Minimizing Your High-Risk Speed Boat Insurance Costs

Speed boat insurance is that insurance that is purchased for high performance boats. This type of coverage is designed to protect owners of these crafts against loss that is due to damage, theft or destruction. The coverage limits that are provided in high-risk speed boat insurance are determined by the insured and are set at an amount that is affordable and provides the greatest amount of protection.

There are ways in which a speed boat owner can minimize their insurance costs for their high-risk craft. These steps are suggestions on the ways in which a boat owner can lower costs and maximize benefits in order to insure and protect their performance boat.

Step 1: Choose a Policy with an Appropriate Deductible

One of the easiest ways to minimize the cost of a high-risk speed boat insurance policy is to set a deductible level that is high enough to reduce the premium cost but not too high to make repairing or replacing a defective part unreasonable. Deductibles are a form of risk retention on the part of the boat owner and are a method used in every type of insurance. The amount of risk that you are willing to retain is directly proportionate to the cost of the coverage you purchase.

Having a higher deductible means that you will need to have some resource available in order to meet the costs associated with a loss to the extent that it is not covered by the insurance policy. This amount that is set aside should be free and clear of any other obligations that you may have and be dedicated solely for the purpose of meeting your anticipated expenses associated with any loss to your speed or performance boat.

Step 2: Choose a Policy with an Actual verses Agreed Valuation

After setting the deductible, choosing a policy that uses actual versus an agreed valuation for loss will save you money. The difference between these valuation methods comes down to depreciation. The agreed value pays a benefit based on total loss that is not depreciated where the actual value pays the lesser of the depreciated value of loss or the actual value of the loss. Because of the depreciation factor, an actual value boat insurance policy will cost less than that of an agreed valued policy.

Step 3: Choose a Lower Coverage Limits

Like step 1, you should go with a policy that provides for coverage limits that are less than the valuation of the boat. This means discounting the benefit by some rate (say 10 percent) in order to bring down the overall risk to the insurance company and cost of coverage.


Minimizing your costs for coverage can be controlled by you. Using these steps should help you obtain an adequate level of risk protection for your speed boat. With this protection in place, you should have the peace of mind necessary to use your boat freely and comfortably with the knowledge that if anything occurs that results in a loss, you have the affordable protection in place to pay for any damages.

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