WakezoneINS

I know that this may go without saying but everyone's insurance rate is different regardless of if you have the EXACT same boat as the next guy, your insurance rates are going to be different. Clients ask me often, "why is my rate so much higher than my buddy's rate". The answer, unless you are your buddy, they will be different.

Here is a list of some of just the many factors that will affect your insurance rate:

1. Your insurance score (sometimes credit). Many carriers have gone to insurance scoring as a way of rating clients. Some agree with it and some despise it. Insurance scoring can save you a lot of money and then again it can cost you a lot. I posted an article a while back about insurance scoring. I will bring it to the top shortly.

2. Your location. Your location plays a huge role in your rate. A boat in a major metropolitan area is believed to be more likely to be stolen than one that is in a building in the back 40 of your rural property. There are also other factors that play into location such as the type of weather that particular location experiences. Tornados, earthquakes, floods, hurricanes, Nor' Easters etc. Obviously, Florida rates differ greatly than those of Ohio.

3. Your driving record (MVR/DMV record). First and foremost, this MATTERS. This will impact your rates tremendously. If you are a driver that has had a excessive speeding ticket every year for the past 5 years and you are wanting to insure a 140mph boat, you aren't going to fair well on rates, in will be downright expensive because your driving record "tells" the underwriter your story.

4. Marital Status. some carriers give a rate discount to married over single. I guess they just figure that you are more "responsible" when you're married. I'm sure this one could bring up a whole other thread so we'll leave this one as is.

5. Experience/Ownership/Claims. This goes without saying. Someone who has 30 years of CAT ownership and operation under their belt is going to more than likely get a far more forgiving rate than a 28 year old with 0 years experience.

6. Boat Value/Liability Limits and Coverage options. You might have $1,000,000 liability coverage while your buddy has $100,000. Also, keep in mind that boat value is where your rate is derived. You pay "X" amount of dollars per $100 in coverage you have. So, if you have a $300,000 boat and your buddy has a boat that is insured for $200,000, which makes a huge difference in the premium you pay.

I think this gives you a good overview of the factors that go into rating and why it is really hard to compare your rate to the next guy.