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Keeping boat insurance costs down

The cost of a policy depends on several factors, including the type of vessel (such powerboat, sailboat, performance or pleasure cruiser), its size, its age, where it'll be used and even the boating experience of the operator.
 
According to the Insurance Information Institute, insuring a 25-foot speedboat worth between $20,000 and $25,000 would cost between $500 and $900 for physical damage coverage and about $5,000 for liability coverage. Before your eyes bug out any further, keep in mind that speedboats will be on the high end of the scale. A similarly sized sailboat might cost 25 percent to 50 percent less to insure. Just as sports cars are more expensive to insure than sedans, fast powerboats will cost more to insure than sailboats.
 
There's plenty you can do to keep your insurance costs down. For one, you can (and should) take an approved boating safety course. These are offered around the country by the U.S. Coast Guard Auxiliary and the U.S. Power Squadrons, and can give you a premium discount of anywhere from 5 percent to 20 percent. In some states, such as Connecticut, you are required to take one of these courses to operate a boat.
 
Premium discounts are also usually available for newer boats, protective devices (like a depth finder, ship-to-shore radio or burglar alarm) and for getting your vessel inspected by the Coast Guard Auxiliary (these inspections are often free). Some companies even offer discounts for vessels powered by diesel engines.
 
As with any insurance policy, higher deductibles can lower your premiums. Deductibles for watercraft policies range from 1 percent to 10 percent of the coverage. So if you have $20,000 in coverage, a 1 percent deductible would be $200. Before you opt for a higher deductible, you should make sure you can afford to pay it.
 

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