The costs of yacht insurance can vary depending on the policies included and the inclusions in the coverage. The ownership of a luxury yacht comes with both enjoyment and responsibility. Yacht insurance is a necessary part of owning a yacht. Reviewing and comparing policy details, you may wonder how much yacht insurance costs.

The Costs of Yacht Insurance and What Comes Into Play

Multiple factors come into play when determining policy costs, but some general guidelines help with your decisions.

Basics of Yacht Insurance Expenses

Usually, policies for yachts range between 1% and 5% of the vessel’s cost. For example, if you paid $100,000 for your yacht, you could spend around $2,500 yearly for insurance. Of course, actual costs depend on your vessel and your preferences.

The more your vessel costs, the more expensive insuring it will be. Insurance costs are more expensive for boats with high-powered engines. Insurance companies determine your boat insurance quote, including whether your engine is inboard or outboard and its horsepower capability.  

What Comes With Yacht Insurance Policies? 

Yacht insurance policies typically cover many things. First, there is a basic liability. This coverage pays for damage caused by your yacht, including damage to docks and other vessels. It could include damage from large wakes. If accidents your vessel causes have coverage, liability pays for court costs, including litigation and settlements. Your insurance specialist can help you assess your potential risks. Then, there are uninsured boaters, which is a coverage that compensates for injuries on your vessel caused by another uninsured craft. Collision coverage is optional and reduces your deductible should your vessel suffer damages in an accident. Next is the Search and Rescue policy, which dictates that should a government agency such as the U.S. Coast Guard be called in for emergency assistance, yacht insurance pays up to $10,000 in agency fees.

Additional Yacht Policy Values

Hull and machinery damage comes into play if your yacht receives any physical damage to the hull, motor, trailer, or other equipment. This benefit covers it. Likewise, marine environmental harm or pollution cleanup – You can choose this to pay up to $10,000 in fines for any environmental damage your vessel might cause. Crew personal and medical protection is a benefit that pays reasonable medical costs for each person boarding or leaving your vessel. Sinking and Removal of Wrecks is a yacht insurance policy that may cover specified costs if your vessel sinks and salvaging expenses. Actual Cash or Agreed Value provides a scenario where you can choose this coverage for compensation if your vessel suffers damage beyond repair. Actual cash value policies usually offer less protection than agreed cash benefits but also cost less. 

These benefits typically come in yacht insurance policies and a few available options. 

Lowering Yacht Insurance Costs

You can lower your cost of yacht insurance in multiple ways. Ultimately, you can do this by maintaining an excellent operational and safety record, choosing a higher deductible, lowering your liability limits, and the area where your yacht can sail while also choosing a newer vessel. 

You should purchase off-season coverage to reduce potential financial risks when anchoring your boat. Storms, vandalism, and theft are dangers you will have to pay for out-of-pocket if you do not have insurance coverage. Getting a reliable quote for yacht insurance is not as difficult as you think. Check with your insurance specialist about getting a convenient yacht insurance online quote. 

About Mariners Insurance

Mariners General Insurance Group was founded in 1959 to protect boat owners and marine business clients. We are marine insurance experts and insure boats worldwide – in every ocean on the planet. Marine insurance is critical if you own a boat or nautical business. Trust the professionals with all of your Boat Insurance needs – trust Mariners Insurance. Call us at (888) 402-5018 any time you have questions or concerns about insurance for your vessel or marine business.