Depending on numerous factors, the cost of boat insurance varies from state to state and is decided by the insurance firms. Here is some information about the same.
Boat insurance is an ideal way to protect your boat against natural calamities. If you own a boat, you must mobilize your efforts to get it insured, as it is equally important like insuring any other motor vehicle you own. Your boat is subject to various types of risks in the sea and hence, it makes much sense to be ready with some good boat insurance policies that can be helpful for you, in the event of any unfortunate incident. But I understand your hesitation in getting your boat insured. The common misconception of escalating insurance cost stops you from approaching any insurance company. Or precisely, you don't have any idea about how to proceed for this process. Don't worry, I will inform you about cost of boat insurance and other features related to it in this article.
How Much Does Boat Insurance Cost?
Unlike health insurance or auto insurance, there is a significant change in working of boat insurance companies. The cost of boat insurance depends on numerous factors, right from the type of boat you own to the type of damage done to the boat. Many insurance companies grant liability limits of $100,000, $300,000, $500,000 or in some cases $1,000,000.
Type of Policy You Choose
It's a very simple fact that depending on the amount you wish to insure your boat for. your policies are decided by the insurance company and hence, the average cost of boat insurance is fixed.
Working Location of the Boat
Where does your boat maneuver? In the middle of Pacific Ocean or Atlantic Ocean or your boat just works as a fishing boat not far
off from the sea and lakes. Higher the risk prone area your boat works in, more will be the chances of high insurance rates.
Age of Your Boat
Age matters in case of the cost of a boat insurance. For restored antique boats, the insurance costs will be higher. For boats less than 5 years of manufacture, the costs may vary depending on numerous other factors.
Type of Boat You Own
Do you own a personal watercraft or a mini jet boat or a luxurious yacht? Higher the price of your boat in the market, more will be your insurance premiums. Yacht insurance will be obviously higher as compared to a mini jet boat. It's just like insuring a BMW and a normal car!
Size of Your Boat
The typical boat insurance cost depends on the size of your boat. A small boat is insured at a less premium as compared to a large boat. Obviously, because any damage in a big boat can cause huge financial loss which in case of small boats may be less. How much does boat insurance cost is often a function of size. For instance, a boat of 25 feet in length requires one to pay a premium of US$500 to US$800. In case, you boat is bigger than 36 feet, generally, insurance firms carefully analyze your boat and risk factors associated with it.
This was just a brief overview of 'n' number of factors on which boat insurance cost depends. In fact, low cost insurance for boats is possible if you carefully research several possibilities of boat insurance on the Internet. Boat insurance rates are dependent on numerous factors that can only be clarified by discussing every facet with a qualified boat insurance agent. Ensure you do that and get your boat insured.