Boat Insurance Costs – Mega Storm Impact
One of the biggest – and perhaps most important – decisions that you will make with regard to your boat is to obtain a comprehensive insurance policy. Since several mega storms have occurred in the past few years, insurance costs have gone up. It is important to have a good idea about what type of boat insurance you need and what the cost will be. Whether you need private boat insurance or commercial boat insurance, protecting your investment should be your first priority, especially with all the storms that have been damaging boats in the past few years. Insurance companies like the ones that Global Marine Insurance represents offer a variety of boat insurance plans. If you are new to the world of boating, here are some things that you should consider when calculating your estimated boat insurance costs.
Insurance companies consider many different factors when developing and pricing a boat insurance policy. A few of these include:
- The age of the boat
- Its length, value and condition
- Its maximum speed
- Its condition of ownership (is it owned by a single individual or does it have two or more owners)
- Boat type
- Boat use (commercial vs. private)
- Is it used as a primary residence (this includes both houseboats and traditional boats)
Most boat insurance plans are based on either the boat’s agreed value or current actual cash value. Agreed value plans are more expensive, but they provide continual coverage for the boat at its value when the insurance policy is written. Actual cash value plans are considerably less expensive, but their coverage decreases as the value of the boat depreciates.
Insurance Cost Factors – What Will Your Premium Be?
The final cost of your boat insurance policy will be impacted by five main factors. These are:
- Your driving record. Insurance companies consider your driving record on land, and at sea. If you have numerous traffic violations with your vehicle, the cost of your boat insurance will be higher.
- Your training and education. Those who complete boater safety courses or who have certifications in boat safety can save a significant amount on their boat insurance premiums.
- Your estimated cruising location. Where you boat – whether on a lake, river, or on the ocean – will directly impact the cost of your insurance. Areas that are more likely to be impacted by mega storms will likely have higher insurance premiums. Most companies will request this information in order to write you a price quote. Be honest about your anticipated boating locations.
- The requested liability limits. The higher your liability limits, the more protection you have and the more expensive the insurance policy.
- Your chosen deductible. Choosing a higher deductible will greatly reduce the cost of your insurance premium. Remember, however, that the deductible is the amount that you must pay out of pocket for accidents, damage, and injuries before your insurance will release a payment.