extremely expensive, you are often covered for six or even seven-figure sums. This type of policy will cost you around $85 to $100 per year.
What Does Comprehensive Insurance Cover?
As the name suggests, comprehensive cover offers wider protection than liability insurance. In addition to covering other people’s damage, this type of policy also protects your own assets. You can expect your insurance to kick in whenever you have a problem with your jet skis. For example, you will receive compensation if you damage them in an accident or if they get destroyed during a natural disaster such as a storm or a hurricane.
While almost everything is covered under this type of policy, there is usually a list of exclusions. You should study this carefully to determine whether you need any add-on coverage. The typical comprehensive insurance policy for jet skis is $500 per year, but your quotes depend on your exact location, the type of equipment you have, and your individual risk profile.
What Should I Consider Before Purchasing Insurance?
Nowadays, almost everyone buys insurance online. It might be tempting to click on the first link that comes up when you search for jet ski insurance, but this isn’t usually the most cost-effective option. Instead, you should work with an insurance agent, who can help you decide what kind of insurance you need, provide you with the best quotes, and regularly review your policy to make sure it still meets your needs.
Do I Even Need Insurance in Florida?
As mentioned, you don’t have to get your personal watercraft insured in Florida. If you believe that you are not at risk or you are able to cover an expensive lawsuit, you can skip insurance. However, this isn’t a good idea for the vast majority of jet ski owners. While a serious accident is unlikely, its effects could be detrimental to your personal finances.
In the past, people who caused a wrongful death had to pay out six or even seven-figure sums to the injured party’s bereaved. For this reason, getting liability insurance is crucial for anyone who drives their watercraft on public beaches, where other people could be in the water.
Your Financial Situation
When you speak to your insurance agent, they will ask you about your financial situation. People who have enough money to easily cover replacement jet skis could skip comprehensive insurance, but those who would find it hard to buy a comparable vehicle might benefit from a more thorough policy.
Before you buy insurance, ask yourself how much it would cost if your vehicle got stolen or damaged due to a natural disaster or an accident. To figure out whether comprehensive insurance is worth it, you could also consider how likely a scenario that damages your property is. A good insurance agent can help you make an accurate estimate.
Combining Coverage to Lower the Price
Insurance companies are interested in capturing as much of the market as possible, so they are often willing to give customers discounts for signing up to several policies with them. If you have any other watercraft such as a boat or hovercraft, you should consider using the same insurance provider and ask them to decrease your premiums.
Minimizing Your Risk
Most people don’t pay more than $50 for comprehensive insurance, but it all depends on your individual situation. The primary aim of an insurance company is to minimize their risk and maximize their profit, so they are likely to offer you a better deal if you can demonstrate that you have made your jet skis as safe as possible.
For example, you could get a record of regular maintenance, make sure you never leave your vehicle out at night, and install an alarm system. The more protected your jet skis are, the less your insurance will charge.
Reviewing Insurance Regularly
Over time, insurance premiums go up. If you’ve had your watercraft policy for a while, you should check by how much it has gone up in the last few years. In most cases, there are ways to lower your annual cost, either by speaking to the insurance company and asking them to cancel the price increases or by switching to a different provider.
The best way to find out if your current rate is competitive is to work with an insurance agent. They can review your policy on a regular basis and help you decide when to switch.
Almost everyone who owns jet skis in Florida should have them insured. There are various policies that cater to people’s individual needs. Liability insurance is ideal for those who would like to protect themselves from an expensive personal injury lawsuit but who don’t want to insure their own jet skis. In contrast, comprehensive insurance is designed for people who don’t want to put their vehicle at risk and want to be compensated if it gets damaged.
Before you buy insurance, you should speak to a professional who can help you figure out your risk profile and individual needs. An insurance agent can provide you with the best quotes in your area and help you figure out the advantages and drawbacks of each. Get in touch with us today at iInsure in Tampa, FL to receive your quotes.