Travelers Introduces First Electric Boat Discount

July 22, 2008

Travelers recently launched a “first” in the insurance industry with its premium discount of up to 10 percent for those owning electrically powered boats.

Whether boaters are interested in a quieter boating experience, or if they are seeking environmentally friendly boating solutions that help save money on annual fuel costs, electric boats can provide the right alternative for this segment of boaters, Travelers’ statement said. The release added that the number of electric boat manufacturers has grown and there continues to be a demand for electric boats in the current economy.

“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. Most electric boats have a top speed of between five and nine knots or about six to 10 miles per hour which makes them suitable for leisurely cruising.

“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. 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. Therefore, it would cost about $50 to run a 10 horsepower gasoline engine or an 18 horsepower diesel engine for 10 hours**.

Recently, Travelers analyzed the fuel costs at 13 marinas around the country. This data uncovered the fact that marine fuel costs about $.78 per gallon more than the national average for automobile gasoline and about $.42 per gallon more than the national average for diesel fuel.

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. Electric-only waterways help to keep the environment clean and create a quieter atmosphere for boaters looking to cruise and enjoy the outdoors. Additionally, electric boats are often utilized in speed restricted waterways that require boats to be operated without a wake.

For more information on the electric boat discount visit About Travelers

The Travelers Companies, Inc. identifies itself as a leading property casualty insurance company selling primarily through independent agents and brokers.

*A discount of up to 10 percent applies only to certain coverages. The discount may not be available in all states and is subject to individual eligibility.

Source: Travelers Companies, Inc.

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