If you have power boat insurance, you may feel that it is particularly high. Why does power boat insurance end up to be so much higher than other small boat insurance.?

The Power of Statistics

Actuaries determine insurance rates. These high-powered statisticians evaluate large groups of data to see what kinds of boats and what kinds of drivers are most often in accidents and the type of accident in which they are involved.

The actuaries also examine the amount of property damage done in those accidents and the extent of personal injuries.

They will also look at the purposes for which the boats are used, how far they are towed across land, and the cost of replacing a particular type of boat.

High Risks for Power Boats

When the actuaries look at the risks for powerboats, especially high performance speedboats, many of these risk factors are particularly high.

Power boats tend to be driven faster, attract a high risk driver, and tend to be expensive to replace.

Also, when power boats are in accidents, they do a lot of damage relative to other types of boats.

Because of these risk factors, the insurance companies set the rates for these boats higher that the rates for other small boats such as canoes or fishing boats.