| What is the Difference between Third Party Liability | | | | much coverage is required in your state. |
| and Full Coverage Insurance? | | | | Full coverage insurance, on the other hand, will cover |
| Insurance can be very confusing for those of us who | | | | you, your boat, your motor, your trailer, and your |
| are not in the insurance business. | | | | passengers. |
| Often, our insurance agents start babbling about liability, | | | | It is often referred to as comprehensive insurance, and |
| comprehensive coverage, third party liability, and more | | | | it is available in different coverage amounts, with |
| - and we feel like they are speaking a language we | | | | different options that are available for the policy. This |
| have never heard before. Well - in a sense they are. | | | | type of insurance will be required by most lenders who |
| Again, it is very confusing to those who are not in the | | | | finance boats, and most lenders will have their own |
| insurance business. Unfortunately, if you are to get the | | | | requirements as to which optional insurance is |
| coverage that you need, at a price you can afford, | | | | purchased. |
| you must start learning some of the terminology. | | | | Essentially, what it comes down to is that third party |
| For instance, many people do not understand what the | | | | liability insurance coverage protects other people and |
| difference between third party liability insurance and full | | | | their property in the event of an accident that is your |
| coverage insurance is. Third party liability coverage and | | | | fault, while full coverage insurance protects you and |
| full coverage insurance are much the same, but in | | | | your property - in the same way that the third party |
| other ways they are uniquely different. Before you | | | | insurance protects others. |
| determine which one you need, it is important to | | | | In fact, full coverage insurance will cover you whether |
| understand exactly what each type of coverage is. | | | | the accident was your fault, someone else's fault, or |
| Third Party Liability Coverage is essentially coverage | | | | even no-fault. In most cases, it is in your best interest |
| that protects you in the event of an accident that is | | | | to have both third party liability insurance coverage - |
| your fault. | | | | which is required - as well as full coverage insurance - |
| It generally covers other people and their property that | | | | which may be required if you have financed your boat. |
| is damaged in a covered accident. It does not cover | | | | Again, even if the boat has not been financed, you |
| you, your passengers, your boat, your motor, or your | | | | should strongly consider purchasing a full coverage or |
| trailer. Furthermore, third party liability coverage only | | | | comprehensive policy. Many people even continue to |
| goes into effect if your boat is in an accident that | | | | carry the full coverage policy long after the boat has |
| occurred when the boat was being used in a private | | | | been paid off. |
| capacity, as opposed to a commercial capacity. | | | | Boat repairs are expensive, and anything can happen. |
| Third party liability coverage is required by most states, | | | | Most full coverage policies will cover you in the event |
| and each state will have its own requirements as to | | | | of mechanical failure, theft, and vandalism, as well as |
| the minimum liability coverage amounts that you have. | | | | losses caused by storms, fires, explosions, sinking, and |
| This type of insurance is generally required whether | | | | much more. Talk with your insurance agent to find out |
| your boat is financed or not. Third party liability | | | | about the different options available for full coverage |
| insurance coverage is often simply referred to as | | | | policies, and make sure that you get the coverage that |
| liability insurance, or in the case of boats, watercraft | | | | you need! |
| liability insurance. Talk to your agent to find out how | | | | CopyRight Ian D. Major 2005. |