Cheaper Yacht Insurance
This article reviews the main pricing factors that will affect your yacht insurance quote and thus hopefully will help you achieve the best balance of having the right level of cover at the very best price.
Get yacht insurance for the best price
When you’re looking to purchase yacht insurance your first and foremost concern should be making sure you have the right level of cover for your needs/ assets. Secondly, and only ever secondly (since no two insurer policies are ever exactly the same), you should then ensure that the price is as competitive as you can get. Thus you need to balance the two. This article reviewing the main coverage and pricing factors that will affect your quote and thus hopefully help you achieve a balance of the two.
As said above, first and foremost, it is vital that the insurance on offer is reliable and any policy will only be worth the service you receive should you find yourself in the unfortunate situation of having to make a claim. Therefore you should be sure when choosing any Boat Insurance that the company is based in the United Kingdom and are approved and regulated by the Financial Conduct Authority. It may also be of use to check they have a UK phone number where you can speak to an actual person if any problems arise.
That said, regarding your choice of policies the first decision that you need to make is whether you require a fully comprehensive cover or if purely a third party only cover will suffice. The question here is essentially whether you wish to have cover for your own vessel if lost or damaged (more suited to lower value vessels) or if your only concern is the possible liability you may incur to others if you are found to be at fault following an accident.
third Party boat insurance is usually calculated at a fixed price with the only price determinant being the level of liability you require. Most insurers will offer either £2-3 million Third Party Liability. Make sure you check the requirements of your marina, boatyard or any local authority that may have their own minimum limits.
For full cover yacht insurance the single biggest determining factor is the value of your vessel and any additional items such as personal effects, trailers, tenders and outboards. To calculate your premium insurers will take the total sum to be insured and multiply it by a specific percentage rate (e.g. vessel value x 0.01%). When it comes to yacht insurance the rate applied will normally be fairly static and based on factors such as the age and cruising range required. Vessels beyond a certain age will require a higher premium and most insurers will also likely require a survey prior to covering vessels fully comprehensive beyond a certain age such as 20 or 25 years. The cruising range required is an important factor as the further the range you wish to be insured for, the greater amount of time you are likely to spend aboard and the more risky the regions you could potentially travel into. Both of these increase the risk to the insurer, for which inevitably quoted costs will increase and they will take the standard rate and apply a further increment (e.g. (vessel value x 0.01%) x 1.05%).
Cover whilst racing is also inevitably likely to have an effect on your premium calculation. Racing insurance will be more expensive than standard yacht insurance due to the additional risk of this activity. Whilst racing itself may be covered by the policy, most insurers are likely to exclude cover for the replacement of the mast, spars, standing and running rigging. Insurers will provide cover for this but extra premium will be required, this will usually be calculated by applying an additional rate to the replacement value of your mast, spars, standing and running rigging.
Another key factor that will affect a full cover yacht insurance quote will be your no claims bonus entitlement. Most Insurers make a percentage deduction based on the number of years a client has been insured without making a claim and for those with multiple years no claims bonus this can lead to large deductions in the final premium. The maximum no claims insurers offer does vary with some offering a maximum of 20% for 4 years whilst others offer up to 30% for 6 years. When comparing boat insurance companies it is always worth checking the maximum no claims offered as the savings are often substantial.
When choosing insurance policy make sure that you have the right cover, whilst opting for the cheapest possible insurance may seem the best short term option this could lead to huge headaches and problems later if you have compromised too much for price. Also, before making any final decision make sure you read through the company’s Terms of Business, Policy Wording & Summary to make sure that the cover on offer meets your requirements.
This article is provided with best intent only, we always recommend getting more than one quote to ensure you get the produce that is best suited to your needs but certainly hope you may wish to procure your insurance through us. It takes a only two minutes to get a quote and you’ll find we provide quality cover at a very competitive price… click here for a Yacht Insurance Quote.