Everything You Need To Know About Boat Insurance In Michigan

If you intend to gather information on everything you need to know about boat insurance in Michigan, then this article is for you. One thing the state of Michigan is known for is its rivers and lakes, which make it an ideal location for anyone interested in owning a boat. 

However, one of the most important aspect of owning a boat is having boat insurance. Not only does it protect you in the case of an accident, it also protects your passengers as well as the boat itself. 

In this article, we'll be providing well detailed information on everything you need to know about boat insurance in Michigan. 

How much does boat insurance cost in Michigan?

There is no fixed price for the cost of boat insurance in Michigan. This is because the rates are calculated based on various factors.

Some of these factors include:

The amount of coverage you need: There are a variety of coverage levels you can choose from, such as a physical liability coverage or a liability only coverage. These levels of coverage can determine the cost of your boat insurance. 

Your driving history and experience: Boat owners that have completed a boat safety course or have a clean driving record are likely to get a low insurance premium. 

Where you intend to use the boat: For instance, the cost of insurance for a boat that is operated on saltwater is different from that operated on a freshwater. 

The power and size of your boat: The insurance of boats with high horsepower and big size costs more than small ones with low horsepower.  

The type of boat you own: The type of boat you own can determine its cost of insurance. For instance, the cost of insurance for a yacht is different from that of a motorboat or a sailboat. 

Your claims history: Boat owners who have previously applied for a boat insurance are likely to get a high premium when re-applying.

It is evident that various factors play a role in the cost of boat insurance in Michigan. This is why it is important to meet with an insurance agent who can help you with customized quotes from the different boat insurance companies in the state. 

What does Michigan boat insurance cover?

Before we delve into what Michigan boat insurance cover, it is important to know that insurance plans in the state vary according to insurance companies. What one insurance company covers might be different from what another covers.

Generally, some of the coverage offered by insurance companies in Michigan include:

Liability insurance: Which covers damage caused by a boat owner to someone else's boat or property.

Towing and labour coverage: which covers the cost that comes with towing one's boat or other labour charges related to it.

Fuel spill liability: which provides funds that can be used in legal protection when a property is damaged or body harm caused as a result of fuel spill.

Medical payment: which covers the medical expenses of people who suffer injury while on board your boat

Towing coverage: this type of boat insurance covers the cost of towing your boat in a situation where you are stranded

Personal effects coverage: which covers the cost of replacing people's items that get damaged, stolen, or lost while on your boat.

Physical damage insurance: as it name suggests, it covers the cost of damage suffered by the components of your boat such as your sails, electronics, engine, etc.

Underinsured/uninsured boater insurance: this type of boat insurance covers the cost of damages caused as a result of your collision with other boats that are underinsured or uninsured. 

What is not covered by Michigan boat insurance 

Now that you know what Michigan boat insurance covers, what then are some of the things it does not cover?

Here are some things that are not covered by Michigan boat insurance:

• Damages caused by animals
• Damages caused by nuclear hazards, terrorism or war
• Damages caused intentionally or as a result of negligence on the part of a boat owner
• Losses caused by wear and tear
• Legal liability that comes with you operating a business from your boat
• Mechanical breakdown, although there is an exception for boat owners who have mechanical breakdown coverage on their policy

To ensure your vessel is properly insured, it is advisable for you as a boat owner in Michigan to understand what is covered and what is not covered under boat insurance policies in the state. 

Things to consider before buying boat insurance in Michigan

As a boat owner, before you buy a boat in insurance in Michigan there are certain factors to consider. Some of these factors include:

Type of boat you want to insure: as mentioned already, the type of boat you own can determine its cost of insurance. For instance, the cost of insurance for a motorboat is different from that of a yatch or a sailboat.

Age or condition of your boat: this is also a factor that affects the cost of your insurance. Older vessels usually cost more than newer ones as a result of their increased risk.

Length of experience with the boat: boat owners with little or no experience are more like to pay more for their insurance policy than owners with wealth of experience.

Location the boat is being stored or used: the area in which your boat is being stored or used in Michigan is also a factor that determines the cost of its insurance.

Safety equipment: owners of boats with safety equipment on board get to pay less for insurance policy

Type of insurance coverage: different insurance coverages come with various costs. You should have an idea of their costs before choosing to pay for one.

Other than the ones mentioned above, other factors you should consider include add-on coverages, the value of your boat, deductible amounts, among others.  

What you should do when you get involved in a boat accident in Michigan

Here are things you should do when you get involved in a boat accident in Michigan:

• Notify your boat insurance company immediately after the accident
• Get medical care if you sustained any injury as a result of the accident
• Exchange personal information such as name, phone number, address, and insurance information with other parties involved in the accident
• Take pictures of the damage suffered by the boat as a result of the accident
• Contact the Michigan Department of Natural Resources (DNR) or local law enforcement immediately 

How to file a boat insurance claim in Michigan

The process of filing a boat insurance claim in Michigan is not as hard as most people take it to be.

Here's a step-by-step guide on how to file a boat insurance claim in Michigan:

• Notify your insurance company of the damage your boat has suffered
• Provide well detailed information on what happemed, the injuries suffered by passengers and the damage caused to the boat
• Submit relevant documents like pictures of damages caused by the accident, bills to cover the medical care of the injured, and repair estimate for the boat
• If possible, provide further documents or other information that would be needed to complete the investigation of the accident
• Receive an estimated worth of your claim from your insurance company and sign the documents that would approve your payment once you and the company have agreed on a price
• Lastly, receive payment from your insurance company for the claim amount that was approved 

Conclusion

In conclusion, it is important for every boat owner in Michigan to have their boat insured in order to protect themselves and their passengers in the case of an accident. Also, while getting a boat insurance, it is important to know what it covers and what it does not cover as well as how to file for an insurance in the case of an accident. 

Frequently Asked Questions

How much is boat insurance in Michigan?

There is no fixed cost for both insurance in Michigan. It usually ranges from $75 to $500 annually. 

Do you need boaters insurance in Michigan?

No, you do not need boaters insurance in Michigan. This is because the Michigan law does not require it. It is however advisable to get it since lenders require a set amount of it before they can finance your boat and marines require a proof of it before they can dock your boat. 

How long is a boat registration good for in Michigan?

Boat registration in Michigan is good for as long as you want it registered. Registration expires automatically on the 31st of March of the third year of registration. 

What is required on a boat in Michigan?

According to the Michigan state law, some of the things required in a boat in the state include mufflers, backfire flame arrestors, ventilation systems, fire extinguishers, navigation lights, PFDs, sound producing devices, and visual distress signals in line with USCG guidelines.