THURSDAY, DECEMBER 31, 2020
What is the Average Cost of Boat Insurance?
Boat insurance premiums are similar to car insurance premiums, as they vary depending on a lot of different factors. On average, boat insurance can cost anywhere between $300 and $500 a year.
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Age
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Coverage limits
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Value of the boat
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Driving record
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Claims history
Certain areas charge more for boat insurance. This is partially due to the area’s crime rate, history of claims in the area, frequency and severity of natural disasters and more.
Certain states also have different requirements when it comes to boat insurance. Most states don’t require boat insurance, but it is heavily recommended. Although states don’t require insurance, marinas often do, so be sure to check with the marina you use for their rules and requirements.
As with your car insurance policy, your age can affect the cost of your boat insurance. Younger policyholders generally pay more in monthly premiums as they’re seen as more likely to be involved in an accident or file a claim.
Higher limits of coverage result in higher premiums. A basic boat insurance policy comes with:
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Physical damage coverage provides compensation for damage to or loss of the boat due to fire, wind, hail, theft, vandalism and more.
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Liability covers bodily injury and property damage caused by the policyholder while operating the insured boat.
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Guest passenger liability covers bodily injury and property damage caused by a guest passenger operating the insured boat with permission.
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Medical payments cover medical bills for the driver and their passengers after an accident.
You can also raise your deductible in order to save money on monthly premiums, but this also means paying more out of pocket after filing a claim.
Larger and more expensive boats cost more to insure, as they also cost more to repair and replace after an accident or disaster. Calculate the replacement cost value of your boat in order to purchase the right amount of insurance for your boat. Customized parts also require additional coverage.
Though it comes as a surprise to some people, your car driving record can affect your boat insurance rates. A poor driving record can drive your insurance rates higher, as the way you operate a vehicle is considered a reflection of how you will operate a boat. You can lower your boat insurance rates by driving defensively and taking driving courses.
The more claims you file, the more your insurance rates will go up. This is because when you file a claim, the insurance company must pay compensation once it’s approved. In order to mitigate the cost of paying compensation, your insurance rates may go up after a claim. Have any damage to the boat appraised by an expert before filing a claim. If the cost of repairing the damage is cheaper than the cost of your deductible, you may want to fix the costs out of pocket instead.
Your credit score can affect your boat insurance premiums. Poor credit can raise your rates, as your credit score is how an insurance agency calculates how reliable you are in paying your premiums. Build your credit by paying off debts and loans such as credit cards.
Keep in mind that your boat, circumstances and insurance needs will likely not be the same as your neighbor’s. It’s important to consider how much insurance your boat needs. Also ask your insurance agent about potential discounts you qualify for in order to save money on your boat insurance premiums.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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