As a yacht owner, you have probably discovered smaller boats pay less for their insurance than you do for your vessel. However, this is not to imply that you’ll attract the highest yacht insurance premium rates either. That is reserved for powerboat and speedboat owners since there is a greater risk of accidents occurring and sustaining considerable damage in a crash. No matter what category of insurance you fall under, a good insurance company will probably give you the choice between 3rd party only and comprehensive coverage.
Third party yacht insurance is normally calculated at a fixed price. However, if you choose comprehensive coverage, the next key factor that will influence your premium rate will be your yacht’s actual value. Insurance companies take your vessel’s hull value and add that to any additional item such as masts, rigging, spars, trailers, etc., and multiply that figure by a specified percentage.
Where insuring your yacht is concerned, you will probably receive what is called a “static” or fixed rate. Depending on your particular cruising range, a sliding rate may be applied instead. Obviously, there could be greater risk involved based on the extent of your cruising range and how much time you will be spending aboard your vessel. Since both of these factors increase the insurer’s risk, it will increase the amount of your yacht insurance premium rate.
The third key factor that will influence the cost of your insurance is the length of time that you have gone without a claim against your policy. This will earn you some type of bonus with most insurers. For each year that passes without filing a claim, your insurer will usually take off a specified percentage from your final premium cost. Most insurers will do this for up to 5 years but a few will go as many as 6. Thus, you need to compare and check what works for you.
There are other factors that influence your yacht insurance premium but are considered optional. Despite the fact that they are optional choices, there is still an added cost. These factors include:
Deductible amount – the most common option is start with the highest deductible amount (typically ranges from 5% down to 1%)
Fire extinguishers and other additional safety features – putting fire extinguishers in the engine compartment and installing certain safety features such as anti-theft alarms, fume or vapor detectors in the bilge area, and tracking devices
Lay-up period – whenever your yacht is laid up and not in use, you can earn a monthly discount on your premium rate
Yacht condition – the better the condition of your yacht, the greater the likelihood that you will be able to insure it at a very competitive rate on your yacht insurance (be sure any repairs or upgrades have been done prior to having it inspected)
Call 1-800-585-1665 today to request a quote from InsureAnyBoat.com.