Is Actual Cash Value or Agreed Value on Boat Insurance Right for Me?

Whether this is your first boat or you just upgraded to a more impressive yacht in Bethlehem, PA, it’s time to purchase some boat insurance. Saucon Insurance Agency is ready to help you purchase the right policy that protects not just you and your guests, but also your wallet if you are involved in an accident.

Boats Depreciate Like Cars

As soon as you put your new boat in the water, it starts to lose value much like a new car.  By the time your first season is over, your favorite party pontoon could have lost a quarter to a third of its original purchase price. If you have replacement on your boat insurance policy, you likely will get Actual Cash Value as part of the standard coverage if your boat is damaged in an accident. The insurance carrier will determine what the current value of the boat is and send you a check for that amount, not what you paid at the dealer.

Protect Your Vintage Vessel

Actual Cash Value works if you have a small boat with a simple outboard motor as you’d probably be able to absorb the difference in insurance payment vs. cost of another boat without too much fuss. However, if your boat is either a custom luxury yacht or a vintage vessel featuring teak decking and built-in furniture, you may wish to opt for Agreed Value on your policy. You’ll have the boat appraised and pay for coverage based on the real cost of fixing or replacing the damaged ship.

It’s always a good idea to spend a few minutes talking to your Saucon Insurance Agency representative in Bethlehem, PA before finalizing your new boat insurance policy to fully protect your latest investment.

Should an Owner of a Company Allow Teenage Employees to Drive Company Vehicles? is a global movement of teenagers that counts over five million young people as members. To avoid any criticism for age discrimination in this review of this topic; here are some teenage driving statistics that this group of young people reports about teen drivers:

  • The highest rates of auto accidents for any age group are caused by 16-year-old drivers.
  • Within the first year of driving, 20% (one in five) of 16-year-old drivers will have an accident.
  • More than half (56%) of teens admit to talking on a mobile phone while driving.
  • Distracted driving, such as talking on a cell phone or texting while driving, doubles the probability of having an accident and reduces the reaction times of teen drivers to the equivalent of those found in 70-year-olds.
  • Motor vehicle crashes cause one-third of the deaths of young people between 13 and 19-years-old.
  • The chance having an accident caused by a teen driver increases by the number of additional passengers.

Use of Commercial Vehicles

The company policy about employees who are authorized to drive company vehicles is a business risk decision. Like all decisions of this kind, insurance coverage and the cost of it, are key factors that the business owner should consider when making the decision about who is permitted to drive a company vehicle. Many companies require an employee to be 25-years-old in order to be allowed to drive commercial vehicles for the company because this is normally the age where the insurance rates are more reasonable. Each policy is different, so check with your agent at Saucon Insurance Agency serving Bethlehem PA, for the specifics.

The experts advise business owners to exercise caution when allowing a younger person to drive any vehicle. For example, if the business owner asks an employee to drive a few blocks to pick up food for lunch at the office that is considered a commercial use of that vehicle, even if it is the owner’s private vehicle. When an owner asks an employee to do something as part of their work, then this task is a commercial activity, not a private trip in the vehicle. Business owners need to be careful not to create liability risk by mistake.


Check with your agent at Saucon Insurance Agency serving Bethlehem, PA, to make sure you have adequate coverage, which includes adequate vehicle insurance for the business owner’s private vehicle that includes coverage for the occasional use of the vehicle by others (including employees) and commercial insurance to cover the potential liabilities for company-owned commercial vehicles.