What Affects Your Premium?

By Patrick Farrell October 31, 2012

Boat Insurance

If you’re a first time boat owner you may be surprised to discover some of the things that affect your boat insurance rate. 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 another. To ensure you are getting the best coverage at the best rate, it is important to understand how the following variables can affect your boat insurance.

The single most important factor affecting your boat insurance rate is your location. If you move from Michigan to Florida, then you can expect your rate to increase. Although Florida is an ideal location to own a boat it is not ideal for your insurance rate since coastal regions are prone to windstorms and therefore considered high risk.

Along with location is navigation limits. Depending on how far off the coast you wish to travel, your insurance rate will be affected accordingly. Yet this also depends on your insurance carrier and how your navigation limits are defined. For example, some carriers have broad navigation limits like “Inland and Coastal Regions of the United States.” Another carrier may set specific limits like “70 miles off-shore.” This is something you need to take into consideration when choosing a carrier.

Another thing that affects your rate, which surprises a good deal of people, is your motor vehicle report. For insurance carriers, safely operating an automobile translates into safely operating a boat. The ability to drive responsibly renders potential discounts on your boat insurance premium.

Not surprisingly, your boat affects your premium as well. This includes the type of boat, length, year and even value of the boat. If you purchase a “luxury” brand boat, then your rate is going to be higher. If you purchase a large luxury brand boat, then your rate is going to be even higher. However, a new boat does not always mean a larger premium.

For more information on NBOA Marine Insurance, please visit or call one of our marine specialists directly at 1-800-248-3512.

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