Boat owners caught in wake of high gas prices
New survey shows boat enthusiasts willing to pay to play
FOR IMMEDIATE RELEASE
May 15, 2006
Elizabeth Stelzer (614) 249-1025
Charley Gillespie (614) 249-5701
Columbus, Ohio — Boat owners say high gas prices won’t keep them off the water this summer, but will have them easing off the throttle more often, according to a new survey by Nationwide Mutual Insurance.
Like all motorists, boat enthusiasts are caught in the wake of high fuel prices – especially those who pay a premium to gas up at marinas. However, boat owners indicate they are willing to “pay to play” saying gas prices would have to nearly double before they change their lifestyle.
“When talking with our customers about boating we learned that while they’re concerned about rising fuel prices, the passion they have for their boats override those concerns,” said Greg Blanchard, Nationwide’s vice president of Specialty Products. “What they say is that they’ll look to cut costs elsewhere.”
Nationwide’s survey conducted by The Brandware Group, Inc. of 2,544 power boat, bass boat, motorcycle and ATV owners shows that two-thirds of boat owners indicated high fuel prices would not cause them to use their boats less often. In fact, boat owners are willing to pay about $2.70 more per gallon for fuel before they will consider docking their boats.
According to the survey, boat owners will be on the water just as often as last summer – about 20 times – but expect to run their engines about 25 minutes less per trip.
It’s the passion for their boats and lifestyle that has enthusiasts willing to pay higher fuel costs. Boat owners reported they spend 28 percent of their total leisure time on the water and 36 percent of boat owners consider their time boating more important than all other leisure time.
Boat owners surveyed have been engaged in the activity for more than 17 years and have owned their current boat for about 6 years. About 80 percent plan to continue boating when they retire. Over the past five years, enthusiasts invested $6,848 on improvements and accessories for their power boats and $5,208 for their bass boats.
With high fuel costs putting a strain on boat owners’ wallets, they should make sure they have the right protection against the unexpected so they don’t get hit with burdensome repair or replacement costs.
“Protecting your investments by making sure they are insured to value is an important step in protecting your lifestyle,” said Blanchard. “The money crunch really hits home if something happens and you don’t have adequate insurance to repair or replace your baby.”
According to the survey, one in five power boat owners and one in three bass boat owners do not have insurance on their boat. Of those with insurance, about 35 percent don’t have liability coverage. About 40 percent of power boat owners and 53 percent of bass boat owners don’t have collision coverage. About one in five power boat owners and a quarter of all bass boat owners would rather take their chances than pay to fully insure their boats.
Blanchard suggests these five tips to help boaters lessen the strain on their wallets:
1. Go with the flow. Where possible, catch a lift when the tide is going your way; avoid going against the tide.
2. Drop anchor at sea. Spend time picnicking, swimming and sun bathing instead of running your motor.
3. Clean the bottom of your boat. The extra friction from barnacle, plant and debris build-up burns more fuel.
4. Stay light. Remove extra chairs, coolers and barbeques to reduce the amount of engine usage.
5. Be prepared for the unexpected with proper boating insurance. Storm damage, boating accidents and emergencies can be expensive if you’re not covered.
Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world, with more than $158 billion in assets. Nationwide ranks #98 on the Fortune 100 list. The company provides a full range of insurance and financial services, including auto, motorcycle, boat, homeowners, life, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions and long-term savings plans. The Nationwide companies include the country’s seventh-largest property/casualty, the fourth-largest homeowners, the sixth-largest auto insurance group and the country’s largest farm owners insurer. Nationwide Life Insurance Company, the major subsidiary of Nationwide Financial, ranks 11th in assets according to A.M. Best. For more information, visit www.nationwide.com.
Nationwide and the Nationwide Framework are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company.
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