5 Factors That Influence Your Boat Insurance Premiums 

Like car insurance premiums, boat insurance premiums are based on many different data points and vary as a result. Here are five factors that affect how much your boat insurance policy's premiums are.

1. The Amount of Coverage for Your Boat

How much coverage a boat policy provides for your actual boat influences your premiums because the coverage dictates how much the insurance company must pay out if your boat is severely damaged or destroyed. The amount of coverage that your boat has may be determined any of three different ways.

Actual cash value coverage covers your boat up to its fair-market value. This value is calculated when you file an insurance claim, and it's based on comparable sales, value guides, and auctions of similar vessels. In theory, the amount of coverage that actual cash value is equal to what you'd get if you sold your boat without any damage.

Agreed value coverage protects your boat for an agreed-upon amount that's determined when you purchase the policy. This value may be more than your boat's fair-market value if you have an exotic craft or have made lots of improvements to the vessel. Premiums for this type of coverage increase or decrease as the agreed-on value goes up or down.

Stated value coverage protects your boat for a value that you claim. As is the case with agreed value coverage, premiums increase or decrease as you raise or lower the coverage amount.

2. The Area Where Your Boat Is Covered

If you have a larger boat, the regions where your boat is covered also impacts how much your boat policy costs. There are multiple coverage areas that might apply, and some of them overlap. Coverage for larger areas and more dangerous waters generally costs more than coverage for smaller areas and safer bodies of water.

If your boat is 26 feet long or smaller, the area of coverage probably won't impact your policy's premiums. Most policies for boats this size cover boating on inland waterways and on coastal waterways as long as you don't go too far from shore.

The coverage area of your policy is defined by the policy's navigational warranty. An insurance agent can help you locate the navigational warranty and check what regions it applies to.

3. The Capabilities of Your Boat's Engine

The strength of your boat's engine determines how fast your boat can go, and that affects how likely an on-water accident is. Thus, the capabilities of your boat's engine play a role in what your boat insurance policy's premiums are. Expect to pay more if your boat has an especially powerful engine or several of them.

4. The Place That Serves as Your Primary Residence

If you use your boat as your primary residence, your boat insurance premiums will be higher because you need more coverages. Not only do you need protection for the boat and liability protection for yourself, but you also need insurance for your personal belongings.

If you don't permanently live on your boat, you can insure your personal belongings through a traditional homeowners or renters insurance policy. In this case, you don't need to include coverage for these items in your boat policy and don't have to pay for the higher premiums that come with the added coverage.

5. The Safety Equipment on Your Boat

In the event of an on-water emergency, the safety equipment you have on board your boat can significantly influence the outcome of the emergency. Thus, many insurance companies offer various discounts for safety equipment that's installed or stored on your boat.

For help finding boat insurance , contact Coastcomp Insurance Agency.