Extended Service Plans

Sea Safe Service Contracts

All you ever wanted to know about Marine Service Contracts commonly referred to as “extended warranties” but were afraid to ask…

In buying an extended vehicle warranty, as in so many other aspects of life, it’s important to be fully informed before making your purchase. Before committing to an extended warranty and a warranty company, one should take the time to fully explore the ins and outs of the various coverage and providers. While many coverages look similar; there are huge differences in the language used in the different contracts such as…

• Who administers (pays the claims) the coverage?
• How does a company define what they will pay for?
• Will the coverage provider pay the retail labor rate your dealer charges?
• What does the fine print say?
• What are reliable independent resources?

It is a good idea to request copies of the marine warranty contracts you are considering, and then compare them to determine which best fits your needs. If the marine warranty company will not let you see this before you buy then you should look elsewhere.

Here are some questions you should have answered before purchasing your marine warranty:

What is the value of a marine extended warranty?

There are many reasons to purchase a marine extended warranty. Your boat is one of your biggest investments. An extended warranty will insure it is always in the best mechanical condition. With the complexity of today’s products, one repair can often cost more than the extended warranty. Hourly labor rates average over $90.00 nationwide with many markets over $120.00 per hour. An extended marine warranty will provide you with peace of mind, knowing you only pay one price no matter how many repairs your boat needs. Beware of marine warranty contracts that severely limit the amount they will pay for a claim or for total claims over the life of the marine warranty contract.

Seasafe Direct pays 100% Parts and 100% Labor for all repairs. Based on the contract’s limit of liability $15,000 base, and up to an optional $35,000 upgrade.

What company stands behind the marine warranty?

We referred earlier to the term “administrator”. An extended marine warranty may be backed by a third-party warranty company or by the boat’s manufacturer. Knowing who will be administering your policy can give you insight into the potential weaknesses of the coverage you’re considering and their ability to pay claims. Administrators act as claims adjusters, authorizing the payment of claims to the service repair facility under the contract terms.

Third party warranties score very highly when it comes to ease of use according to J.D. Powers & Associates. Surprisingly, third-party warranties are often less expensive and offer broader coverage levels than those offered by the manufacturer. If you decide to purchase a third-party warranty, make sure they have the financial resources to meet their obligations under your contract. After all, the ultimate measure of a warranty company is ensuring that your claims are paid quickly and easily.

Worth Avenue Group is the Warranty Administrator for our program. Delivering Quality Insurance for over 40 Years. BBB Rated A+ since 1971 Worth Ave. Group and its affiliates have provided a sense of security for thousands of individuals nationwide.

Trusted, proven and reliable insurance provider. Worth Ave. Group, a family owned business, approaches customer service in a small town style. Each policyholder is handled with the utmost respect allowing for pleasant interaction that allows all questions to be answered effectively, efficiently and kindly. Claims are handled in-house by our adjusters, assuring a hands-on operation to provide immediate processing.

Does the marine warranty company possess the necessary licenses/registrations to sell coverage in your state?

Many of the 50 states have licensing/registration requirements to make sure extended marine warranty companies are financially sound and/or properly insured. A growing number of states, including New York, Florida, and California have very strict requirements when it comes to issuing licenses. While your state may not regulate coverage, searching for a company that meets the requirements in the states that do can help you to narrow your search.

SeaSafe Direct’s ability to market in all states reflects our administrator’s financial stability and claims history.

What does the extended marine warranty cover? How does it define what it will pay for?

There is no standard protection or level of coverage from one provider to the next. You should be familiar with the terms of the coverage you are looking at and ask questions when the terms look vague or ambiguous. Extended vehicle warranties come in many levels of coverage with many different definitions on what the coverage will pay for.

SeaSafe Direct provides the consumer best and most comprehensive coverage in the marine industry at a price that can fit every budget. Our “Named Custom Component Coverage” options are very clear, simple and easy to understand versus companies that offer the complexity of exclusionary coverages that can be vague and hard to understand. The detailed terms and conditions are available in our Field Resource Guide and in PDF format on the SeaSafeDirect.com web site.

Named Component Marine Warranties

These types of boat warranties (yes, there are many different levels of named component coverages) will list the parts that are covered. If a part is not on the list, it is not covered. One can buy a boat warranty with as few as 50 or so parts covered to as many as 750 with varying levels in-between. (see notes above)

Where can you take your boat for repairs? How are claims handled?

An extended warranty from the manufacturer sometimes requires that you obtain service only from them/dealer. You want to look for a warranty that gives you more than one service facility to choose from. You’ll appreciate this if the boat ever needs service while you’re on a road trip or voyage, miles away from home. The better, more established companies can tell you if they have already done business with your repair facility of choice. Beware of companies that require you to handle the entire claims process and wait to be reimbursed. Better marine warranty companies will allow you to take your boat to the repair facility of your choice and leave the rest to them by paying the repair facility for the repairs immediately via credit card with no paperworkor billing hassles.


