Contrary to what most people believe, boat insurance is a wide-ranging market. Because of the complicated risk inherent in owning and operating a boat, coverage options and insurance rates can vary significantly from one company to the next. Navigation area, storage location, ownership experience, claim history, and motor vehicle record are all examples of variables that help determine your coverage needs. More specifically, each company uses its own combination of these factors to calculate whether you are high or low risk.<\/p>\n
To ensure you are getting the maximum amount of savings on your boat insurance, it is important you understand how these variables can affect you and more importantly, what to ask for when receiving a quote. The following is a list of variable discounts that could be applied to your policy:<\/p>\n
Automatic Fire Extinguisher System<\/strong> \u2013 Attain a discount with prevention systems. Installing an automatic fire suppression system can help you save on your annual premium.<\/p>\n Additional Safety Equipment<\/strong> \u2013 Having additional safety equipment such as EPIRBs, GPS systems, Depth Finders, or Radar on board can help you save as well.\u00a0 Boating Education Course \u2013 If you hold a current boating safety course certificate from the US Power Squadron or the USCG Auxiliary, you are entitled to a five or ten percent discount. Discounts also apply to state courses, as long as it\u2019s approved by the National Association of State Boating Law Administrators (NASBLA) and recognized by the US Coast Guard.<\/p>\n Boat Currently Insured<\/strong> \u2013 If your boat is currently insured, some companies will give you a credit for keeping it protected.<\/p>\n Choice of Coverage<\/strong> \u2013 Opting for higher limits of coverage, such as higher liability coverage, will increase your rate. In contrast, choosing a high deductible will lower your rate.<\/p>\n Clean Driving Record<\/strong> \u2013 Safely operating an automobile translates into safely operating a boat. The ability to drive responsibly renders another potential discount.<\/p>\n Diesel Engines<\/strong> \u2013 If your boat is powered by diesel, you could save on the cost of your Physical Damage coverage.<\/p>\n Insurance Score<\/strong> \u2013 Using credit history to determine appropriate insurance rates is becoming increasingly popular with insurance companies. By performing a \u201csoft hit\u201d credit score, insurance companies can view credit history without actually affecting the prospect\u2019s credit. In theory, two owners with the same boat in the same area can have dramatically different premiums if their credit scores are different.<\/p>\n Relationship Status\u00a0<\/b>\u2013 Having a spouse is a positive factor for some companies and therefore results in a cheaper rate. But singles do not fret. There are certain insurance companies that do not take your marital status into account at all.<\/p>\n Multi-Policy Discount<\/strong> \u2013 When including your boat with your homeowners and\/or auto policy, many companies offer an additional credit for insuring multi-lines. Although a popular option, one thing to keep in mind is that multi-line companies are not likely specialized in boat insurance. Discount aside, you may miss out on other benefits with an agent who is unfamiliar with boats.<\/p>\n Navigation<\/strong> \u2013 Where you plan to use your boat greatly affects your insurance rate. If you live in coastal regions like Florida, you are well aware of this stipulation. Areas with coastal exposure are considered high risk and therefore have higher rates. Since inland boaters are considered low risk insurers, lower rates apply. Navigation limits are another variable that varies from company to company; size and power of the boat is also a factor. Some companies use very broad navigation limits such as \u201cInland and Coastal Regions of the United States,\u201d while others have very specific limits. A separate one-trip or yearly \u201crider\u201d can also be applied for those wishing to temporarily extend their navigation limits and travel to places such as the Bahamas and Mexico.<\/p>\n New Boat Discount<\/strong> \u2013 Your new expense can actually save you money. The newer your boat, the higher your discount will be.<\/p>\n No Prior Claims<\/strong> \u2013 Having a safe boating record is also important in getting the best possible rate. Some companies do not differentiate at-fault and no-fault claims, so be sure to ask your agent to point out which companies do.<\/p>\n Outboard Motors<\/strong> \u2013 Because they are easier to maintain and repair, outboard motors generally warrant discounts. This does, however, depend on the number of motors.<\/p>\n Owner\u2019s Age<\/strong> \u2013 Who says getting old doesn\u2019t have its advantages? With boat insurance, the older you are the better your rate!<\/p>\n Owning a Home<\/strong> \u2013 Home ownership can also be a positive factor and result in lower rates.<\/p>\n Previous Boats Owned<\/strong> \u2013 Being able to operate a 20 foot bow rider does not mean you can safely operate a 45 foot yacht. All boating experience aside, many companies actually require comparable boat ownership history before insuring your newest vessel. This is particularly applicable with larger vessels.<\/p>\n Speed of Vessel<\/strong> \u2013 While many companies surcharge or refuse to insure a boat that is too fast, others may give a credit for boats with the maximum speed of 25 to 35 mph.<\/p>\n Years of Boating Experience<\/strong> \u2013 Along with age, the years of actual boating experience you have can have a positive effect on your rate.<\/p>\n As you can see, there are numerous factors that go into rating a boat insurance policy. Furthermore, each carrier uses their own combination of these variables to calculate your rate. With so many options available, it is wise to seek an insurance quote from a company that understands this market. With over 80 years of combined experience in the marine insurance field, the insurance agents at NBOA can ensure you\u2019re getting the exact coverage you need, with the right carrier, at the best price \u2013 whether it\u2019s a cruiser, trawler, pontoon, yacht, or sailboat.<\/p>\n