PWC Insurance Shopping Tips

The number one question I hear about personal watercraft coverage is: “Where can I find the cheapest PWC insurance?” Always remember that the premium charged directly reflects who’s assuming the greater risk. Cheaper usually means you take more risk. More expensive, your insurer assumes more risk.

About Marine Insurance

All pleasure craft are federally licensed. That makes personal watercraft subject to the federal Marine Insurance Act and Canadian Maritime law. Whereas snowmobiles, ATV’s and motorcycles are provincially regulated, licensed and insured under provincial automobile insurance statutes. 

So don’t assume that basic personal watercraft insurance coverage is comparable to these other motorized recreational vehicles. This difference makes for some distinct considerations to be aware of when shopping for PWC insurance.

For example, be very aware of accident benefits. By law, motorized vehicles covered under an automotive policy deliver standard accident benefits in the event of a bodily injury. But this may not be the case with a PWC policy, which may include very limited accident benefit amounts. So, to protect your livelihood and dependents, I’d suggest exploring additional accident benefit coverage for a PWC. But that’s not all. I’ve selected several more questions to answer while PWC insurance shopping.

What Do I Want To Insure? 

Your coverage choices directly impact how much insurance costs. The least expensive choice is likely for damage or theft to a Jet Ski. That’s because an insurer would only have to pay up to its insured value. Coverage gets more expensive for bodily injury or liability coverage, which can involve considerably more expensive payouts.

Who Is Covered To Operate My PWC?

Don’t assume that coverage includes other riders using your personal watercraft. If your family also rides it, make sure they are included in the “named insured” list. Also, a policy may or may not allow so-called “incidental use” by unnamed other persons. If not, don’t allow anyone other than “named insured” to operate your PWC for even a moment. Because if something goes wrong, you’re probably not covered. So, no casual ‘try-it’ rides in front of the cottage. Or allowing someone else to load your jet ski on a trailer at the launch. Regardless, for coverage to remain valid, all operators must be of legal age. And obey all other applicable laws while riding.

Where Can I Ride My PWC?

PWC insurance may or may not cover all of Canada. This is because most PWC policies impose navigation limits on use. For example, your coverage may not apply south of the 40th Parallel (roughly southern border of Ohio & Pennsylvania). Or if the PWC goes beyond a specified distance from shore in coastal waters.

What Uses Is My PWC Covered For?

Typically, a personal watercraft is covered while being ridden, trailered, launched, docked and stored. But note that liability related to trailering may not be covered, because trailers are covered under the auto policy of the tow vehicle.

Meanwhile, some PWC insurance policies specify a timeframe during which a personal watercraft must be stored. Typically, during the winter months. Then, it must be properly winterized and stored out of water. Note that freezing damage may not be covered. And if your jet ski is parked or stored on a trailer, some policies state the trailer must be locked and secured.

Additionally, most PWC insurance policies exclude commercial use. Among other things, this means the PWC can’t be rented to anyone. Or included as part of the deal to anyone renting your waterfront property.

Finally, Sea Doo insurance may have exclusions for racing, competitions and certain types of watersports or towing. What’s more, your coverage may be invalid if the engine horsepower is boosted more than stock.

How Much Will I Get If My Jet Ski Gets Stolen or Written Off?

PWC insurance payouts vary. The best is full replacement cost in the event of theft or unrepairable damage. This means the insurer pays the purchase price (plus taxes) with no deductible. Just be sure the policy declaration page states the correct price from the get-go. Some policies start depreciating your new jet ski’s value after it’s a year old. Others will hold off any depreciation for a couple of years. Also, check out if the policy covers stolen or damaged on-board gear and accessories.

I recommend shopping for an insurer that specializes in marine policies. Why? Because I’m not a PWC insurance expert. My tips suggest some of the considerations you need to address. But nothing in my article is intended to replace expert advice from a qualified marine insurer or broker. So, double check everything by doing your own PWC insurance homework!

Craig Nicholson, The Intrepid Snowmobiler, is an International Snowmobile Hall of Fame journalist and a long-time Kawarthas cottager who also provides tips and tour info for snowmobilers at intrepidsnowmobiler.com and for PWC riders at intrepidcottager.com. 

Photo Credit Left : Craig Nicholson
Photo Credit Below: Glen King