Boat Insurance: Don’t Be Scared of the High Costs!

With Memorial Day right around the corner, it means summer is here and boating season is underway! For those who pine for the open sea, there’s nothing that compares to a day out on the water. However, boating can be a pricey hobby…even canoes can be costly. Also, depending on what type of boat you have there can be a lot of risks involved. This is where boat insurance comes into play!

Although most people don’t like to think about the extra cost that goes into having an insurance policy, it may be a wise decision to relieve your mind and let you fully enjoy your boating experience. Also, it may be necessary since some marinas or yacht clubs won’t let you dock without proof of insurance.

Within the insurance industry there are generally three categories of watercraft: Boats (Under 25 feet, 11 inches in length), Yachts (Generally 26 feet or longer in length), and Personal Watercraft (Jet skis, wave runners, and other personal watercraft).

Find Insurance That Fits Your Budget

With some knowledge and smart shopping, finding a boat insurance policy doesn’t have to cost you an arm and a leg. There are several different factors that go into determining the cost of your individual policy. Insurers often place a lot on previous boat ownership, so therefore if you have prior boating experience your policy will likely be a lot less expensive. The cost of the policy also depends on the type of vessel, the size, the age, and where it’ll be used.

For example, the Insurance Information Institute determined that “insuring a 25-foot speedboat worth between $20,000 and $25,000 would cost between $500 and $900 for physical damage coverage and about $5,000 for liability coverage.” However before a minor panic attack sets in at seeing those prices, it’s wise to keep in mind that speedboats (just like sports cars) are on the high end of the scale and more expensive to insure. A similarly sized sailboat might cost 25% to 50% less to insure.

There are several ways that you can keep the cost of your policy down. Taking an approved boating safety course is both recommended and often lowers the cost of the insurance. These courses are offered around the country by the U.S. Coast Guard Auxiliary and the U.S. Power Squadrons, and can lower your premium anywhere from 5% to 20%. Other discounts that boat owners should inquire about are:

  • Diesel powered crafts. It is less hazardous than gasoline since it is less likely to explode
  • Coast Guard approved fire extinguishers
  • Ship-to-shore radios
  • Two years of claims-free experience
  • Multi-policies with the same insurer, such as a car, home or umbrella policy

Boating Safety Tips

  • Make sure everyone wears a life jacket
  • Take an instruction course before operating a boat
  • Never consume alcohol while operating a boat
  • Don’t overload your boat with passengers
  • Know the local boating rules
  • Make sure the boat has enough lighting at night
  • Be sure to always keep your boat stocked with safety equipment such as a fire extinguisher, horn, and extra life jackets.

Source: Michigan Association of Insurance Agents

Go online today to SpiveyInsuranceGroup.com to get a free quote on boat insurance or call 877-318-5951 to get more information from one of our friendly agents! Spivey Insurance Group is here to save you money and find the best North Carolina boat insurance policy for you! Call today so that you can be worry free and relaxed while on the water!

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