• Our SeaSafe Direct “Anywhere Care” process is simple, and efficient.
• If you experience and issue, problem or concern call 1.800.723.6037 and report the problem to our administrator.
• Take your vessel to any marine dealership or repair facility in the US, or Canada.
• Your dealer or repair facility will then contact the customer service representatives at our administrator’s toll free number 1.800.723.6037 and provide them with contact information for the repair facility where your boat is located and get a claim number.
• The dealer or repair facility working with our administrator will diagnose and determine the cause of the problem. Report the specific issue and background of the incident to the administrator who will authorize the repair.
• The dealer or repair facility will complete the repair, call in the claim to the administrator, send over the necessary documentation, and get paid for the claim over the phone by credit card immediately.

What is the nature of the deductible?

Fully investigate a warranty’s deductible before signing on the dotted line. Consider not only its amount, but also whether it’s per repair visit or per repair. With a per visit deductible, each visit to the shop or yard will run you a fixed amount, regardless of how many parts are repaired; a per repair deductible applies to each serviced part. What sounds like a minor difference could have a major impact on your wallet.

SeaSafe Direct Deductibles are. $25.00 Gas Engine, $100.00 Diesel Engine and $25.00 for Custom Component Coverage or Stand Alone Component Coverage. Per Claim.

Is the warranty transferable?

Some warranties end when the person who bought the warranty sells the boat. A warranty that allows you to transfer it to a new buyer is preferable; it’s also an excellent selling point for prospective buyers and an added value when you decide to sell your boat.

YES, both New and Used SSD Marine Service Contracts are transferrable. (See Terms and Conditions section 7 Transfer Rights for details)

What exactly is the extent of the marine warranty coverage?

Know what’s covered — and what’s not covered — buy the extended marine warranty you’re considering. Does the contract only cover mechanical breakdown? These are very limiting plans.

SeaSafe Direct plan extends coverage beyond just mechanical breakdown coverage, due to a manufacturers defect in material and workmanship. We offer an extensive array of coverages to cover repairs on any boat up to 80’ and are designed to fit any budget. We do provide a list of exclusions including but not limited to owner neglect and abuse.

When will the marine extended warranty expire?

Some marine extended warranties have terms that start from the original in-service date (the original purchase date) of your craft. This is a sales tactic that companies use to make the contracts appear to have a longer coverage term. If you purchase an extended warranty that begins the day you buy it, the date of expiration will be clearly defined.

SeaSafe Direct New Boat Coverages: Start from the original in-service date but provide exceptional coverage for up to 3 years beyond the original manufacturer’s warranty. Example, of the original manufacturer’s warranty is limited to 3 years the customer can purchase a 3 + 3 coverage option for a total of 6 years. i.e. 3 years beyond the original 3 year manufacturers coverage.

SeaSafe Direct Used Boat Coverages:
Up to 9 years from the original in-service date and starts from the date the customer signs the SeaSafe Direct contract. Example, if a used vessel is in it’s 3rd year of ownership (i.e. 2012) we offer a 3 year coverage option which would extend coverage from the date of the contract for 3 additional years.

Eligibility Requirements for used as follows: Three year term current model year + 3 years. One and two year terms current model year +6 prior years. Older Units 1 year only current model year +7 – 9 prior years (add surcharge)

I’m still covered by the manufacturer’s warranty. Why buy it now?

A common misconception is that by waiting to purchase your extended marine warranty, you will get coverage for a longer time at the same price. While you can purchase coverage at any time, the cost for coverage rises as the craft ages and accrues hours, much like life insurance costs rise as we age. Put another way, you are buying tomorrow’s coverage at today’s rates.

SeaSafe Direct offers exceptional value at competitive rates and coverage for both new and used boat owners. Additional owner benefits beyond the engine and component coverage include Hoist/Haul-Out, Towing, Pick Up and Delivery, and Transfer of warranty…which is a marketable benefit to the boat owner should they decide to sell their vessel during the term of the service contract.

What risks do I have if I delay purchasing coverage?

• Coverage costs rise annually as parts and labor costs rise. Labor rates have risen by an average of $20 per hour in the past 3 years.
• As the craft ages and more repair data becomes available, many boat and engine types are placed into higher rate classes. Once you buy coverage, your rate class cannot
change.

SeaSafe Direct does not foresee near term rate increases or adjustments to the current price matrix for marine service contracts, deductibles, and services. However, as loss ratio data and competitive price influences dictate market conditions some adjustments may be necessary to remain competitive with our products and services. Your best option is always to purchase a SeaSafe Direct Service Contract/”Extended Warranty” today!

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