Insurance against breakdowns
A boat is a major purchase, with multiple moving parts and components and as such, depending on which particular boat you are considering, can represent the potential for significant maintenance costs.
While the manufacturer’s warranty will cover you, under their specific terms and conditions, for a certain time, what happens after that? And what if you purchase a used boat which is out of warranty? How can you get a warranty when purchasing a used boat from a private seller?
There is an option to cover these situations, give you peace of mind of being able to cover unforeseen repairs in the event of mechanical breakdown – a great reassurance for many people. This is facilitated through purchasing extended warranty or Mechanical Breakdown Cover, an insurance product which Jade Boat Loans can assist you with.
It will cover most of the mechanical and electrical items on your boat. Depending on individual products offered by various providers, a mechanical breakdown plan can cover both repairs including parts and labour primarily on the mechanics and electrics and may include a certain amount to cover general maintenance and wear and tear.
This type of product is suited to extend the manufacturer’s warranty you receive at time of purchase. The usual term is an extension of 3 years after the manufacturer’s warranty expires.
The actual items to be covered, eg the engine and specific mechanical items, can be discussed with the provider of the policy.
Mechanical Breakdown Cover is especially beneficial when purchasing a used boat from either dealer or private seller. A scenario when, while the sale may be conducted in good faith an intention, you don’t really know how the previous owner or in some cases multiple previous owners, have treated the boat. So you have no idea what you may be up for in repairs.
This cover gives you peace of mind of not having to keep savings aside to cover the unforeseen.
This type of marine insurance coverage is available through specialist insurance providers with coverage varying with individual policies. So, as always, read all the fine print, the terms and conditions as we discuss in our blog on Boat Warranties and carry out your own cost-benefit analysis.
Your Jade Boat Loans consultant can discuss the pros of cons of purchasing an extended warranty with you so you can make an informed decision.
If you decide to proceed with coverage arranged through Jade, the cost can be included in your overall boat loan package. So you won’t have to pay an additional cost. It will be all included in your monthly repayments.
To find out what your monthly repayments may be on the boat you are considering, use the Jade Boat Loans online calculator. A quick and easy way to get an estimate.
Jade Boat Loans are specialists in marine finance and can provide insurance and other ancillary services as well sourcing you a great boat financing package with a expert boat loan broker.
Disclaimer: The information contained in this article is sourced from government and reputable sources, however, it is intended as a guide for general information.
Insurance against breakdowns