What Factors Affect Your Boat Insurance Rate?

What Factors Affect Your Boat Insurance RateSummer is almost here, and that means fun days spent on the water in your boat. While this is extremely fun, accidents can happen when boating, which is why there is boat insurance. So, as a boat owner, you must understand how much your boating insurance can cost and what factors affect your insurance rate.

How Much Does Boat Insurance Cost?

Generally, your yearly boat insurance premium will be about 1.5% of the value of your boat. For example, if the value of your boat is $30,000, then your insurance premium will be about $450 a year or $38 a month. So, simply, if your boat is worth more, your boat insurance rate will be higher.

Factors That Determine Boat Insurance Premiums

Other than the value of your boat, there are several other factors that affect your boat insurance rate:

  • Driving Record: Insurance companies usually check the DMV records of the insured for their overall driving record. Insurers will typically consider things like DUIs and reckless driving arrests when determining the cost of your boat insurance rate. So, if you have a poor driving record, you may face a higher boat insurance premium.
  • Boat Ownership Experience: Generally, the more experienced the boat owner is, the better insurance rate he/she will get. Someone with 20 years of boat ownership may have a lower boat insurance rate than a new boat owner.
  • Use of the Boat: If you use your boat to tow water skiers or parasails, then your boat insurance rate will most likely be higher than someone who uses their boat for the occasional fishing trip.
  • Storage Location: Where you store your boat can play into your boat insurance rate. For example, if you store your boat in a shed, you may face lower insurance rate than someone who stores their boat on a dock in a hurricane-prone area.
  • Navigation Area: If you only plan on taking your boat out nearby, then you most likely will have a lower premium than someone who takes their boat out in open oceans, especially in international waters. Therefore, if you live in Massachusetts and do not take your boat out for long trips, it may not be necessary to get coverage for the entire east coast.
  • Safety Measures: In order to get a cheaper boat insurance rate, it may be beneficial to take a boat safety course. New England Maritime offers a two-day Boating Safety Course for $189. There are also several other boating safety courses available through Massachusetts State.

It is also important to have safety devices on your boat in case of an accident. These can include a fire extinguisher, a fume or vapor detector, or an anti-theft alarm. Having these safety measures can also help reduce the cost of your boat insurance rate.

There’s no better way to enjoy your summer than taking your boat out on the water! However, boat ownership is a huge responsibility: in order to minimize the costs of boat insurance, you must understand what factors determine your yearly premium. If you have any questions regarding boat insurance, contact us at TJ Woods Insurance.