Where you use your boat makes a big difference to your boat insurance agent. Insurance companies want and need to know the amount of expected risk associated with the watercraft when creating an insurance policy for it. For this reason, it is somewhat necessary to outline expectations for use with your insurer. There are various condition differences for lake and ocean-operated boats. As you work to get boat insurance, there are a few things to keep in mind.

How Do Boat Insurers Estimate Premiums?

How much boat insurance costs you depends on multiple factors. The first consideration is the value of the boat as well as the size of it. The larger the boat is, the more expensive it can be to insure. These boats tend to be at a higher cost because it is more expensive to replace a larger watercraft than a smaller one. Another key factor is the engine size. Boats that are larger or those that have a large engine are more expensive to insure for the same reason, but also because they are more likely to be used in rougher conditions.

When buying a boat, you’ll likely make the decision of where you plan to use it early on. Watercraft for ocean use tend to be larger and with more powerful engines than lake boats. Your boat insurance provider may ask you how you plan to use the vehicle as well. Be honest about its use. Coastal waterway use does not automatically increase the cost of insurance, but it is important to communicate use to your insurer to avoid complications later if you need to file a claim.

Taking the time to have quality and customized boat insurance for your vehicle is important. It helps to ensure your vehicle is always protected no matter what happens on the open water. Larger boats with bigger engines are more expensive to insure and they are more commonly used on oceans. However, it is not necessarily significantly more. Talk to your boat insurance provider to learn just how easy it can be to protect your investment in the watercraft. It only takes a few minutes to gather this type of information.