Yacht size and value: Larger and more valuable yachts usually have higher premiums, as they are costlier to repair or replace. Insurers consider the yacht’s market value and replacement cost to determine the potential liability.
Age of the yacht: Newer yachts may have higher insurance costs due to their value, but older yachts can also be expensive to insure if they require frequent repairs or upgrades to maintain safety.
Type of coverage: Basic coverage, such as liability only, is generally less expensive than comprehensive coverage that includes hull damage, personal belongings and equipment protection. Higher coverage limits and additional features will raise the premium.
Cruising area: The waters where a yacht is primarily used impact the insurance cost. For instance, areas prone to hurricanes or high-traffic boating areas may result in higher premiums due to increased risk of damage or accidents.
Intended use: Yachts used for commercial purposes, like chartering, usually have higher insurance rates compared to personal recreational use due to the higher risk of incidents and liability.
Owner’s experience: An owner’s boating experience and safety record can affect premiums, as insurers may offer lower rates to owners with extensive experience and a clean record.
Seasonal use: Some yacht insurance policies offer reduced rates if the yacht is only used seasonally or stored on land during certain months. This can reduce risk and, in turn, lower premiums.