Insurance buyers should be ready for change.
- Most markets have adopted cyber exclusions on marine policies.
- The impact of COVID-19 and the economic slowdown are still TBD.(Uncertain markets lead to price fluctuation.)
- Analytics are playing an important role in setting terms, conditions and pricing in this changing environment. Useful tools include diagnostics for catastrophic modeling, loss trend analysis, deductible studies, heat mapping and total cost of risk (TCOR) exercises.
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.