![]() ![]() Many companies will refer to this as an “agreed value” policy. As a result, the boat owner will need to get an insurance policy that will cover the difference. Unfortunately, boats depreciate quickly, and often, the boat’s value will be less than what is still owed. Your financing company will demand that you get an insurance policy that will cover the loan if the boat is damaged or destroyed. This is especially true if you’re financing the boat. The more expensive the boat, the more expensive it is to insure. For example, a catamaran will be more expensive to insure than a monohull boat. Rarer boat types are also more expensive to insure. This means that all-things-equal, a boat with an outboard engine will cost less to insure. Unpowered boats without sails are cheaper and less likely to have issues while out on the water.Ī boat with an inboard engine will be more expensive than a boat with an outboard engine. The type of boat you have will greatly affect how much insurance you need and how much it will cost you. These factors may include but are not limited to: Insurance companies use their own expertise to determine which factors they use and how they are weighted. 12 Factors That May Impact Boat Insurance Costsīoat insurance costs will vary based on many factors. ![]() The boat is located in Delaware, and the owner is paying $348.00 a year. However, here are a few basic examples I found from other boaters around the web:Ģ003 Scout 242 Abaco with a 225 HP Yamaha motor in Northern California. Hull value of $70,000.00. The owner has full coverage and is paying $658.00 a year for insurance.ġ963 Bertram 25 with two 135 HP motors on Orange Beach, Alabama. Individual factors will come into play, but, in general, the 1.5% rule is reasonably accurate for estimation. So a $100,000.00 boat should have an annual insurance cost of $1,500.00. However, you can estimate annual costs based on 1.5% of the boat’s value. 12) The type of policy being purchased.Īs we will see in a second, many factors go into boat insurance, so absolutely knowing the costs ahead of time isn’t possible.11) The owners boating safety education.10) The Owners Credit History/Insurance Score.9) The Owners Years of Boating Experience.12 Factors That May Impact Boat Insurance Costs.3 Typical Boat Insurances Cost Examples. ![]()
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