Do you know that marine insurance all falls in the same category?
Well, you might be asking yourself why they fall in the same category, yet they are different from each other. There are many boat types, and if the insurance company has to create a premium for each boat, it is tiresome. Moreover, the risk in all these boats is the same. However, if you own a yacht, your premium rate will be higher than that of a person who owns a barge. Some insurance companies also will offer you the option of comprehensive or third-party only insurance regardless of your boat category. In boat coverage, more incredible speed means more extraordinary claims.
So, which are the factors that affect the premium of insurance cover for your (boat)? Read on.
- Rise in number of boat owners
This increase in boat owners influences the insurance company. The majority of the new boat owners are new to both the ownership and driving of the boat; hence, they are likely to have claims. An increase in boat numbers also reduces good marine space; hence, in a hurricane, the claims may be many. Therefore, a rise in boat numbers will see an increase in the rate of premium payable. However, with many boat owners, the number of insurers can also increase. With the number of insurance companies, they create a fair premium rate due to competition.
- Navigation area
Different boat categories navigate in different areas. Some navigation areas are riskier as compared to others. The more complicated the area, the higher the premium rate. For example, navigating on a lake is less dangerous than cruising on an open ocean internationally. Oceans are at higher risk from storms and other accidents. The insurance hence will keenly look into your cruising area before giving you the premium to pay annually. If you look forward to getting a lower premium rate for boat owners, you must navigate in small lakes with less risk.
- Driving record
The insurer usually checks your previous driving record. If they notice reckless driving arrest, your cost of boat insurance rate will be higher. You may be asking yourself why; well, a poor driving record means you are vulnerable and prone to claim. A good driving record means a careful driver hence the insurance company assumes that you will operate the boat safely, leading to fewer claims. If you dream of owning and insuring a ship in the future, you have to check and work on your driving skills.
- Boat ownership experience
Most of the insurance companies look at the period the insured has been having the boat. The longer the period of ownership, the better the Insuretech rate. The insurer believes that a well-experienced boat owner has a record of claims, and if the previous claims are few, then the current will also be less.
- Location of your boat
The way you store your boat dramatically determines the amount you will pay. For instance, the premium rate will be lower if you securely store your boat in a shed. On the other hand, if you keep it on a dock in an area prone to hurricanes, your premium will be higher. You can also compare the insurance rates of different companies to develop one that offers a great discount on storage. Note that not all companies provide the same rates.
Additionally, the age of the boat owner also determines the boat protection cover rate.
It seems shocking, right? Well, the insurance company also looks into the age factors. Insurers perceive that the older you get, the better the rate of your premium. Also, older adults are likely to be more careful with driving the boat hence less risk. Most insurance companies prefer to deal with older adults. On the other hand, young people tend to be reckless with going; therefore, they are prone to risk.
When you are insuring your boat, you need to ask the insurance company questions like;
- The items that the insurer can cover in your boat using the boat cover policy?
- The damages and damage limit the insurance company can cover
- You may as well ask if it covers the damages due to natural disasters like a hurricane.
- If your insurance gives legal protection
- If the insurance cover gives third-party liability
- If the insurance policy is expensive.
In conclusion
If you are a boat owner, always consider insuring it so that you may get a cover in case of an accident. You should also have a good motor for your boat. You have to note if you injure a person or damage property, you are responsible for the cost of all injuries and medical bills. In this case, if you cannot afford to pay it all, then think again and get yourself insurance cover. You have to prepare for better for worse and not allow such incidents to get you off guard!
