Boat Insurance in Newfoundland and Labrador

How does boat insurance work in Newfoundland?

Boat insurance, also known as marine insurance or personal watercraft insurance, in Newfoundland works the same as anywhere else in Canada. Its primary purpose is to offer financial security to boat owners in the event that their watercraft are damaged or stolen. Ultimately, what makes boat insurance so important is that it can help you pay for the cost of repairing or replacing your boat if it suffers damage. An insurance broker in Newfoundland and Labrador can provide more detail on how boat insurance works, but in the meantime, check out this list of situations that boat insurance can cover you for:

• Boat insurance will cover you if your boat, its motor, or other equipment or accessories are stolen or damaged in a collision.
• Boat insurance will cover you if your personal effects, such as electronics or jewellery, are stolen, vandalized, or damaged while on board your boat.
• Boat insurance will cover you if a driver or passenger is injured while on your boat or your boat causes damage to another person’s personal property and they file a third party liability claim against you.

Contact BrokerLink for more information on how Newfoundland boat insurance can protect you.

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What is covered by a Newfoundland boat insurance policy?

Newfoundland boat insurance plans vary, which means what they cover can also vary. Since marine insurance, unlike car insurance in Newfoundland and Labrador, is not compulsory, it is up to each policyholder to decide what coverages they want to add to their policies. Although some forms of protection are more specific and, therefore, will not be suitable for all boaters, there are many types of basic boat insurance coverage that apply to all. Below, we outline some of the most popular coverages for Newfoundland boaters, as well as a few niche types of boat insurance coverage that may be of interest:

Property damage coverage

Property damage coverage for boats can help pay to repair your watercraft if it is damaged. The causes of the damage vary but may include collisions, theft, and more. For example, if you crashed into another watercraft while operating your boat, and your boat was dented as a result, you could file a property damage coverage claim to help pay for the necessary repairs.

Third party liability coverage

Liability insurance is a must for all boaters in Newfoundland. With this type of coverage added to your policy, you can receive a payout if you cause an accident. Since boating accidents can be expensive, having third-party liability coverage will come in handy. It can cover everything from boat repairs and medical expenses to legal fees.

Temporary replacement coverage

If your boat is your main mode of transportation in Newfoundland, then purchasing temporary replacement coverage might be valuable. With this type of coverage, your insurer will pay for you to rent a boat or take alternate modes of transit if your boat is damaged and needs to be repaired. Given how long it can take for repairs to be complete, having this type of coverage can save you a lot of money.

Agreed value coverage

Agreed value coverage would give policyholders a larger payout if their boat was stolen or deemed a write-off after a serious accident. This way, you would have more money to put toward purchasing a new boat than you otherwise would. Given how expensive ships can be, this might be a smart type of coverage to add to your policy, especially if your boat is brand new.

Navigational extension coverage

Do you frequently drive outside of standard navigational limits? If this sounds like you, basic Newfoundland boat insurance may not suffice. Instead, you may need to add navigational extension coverage to your policy to ensure you are protected by your policy no matter where you operate your boat.

Collision coverage

Collision coverage can be claimed if you get into a major boating accident and your boat suffers major repairs. Even if your boat is deemed a write-off, you can still file a collision coverage claim to help pay for the cost of the damage. Please note that collision coverage can be claimed whether the collision was with another watercraft or a grounded object, such as a dock.

Comprehensive coverage

Comprehensive coverage is another type of boat protection that many Newfoundland policyholders find to be worthwhile. This type of coverage will specifically protect your boat against risks other than collisions. For example, when your boat is docked at a marina, it could be at risk of theft, vandalism, or weather-related damage. If any of these worst-case scenarios occurred, you could file a comprehensive claim, and it would help pay to repair or replace your boat if it was the victim of theft or damage. Please note that comprehensive insurance will only apply if a covered peril caused the damage. Covered perils will be clearly listed in your policy.

Please note that the coverage above is designed for recreational watercrafts in Newfoundland. If you are looking to insure a commercial fishing boat, you may require different coverage. Reach out to our team of BrokerLink insurance brokers to discuss how commercial boating insurance works today.

How are boat insurance premiums calculated in Newfoundland?

Boat insurance premiums in Newfoundland are dependent on a number of factors, just as homeowners policy insurance and car insurance policy premiums are. From your boat records to how long you’ve owned and operated your watercraft, insurance companies will consider a wide range of details when assessing your risk level and assigning you a premium. Read through the list below to learn which factors matter and why:

Your boating record

Your boating record is extremely important and gives insurers a clear indication of what type of boat operator you are. If you are a responsible boat operator, your record of at-fault accidents and other infractions should be clear. However, if you drive recklessly, then your record will likely reflect that. Customers with clean boating records often benefit from cheaper premiums than customers with poor boating records. So if you want to keep your rates low, the best thing you can do is drive safely and obey all local laws. You can discuss boat safety requirements with a licensed insurance broker by contacting BrokerLink today.

The length of time that you’ve owned your boat

A customer’s experience as a boat owner is another factor that insurers in Newfoundland will consider. To assess this, an insurance agent will primarily look at how long you’ve owned your boat. If you have years of experience owning and operating your boat, you may be rewarded with a lower premium than if you are new to the world of boating. Just as with car insurance, first-time boaters tend to pay higher premiums than seasoned boaters. Contact BrokerLink if you want to learn safety tips for first-time boating, and check out this first-time boat owners checklist.

Where you operate your watercraft

The waters in which you plan to operate your watercraft also matter. This is because not all bodies of water are created equal in the eyes of an insurance company. Waterways differ significantly, with some holding more risk than others. For example, certain bodies of water may be more heavily trafficked or prone to bad weather. The more traffic in a specific waterway and the worse the weather conditions, the more that you can expect your Newfoundland boat insurance policy to cost.

