Saturday, July 13, 2024

Why Is Boat Insurance So Expensive

The Owners Credit History/insurance Score


The insurance company will do a soft credit history check.

This means that their inquiry will not show up on your credit, but they will know your history.

They will use this information to determine how much your premiums will be on your policy.

Any history you have with other insurance companies will also come into play.

Why Are Northern States Typically Less Expensive Than Southern States

Boat insurance rates are generally more affordable if you live in a state with no coastline, and many coastal states are in the southern part of the United States. Along the coast, you’ll usually find bigger and more expensive boats used in the oceans and on the Gulf of Mexico. The Great Lakes states tend to fall in the low-cost category because boat lengths tend to be smaller, with many boaters taking advantage of inland lakes and rivers. The length of the boating season also has a big impact on the cost of boat insurance. Many northern states have shorter boating seasons and lower policy costs than southern states where the boating season is generally much longer.

What Does Boat Insurance Cover

Boat insurance contains coverage types to help in different situations, much like car insurance:

Property coverage. This protects the boat against theft and damage due to an accident or sinking. This coverage usually applies to the boat whether its on land or water.

You may get a choice of actual cash value or replacement cost coverage in the event your boat is totaled or stolen:

  • With actual cash value coverage, if your boat is totaled your insurance claim will reflect the value of the boat at the time of the incident.
  • Replacement cost coverage doesnt factor in depreciation. It will reimburse you for the amount of money it would take to repair your boat back to the same condition before the accident or replace it with the same or similar boat model.

Liability coverage. If your boat damages someone elses property, such as another boat, or injures someone during an accident, liability coverage pays their damages. It may also cover problems caused by your watercraft, such as a large wake. Liability insurance also covers your legal fees if youre sued over a problem covered by the policy, such as a boating accident.

Medical payments coverage. If you or your passengers are injured in a boating accident, medical payments coverage pays for your medical bills.

Uninsured watercraft coverage. If an uninsured boater strikes your boat, uninsured watercraft coverage pays your medical bills.

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What Is The Likely Impact Of Coronavirus On Boat Insurance

For owners in most countries, the simple reality that they havent been able to use their boats for a while is bad news. But in the absence of specific cover built into a contract to cover marina fees or lack of use during enforced down time, its a hit the boater will be compelled to take.

What is more critical, however, are the potential implications for yacht owners in the Caribbean, as Barrie Sullivan points out: In the Caribbean, most clients have been told where they can and cant be during the hurricane season. And because travel is now restricted and a lot of the countries where there is safety and shelter are not accepting any more people, there will be a lot of boaters in the Caribbean who are stuck with their yachts in areas where they wont get hurricane cover.

And this is an incredibly sad dilemma because theres no real solution to it. My view is that, having learnt their lessons through expensive mistakes in the past, no insurers are going to break their rules to accommodate it.

You Havent Shopped Your Rates

Why are Boats so Expensive to Maintain and Buy? ( The TRUTH! )

Has it been a while since youve shopped your Atlanta car insurance rates? Every insurance company is different, so by getting multiple quotes to compare coverages and driving you might find that you can get better rates.

Our team can help you there. Well help you find great coverage at a great rate. Get started with your Atlanta car insurance quotes by filling out our form or giving us a call.

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The Cost Of Repairs Are Increasing

As it is with most things, the cost of car repairs has gone up in recent years. Newer technology is also being introduced in new vehicles. And in most cases, the cost of repairs for newer technology is higher than that of older tech. Therefore, to accommodate the increase in these repair costs, car insurers in CT have increased the premiums their policyholders pay.

Should I Consider Buying A Used Boat

If you plan on going fishing more than not, its probably best to buy a new boat. The main reason for this is because it will still be under warranty.

More often than not, second-hand products of all kinds will no longer have an active warranty, and often, re-selling something like a bass boat can straight up void any existing warranty. If you buy a used bass boat and something goes wrong with it, youll be the one footing the bill.

However, that said, it does really depend on where you buy the bass boat and from who. If you get it from somebody who barely used it and always took care of it, chances are it will still be new, more or less.

In this case, if you want to save some money, go for it and buy a used model. You just really need to look out for any sort of damage and always test the boat first.

All of that said, if you only plan on going out once a week or even less, and you dont have all that much cash to spend on a new high end bass boat, then yeah, go for a used one. Old things that have been well cared for can still work just fine.

Whether or not you go for a used bass boat is going to depend on how often you want to use it and how good of a condition the boat is still in. This is not a one size fits all kind of thing.

