California yacht insurance rates vary widely depending upon model and size of the yacht. Generally, you as a yacht owner can expect to pay upwards of 1,000 dollars each year for comprehensive coverage, especially if the yacht is an exclusive or expensive model. Here are a couple things you should know to save money.
How Insurance Rates Are Determined
Calculating insurance rates is a complicated process that varies widely between companies. To ensure you receive the best deal, keep in mind that insurance companies will likely consider the following factors:
- Region of navigation
- Docking location
- Plans for use of yacht
- Prior claims on insurance
- Horsepower of the ship
- Additional drivers
- Prior ownership
If you have built-in safety equipment such as fire extinguishers and burglar alarms, you can also save money. If not, consider adding it to your yachting adventures.
Tricks To Further Reduce Rates
Once you understand the general insurance criteria, there are still money-saving tricks to learn. For example, consider the cruising area covered by your plan. Are you paying to be insured all along with western seaboard when you never take your ship out of San Francisco? For even more savings, take a boating safety course. Passing can net you up to a 10 percent discount on your rates.
Purchasing California yacht insurance can be a complicated task. However, a little foreknowledge of the insurance criteria and a few easy tips can help you save money and protect your investment.