Where you dock and store your boat in Newfoundland

Finally, the location where you dock or store your boat in Newfoundland can also impact your boat insurance rates. Why? Some places are safer than others. If you dock or store your boat in a riskier location, such as a public area that is not securely monitored, you may pay more for boat insurance. In contrast, if you store your boat in a private location, such as a garage or boat house, then you could end up saving money on boat insurance.

Safety tips for Newfoundland boaters

If you want to keep yourself safe while navigating the waters of Newfoundland and Labrador, follow the tips below.

Keep all necessary safety equipment on board

Having safety equipment on board your boat is the first and perhaps most crucial safety tip. The right equipment can make a huge difference, especially if you are lost at sea or in an accident. A few pieces of necessary safety equipment for boating include life jackets for all passengers, a sound signalling device (e.g. a whistle), a waterproof flashlight, a first aid kit, a buoyant, an anchor, a paddle, a cellular device, a portable battery charger, bottled water, sun protection, and non-perishable food.

Never operate your boat while impaired

Drinking and driving is illegal, whether you’re operating a car or a boat. So, never get behind the wheel after a few beers. The same goes for recreational drugs. Driving while impaired is not only extremely stupid but also extremely dangerous.

Check the weather forecast before leaving home

It is important to check the weather before leaving home. While checking weather conditions is also important when driving a car, it’s especially important when driving a boat given how much weather can impact your journey. Bad weather can instantly make your trip far less safe, so if there is heavy rain, wind, or a storm on the horizon, play it safe and stay home.

Inform loved ones of your whereabouts

Lastly, anytime you are taking your boat out, be sure to inform someone of your whereabouts. More specifically, you should let a loved one know where you plan to drive your boat, your expected date and time of return, and the names and contact information of the other passengers on board your boat. This way, if you aren’t home when you say you will be, someone has information that they can use to help find you.

Lower your Newfoundland boat insurance premium

If you want to save money on Newfoundland boat insurance, BrokerLink can help you do just that. To get started, read through the list of tips below and find out how much you can save:

1. Bundle boat insurance with car insurance or home insurance

The first way to save money on boat insurance is by bundling boat insurance with car insurance or home insurance. Many insurance companies give customers the option of buying multiple types of insurance, and by doing so, they might offer you a discount. Just make sure that the insurance products you want to buy qualify, as not all do.

2. Raise the deductible on your Newfoundland boat insurance plan

A quick way to lower your boat insurance premium in Newfoundland is by raising your deductible. Deductibles directly impact premiums because the deductible you choose is the amount of money you will pay in the event of a claim. The more money you agree to pay and the higher your deductible, the lower your premium will be.

3. Add an anti-theft or GPS device to your recreational boat

Installing an anti-theft device or a device with GPS tracking capabilities on your recreational boat can also lower your premium. This is because having an anti-theft device on your boat might reduce the odds of it being stolen. Meanwhile, a GPS device can increase the odds of it being recovered if it’s lost. For this reason, many insurance companies offer discounts to policyholders who choose to install such devices on their boats.

We’re in your community

BrokerLink is focused on providing a customer-driven insurance experience in Newfoundland. We do this by taking the time to understand your needs and creating a policy that’s based on them. At BrokerLink, you can expect quality, excellence, and personalized coverage.

Contact us

At Newfoundland BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, travel plans, recreational items, or pets, let us help you find the best coverage possible.

You can reach us by phone, email, or visit any of our locations across Newfoundland and Labrador. No matter how you contact us, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool, which can provide you with a competitive boat insurance quote in minutes.

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Boat insurance Newfoundland FAQs

Is boat insurance compulsory in Newfoundland and Labrador?

No, boat insurance is not compulsory in Newfoundland and Labrador. You can drive your boat without purchasing boat insurance. However, this is very risky, as if something goes wrong, you will be on the hook for the costs on your own. On the other hand, by purchasing Newfoundland boat insurance, you can be covered in a wide range of scenarios, such as if you get into a collision or your boat is stolen.

Do I need a boating licence in Newfoundland?

Yes. All recreational boaters in Newfoundland must obtain a Pleasure Craft Operator Card, which is also referred to as a boating licence. You must keep your boating licence on board your boat at all times while in operation. Please note that Pleasure Craft Operator Cards are only required for those who operate motorized watercrafts.

Where can I buy Newfoundland boat insurance?

You can buy Newfoundland boat insurance from an insurance broker or directly from an insurance company. Whichever you choose, you can likely purchase coverage over the phone, online via the provider’s website, or in person at a local insurance office in your area.

What can I do to save money on Newfoundland boat insurance?

The number one thing you can do if you want to save money on Newfoundland boat insurance is to drive your boat safely. The cleaner your record, the better off you will be in the long run. If you reach a point where you have several years of boating experience, as well as a record clear of infractions, you will benefit from a lower rate. Another way that you can save money is by qualifying for a boat insurance discount. These vary but may include anti-theft device discounts or bundle discounts. Lastly, to keep rates low, consider only choosing the types of coverage that are necessary. Remember that the more coverage you add to your Newfoundland boat insurance plan, the more money your policy will cost.

What types of boat insurance can a Newfoundland insurance broker help me find?

The good news is that a Newfoundland insurance broker can help you find all kinds of boat insurance coverage. As experts, brokers know how to match customers with basic boat coverage, as well as extra types of protection. Some of the boat insurance coverages that a Newfoundland insurance advisor can help customers find include collision coverage, comprehensive coverage, agreed value coverage, third party liability coverage, property damage coverage, temporary replacement coverage, and navigation extension coverage.

If you have any questions, contact one of our local branches.