Recreational Boat Insurance Discounts

There’s nothing like prepping for summer like pulling the old family boat out of storage and de-winterizing it so that it’s water-ready. You and your family have looked forward to this for months, and now it’s finally becoming a reality!

Like all things it seems nowadays, owning a boat can be expensive. Some families are fully aware of the many various costs that come with owning a boat, but some newcomers to boat ownership may not be 100% cognizant of the various fees, costs, and purchases that may be necessary to have a fully stocked, safe, and secure boat. One of those many costs, and one of the things that we here at Excalibur Insurance specialize in, is the cost of insurance.

In this blog post, we’ll go over the cost of owning and insuring a boat, and then give you some insights into all the possible recreational boat insurance discounts you could be eligible for – and how getting them can help you save money on your policy.

The Costs of Owning & Insuring a Boat

To be clear, we’re not doing a total breakdown so as to deter you from boat ownership. We think very highly of owning recreational boats, and having fun with your watercraft. If you ultimately decide owning a boat may not be for you and you’d prefer a boat rental, fine! But, if you like time out on the water with family and friends so much, you might as well own a boat. Here’s a breakdown for the total cost of owning and boat and insurance prices.

First, consider the upfront cost of owning a boat. It depends on the type of boat you’re looking for – whether that’s a fishing boat, a cabin cruiser, or a pontoon boat.  Some recreational 20’ boats can cost between $10,000 and $20,000, or upwards of $60,000. It depends on the usage you’re looking for, the level of luxury, and more.

Second, maintenance. This could be more or less depending on how much you want to use your boat and what it will be used for. Annual maintenance doesn’t have to be that expensive, but it’s not something you should overlook.

Third, insurance. You should, at the very least, have liability coverage and some form of damage coverage – especially for a newer vessel. If you’ve purchased your boat with a loan, it’s ideal to have some form of comprehensive coverage on your financed purchase. It’ll cover your boat in case of theft or an unexpected accident. Boat insurance costs vary based on the type of boat, size, value, your claims’ history, boat’s usage, and your location/where the boat is docked.

Fourth, consider storage options and their costs. You’ll likely want to purchase a cover/top, and you may even want to purchase or rent a storage space where you can keep your boat if it can’t be kept at home or on your own property. Remember that storing in the summer versus the winter are very different, and winter storage is a tad more complex since it prepares the boat and engine for colder temperatures. You may also want to review your coverage during the winter, to ensure your comprehensive coverage protects against winter winds, snow, and rain damage. Renting an outside storage space might cost you about $10-$15/foot, but inside rack storage will cost a bit more – about $50/foot. An in-water dock space will run you much more, ranging between $1,000 to $5,000 per season. But, for many, it’s worth it to have their boat protected and stored indoor safely!

Other costs to consider include marina fees, where you may be charged monthly costs for storage, cleaning, and maintenance, equipment and accessories (such as paddles, horns, life jackets, signal flares, and so on) and your necessary education/boat licenses. All in all, owning a boat isn’t cheap!

Saving Costs on Insurance: Eligible Recreational Boat Insurance Discounts

Insurance isn’t always mandatory for boats, but it’s more than a good idea to have. After all, boats are no cheap investment! And plus, they give your family the opportunity to make amazing memories that they’ll always be able to look back on.

With some insights into potential discounts, you may be able to save big on your boat insurance. Here are some potential eligible recreational boat insurance discounts:

Multi-policy or multi-boat discount

Did you know that some insurers will discount your boat insurance policy, and bundled policies, if you insure them all through the same carrier? Some providers will reward you with a discount of up to 15% per policy! This may also be true if you insure multiple boats through the same insurer, rather than insuring them all separately via individual carriers. Plus, it makes everything more convenient.

Upfront payment discount

Generally, premiums are charged monthly. This is done so as to ensure that a boat insurance policy can be kept manageable for most families. However, by paying your entire premiums for the year upfront, you can slash out all those administrative and maintenance fees and chop off 8% or more off your entire policy costs! Plus, it cuts out having to remember to pay your premiums each month when you do it all at once in a single payment.

Boat education discount

While not every insurance company offers this discount, some insurers may reward you with a slight discount off your premiums if you enroll in an approved boater safety class. This will freshen up your skills and ensure you’re making smart decisions while out on the water.

Higher deductible discount

This isn’t so much as a discount as it is a way to save, but it generally works as when you raise your deductible to a higher level, your premiums will (typically) be lower. Always consider what you’re capable of paying out-of-pocket if something unexpected does happen.

Responsible driver discount

If you have had no recent claims, watercraft, or even motor vehicle violations on your record for the last 3-5 years, you’ll be able to get significantly lower boat insurance rates.

Club or association discount

Depending on your insurer, you may be able to get a discount if you are part of an approved club or association, like a particular university or part of the coast guard.

All in all, one of the best ways to save on your boat insurance is to go through a brokerage like Excalibur Insurance! We’d be happy to get you the best rates for the lowest cost, and we’ll do it because we believe in peace-of-mind for boat owners like yourself!