National Boat Owners Association Marine Insurance Agency, Inc.

Risk Factor – What Affects Your Boat Insurance Rate?

Boat Insurance Comments Off

Contrary to what most people believe, boat insurance is a wide-ranging market. Because of the complicated risk inherent in owning and operating a boat, coverage options and insurance rates can vary significantly from one company to the next. Navigation area, storage location, ownership experience, claim history, and motor vehicle record are all examples of variables that help determine your coverage needs. More specifically, each company uses its own combination of these factors to calculate whether you are high or low risk.

To ensure you are getting the maximum amount of savings on your boat insurance, it is important you understand how these variables can affect you and more importantly, what to ask for when receiving a quote. The following is a list of variable discounts that could be applied to your policy:

• Automatic Fire Extinguisher System – Attain a discount with prevention systems. Installing an automatic fire suppression system can help you save on your annual premium.
• Additional Safety Equipment – Having additional safety equipment such as EPIRBs, GPS systems, Depth Finders, Carbon Monoxide Detectors, or Radar on board can help you save as well.

• Boating Education Course – If you hold a current boating safety course certificate from the US Power Squadron or the USCG Auxiliary, you are entitled to a five or ten percent discount. Discounts also apply to state courses, as long as it’s approved by the National Association of State Boating Law Administrators (NASBLA) and recognized by the US Coast Guard.
• Boat Currently Insured – If your boat is currently insured, some companies will give you a credit for keeping it protected.
• Choice of Coverage – Opting for higher limits of coverage, such as higher liability coverage, will increase your rate. In contrast, choosing a high deductable will lower your rate.
• Clean Driving Record – Safely operating an automobile translates into safely operating a boat. The ability to drive responsibly renders another potential discount.
• Diesel Engines – If your boat is powered by diesel, you could save on the cost of your Physical Damage coverage.
• Insurance Score – Using credit history to determine appropriate insurance rates is becoming increasingly popular with insurance companies. By performing a “soft hit” credit score, insurance companies can view credit history without actually affecting the prospect’s credit. In theory, two owners with the same boat in the same area can have dramatically different premiums if their credit scores are different.
• Marital Status – Having a spouse is a positive factor for some companies and therefore results in a cheaper rate. But singles do not fret. There are certain insurance companies that do not take your marital status into account at all.
• Multi-Policy Discount – When including your boat with your homeowners and/or auto policy, many companies offer an additional credit for insuring multi-lines. Although a popular option, one thing to keep in mind is that multi-line companies are not likely specialized in boat insurance. Discount aside, you may miss out on other benefits with an agent who is unfamiliar with boats.
• Navigation – Where you plan to use your boat greatly affects your insurance rate. If you live in coastal regions like Florida, you are well aware of this stipulation. Areas with coastal exposure are considered high risk and therefore have higher rates. Since inland boaters are considered low risk insurers, lower rates apply.

Navigation limits are another variable that varies from company to company; size and power of the boat is also a factor. Some companies use very broad navigation limits such as “Inland and Coastal Regions of the United States,” while others have very specific limits. A separate one-trip or yearly “rider” can also be applied for those wishing to temporarily extend their navigation limits and travel to places such as the Bahamas and Mexico.

• New Boat Discount – Your new expense can actually save you money. The newer the boat, the higher the discount.
• No Prior Claims – Having a safe boating record is also important in getting the best possible rate. Some companies do not differentiate at-fault and no-fault claims, so be sure to ask your agent to point out which companies do.
• Outboard Motors – Because they are easier to maintain and repair, outboard motors generally warrant discounts. This does, however, depend on the number of motors.

• Owner’s Age – Who says getting old doesn’t have its advantages? With boat insurance, the older you are the better your rate!
• Owning a Home – Home ownership can also be a positive factor and result in lower rates.
• Previous Boats Owned – Being able to operate a 20 foot bow rider does not mean you can safely operate a 45 foot yacht. All boating experience aside, many companies actually require comparable boat ownership history before insuring your newest vessel. This is particularly applicable with larger vessels.
• Speed of Vessel – While many companies surcharge or refuse to insure a boat that is too fast, others may give a credit for boats with the maximum speed of 25 to 35 mph.
• Years of Boating Experience – Along with age, the years of actual boating experience you have can have a positive effect on your rate.

