A boat is a great way to have fun in the summer with friends and family. However, it also comes with responsibilities. You'll need to maintain your boat, which includes having insurance coverage that will help cover accidents. Here are the factors that go into determining your premiums when purchasing boat insurance.

The Kind of Boat

There are various kinds of boats, and each boat will require its own kind of insurance. For example, a fishing boat will require very different insurance than a wakeboarding boat. This is due to each boat having its own level of risk that is associated with it. A person driving that wakeboarding boat will have a greater chance of getting into an accident, while a boat used for fishing will have a much lower risk in comparison.

If you are considering a couple different kinds of boats, check with an insurance services agent to find out if the insurance will be radically different. This may be the deciding factor in which one you end up purchasing.

The Boating Location

The places where you take your boat are also taken into consideration when determining insurance premiums. If you are limiting your boating to nearby lakes, it is likely that you will pay less for insurance. Primarily boating in the ocean may result in higher premiums. The region where you live can also play a role, such as living in an area that has high winds from hurricanes. Even if you are not boating during these storms, they can damage a boat that is docked.

The Drivers

Everyone's previous driving record comes into play when determining boat insurance, even if they have never driven a boat before. Anybody that you have listed as a driver of a boat will be considered, which includes kids that have undergone the necessary training. Even if they have a perfect driving record, they are considered an inexperienced driver and given higher than usual insurance premiums.

Your Credit Score

Another factor that is used is your credit score. It is just another way to determine how risky you may be by looking at past financial decisions. If you have a history of bad credit and not paying bills on time, you may be looked at as a higher risk boater by an insurance agency.

For more tips on how boat insurance is determined on the boat that you are about to purchase, speak with a local insurance agent.

Share