Will My Insurance Rate Be Higher if I Am a New Boat Owner?

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Will My Insurance Rate Be Higher if I Am a New Boat Owner?

By: Boater's Choice Insurance
Will My Insurance Rate Be Higher if I Am a New Boat Owner?
Boating accidents are on the rise, partly due to record levels of participation. In 2020, for instance, the U.S. Coast Guard recorded a 26.3% increase to 5,265 cases nationwide. 

As a result, fatalities and injuries also increased. Such accidents can bankrupt you if you don’t have the safety net that a comprehensive boat insurance policy provides.

If you’re a new boat owner, you must get an insurance policy as soon as possible. Should you expect higher rates? Read on to find out.

Are Insurance Rates Higher for a New Boat Owner?

All rate formulas used by insurance companies will consider the number of hazards involved. The higher the risks, the higher your rates. 

Unlike experienced boaters, new owners still haven’t demonstrated an ability to operate a watercraft safely. So – if you don't have a proven track record as an owner, insurers will factor higher risks into your premiums.  

However, they may also consider your driving history when you get a quote. If you’ve been driving a car for a considerable amount of time, they’ll look into your history of accidents, injuries, and insurance claims. Do you lack all these? That may somewhat prove you’re a responsible driver even if you’re new to boating. As a result, an insurance provider might lower your boat premium by a bit. 

You can also get discounts in other ways. For instance, consider taking a boating safety course to demonstrate your ability and willingness to operate your boat safely. Insurers may reward that proactive behavior with discounted boat insurance rates. 

What Other Factors Affect Boat Insurance Cost?

Being a new owner isn’t the only detail that may increase your boat insurance rates. Here are some other factors that insurance carriers incorporate into their premium formula:

Boat Age and Condition

Insurers assess the boat’s age and condition to determine the risks involved. If it’s a new vessel and has the latest safety features, you’ll enjoy lower rates. 

Your age matters, too. The range from 25 to 60 years old seems to be the sweet spot for discounts. 


How many times do you plan to use your boat? If you’ll only take it out occasionally, you’ll pay less. The more frequently the vessel is on the water, the higher the risks.

That’s why people in the northern states usually enjoy lower premiums. The boating season is shorter up north, especially in states like Minnesota.


How you plan to use your boat may also increase your insurance payment. Fishing and floating, for instance, are considered low-risk pursuits. On the other hand, riskier activities – such as tow sports – are more prone to accidents, resulting in higher rates. 


Did you know that more powerful motors may lead to higher premiums? Higher-horsepower vessels have more risks. Slower boats win the race to lower insurance rates. 

Boat Monitoring Device

Is your boat equipped with a real-time monitoring device that keeps track of its location? Insurance companies may offer a discount if smart boating technology is installed on your vessel. 

Learn More About Boat Insurance Coverage

Insurance might be challenging to navigate if you’re a new boat owner. Still, it’s a safety measure you shouldn’t overlook. 

Looking for a risk-free quote on the right boat insurance to suit your needs? Don’t hesitate to contact us today