Do you know that boat insurance is a wide-ranging market contrary to what most people believe? Since many risks are associated with owning and operating a boat, you must carefully select appropriate insurance coverage. Several factors may affect your boat insurance rates.
Clean Boat Operating Record
Just like with driving a car, truck, or motorcycle, a good driving record goes a long way in reducing insurance rates over time. With a clean boat operating record, you’ll be considered a low-risk insurance customer. The key is to focus on safety and boating responsibilities.
Minimal Claims History
The more boating claims you file, the more likely it will raise your premiums. Be aware that some insurers evaluate claims history without regard to which party was at fault. Maintaining zero or few claims in your boating insurance history is ideal.
Insurance companies are increasingly looking at credit scores and credit history as factors in setting rates. People who have a history of not paying on time pose higher risks to the insurer. Using a “soft hit” credit score, insurers can check credit history without affecting the score.
Your insurance score is based on your credit report that determines risks related to payment. Each insurance company uses its own system to determine this score which helps evaluate the risks of payout for each customer. The key factors that typically affect your insurance score are payment history, debt, credit history, and your use of various credit lines.
Some insurance companies allow you to bundle your boating insurance with other policies such as home or auto coverage at a discount. However, keep in mind that companies that offer this option may not specialize in the types of boating coverage you need, and you may end up losing out on other benefits.
Area of Operation of Your Boat
Boating insurance costs more if you live near the coast, whereas inland boaters generally pay lower rates due to lower risks. So, where you use the boat, along with its size and power, impacts rates. You can extend navigation limits temporarily by adding a one-trip or an annual rider. It allows you to travel by boat beyond the navigation coverage limits.
Age of the Owner
Your boating insurance rate reduces as you grow older.
Length of Boating Experience
More years of boating experience translates to lower premiums. Each insurance company uses its own methods for calculating insurance rates related to experience.
Specialized Boating Education Course
If you have undergone a boating safety course from the US Power Squadron or the USCG Auxiliary, the certificate can help you get as much as a ten percent discount on your boat insurance.
Consult with Scautub Agency LLC
It is important to talk with a boating insurance expert to discuss the options to lower your insurance rates. If you have questions about boat insurance, contact our team here at Scautub Agency. We will assist you in securing a policy that fits your unique needs.