Dave, Here is a question for you: If you were an insurance company and two boats moored side by side were seeking insurance from you; one newer boat for a value of $100,000 and one older boat for $50,000 which one would you charge more for? Consider that the most likely cause of a total loss would be a hurricane or tornado taking out all boats in a given area. This happens with some regularity. Would the newer boat be less likely to sink? Why then do all insurance companies charge more for older boats with less financial risk?
Your question is really about 2 separate issues, one the value of the boat and two, the likelihood of the boat owner filing a claim. Insurers look at many factors, in your example are owners of the less expensive model of boat more or less likely to file a claim? How expensive will it be to repair the boat if it is damaged? How likely is it that the boat boat can be easily damaged to a point where it is not worth repairing?
The other issue is how likely is the owner to file a claim? The owner's claim history on auto, home, boat and any other insurance comes into play here. History of filing auto claims? Then perhaps the owner is more likely to file a boat claim. How's the owner's credit rating? Individuals with high credit ratings are deemed to be more responsible and therefore less likely to file a claim. How's the owner's driving record? Lots of tickets, especially DUI tickets? Then more likely to file a claim.
Finally, nothing problem raises red flags more than a request to insurance a boat, house, car, or anything that is well above average market value. That smacks of a scam, not that you would do that, however, insurance fraud has been expensive to insurance companies and to the rest of us because it affects our rates.
The first boat I owned was insured for about $17K, the price I paid for it new. 15 years later it was still insured for $17K when I sold it for about $5K. I wondered why I didn't have an "accident" in which the boat sunk in 800 feet of water......
