If there’s one topic that always gets people excited when I bring it up at cookouts, dinners or pontoon parties, it’s boat insurance.
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what could be more exciting than chatting about average boat insurance costs broken down by annual rates or monthly payments?
Reading: How much is boat insurance monthly
And what fun it is when you and your friends get out a pen and paper and start calculating the cost of the boat insurance you need to reliably keep your family covered. fun stuff, right?
OK, maybe talking about how much boat insurance costs isn’t that exciting, but it’s important. seriously, it is.
It’s important from a simple legal standpoint (since you’re legally required to have boat insurance in many parts of the United States) and to protect your family’s financial future.
As a boat owner, boat insurance is an investment you shouldn’t overlook. that’s my answer to one of the most common questions people ask. that question is:
do you really need boat insurance?
Well, if the “boat” in question is a kayak, canoe, or raft constructed of paddles and string, then no, it’s not.
But if you have a Bennington S16 narrow beam pontoon, a Hatteras 100 elevated pilot yacht, or just about anything in between, then yes, you need boat insurance. At least if you want to be a responsible boat owner and operator, that is.
Now, if the question is “do I need boat insurance from a legal point of view?” then not necessarily.
In most states, you are not legally required to have any type of boat insurance unless your boat is considered an asset involved in a loan or lease. heck, in some states you don’t even need a license or training to operate a boat.
Having a boat insurance policy could very well mean the difference between a lifetime of peace of mind or an accident that results in financial ruin. imagine your boat being stolen or sinking leaving you without your precious vessel and with absolutely no recourse.
Think of it like this: No one legally forces you to lower the bar on the chair lift or tie your shoes before you go for a run, but it’s still a good idea to do those things, right?
same story for boat insurance. You hope you’ll never fall off the chair lift or trip while running, but using the bar and tying your laces are great ways to help ensure (so to speak) that doesn’t happen.
The general rule of thumb when it comes to calculating the average cost of boat insurance is that you will pay around 1.5% of the value of your boat in annual fees.
- To insure a boat worth about $20,000, it would only cost you about $300 a year to have it fully insured.
- If you own a boat worth $100,000, you can expect to pay around $1,500 to insure it.
- For the $2 million yacht, you’re looking at about $30,000 a year. (sorry, but multi-million dollar yachts are expensive to insure, that’s the way it is).
These numbers are just to give you a frame of reference because there are many factors that can affect the cost of your boat insurance. Don’t worry, many of these factors actually lower the price you’ll pay for marine insurance.
find the best boat insurance
Most major auto and home insurance providers also offer boat insurance (including Geico, Progressive and Allstate).
Check with any insurance company you already use and ask if they can provide you with other insurance coverage. they will often want to keep their business in-house if they can and can offer incentives.
In addition to your regular insurer, be sure to look in the US. usa, progressive, state farm and other major providers.
what factors affect the average price of boat insurance?
There are many things that can drive up the cost of your boat insurance, but there are also many ways you can get lower boat insurance prices.
Let’s look at some of the most common factors that affect the cost and average rates of boat insurance.
The more years you go without a boating accident or citation, the less you’ll pay for boat insurance. It’s also a good idea to be a safe boater just for the merit of avoiding bodily injury and property damage, of course.
If you own a home, chances are good that your boat insurance rates will be reduced based on that asset. this may come as part of a “package” offered by your insurer.
Even if you get homeowners insurance from one company and boat insurance from another, the latter may consider your home ownership a valid reason to lower the cost of your boat insurance.
If you pay for your boat insurance monthly or several times a year, that’s fine; in fact, it is standard. however, if you can pay for the entire year’s boat insurance in one lump sum, you’ll likely get a better rate.
age of the ship
Just like with cars, newer boats are often more expensive to insure. there’s just one caveat.
Contrary to popular misconception, buying a used boat may not be a savings in terms of insurance costs. Many insurance companies will offer a better rate to insure a boat that has only been owned by one person. therefore, it’s often worth keeping an old boat and making repairs and upgrades as needed (rather than replacing it).
what does an average boat insurance cover?
Now we come to perhaps the most important question: what does boat insurance really cover? many things, which vary from one policy to another.
Take the time to customize your boat insurance plan to meet your needs. carefully select what you and your family need based on your specific circumstances.
To get you started, here are some of the things covered by the average boat insurance policy that most boaters find very important:
If someone is injured in a boating accident and it is determined to be their fault (or the fault of someone in control of their boat), then your boat insurance plan will likely cover a good portion of the medical expenses associated with boating accidents. boating injuries. .
This is also true if you or someone on your boat is injured in an accident that is someone else’s fault. This is important, especially if the other parties involved made the poor decision not to purchase boat insurance.
After a boating accident, regardless of whether there were medical bills, there are often legal costs. these could be potentially ruinous if you don’t have good boat insurance coverage.
damage to property
If your boat is involved in an incident that causes damage to another boat’s property, a dock or part of a marina, or even just the boat itself, you’ll be glad your insurer covers repairs or damage. replacements. and not your personal bank account.
Even something as simple as forgetting to turn off the boat’s fenders could cause your boat to end up with a gigantic hull scratch. It’s good to have insurance that covers accidents like this.
A good boat insurance policy covers more than just repairs or replacement of parts of a boat or dock. It will also help you replace or repair items lost or damaged while boating, such as fishing gear, upholstery, boating hardware, galvanized steel anchors and propellers, or even personal items like jewelry or a phone.
look for great boat insurance rates every year
Once you have a boat insurance policy, don’t sit back and think you’re done with the process beyond making payments.
There’s a reason insurance companies run commercials and web ads all the time. they want you to change your plan and join them.
Many insurance companies will offer you attractive rates and incentives to switch to their brand, so shop around from time to time. You could save thousands of dollars over the years by always choosing the best boat insurance plan available.
featured boat care product
check price on amazon: best boat fenders help protect your boat’s hull from scratches, dings, and dents from docks or other boats. Made of premium marine grade material, they are durable and UV resistant. An inflation pump is included. use with fender lines for a secure and strong tie-down.