Why Are Rate So Different?
Coverage options and insurance rates can vary significantly from one company to the next. Your navigation area, how the vessel is stored, boat ownership experience, motor vehicle record, prior claim are all examples of rating factors that determine your insurance rates.
As you compare quotes for the best rate, you will find that many insurance organizations, including United Marine Underwriters, have different insurance programs. Some of these are just variations on different limits, but it is important to remember, no two policies are the same. What's covered should also be a consideration of rate. We have one program that includes Mechanical Break Down, Latent Defect, and all machinery inside the vessel is always replaced new for old in the event of a partial loss. The same insurance company has a program that excludes Mechanical Break Down, Latent Defect. If machinery inside the vessel is aged, you could be looking at up to 85% depreciation in the event of a partial loss. You can not get a low price for a Cadillac, the same applies here.
What are the typical items used by insurance companies when calculating a rate? Listed below are discounts that could be applied to your policy.
- Prior Boat Ownership – Most insurance companies what to see previous boat ownership, particularly for larger boats. If you never owned a boat and you are purchasing a 17-foot runabout, no issue. If you are purchasing a 45-foot, the companies like to see experience with similar size. If you have owned a 17-foot and your purchasing a 45-foot, not so good. May companies would not accept risk with this type of prior ownership.
- Top Speed of the Vessel - Many companies refuse or surcharge the rate for a high-speed vessel.
- No Lapse in Insurance Coverage - If your policy has lapsed, many companies will apply a surcharge. Keep your boat covered, and you will get the best rate.
- Insurance Credit Score – Most insurance companies use credit history to calculate the insurance rate. Insurance companies can receive credit information and determine an insurance score. Two identical risks can have different rates based on their insurance score.
- Your Age – Keep the young guys from operating your boat. Rate based on your age.
- The Boats Age – Rates can change significantly based on the age of your boat. The newer the boat, the larger the discount.
- Coverage and Limits – Do you want an excellent policy that provides maximum coverage or just the basics. Higher limits of coverage for medical payments or liability limits can increase your rate.
- Deductibles – Selecting a higher deductible is a way to keep your rate down. It is essential to ask for the premiums difference by deductible options. You may find the savings acceptable going from a $250 to a $500 deductible, but not the same percentage savings going from $500 to $750. If you would never file a claim for $500, then you should always take the saving offered for the $750 deductible.
- Navigation - Where you plan to use your boat dramatically affects your insurance rate. If you are boating in a local land-locked lake, you would be considered a lower risk then a vessel in Savannah GA in the mid of a Great Loop trip. Coastal exposure is a higher rate, Florida and Gulf Coast have the highest rates in the country.
- No Prior Losses or Claims – Many insurance companies give you a discount for being claims-free. We are in the business to pay insurance claims, but it is essential to know when to file a claim. If you have a $300 claim and a $250 deductible, the $50 could end up costing you more if you lose the loss-free discount. Ask what effect a claim may have on your rate.
- Safety Equipment - Additional safety equipment, EPIRBs, GPS systems, Depth Finders, Radar, Fume Detectors, Automatic Fire Extinguisher. Many insurance companies offer discounts for this equipment.
- Diesel Powered Boats - Boats powered by diesel, most companies provided a discount for diesel-powered boats.
- Automobile Driving Record – No violation or accidents on can keep your rate down.
- Boating Safety Course – Most insurance companies provide a discount for boating safety course certificate.
- Renewal–Loyalty Discount – Most companies have a discount for staying insured with them. They offer renewal discounts on how long you have had your boat insured with them.
Other typical discounts available are married, homeowners, multi boats discount. Let United Marine Underwriters with 30 plus years of experience help you find the best coverage and rate for you and your boat. Get a Quote
Do you like our program but prefer working with your agent? Your agent can purchase and service this quote for you. Boat insurance is a specialty, and like most specialty insurance programs, we do business directly with you, the boat owner, and with insurance agents. There is no change in the premium or any additional cost to you. Many insurance agents are not always up to date on the boat insurance market and will be thankful for the suggestion. You get the benefit by having an excellent insurance policy and your local agent. Have your agent call us at 800-477-7140.
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Questions About Your Quote?
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How much insurance coverage do I need on my boat?
You should always insure the boat for its current value. The objective of the policy is to put you back in the same year, length and make of boat in the event of a total loss.
If this is a new purchase (new or used), you should insure the boat for the purchase price plus any extras you may have added. The insurance company expects to insure the vessel for your purchase price. If you wish to insure the vessel for more or less than the purchase price, you will need to document the increase or decrease in value.
If you currently own your boat, you can use price guides such as BUC or NADA used boat price guides. You can also review current pricing by reviewing boats for sale. In some cases, a Marine Survey may be helpful or necessary to determine the current market value.
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