There are several ways in which a boat owner can bring down the premium that he pays on his boat insurance. A start can be made from researching the various insurance companies and comparing rates. This is because most insurance agents have a single lead company that they use.
The applications of boat owners are evaluated by the underwriters to determine the risk factor. The cost of insurance increases with the risk. Boat owners can reduce the cost of insurance by keeping in mind the following:
- Liability levels: The insurance rates increase with the protection required. Boat owners need to be aware of their coverage needs so that they can obtain an optimum coverage mix at the best cost without compromising on the security of the boat.
- Deductible: Deductibles for boats can range from $ 50 to $ 500. The cost of insurance reduces as the amount of deductible rises. Boat owners should strike a balance between the insurance amount and the agreed deductible so that they have the funds to furnish in the case of an eventuality.
- Safety equipment and safety courses: Insurance providers offer discounts if the boat is provisioned with safety equipment such as GPS, Ship to Shore, VHF, Fume detector, Halon system, etc. The Coast Guard certification course qualifies boat owners for a discount on the insurance costs. Basic safety courses are also offered by the United States Power Squadrons, United States Coast Guard Auxiliary, NASBLA, etc. These courses too allow boat owners to avail a discount on their insurance costs.
- Type and age of boat: The age, size, cost, power, etc are factors that can either raise or lower the insurance premium on a boat.
- Use and area of navigation: Boat owners should keep their area of navigation low and stay away from dangerous waters. Navigation areas associated with high risk attract high rates. The rates also vary with use that may be for personal, commercial, or charter purposes.
- Past driving record: The past driving record and accident claims of the boat owner can affect his liability in the evaluation of the undertakers. Also, a boat owner/operator with less than three years of experience in operating a boat will attract a surcharge on the insurance premium.
Other factors which a boat owner should consider in his efforts to reduce the premium to be paid include obtaining the insurance from a reputed insurance firm which can guide one on the policy most suited to ones’ needs and financial resources. Regulated use of the boat with lay-up periods in between usage helps to reduce premium rates. The insurance company should be apprised if the boat is secured in a harbor that provides safety from the elements and thieves. Some insurance companies also offer a multi-policy discount if a boat owner already has another line of insurance policies from the same company.
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