Credit Scoring for Boat Insurance

It is a well-known fact that your credit score is a crucial factor in your financial history. When applying for a loan, your bank will do its due diligence to determine how much of a liability you are. The main question they will ask is – are you responsible and reliable to pay your monthly payment on time?  

Your credit score is not used by only banks. Insurance agencies will pull your credit score and use it as a factor to determine your premium.

Your credit score should not impact your boat insurance!

There are two questions you should ask if a marine insurance company seeks to pull your credit when providing a quote for boat insurance.

Question 1: will pulling my credit score affect my credit? You do not want to risk a hit to your credit score when obtaining quotes for boat or watercraft insurance.

An insurance company can check your credit score in one of two ways and it is important to understand the difference. A “hard pull” commonly occurs when you fill out an application for a loan or credit card. The financial institution will determine the terms of their offer based upon your credit report. This means the rate you pay or the amount you can borrow is impacted by their findings. A hard pull will always have a negative impact on your credit score. You should consider whether this is necessary when obtaining insurance on your boat.

A “soft pull” occurs when a company simply checks your score, the same way that you may check your own credit score. Many insurance carriers claim that they run soft pulls that will not hurt your credit score. However, many consumers have found that these pulls are in fact hard and negatively affect their credit scores. If you make it through the insurance quote process with a company that pulls your credit score, one thing is certain. The premium that company charges you for coverage on your boat or watercraft is absolutely effected by what is on your credit report.

Question 2: do all boat insurance companies use credit scoring and if not, are you better off using one who does or doesn’t?

SkiSafe never requests a credit report and will not check your credit score. We all manage complicated budgets, including things like rent or mortgage payments, fuel, food, and day-to-day family expenses. SkiSafe does not believe that your family budget should determine if you are a safe boater.

SkiSafe does NOT ask for your social security number or for other information about your financial background. What does SkiSafe ask? We will ask about your boating experience and loss history. We will ask where you store your boat. We’ll ask if you use it year-round, if not you might qualify for an additional discount. We want to know that you are a safe boater, not about your household finances.

Our goal is to offer the lowest possible rate to safe boaters.




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