How Does Inflation Impact My Insurance?

How Does Inflation Impact My Insurance?

As a boat owner, you may have noticed the increased cost of parts, fuel, maintenance, repairs, and even the entire vessel itself. This is likely due to inflation, an economic situation leading to higher living costs.

As inflation increases, so can the cost of boat insurance. This can significantly impact your premiums, coverage, and how much you must pay out of pocket. With that said, let’s take a closer look at the impact of inflation on insurance and what you can do to mitigate these concerns, so you can continue enjoying your time on the water.

What is Inflation?

Inflation measures the average increase in the prices of goods and services. This rise in prices goes hand-in-hand with declined consumer purchasing power. In other words, more inflation means our currency has less value and decreases the number of goods or services we can purchase. Rising prices can happen for various reasons, including higher production costs, increased demand, and changes in the money supply.

The Situation in Canada

The cost of living is rising in our country — we see it in the prices of groceries, gas, and other goods and services. Inflation in Canada impacts the boating industry in combination with other trends, like environmental changes and the pandemic. Here’s how: 

  • Since Canadians could not travel during the pandemic, they spent more of their vacation time on the water, which led to an increase in the total number of claims, especially by new boaters with a lack of experience.
  • Climate change is leading to more extreme weather patterns and natural disasters. This trend impacts insurance because the increase in weather-related claims makes it more expensive for insurers. In an attempt to balance these expenses, they may raise their premiums. 
  • Inflation itself increases the cost of repair services and boat replacement parts. This leads to more expensive claims, which may raise insurance providers’ premiums.

These current trends influence pricing and coverage amounts on your policy. Let’s look at why this is the case in more detail.

What is the Impact of Inflation on My Insurance?

Inflation can affect your boat insurance policy in different ways. Mainly, it impacts your costs, like insurance premiums and out-of-pocket expenses. If you’re looking for a new boat insurance policy or currently have one, here are some ways inflation in Canada can impact your coverage:

1. Premiums for New Policies Can Get More Expensive

As prices increase over time, so will insurance products and services. For example, inflation may lead to rising costs of repairs and replacements, which means that boat insurance premiums may become more expensive when you take out a new policy. These higher rates ensure insurance companies can cover the higher volume and cost of claims.

2. Potential for Insufficient Coverage Limits

Most insurance companies have coverage limits. This limit is the maximum amount they’ll pay out in case of a claim. As inflation increases the cost of goods and services, it raises the price for repair and replacement — professional services cost more, and so do boat parts. This means that your current policy limits may not be sufficient enough to cover these costs in full, resulting in the potential of you paying more out of pocket. 

3. Increased Difficulty Paying Deductibles

Your insurance deductible is the amount you’re responsible for paying before your insurance company covers the rest of a claim. In times with rising costs of living, these deductibles can become less affordable to shoulder out of pocket as your budget gets tighter. If you find yourself in this situation while submitting a claim, this might mean that you’ll have to wait to file it until you’ve gathered the money to pay your deductible. 

How to Deal with the Impact of Inflation on Insurance

With increasing costs impacting your insurance, there are a few things you can do to mitigate this impact and save money. For example:

Find a Marine Insurance Brokerage

You can ensure you get the best boat insurance policies and prices by specifically seeking out brokerages that specialize in marine insurance. Speaking to these experts can give you peace of mind knowing that your coverage options are tailored to your needs by people who know the ins and outs of the industry.

Review Your Coverage Regularly

Regular reviews of your boat insurance coverage can ensure it still meets your needs and provides adequate protection for your vessel throughout the year. This is an opportunity to make adjustments and remove certain parts of your policy, if necessary.

Save for Emergencies

As mentioned above, inflation can lead to higher expenses paid out of pocket. For this reason, if you’re able to, build up a savings buffer to help you prepare for unexpected costs related to your insurance coverage.

Consider Inflation-Protected Policies

Some insurance companies offer inflation-protected policies which automatically adjust to changes in the cost of living. The purpose of these specialized policies is to ensure the value of your coverage does not erode over time because of increased prices. 

Adjust Coverage Limits and Deductibles

If you have an existing policy, you can reduce the impact of inflation by adjusting your coverage limits and deductibles. For example, increasing your deductible can decrease your premiums, but keep in mind that you’ll have to pay more out-of-pocket if you have to make a claim.

Customizable Boat Coverage Options for You

At Portside Marine Insurance, we understand that inflation can significantly impact the type of protection you can afford. That’s why we offer customizable coverage options to help you mitigate the impact of the rising cost of living while still being able to enjoy your time on the water. If you’re concerned about how inflation might impact your existing or future policies, we’re here to help. Get a quote or contact us today to learn more about how we can make your boat insurance work for your needs.

