Quote:
Originally Posted by BandB
Looked at like that, no insurance makes sense. The design is that you'll pay more for premiums than you'll ever collect. Otherwise insurance companies would never make a profit.
Insurance is to meet legal requirements (not relevant in this situation) and for peace of mind. Whether tow insurance buys enough peace of mind to justify it is an individual determination. Can you afford the maximum cost that it might be protecting you against? The cost of tow insurance is so small compared to other boating costs that we do carry it. So far, it's money out and none in. But then I also carry life insurance and I'm very happy no one has yet collected on it.
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One of the differences versus car insurance is that you have significantly more control over the situation. Actual collisions with other boat are not very likely. IOW, most instances where you are needing a tow, you have control over. My one time was an impeller failure and my ignorance at replacing/maintaining it. Had I done the proper maintenance, I'd be batting a thousand. Car insurance makes sense because there are so many variables that are beyond your control.
Life insurance is pretty much completely irrelevant. We are all going to die. The only reason to carry it is to leave money behind to your successors. Not to make any sort of "repair".
And in the end....if we were to rewind our lives....it would be significantly cheaper to self insure in most of our cases. Think of all of the money you have spent. And think of the services you have received in return. Health insurance is probably the one that makes the most sense.....again...because there are so many variables.