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