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Two Easy Ways to Reduce Your Boat Insurance Premium

July 21, 2021

According to the National Marine Manufacturers Association (NMMA), more than 310,000 new powerboats were sold in 2020, levels the recreational boating industry has not seen since before the Great Recession in 2008. What’s even more interesting is the number of first-time boat buyers. Whether you are new to owning a boat or a seasoned navigator, here are two focus areas to review to reduce your boat insurance premium.

KNOW WHAT KIND OF COVERAGE YOU NEED. Three segments to review:

Navigable Waters. Will you be navigating smaller bodies of water or heading out to the open ocean? The risk factors are different when cruising the lake versus off-shore fishing. Make sure you discuss where you will be boating with your insurance agent.

Deductible. The higher the deductible, the lower the premium; make sure you choose the right deductible to balance your risk tolerance, ability to pay the deductible out of pocket, and monthly cost of the premiums.

Seasonal Operation, Transportation, and Winterization. Will you be using your boat year-round? Seasonal (summer) rates are lower than year-round rates.   If you’ll be trailering a boat with your car or truck, make sure your auto policy has ample provisions to cover the boat as well as your car. If you get into an accident while transporting your yacht attached to the back of your car, you would only be covered up to the limit of your auto collision coverage, which might not be enough.   Where you store your boat in the off-season also impacts your premiums. Winterization and storage of your boat in secure, protected facilities may reduce rates, compared to off-season storage in your back yard. Another consideration if you store your boat on your property during the winter months, the boat would then be considered under your homeowners’ insurance.

REVIEW POSSIBLE DISCOUNTS.  Be sure to discuss with your insurance agent these possible discounts:

Boating Safety Course and Certification.  Like many states, New Hampshire law requires all personal watercraft (PWC) or boat operators 16 years old and older to pass a boater safety course. This requirement will make you more safe on the water and could save you money on your insurance policy each year.

Boat Ed offers courses recognized by the U.S. Coast Guard, approved by the National Association of State Boating Law Administrators, and meet your state’s certification standards.

Other boater education courses are offered by U.S. Power Squadrons, U.S. Coast Guard Auxiliary, and there are several NASBLA approved on-line interactive courses to check out.

Responsibility. Many policies consider the owner’s age, as well as the number of accident-free years of operation (boat and car) and believe it or not, having a strong credit score also works in your favor.

Safety Features Onboard. Adding safety equipment such as emergency beacons, built-in fire extinguishers, a burglar alarm system, a GPS system, depth finders, and radars can help you save on your premium.

Your boat will have unique insurance needs to protect you and reduce financial risks.

Ask us about combining boat, auto, and homeowner’s insurance to reduce your premiums. As an independent insurance agency, Avery can find you the best coverage at the best rate for your boat. Call us today!


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