How Does Insurance Work When Renting a Boat?

How Does Insurance Work When Renting a Boat?

Sometimes you just want to have fun out on the water without worrying about owning, storing and caring for a boat. Thankfully there are many options when it comes to renting a boat. Renting doesn’t save you from liability or property risks when it comes to operating a boat, however. You could still be held responsible for damages and injuries you cause as well as damages to the rented boat. This is why it is important to make sure you are covered under boat insurance. 

Renting a Boat from a Friend 

In many cases, people will rent a boat from a friend who owns one. Unlike when you rent a boat from a company, your friend likely won’t have a large financial cushion or high limits on boat insurance. It is important when renting a boat from a friend that you both have the insurance you need to be covered. 

It can be risky renting a boat from a friend because of the boat insurance limits and your personal experience. Rental companies will only allow experienced boat drivers to operate their boats, but you won’t necessarily face that boundary when renting a boat from a friend. 

Those who are renting out their boat should make sure to only allow experienced boat drivers to rent their boat. 

The boat owner needs to protect their asset. If you plan to rent the boat you own to another person, you need coverage to protect your asset. Property insurance is necessary here. If you plan to be the person who is renting the boat, you need boat insurance for liability risks. Rental boat insurance covers most liability risks. However, short-term boat renters coverage can have limitations. Since each policy is so unique, individuals need to obtain a copy of the policy to verify the details of it.  

On the other hand, if you are the person renting, speak to your current insurer. Learn if you have coverage if you plan to rent out your boat. And, if you plan to be a boat renter, be sure you protect yourself from risks. Liability insurance will be a key component to safe operations here. Do not overlook the importance of a comprehensive boat insurance plan in any case. Even a small accident or collision can create thousands of dollars in loss.  

Not all boat insurance policies are created equal so speak with your insurance agent about adding coverage in case you decide to operate a boat.