5 Common Boating Insurance Claims

5 Common Boating Insurance Claims

We can’t think of a better pastime than breathing in the fresh outdoor air while riding the waves in your watercraft. However, as with any outdoor activity, there can be risks involved. Having the right insurance coverage can give you peace of mind and protect you from financial loss in the event of an accident or incident. In this blog post, we’ll take a look at common boat insurance claims and provide some advice on what you can do to prevent them. 

Hitting an Object in the Water

One of the most common boating insurance claims is damage caused by hitting floating or submerged objects in the water. These objects can include logs, rocks, and other debris and can especially be a problem in low-visibility conditions and shallow water. While running into these objects can lead to minor scars on your watercraft, it can also cause mechanical failure, damage to the hull and propellers, or even sinking. 

Even the most experienced boaters may run into this issue because floating or submerged rocks and logs can be challenging to locate. To prevent hitting these the next time you set sail, ensure you do the following:

  • Do your research before heading out: Research or ask around to find out if any known areas on the lake or body of water have lots of debris or objects. This way, you can stay clear of these spots.
  • Go boating with another person: Sometimes, catching everything with one set of eyes can be challenging. Bringing a second person with you can help point out anything in your path while you drive.
  • Get a marine radar: These are valuable tools that detect objects around you. They send out a radio wave and bounce back when it hits an object, giving you a rough estimate of where it is relative to your position.
  • Go slow in unfamiliar water: If you’re trying out a new spot, go slower than you usually would. This practice simply allows you to keep a closer eye on any objects that may obstruct your path.

Damage from the Dock

Damage from docking can happen to anyone, whether you come to shore during a strong wind storm or simply miscalculate your incoming speed on a calm day. If the force is great enough, you may see structural damage, like a hole in the hull, destruction to electrical wiring, or a bent propeller. Here are some ways you can prevent this incident from occurring:

  • Use bumpers or fenders to absorb the impact
  • Use a boat cover at your storage facility to cushion any movement
  • Practice docking in calm conditions before attempting in more intense weather

Weather-Related Damage

During boating season, extreme conditions like high winds, lightning, hail or heavy rain storms can shake up your watercraft, whether you’re out on the water or your vessel is tied to a dock. Weather-related damage can range from minor scratches to body destruction. 

If you live in a particularly stormy area or know one is coming in the forecast, double-check that your boat is secured and covered. To avoid mishaps while on the water, check the forecast before you head out, including wind speeds, wave height, and any signs of storms. As a general rule of thumb, try to wait out the bad weather for the safety of you and your vessel.

Keep in mind that even during the off-season, you must protect your boat during the cold Canadian winters. Here are some situations that could lead to damage and insurance claims:

  • Improper boat covering: If you don’t protect your boat with a custom, quality cover, snow and ice can accumulate, and water can pool inside. Additionally, not allowing enough ventilation can cause mould growth.
  • Not draining the engine of water: Frozen or cracked engine blocks can happen due to improper winterizing practices. To prevent this, after draining, add antifreeze.
  • Storing your boat in the water: When water freezes around a vessel left in the water, the ice can grind against the hull and even crack and sink it. Ensure that your boat is entirely out of the water or stored on dry land to avoid this.


Theft of boats and belongings is also among common boating insurance claims. While not all thefts are predictable or preventable, your storage practices and security measures play a massive role in keeping your vessel safe. Here are some tips to help you prevent theft:

  • Lock your boat, including the steering wheel, and use heavy-duty locks on your outboard motor.
  • Install motion detectors and GPS tracking systems (At Portside Marine Insurance, we even offer a 10% discount on insurance for boats that have a GPS tracking system)
  • Store your watercraft in a secure place, such as behind a locked gate or in a trusted storage facility.
  • Detach outboard engines and store these indoors in a secure place.
  • If you store your boat at home or on a driveway, block it in with another vehicle or obstacle.
  • Keep an inventory of items on your boat so it’s easier to identify anything missing. 


Collisions with other vessels can cause more significant damage than when you hit fixed, submerged, or floating objects. This type of claim can be especially common in crowded boating areas like lakes and rivers. Accidents like this can happen if:

  • Operators on board are inexperienced or negligent while driving the boat.
  • Your vessel experiences a mechanical failure that’s out of your control, causing the inability to stop or steer in time.
  • You’re not paying attention to your surroundings.
  • You operate your watercraft at an unsafe speed. Pay attention to any posted speed regulations and use your judgment to ensure you’re not driving faster than you can react.
  • You drive while under the influence. Remember, this is both illegal and can cause severe injury or even death.

Helping You Get the Coverage You Need

At Portside Marine Insurance, we understand that accidents happen. That’s why we offer comprehensive coverage plans for your peace of mind so that you can continue enjoying your time on the water. If you’re ready to explore policies or need more advice on boat insurance claims, contact us today!