How Much Does Boat Insurance Cost

A boat is not typically a cheap thing to buy. It’s worth more than a thousand dollars that’s why not all people can afford to own one. While that may be true, there are some owners who consider a boat as an investment, while others just purchase such vessel just for the sake of having a boat in their backyard. But whatever purpose this particular item serves, a boat insurance would come in handy.

Just like other types of insurances, a boat insurance provides coverage if the boat, as well as its motor and trailer, sustains physical damage. It also includes liability coverage if a person gets injured on the boat due to the improper way of operating the vessel. The insurance policies are ineffective when the boat is not in use.

Average Cost of a Boat Insurance

The price to insure a boat is, at least, a hundred dollars, but it can go up to $1,000 or more per year, significantly depending on factors like the type and size of the boat, and the location. If you want to determine an approximate cost for your annual premium or yearly contribution, Dr. Kevin Curran of All Things Boat says that the boat insurance cost is 1.5 percent of the boat’s current market value.

Let’s say your boat costs $10,000. Taking 1.5 percent from the price gives you $150. Therefore, an approximate premium of $150 per year is the worth of the insurance policy for a $10,000-boat.

i.e. 10,000 x 0.015 = 150

However, the calculation only gives you an estimated value, and it doesn’t always work the same way. Apparently, insurance companies have their own methods for determining the boat insurance cost, so it is much better to get quotes from your chosen insurer to provide you with a more accurate value.

Factors Affecting a Boat Insurance Cost

You have already known a few factors that affect the boat insurance cost, as stated in the earlier part of this article. In that regard, here are other common considerations that insurance firms look into before you are given the price for your boat insurance.

1. Specifications of the boat. These include the boat’s length, the year, make, and model, as well as the type of motor the boat has.

2. The type of your boat. There are many types of boat. You have a bass boat, a small fishing vessel, a ski boat, a speedboat, a yacht, and a utility boat, just to name a few. And each type has a unique insurance policy to consider.

3. The purpose of the vessel. If the boat is only intended for personal recreation, then the cost of boat insurance may be lower than that of the boat used for businesses, like boat rentals and passenger boats.

4. Age of the property. Typically, older boats have lower insurance costs. If you have the newest model, then expect to have a more expensive coverage.

5. The boat’s horsepower or speed. In most cases, boats with higher horsepower engines have higher premiums.

6. Security and safety. If your boat has passed the security and safety standards, the value of your annual contribution tends to go down significantly.

7. Your current location. States that are highly visited by hurricanes, tornadoes and other natural calamities (e.g. Florida and Oklahoma) have higher boat insurance costs.