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Do I Need To Have Boat Insurance

Although boat insurance is only legally required in a few states , you shouldnt go without it in most cases. If you end up in an accident or stranded out in the ocean somewhere, youll be glad you have it.

Its recommended that you obtain boat insurance if you own one of the following types of boats:

  • Personal watercraft
  • Motorboats

Conversely, if youre just using a canoe, a small-engine boat, or an inexpensive boat worth less than $1,000, you may not need boat insurance.

What Can I Expect To Pay For My Boat Insurance Policy

Why Do I Need Boat Insurance?

Like I mentioned earlier, the most significant factor that will impact your boat insurance premiums is how your boat is valued. That value is highly affected by the type of watercraft you are insuring.

For most water vessels that we insure in PA, the insurance policies run between $100 and $300.

The size of your boats motor is the other major factor in determining your insurance premium.

If your vessel has a higher horsepower motor, your policy will likely be closer to $400 or $500.

If youre lucky enough to have a yacht, you should plan on much higher premiums for your vessel. Insurance for a small yacht will cost around $2,000. For a large yacht, you can expect to pay in the hundreds of thousands of dollars for insurance.

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Severe Weather Is Common In Ct

Severe weather is frequent in CT. There are winter storms, floods, and other storms at some time of the year. Therefore, these weather-related events can cause damage to your vehicle. So, your car insurer has to pay out these unpredictable claims. Satisfying these claims can cost the insurer quite a bit of money. So, they accommodate that with higher premiums.

What Happens In The Event Of A Total Loss

A boat insurance policy has some key elements including sudden and accidental direct physical damage to the boat and boating liability coverage. Its important to read the policy terms, conditions and exclusions in your boat insurance policy for specific details. Heres a general idea of some coverages which may be included in a boat policy.

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Cost Of Boat Insurance

Boat insurance is pleasantly inexpensive. Covering your boat and your family onboard can cost on average only around $20 per month. However, there a several discounts available that may make it even more less expensive!If you package your boat insurance with your home and auto insurance, pay the full-year rate upon signing up for insurance, or taking a boaters safety class which can save 5%– are a few ways to drop your insurance rate.

How Much Boat Insurance Do I Need

Why Is Car Insurance So Expensive?

Beyond any state legislation or binding agreements with your lender or marina, the answer to this question may come down to your individual tolerance for risk. As discussed in earlier questions, some states do have minimum requirements for liability insurance coverage. Check with your state government to see whether you are required to meet a coverage threshold. The amount of boat insurance you may need depends on a number of factors, including the boatâs value, motor size, and age. Like other vehicles, high-performance boats will likely command a higher level of coverage to compensate for the amount of damage they are able to inflict.

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Is There Anything I Can Do To Reduce My Boat Insurance Premium

As with other forms of insurance, the key methods of reducing your premium involve reducing the Agreed Value , increasing the excess and shopping around for a better boat insurance deal. The building of insurer-client relationships is also becoming more highly valued than it was in the past, but as Richard Power points out, the market has transformed, within the space of six months, from a buyers market to a sellers market.

As a result, price flexibility is now constrained by the resumption of sustainable rating systems and the giveaway bargains of the past are simply no longer available.

Who Does Your Car Insurance Protect

Your car insurance protects you and your family members when you or they are driving your car. The exact details of this will depend on your insurance policy. Your insurance policy may also provide coverage for any person who drives your car with your consent.

You can get personal auto insurance or commercial car insurance. The type of insurance you should get will depend on what you use your vehicle for. If you get personal car insurance, you will not receive coverages when your vehicle is used for commercial use. This includes commercial purposes like ride-sharing services such as Lyft or Uber and also delivery-making.

If youre planning on using your car both for personal use and for some commercial purposes, you dont need to purchase a separate commercial auto insurance policy. Some insurance providers offer their clients to extend their coverage at an additional cost. This way, you may be able to save money while still getting the coverages you need.

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You Have A History Of Traffic Tickets Driving Violations Or Accidents

Insurance companies also look at driving history when setting car insurance premiums. A DUI, speeding tickets, traffic violations, or accidents can instantly put a neon sign flashing risk over your head when you get car insurance. Thats because these traffic tickets or incidents cause the insurance company to see you as an unsafe driver, and unsafe drivers are more likely to get into an accident. And as a result, you could see higher Atlanta car insurance rates.

