HARTFORD, Conn. – Travelers, a provider of boat and other personal insurance products, is launching an insurance premium discount of up to 10 percent for those owning electrically powered boats, something it believes to be an industry first, the company reported in a statement today.
Travelers said the number of electric boat manufacturers has grown, and there continues to be a demand for electric boats in the current economy. A number of states are designating certain waterways as electric-only navigation. This phenomenon has been a trend in Europe and is now catching on around the United States, the company reported.
"There has always been a segment of boaters who prefer a quieter electric boat and with the rising cost of marine fuel and a growing focus on the environment there is no doubt that more boaters will consider this option," said Chantal Cyr, vice president of the Boat and Yacht Division for Travelers. "As habits are changing and more people are using electric boats, Travelers is offering an innovative insurance solution that fits the evolving lifestyle of our customers."
Travelers defines an electric boat as a vessel 100 percent powered by a propeller driven, electric in-board source where utility power is stored on board. These vessels are found to require less maintenance and break down less often than a typical gasoline or diesel powered boat, simply because the motors are less complex, the company reported.
"Travelers staff of marine experts took a hard look at these boats to fully understand their operation and functionality," said Cyr. "This allows Travelers to not only offer a discount benefiting electric boat owners, but also deliver outstanding service in the unfortunate event that a customer would have to file a claim."
Most electric boats cost between $1 to $2 to fully charge for 10 or 12 hours of cruising time, meaning they cost approximately $.10 to $.12 per hour to operate, reported the company. This significantly differs from conventionally fueled boats, which the marine industry estimates use about one gallon of fuel per hour for every 10 horsepower, while diesel engines consume about one gallon of fuel per hour for every 18 horsepower, Travelers stated. Therefore, it would cost about $50 to run a 10 horsepower gasoline engine or an 18 horsepower diesel engine for 10 hours, according to the company.
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