The cost of boat insurance can vary considerably among different insurance providers. There are multiple factors that contribute to these variations in rates.
First, your navigation area plays a crucial role; for instance, boating in coastal waters may pose higher risks compared to freshwater lakes, leading to increased premiums. Additionally, the way you store your vessel—whether it’s kept in a secure marina or parked on your property—can affect your rate; boats stored in safer environments typically attract lower costs.
Your experience as a boat owner is another vital factor. Insurance companies often offer better rates to those with extensive boating experience or certifications, as they are deemed less likely to file claims. Furthermore, your motor vehicle record is taken into consideration; a clean driving history can help you secure more favorable rates.
Lastly, any prior claims you've made can influence your insurance costs. If you have a history of multiple claims, insurers may perceive you as a higher risk, leading to higher premiums. By understanding these factors, you can better navigate the world of boat insurance and find a policy that fits your needs and budget.
How much does boat insurance cost?
- Average annual cost: $200 – $600 for standard recreational boats.
- Rule of thumb: 1% – 5% of your boat’s value per year.
- Monthly range: $25 – $125+ depending on boat type and location.
- Example: A $20,000 boat costs about $300/year; a $100,000 yacht could cost $1,500 – $5,000/year.
Boat Insurance Cost Factors and Discounts
Insurance companies typically consider various factors when calculating rates. Below are rating factors and potential discounts that may apply to your policy.
- Prior Boat Ownership – Most insurance companies prefer to see previous boat ownership, especially for larger vessels. If you have never owned a boat and are purchasing a 17-foot runabout, that’s not an issue. However, if you're buying a 45-foot boat, they typically want to see experience with a similar size. Having owned a 17-foot boat before transitioning to a 45-foot is generally viewed unfavorably, and many companies may not accept this risk.
- Top Speed of the Vessel - Many insurers may refuse coverage or impose additional surcharges for high-speed vessels.
- No Lapse in Insurance Coverage - If your insurance policy has lapsed, many companies may apply a surcharge. Keeping your boat insured continuously will help you receive the best rate.
- Insurance Credit Score – Most insurance companies utilize credit history to calculate rates. They can access credit information to determine an insurance score. Two similar risks can have different rates based on their credit scores.
- Your Age – Younger operators can lead to higher rates. It’s important to manage who operates your boat to keep costs down.
- The Boats Age – Insurance rates can vary significantly based on the age of the boat. Newer boats generally qualify for larger discounts.
- Coverage and Limits – Decide if you want a comprehensive policy with maximum coverage or just the basics. Higher limits for medical payments or liability can increase your premium.
- Deductibles – Opting for a higher deductible can help lower your rate. Always ask about the premium difference based on different deductible options. The savings might be more substantial when moving from a $250 to a $500 deductible than from a $500 to a $750 deductible. If you’re unlikely to file a claim for a $500 deductible, you should consider accepting the savings for a $750 deductible.
- Navigation - Where you plan to use your boat significantly impacts your insurance rate. Boating on a local land-locked lake is considered lower risk compared to a vessel operating in coastal areas like Savannah, GA, or during a Great Loop trip. Areas with coastal exposure, particularly Florida and the Gulf Coast, typically have the highest rates.
- No Prior Losses or Claims – Many insurance companies offer discounts for having no prior claims. While it's crucial for insurers to pay claims, it’s also important to know when to file one. For example, if you have a $300 claim and a $250 deductible, claiming the $50 could cost you more in the long run if it affects your loss-free discount. Be sure to ask about how a claim could impact your rate.
- Safety Equipment - Investing in additional safety equipment such as EPIRBs, GPS systems, depth finders, radar, fume detectors, and automatic fire extinguishers can often lead to discounts from many insurance providers.
- Diesel Powered Boats - Most companies offer discounts for boats powered by diesel engines.
- Automobile Driving Record – A clean driving record with no violations or accidents can help keep your insurance rate down.
- Boating Safety Course – Many insurance providers give discounts for completing a boating safety course.
Additional typical discounts may be available for being married, owning a home, or insuring multiple boats. Let United Marine Underwriters, with over 30 years of experience, assist you in finding the best coverage and rate for you and your boat. Get a Quote
