Boat Loans and Marine Insurance

Financing a new boat is a fairly straight-forward process - if you've got a good credit history and the 10-25% down payment - because new boat values are easy to establish and, more importantly, so is a clear record of ownership.

The same is not true for used boats. And, it's sometimes much harder to establish a fair market value. State boat registration rules vary considerably, so it may be more difficult to obtain a clear title or determine that the boat is free of liens and encumbrances.

Lenders usually require marine insurance coverage and possibly even federal documentation as qualifications for a loan for larger boats.

Basic marine insurance includes Hull Coverage for damages to the boat whether it is on land or in the water and Protection and Indemnity Coverage (also called P&I coverage or personal liability insurance) for property damage claims and claims for injuries to your crew or those on a boat you may have damaged.

Insurance costs are affected by boating season, area of navigation, previous insurance claims and boating experience. Expect to pay more if you own a "muscle" boat, an ocean cruiser, a wooden boat or if you live aboard.