Abstract: The system and method for payment of insurance premiums for vessels generally involves the use of a global positioning system receiver integral to a vessel and a transmitter which communicates the GPS coordinates of the vessel to an insurance company. A processor at the insurance company verifies the received GPS coordinates and compares the received GPS coordinates to a database catagorizing insurance premiums based upon geographic premium zones. In the event that a premium adjustment is mandated based upon the location of the vessel then a controller at the insurance company initiates an automatic premium adjustment through an electronic funds transfer withdrawal from a customer account to provide continuous insurance coverage for the vessel during a voyage.