When buying a boat, one thing most people never think about is how much it will cost to insure it. This is because in many states, having boat insurance is not mandatory. However, when you consider how expensive it is to buy a boat, getting it insured will save you a lot of headaches. But how much does boat insurance really cost? There is no short answer to this question. Working with surveyors near me will, however, help you know how much it will most likely cost to insure your boat.
When you finally decide to get your boat insured, you will most likely start by researching such things as how much it costs to insure the specific make and model of the boat. You will also want to think about the things insurance companies take into consideration before offering a policy. It is also good to learn about the available types of coverage. The best way to understand these considerations from the get-go is to consult surveyors near me that offer insurance surveys. They have more experience with insurance companies and will be able to offer the best advice on matters of marine insurance.
The average cost of boat insurance
Boat insurance is about 1.5% of the insured value of a boat. If you own a ski boat insured for $8,000, the premium will be $8,000 x 0.15 which is $120. This means you can expect to pay about $120 per year. The figure usually includes theft, collision, uninsured boater coverage and replacement of the boat itself. The cost, however, varies depending on several factors.
Factors that impact the cost of insurance
As aforementioned, there are many factors that impact the cost of insuring a boat. The main factors include the following:
- Age and condition of the boat
It is obvious that older boats are more prone to breakdowns. As a result, insurance companies charge more to insure older boats. If your boat is both old and in bad shape, you can expect to pay more in boat insurance.
- Who will be driving the boat and where it will be operated in
More often than not, if you are a bad driver on the road, you will end up being charged more on boat insurance. This is because you are considered to be a high-risk driver. The case is the same if you have had numerous claims filed. Moreover, if you will be operating the boat in risky locations, you will be charged more.
- State or area you reside in
It is also common for the cost of boat insurance to be affected by the state or area you reside. For example, insuring a boat in the southern states is a bit more expensive than insuring a boat in the Northern states. This is because of the threat of hurricanes in the south and the fact that in the southern states boats are used for longer seasons or even all year round.