With gasoline prices at boat docks exceeding $5 a gallon, Travelers said it is offering a unique premium discount to an expanding number of boaters who own electric powered craft.

The Hartford, Conn.-based insurer said its electric boat discount of up to 10 percent is the first of its kind for the industry.

Chantal Cyr, Travelers vice president for boat and yacht personal lines, said with skyrocketing fuel costs, manufacturers, while not providing specific numbers, "have all reported an increase in demand and sales of electric boats."

Travelers, she said, did a study of electric boats and found them attractive from an underwriting standpoint, because such watercraft typically have a maximum speed of only 6-to-10 mph and their use is generally limited to lakes and harbors.

In addition to a low top speed, she noted "they have less complex motors, less maintenance and break down less frequently."

She noted that Travelers is offering the 10 percent discount, which applies to physical damage and liability, for new customers and existing customers on renewal.

Kevin Kearns, a spokesman for Duffy Electric, a large Adelanto, Calif.-based manufacturer, said electric boats offer the quiet of sailing without the work. They can be used "all day long for maybe a dollar on electricity."

Typically, the company's boats have an array of 8-to-16 batteries like a golf cart. Most are open canopy-topped launches. Duffy also makes a pontoon platform boat.

"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," Ms. Cyr said.

"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," she added.

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.

According to the carrier, most electric boats cost between $1 and $2 to fully charge for 10 or 12 hours of cruising time, which translates to about 10 cents to 12 cents per hour to operate.

Conventionally fueled boats, 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 said.

According to the company, it costs about $50 to run a 10 horsepower gasoline engine or an 18 horsepower diesel engine for 10 hours.

Travelers said an analysis of fuel costs at 13 marinas around the country found it costs about 78 cents per gallon more than the national average for automobile gasoline and about 42 cents per gallon more than the national average for diesel fuel.

The company noted that a number of states are designating certain waterways as electric-only navigation.

Mr. Kearns added that Europe was way ahead of the United States in this regard, being "more in tune with the environment" and designating many canals and waterways for electric only.

Travelers noted that electric boats are often utilized in speed restricted waterways that require boats to be operated without a wake.

Special Reports /

As Gas Costs Rise, Travelers Gives Electric Boaters A Break

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