As you can see, there are numerous factors that go into rating a boat insurance policy. Furthermore, each carrier uses their own combination of these variables to calculate your rate. With so many options available, it is wise to seek an insurance quote from a company that understands this market. With over 80 years of combined experience in the marine insurance field, the insurance agents at NBOA can ensure you’re getting the exact coverage you need, with the right carrier, at the best price – whether it’s a cruiser, trawler, pontoon, yacht, or sailboat.

As always, our main priority is educating our boat owners. For a free, no-hassle quote, speak directly to one of our agents at 1-800-248-3512 or submit your quote online at www.nboat.com.

Boat Show Preview – The Best Way to Buy

Boat Shows Comments Off

As we enter the holiday season and the winter chill grips most of the country, buying a new boat may be far from your mind. However, you could be closer to buying your dream boat than you think. Experts agree the best time to buy a boat is during
the off-season, which corresponds with the winter boat show season. Plus, boat shows provide a great opportunity for boaters to get special deals and incentives on new boats, as well as the opportunity to meet a variety of dealers and manufacturers. Any person seriously considering buying a boat should begin with attending a boat show, but first use these boat show tips to make the best of your experience.

Do Your Homework

Boat shows are a great way to begin the process of buying a boat. Each show offers shoppers an assortment of different boats. However, the best way to determine if you are getting a good deal is to do your homework ahead of time. This can be somewhat difficult since boat dealers don’t typically have online tools to choose boat features, and compare costs. However, there are many great brokerage websites that can help you with pricing information.

Attend Multiple Shows

The primary winter boat show season is January through March, which is the best time to find and buy a boat. If you are a serious boat shopper, then use the boat show season to youradvantage. First, attend the fall boat shows to browse your options, and then
use the winter shows to make your choice. Shows are held across the nation, and there is certain to be one, if not more, near you. By attending multiple shows you can build your knowledge of boat manufacturers, dealers, and prices, which will help you narrow down your options.

Boat Shows are Your Friend

Boat shows exist for you, so use that resource to shop all the makes and models of new boats. One of the best parts about boat shows is being able to comparison shop in one place. Be sure to take along your camera and a notebook to record your observations about each boat. Write down what you liked or didn’t like about each model and your impressions of the boat. Grab brochures for the boats you like best, but take your own pictures because the brochures may leave out features you consider important. Most importantly, write down the boat show price and the list price of the boat
so you can compare prices between boat shows and dealers.

Shop for Boats and Dealers

As you shop for a boat also shop for a dealer. Keep a record of your impressions of the sales people as you tour the boats. When you purchase a boat from a dealer, it could be a long and rewarding relationship or a disastrous one. Boat shows are a good place to make contacts and determine the best dealers. Finally, don’t be afraid to talk price with a dealer, even if you know you aren’t ready to buy. This can give you a more accurate price for a boat you may be interested in, and how much a dealer is
willing to work with you.

Don’t Impulse Buy

Unless you have thoroughly done your homework and are certain you are getting the best deal, do not buy a boat on your first visit. Try to attend on the first day of the boat show so that you have time to think about a possible purchase. Some veteran boat buyers
recommend waiting until the end of the last day of the show. It may be possible to get a better deal then, because dealers are trying to recover their show costs. Other boating industry experts disagree with buying at boat shows, and suggest boaters to buy at the dealer’s location.

NBOA Marine Insurance attends hundreds of boat shows across the country. We are there to help new boat buyers obtain insurance, answer any insurance questions, or counsel potential customers on how to work insurance costs into their budget. If you see us this upcoming boat show season, be sure to stop by our booth and say hello!

Tips for Off-Season Boating

Boating Tips Comments Off

During the fall and winter, boaters enjoy an entirely new way to experience waterways. They can drop anchors in the normally bustling waterways, and enjoy the scenery. Yet boating in the off-season does come with certain challenges – the sun sets earlier, temperatures drop faster and there are fewer boats to assist in emergency situations. Therefore, your friends at the National Boat Owners Association prepared a few tips to keep you safe while boating in the off-season.

