Insurance premiums are an expense that few people love to pay but yet are extremely grateful for when adverse incidents happen with their covered assets. For boat owners, only two states require a form of boat insurance but many marinas or lenders will require some type of coverage on specific vessels. The cost of boat insurance is well-worth the financial benefits it provides if you are ever involved in a boating accident.
Among boaters, the general rule of thumb used to estimate how much insurance coverage costs per year relies on calculating 1.5% of the boat’s value. For instance, a boat that is worth $20,000 could see $300 premiums each month. Multi-millionaires paying for two-million-dollar yachts are going to pay upwards of $30,000 a year for insurance. However, these are just estimates.
There are several other things that go into the overall rate you will pay to insure your boat. Insurance companies also look at a policyholder’s credit score to determine potential financial risk. There are different forms of watercraft that require or could benefit from more specific forms of coverage as well. The policyholder’s age, boating and accident history, and location will also have an impact on the overall cost.
Your specific coverage desires for the boat will affect how much you will pay for good insurance. Speak to a boat insurance specialist for more comprehensive information on what forms of liability protection you need.