Are you daydreaming of buying a bigger boat, even while you’re cruising around in your current vessel? Like climbing the corporate ladder, you may reach a point in your boating career (um, we mean hobby) where you are you are ready to take on a new challenge and move forward on something bigger and better. But as with anything, there are many factors to consider before making the upgrade, especially in terms of cost and insurance. See below…
A bigger boat costs more than a smaller one, as do the other costs associated with owning a boat. Industry experts say you should expect to put in about 10% of the total purchase price of the boat each year in maintenance to keep up with devaluation. You will also pay extra for berths, dry storage, slips, and haul-outs which are charged by the foot. For larger, full equipped boats, you will more than likely seek out a professional maintenance service, which of course, drives the price of yearly maintenance.
Insurance policies have different navigational limits for larger boats. Many boaters may be unaware of the navigational limits on their boat insurance policy which is primarily determined by the boat’s size. “Most policies contain a navigational warranty,” says Chantal Cyr, VP of product management for Travelers. “It’s usually the inland waters of the U.S. and Canada or the coastal waters of the U.S. and Canada for smaller boats up to 26 feet. For larger crafts, we have 22 territories that are defined by geographical points. For instance, one of them goes from Eastport, Maine, to Cape Hatteras, N.C.; another goes from Eastport, Maine, all the way around Florida to the panhandle.” When choosing your boat or yacht insurance policy, it is important to make sure you have coverage in the areas where you want to take the boat.
Upgraded boats may offer more safety features which can lead to insurance discounts. Many boat insurance underwriters offer policy discounts for gadgets that protect their investment. This may include features such as wireless auto tethers that act as an engine kill switch should the skipper or any of the passengers fall overboard.
At the end of the day, a larger boat will certainly cost more, but you will end up with more space, go on longer trips, and invite more guests to travel on board. The more the merrier, right? Now, when you do decide to take the plunge and upgrade to a larger boat, you will most certainly need insurance. If you have any questions or would like to receive quotes for boat and yacht insurance, contact us today!
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