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FACTORS AFFECTING BOAT INSURANCE COSTS

Jan 19, 2018

What Factors Affect Your Boat Insurance Cost?

A number of factors, some in your control and some not, can have an impact on your boat insurance rates rates. Where you sail for example: if you sail on a lake that has a high rate of claims, the cost of your coverage will be higher than in a lake where there are far fewer claims. If you are sailing the intra coastal, its different than sailing the open seas.

Additional factors that affect your boat insurance rates, include:

  • Your use of the boat: If you only take your boat on occasional fishing trips, your rates will typically be lower than if you tow water skiers, wake boarders or parasails.
  • Your motor vehicle driving record: Good automobile drivers tend to be good boat drivers.
  • Your record of boat insurance claims: You may have to pay more if you’ve filed many claims in the past.
  • The boating experience of others who will be driving the boat: Adding your teenage son as a driver on your policy, for example, may increase your rates.
  • Safety measures: Have you had a certified safety course? Do you have Coast Guard approved fire extinguishers and radios to communicate with the mainland?
  • Horsepower of the boat: Often, boats with a higher horsepower engine will have higher insurance premiums assigned to them.
  • Your gender and age: Studies have found that women over the age of 27 tend to be quoted for better rates than men of the same age, even with equal driving records.
  • Spec’s of your boat: Year, make and model of the boat and motor, and whether you have an inboard or outboard motor come in to play when determining rates.
  • Region of the country: This is to determine if you will be using the boat in areas where there are natural hazards like hurricanes.
  • Your credit score: Believe it or not, insurance companies have found that a person with a lower credit score is statistically more prone to boating accidents.  If your credit score is low, you may be charged more for your boat insurance than someone with a higher credit rating.