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5 Factors That Affect Boat Insurance Costs

You have spent a lot of time finding a perfect boat for your recreational needs, so now it’s time to protect it. Just like with a personal automobile, accidents and weather can cause significant damage. This is why having a boat insurance policy is essential. If you are unfamiliar with this type of coverage, you may be wondering what the approximate cost of boat insurance is and what factors drive it. Understanding this upfront may prevent surprises when the premium quote arrives.

There are numerous reasons why the cost of boat insurance can vary. One is certainly the size of the vessel – a large yacht will cost more to insure than a small fishing craft. In general, annual boat insurance premiums are in the range of $300 to $1000. Below are five additional items that influence this cost:

  1. Your driving record. Even though infractions (or lack thereof) occurred on land and not water, it is still used as an indicator.
  2. How the boat is used. Fishing trips on a quiet lake will net lower rates than a fast wakeboarding boat in a busy area.
  3. Previous history. Past claims on boat insurance will have an effect.
  4. Additional operators. Adding others to the policy can increase rates, especially if they are inexperienced.
  5. Being safe. Taking a safety course or carrying specific safety gear onboard may decrease costs.