Boat Insurance Premiums Q&A


A boat insurance premium is the amount of money an individual, or boat owner, pays for an insurance policy. Going through the process of getting a quote, whether on our website or over the phone, will provide you with an idea of the cost. The deductible is the amount that the policyholder self-insures before the insurance policy kicks in. This is only applicable in the case of a claim for first-party property damage.

The premium is driven by a few factors including:

  • The type of coverage
  • Your boating experience
  • The type of boat
  • The area in which you live and use the boat
  • Any previous claims

Now that we’ve covered the basics, let’s get to the questions.

How is boat insurance different from other forms of insurance?

Boat insurance differs from other types of insurance, like home and auto, in a number of ways. Our policies are more tailored and personalized to the individual and their watercraft. Rather than doing business through an automated online aggregating process that doesn’t account for the unique characteristics of different boats, our underwriters will specifically analyze and evaluate each customer to ensure the right coverage is provided. There is no “one size fits all” mentality.

Are the underlying principles the same?

Essentially yes. The method of calculation and processes are similar. An underwriter will assess the risk by factoring in the characteristics mentioned above and elsewhere in an application to arrive at an appropriate rate. 

Who gets a higher premium?

Larger, more valuable boats will generally have a higher premium. As goes with most things, the more expensive something is, the more it will cost to insure. The insurance company undertakes a higher risk with a higher valuable watercraft. In the case of a claim, higher valued watercrafts will cost more to repair or replace. This is reflected in the annual premium costs.

Are all boat insurance policies the same?

Yes and no. Boat insurance policies may contain similar coverage. For example, a premier boat insurance policy should offer the following coverage features:

  • Agreed Value
  • “All Risk” coverage
  • Bodily Injury and Property Damage Liability
  • Medical Payments
  • Personal Property & Equipment
  • Disappearing Deductibles
  • And more…

Boat insurance policies vary mostly in the exclusions section, AKA what is excluded from coverage under the terms of the policy.

What are the key clauses to look out for?

Boat insurance clauses will cover everything from navigation territory, to machinery coverage and personal effects, and much more. An important clause to be aware of is who is entitled to operate the boat. The policy should indicate who is the owner of the boat and who is able to drive it. Some policies will allow for any qualified person to operate the boat with the owner’s permission.

Maintenance is another important section. There are typically responsibilities on both sides of the insurance contract. The insurer should respond to adjust all submitted claims in a timely manner. On the other side, the insured should maintain and care for the craft to keep it in seaworthy condition. Keep in mind that wear and tear is typically not covered under an insurance contract. That’s why it’s important to properly maintain the watercraft. This includes winterizing the craft, following a spring launch checklist, and much more.

What can lower the boat insurance premium?

As with any insurance policy, there are ways to reduce cost of premium, but many may reduce the coverage available under the policy. However, specific discounts based upon your experience and use of the boat can help reduce your premium without also reducing coverage.  The goal is to obtain the coverage you need without overpaying. We’ll work overtime to make sure you get that.

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