Press Release Details

HARTFORD, Conn.--(BUSINESS WIRE)-- Boat enthusiasts looking to save on annual costs by dropping or modifying insurance coverage should do so carefully, urge experts at Travelers (NYSE: TRV). There are many common mistakes individuals make with their boat and yacht insurance that can put their family's entire financial position in danger if something goes wrong.

"Now it's as important as ever for boaters to make sure they have the right coverage for their vessel," says Chantal Cyr, vice president of Boat and Yacht for Travelers. "Insurance is there to protect a family's financial position, and changing the policy to find a way to save money in the short-term should only be done with careful consideration."

Few are immune to the effects of the economy, but dropping or modifying insurance coverage as a way to save can create a false sense of security. Today, back injuries are one of the most common boating injury claims, and treatment costs can exceed tens of thousands of dollars. Without sufficient insurance coverage, the vessel owner may have to shoulder the financial burden from medical bills to treat injuries suffered onboard their boat, or the costs to repair or replace damaged property.

Avoiding the following common mistakes, and consulting with an independent agent, will help put boaters on a course towards getting better value and protection.

1. Dropping insurance coverage because the boat is paid off. Boat insurance covers more than just the vessel, it provides coverage for things like personal injuries, environmental cleanup and liability issues that could occur while out on the water. If something major happens, you could incur significant out of pocket expense immediately and potentially well into the future. Boating without any insurance coverage creates a large financial exposure that could ruin a family's finances.

2. Shopping on price alone. Paying a little more for your policy could bring significant added-value. For example, paying less for your insurance could mean that you have lower policy limits and less coverage. Independent insurance agents can help consumers make sure they have the right amount of coverage. It is also important to get a boat insurance policy with a carrier that has strong financial ratings.

3. Lowering liability or other limits to save on monthly premium costs. An insurance agent can help a boater identify the amount of coverage they need to protect other personal assets. It doesn't make sense to have too much coverage, and an agent can help boaters avoid having too little.

4. Choosing a deductible you can't afford. Choosing a higher deductible may be a good way to save on monthly premium costs. However, make sure to choose a deductible that you can afford in the event of a claim.

5. Intentionally cancelling boat insurance coverage during the off-season. This overlooks many risks that could damage the boat when it's not in the water. Dropping coverage could leave the boat owner exposed if the boat is damaged in a fire at the storage facility or if a tree crushes the boat parked in the driveway thanks to the most recent winter ice storm.

There are many ways boaters can save money on their insurance costs and still have peace of mind knowing they are protected. For example, taking a safety class to be eligible for safety credits, updating deductibles and asking about discounts will help boaters get the most value for their premium dollars.

For more information on boat insurance or to find an independent agent who can consult on ways to save, visit www.travelers.com.

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading property casualty insurer selling primarily through independent agents and brokers. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. The company's diverse business lines offer its global customers a wide range of coverage in the auto, home and business settings. Travelers is a Fortune 100 company, with 2008 revenues of approximately $24 billion. The company has 33,000 employees. For more information on being in-synch, visit www.travelers.com.

    Source: Travelers Companies, Inc.