What Kind Of Insurance Coverage Do I Need? Craig Ritchie March 25, 2016May 18, 2016 Shares Comments A quick guide to PWC insurance basicsBuying insurance for your PWC can be daunting at first, since there are so many new terms to understand. Understanding the basics is the first step in determining what kind of coverage you need. Loss or Damage Where coverage of a personal watercraft is concerned, the three terms you will most-often hear are “agreed value,” “actual cash value” and “replacement cost.” As implied, an agreed value policy insures the PWC to a value that is agreed upon between the owner and the insurer. In the event of a total loss, the policy will pay the full insured amount. If your unit has appreciated in value, you still get what you agreed to and not a penny more. Actual cash value coverage means the insurance company will pay the actual cash value of the watercraft on the day it was lost. In other words, the value of the unit, less depreciation. Replacement cost coverage means that the insurance company will pay the cost to replace your machine regardless of whether its value has gone up or down. Replacement cost coverage is generally considered to be the best type of coverage, since there is no haggling about the unit’s value. It’s also the best type of coverage if the PWC needs to be repaired, rather than replaced. If you damage your five-year-old machine, for example, an actual cash value policy will only cover the cost of five-year-old replacement parts. New parts would be considered an upgrade, since they’re not depreciated. However, since aged parts are almost impossible to find, the shop will most likely install new ones, leaving you to pay the difference out of pocket. Personal Injury Marine policies often extend to cover any passengers as well. Your policy may include a provision to cover your medical bills, lost wages, and pain and suffering if you’re hit by another boater who doesn’t have their own insurance, for example. Liability Personal injury liability coverage protects you from being sued or having to pay out of pocket if you hurt someone else during an accident. The coverage typically includes medical bills, lost income, pain and suffering, and legal expenses. Property damage liability offers similar protection against the cost of any damage you cause to other boats, docks or property. Another kind of coverage to look for is guest passenger liability, which means you’re covered when someone else is using your PWC. Additional Coverage Apart from insuring the machine itself, most PWC policies will also provide coverage for a number of other things we might not think about at first. Most policies will cover the cost of an emergency tow, for example, or provide coverage for personal effects like cell phones or cameras that are damaged or lost in an accident. Some policies will even offer a loss-of-use option, which allows you to rent another machine while yours is being repaired. Share Share Subscribe Like PersonalWatercraft.com on Facebook Comments Most Popular Remembering the Sea-Doo XP March 16, 2016 2013 Yamaha VXR Review January 29, 2013 2025 Yamaha JetBlaster PRO 2-Up Review August 22, 2024 2024 Yamaha GP HO Review May 22, 2024 2017 Kawasaki Jet Ski Ultra 310LX Review June 5, 2017 2024 Kawasaki Jet Ski STX 160X Review June 14, 2024 Latest Stories 2025 Sea-Doo FishPro Apex Review 2025 Yamaha JetBlaster PRO 2-Up Review The Toys Of Summer Kemimoto 4 Bow Bimini Top and Boat Bumper Review Repowering Your PWC Like us on Facebook Follow us on Twitter Newsletter