Progressive: Best For Cheap Boat Insurance

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  • Rates as low as $100 per year

  • Wide array of coverage

  • Restrictions on types of boats covered

  • Strict coverage limitations in areas with hurricane risk


As expected from one of the industry leaders in personal property insurance, Progressive offers all of the major coverage and more, including:

  • Bodily injury and property damage liability
  • Comprehensive coverage
  • Propulsion Plus mechanical breakdown coverage
  • Sign & Glide on-water towing
  • Fishing equipment or carry-on items
  • Water sports injury coverage
  • Fuel spills and wreckage removal
  • Roadside assistance and trip interruption
  • Full replacement cost


You can potentially save even more with Progressive by qualifying for some of the following discounts:

Additionally, Progressive offers these perks that help customers save on their boat insurance over time:

  • Small Accident Forgiveness This prevents your rates from increasing if you end up in a boating accident with a claim under $500.
  • Large Accident Forgiveness This prevents your rates from increasing after an accident if youve previously remained accident free for three years.
  • Disappearing Deductible Your deductible lowers by 25% for each period you remain claim free until it finally reaches zero.


Progressive boat insurance is only available for boats up to 50 feet in length, and in some states that experience higher hurricane risks, the limitations are 35 feet and $175,000 in value.

Additional Perks

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Costs Of Owning A Boat

Boats can cost a lot by themselves, but you arent quite done after spending a few ten or hundred thousand dollars to buy a boat. Then come the costs of ownership and maintaining the boat, and these costs can be quite significant when compared to the cost of the boat itself .

The costs of boat ownership are important because in the long run, they could quickly reach and exceed the boats upfront price.Sowhen choosing a boat, you should consider not only its storefront price but also its long-term costs of ownership.

Below are the key things that you will have to take care of as a boat owner.

Why Are Pontoon Boats So Expensive To Buy

With price tags as high as $250,000 pontoon boats are not cheap. Even mid level boats can cost up to $125,000.

How can pontoon boat manufacturers justify such high price tags?

To answer that question lets break down the basic costs of building a pontoon boat to see what the profit margin is for the manufacturer.

Material costs to build a pontoon boat

Basic costs of materials to build a three tube pontoon boat:

  • The aluminum rolls and computer welding cost : $2,700.
  • For 3 pontoons add an additional: $1,400.
  • Frame and decking: $1,500.

This amounts to approximately $5,600 in materials for the pontoons, frame and deck. But of course this is just the basic shell of the boat, now we need to look at the motor and furniture, fencing and rigging.

  • A typical 200 hp pontoon motor will cost: $20,000.
  • Furniture & upholstery will cost approximately: $15,000.

So you now have the raw materials for a pretty cool pontoon boat. Lets calculate those costs.

Basic boat shell: $5,600

Motor & Upholstery: $35,000

= $40,600

$40,600 sounds like a lot of money the manufacturers have to splash out to make a pontoon boat and seems to go a long way towards the cost of the boat, until you look at the price tag that is. These figures relate to the type of pontoon boat that retails for about $125,000. Theres a big difference in those two numbers.

So, is the difference between the material costs to make the boat and the selling price, , all pure profit? Is this just markup in the extreme?

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Is Insurance On A Motorhome Expensive

How Much Does RV Insurance Cost? Class A motorhomes are the largest and most expensive vehicles to insure. The average insurance cost ranges from around $1,000 to $4,000 or more per year. Class C motorhomes should be slightly cheaper than the class As, with an estimated cost of around $800 to $3,000 per year.

Get A Boat Insurance Policy To Protect Your Investment

Why Is Car Insurance So Expensive in Connecticut?

Boat insurance helps you enjoy peace of mind as you navigate your boat or personal watercraft . So if you travel across lakes, rivers, or ocean waters of the United States we can help. Whether you’re looking for a new boat insurance policy or just to save money on an existing policy, we’re can help you get started with a free boat insurance quote.

Make boating better, together. Experience and a name you can trust go a long way when you’re shopping for boat insurance. That’s why the GEICO Marine Insurance Company has teamed with BoatUS, the nation’s largest group of recreational boat owners. Since 1966, BoatUS has been helping to make boating safer, more affordable, and fun. Together, we share a passion for all things boating.

We all want cheap boat insurance rates, but customer service is what matters. Protect your investment with boat insurance you can count on and get your free online boat insurance quote today.

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Are Boat Insurance Policies All The Same

Yes and no. Most boat insurance policies from established marine providers are All Risk policies with Third Party cover, because its difficult now to park your boat without liability protection. But where boat insurance policies differ the most is in the exclusions in other words, in what is not covered or in what can only be covered at extra cost.

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