Tuesday, July 22, 2008

Electric Insurance

Electric boats are gaining popularity, since they provide a reasonable solution to soaring fuel costs and an alternative for those who are environmentally conscious. Travelers, a leading insurance company, is now offering an insurance discount of up to ten percent for owners of electric boats—a first for the industry.

Travelers defines an electric boat as “a vessel 100 percent powered by a propeller-driven, electric inboard source where utility is stored onboard.” Besides fuel and environmental advantages, electric boats require less maintenance than a diesel- or gasoline-powered boat due to the simplicity of the motors. They are quieter, too, another reason some people are turning to them for a tranquil cruise.

However, the economic benefit is worth noting, too: Travelers says that an 18-hp diesel engines cost approximately $50 to run for ten hours, while an electric boat would require a mere $1 or $2.

To encourage further use, several states are following a European trend by stipulating that specific waterways are exclusively for electric vessels.

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