Here are some 8 reasons why Documenting Vessels might be considered a better option for certain boat owners:
1. Nationwide Recognition: Coast Guard documentation is recognized nationwide, making it easier to prove ownership and establish your vessel’s legitimacy. State registration is typically only recognized within the state where it’s issued.
2. No Renewal Fees: Once you document your vessel with the Coast Guard, the documentation is valid for five years, whereas state registrations often require annual renewals and fees.
3. Preferred for Commercial Vessels: If you’re operating a commercial vessel, CG documentation is often required. It also makes it easier to obtain financing, insurance, or maritime services because it’s a recognized legal document.
4. Increased Resale Value: A documented vessel can be more appealing to buyers, especially if they are looking for a boat with a clear chain of ownership and title. It’s often seen as more professional or legitimate.
5. Protection for Foreign Waters: If you plan to travel internationally or in federal waters, CG documentation can simplify your paperwork. It’s often required for vessels traveling in U.S. federal waters or beyond the three-mile mark from shore.
6. Proof of Ownership: The documentation serves as a federal certificate of title, providing stronger proof of ownership than state registration, which can sometimes be more easily disputed or subject to confusion with similar state titles.
7. Legal Benefits: Coast Guard documentation offers certain legal protections, like priority in case of a maritime lien (a claim against the vessel for unpaid debts), whereas state registration doesn’t carry the same protections on a federal level.
8. No Display of Registration Numbers: Unlike state registration numbers that must be displayed on the boat, documented vessels are not required to display a number. Instead, they show their official name and hailing port, which can be more aesthetically pleasing and professional.
Bonus points: Marketing & Research Prior to Purchase
With Coast Guard documentation, the vessel’s chain of ownership is officially recorded. When you can show that the boat has had multiple owners, each for a long period (such as a decade), it speaks volumes about the boat’s quality and reliability. A well-maintained, long-lasting vessel is a positive signal to potential buyers or insurance companies, as it suggests that the boat has been well-cared-for and hasn’t experienced significant issues.
This kind of documented history becomes especially important for older vessels, where trust in the boat’s condition and maintenance can be harder to gauge. The public record of ownership adds credibility, making it easier for potential buyers to assess the boat’s worth and long-term viability. So, in a way, it’s a subtle but effective marketing tool for older vessels with a long, consistent history of ownership.
In summary, while state registration is often simpler and cheaper for smaller recreational vessels, documenting with the Coast Guard offers federal recognition, better protection, and benefits for larger or commercial vessels.