Whether you’re a boat owner or participate in a boat club, you need boat coverage to protect yourself financially in case of accidents or injuries. Boat owners will also want to make sure they’re covered in case of theft.
Should new boaters expect to pay higher insurance premiums? Read on to find out.
Your Track Record Affects Your Insurance Rates
Insurance companies use rate formulas that will consider the number of hazards involved for each boater. The higher the risks, the higher your rates.
Unlike experienced boaters, new owners still haven’t demonstrated an ability to operate a watercraft safely. So – if you don’t have a proven track record as an owner, insurers will factor higher risks into your premiums.
However, insurance carriers may also consider your driving history when you get a quote. If you’ve been driving a car for a considerable amount of time, they’ll review your history of accidents, injuries, and insurance claims. Having a clean record suggests you’re a responsible driver even if you’re new to boating. As a result, an insurance provider might lower your boat premium by a bit.
You can also get discounts in other ways. For instance, consider taking a boating safety course like BoatClass to demonstrate your ability and willingness to operate your boat safely. Online boater certification classes are another option. Insurers may reward that proactive behavior with discounted boat insurance rates.
What Else Factors into Boat Insurance Premiums?
Being a new owner isn’t the only piece that may increase your boat insurance rates. Here are some other factors that insurance carriers incorporate into their premium formula:
The Age & Condition of Your Boat
Insurers assess the boat’s age and condition to determine the risks involved. If it’s a new vessel and has the latest safety features, you’ll enjoy lower rates.
Your age matters, too. The range from 25 to 60 years old seems to be the sweet spot for discounts.
How Frequently You Hit the Water
How many times do you plan to use your boat? If you’ll only take it out occasionally, you’ll pay less. The more frequently the vessel is on the water, the higher the risks.
That’s why people in the northern states usually enjoy lower premiums. The boating season is shorter up north, especially in states like Minnesota.
How you plan to use your boat may also increase your insurance payment. Fishing and floating, for instance, are considered low-risk pursuits. On the other hand, riskier activities – such as tow sports – are more prone to accidents, resulting in higher rates.
The Amount of Horsepower on the Transom
Did you know that more powerful motors may lead to higher premiums? Higher-horsepower vessels have more risks. Slower boats win the race to lower insurance rates.
Real-Time Boat Monitoring
Learn More About Boat Insurance Coverage
Insurance is not the most exciting topic, and it can be challenging to navigate if you’re a new boat owner. Still, it’s a safety measure you shouldn’t overlook.