1. Prepare for worst case scenarios: During the off-season there is little room for error, so practice the general rule of thumb for fuel use – one-third out, one-third in and one-third for emergencies. Also, consider a NBOA membership, which comes with 24-hour dispatch service. You should always carry a first aid kit, but during the off-season this kit needs to be a little more extensive. Your emergency kit should include: a calorie-dense snack, fresh water, a hot beverage, a roll of duct tape, a waterproof portable flashlight with extra batteries, flares, and matches. Store all these items in a water-proof bag.
2. Keep a communication device with you: A mobile phone should only act as backup to your VHF-FM marine radio. If your trip takes you far from shore, then consider adding an EPIRB to your safety equipment. This allows the Coast Guard to pinpoint the location of a distress call from a DSC-VHF marine radio connected to a GPS receiver. Also, boaters should attach a whistle or horn to their life jackets.
3. Dress for the weather: While boating in the off-season you need to dress appropriately. Wear layers, take extra dry clothing in a waterproof bag and, wear quality, nonslip footwear. Ideally, your top layer should be water proof. Always wear your Coast Guard approved life jacket.
4. Know what to do: The intermittent warm days can be deceiving because the water temperature can still be chilly. To reduce risk of a swamped or capsized boat, make sure not to overload your boat, avoid situations that put anyone at risk of going overboard and again make sure everyone is wearing a Coast Guard approved life jacket. Understanding the vital phases of cold-water submersion, and knowing some basic techniques to delay hypothermia greatly increase survival. Hypothermia is when someone loses body heat faster than he can produce it. When someone initially experiences cold water submersion he will go into cold shock, a deep and sudden gasp followed by hyperventilation. It is important for the person not to panic, and concentrate on breathing. Cold shock passes in about one minute. Within the next 10 minutes the person will lose use of his extremities. Even in ice water it will take a person about an hour to lose consciousness. (To learn about cold-water immersion survival, visit coldwaterbootcamp.com.)
5. Don’t boat alone: With fewer boaters on the water during the off-season it is especially important not to boat alone. Also, every boater should file a float plan with a trusted individual before each boat outing, whether boating during the summer or the winter. A float plan should include a description of the boat, the number of persons on board, the area where you’ll be boating and the anticipated time of return. The Coast Guard has float plan forms available online via uscgboating.org/safety/float_planning.aspx. If the time of return is changed after leaving the dock, then the person holding the float plan on shore should be notified as soon as possible.
6. Know before you go: Before you head out on the water, it’s in best practice to take a boating safety course. Participating in a boating safety course may make you eligible for an insurance discount. Contact an NBOA representative for more information on the discounts you’re eligible to receive.

Boat Shows Calendar 2011

Boat Shows Comments Off

Wondering the next boat show is going to be? Below you can find upcoming power, sail, or antique boat shows around the US and Canada. If you know of one that is not listed please let us know.

ABC’s of Hurricane Watches/Warnings, Categories, & Tropical Storms/Depressions

Hurricane Tips for Boaters Comments Off

If you are a water-state boat owner, then you may already be accustomed to the all of the hysteria that surrounds the hurricane season. Below are simple explanations of what each “category,” “watch,” and “warning” really mean.

-“Hurricane watch” – Warns you that a hurricane could hit your area within the next 24-36 hours.

-“Hurricane warning” – Means hurricane is expected to reach your area within 24 hours. Note: If the hurricane takes an unexpected turn, these warnings may only come hours in advance.

Hurricanes are divided into five “categories” based on wind-speed. The category scale starts at one (least severe) and goes up to five (most severe).

-Category I

-Description: Very dangerous winds will cause some damage.

-Wind-speed: 74-95 mph.

-Storm surge: 4-5 ft.

-Category II

-Description: Extremely dangerous winds will cause extensive damage.

-Wind-speed: 96-110 mph.

-Storm surge: 6-8 ft.

-Category III

-Description: Devastating damage will occur.

-Wind-speed: 111-130 mph.

-Storm surge: 9-12 ft.

-Category IV

-Description: Catastrophic damage will occur.

-Wind-speed: 131-155 mph.

-Storm surge: 13-18 ft.

-Category V

-Description: Catastrophic damage will occur.

-Wind-speed: 156 mph. (or more)

-Storm surge: 19 ft. (or over)

Basically any level hurricane poses a serious threat to your watercraft. In addition there are a few other severe weather classifications to be aware of.

-“Tropical depression” – A storm that usually intensifies slowly with some rotary circulation at the surface and wind speeds up to 36 mph.

-“Tropical storm” – A storm accompanied with intense rainfall and has a distinct rotary circulation at the surface and wind speeds up to 73 mph.

Next in the series, are exact steps that you should take to ensure the safety of your watercraft in the event that a storm is headed in your direction.

**Did you know?? Once a storm has been “named” you are no longer able to purchase insurance for your boat in that area. **