Top FAQ About Boat Insurance

One of the toughest things for prospective boat owners to figure out is just how much it will cost to operate a boat. The truth is, the amount you pay for the boat is just the tip of the iceberg when it comes to overall cost. Because you're spending so much time and energy on your seafaring vessel, finding the right insurance is essential. To make sure you're getting the most bang for your buck, check out these frequently asked questions about boat insurance.

What is the average cost of insurance?

The average boat owner will spend around $300–$500 per year on insurance, though some may spend much more. The primary factor in insurance cost is the boat: typically you will be annually charged around 1.5% of the boat's cost.

How is the rate determined?

If you have received quotes that are higher than 1.5% of your boat's cost, you may be wondering why. You may not necessarily be getting duped—though it's best to shop around to avoid that—because there are several other factors that may raise your rates.

1. Your personal record. Have you been in many automobile accidents? Are you a part of an at-risk demographic? Your previous insurance record will help the company determine how much of a liability you are.
2. Your boat usage. Is this a fishing boat destined for mellow waters or are you purchasing a high-powered extreme sports machine? If yours is the latter, your rates will reflect the increased risk.
3. Your location. Do you live in sunny California or the hurricane-prone south? Areas with volatile weather are charged more. Different states also have varying boat taxes and registration fees, so it's important to know where your state stands on all of them.

When is the best time to buy?

The best time to buy a boat is a late autumn through winter. Companies are often pushing to sell their stock through the new year, so many will reduce their prices. To make sure you get the best deal, do your research before going to any dealers. This includes not just knowing what boat you want, but knowing the insurance rates before you buy. Contact a few insurance agencies are price out their coverage on similar boats. If you know this cost, you can not only more effectively plan your finances, but you will also appear knowledgeable to the salesman.

Other factors to consider before purchasing a boat:

Make sure you know these other key aspects to boat ownership before you take the plunge.

• Where to store it. Considering where you'll keep your boat is not only necessary to keep it safe, but it's also another cost you must factor into your purchase.
• Know the maintenance and gas costs. Another huge monetary factor is understanding the cost of upkeep. Gas alone can cost a bundle and a single oil change can rack up a tab up to $300.

If you're looking for a boat insurance company, contact SkiSafe.