How can I save money on my Bitcoin insurance policy?

A lot of customers ask if we offer discounts on our Bitcoin insurance policies. The short answer is yes. During underwriting, AnchorWatch takes into account not only the specific situation of each prospective insured customer but also the level of security you select when you create your Trident Vault.

We don’t believe in one-size-fits-all pricing. Every Bitcoin holder has a different setup and experience, and we think your premium should reflect the level of risk you're taking on. If you take extra steps to protect your Bitcoin, you deserve to pay less.

Aside from your particular background risk profile, we focus on several security elections you can opt into that earn additional discounting:

• Distance between keys
  The farther apart your signing devices (your keys) are stored, the harder it is for a single event to compromise your vault. Minimum requirements dictate different physical addresses for key storage, but if you choose 10+ or 100+ miles apart between each key, discounts are available.
• Spending thresholds up to “The Hodl Discount”
  If you’re planning to move Bitcoin frequently while the policy is active, that introduces more risk. On the other hand, if you know you don’t intend to send or sell your Bitcoin during this year’s policy, you can opt for the “Hodl Discount.” This is the single biggest savings opportunity for AnchorWatch cold storage custody policies.
• Experience holding Bitcoin in self-custody
  If you’ve been provably holding some of your own Bitcoin keys for 3+ years and can demonstrate responsible key management, then you can earn additional discounting.
• Vault size
  Larger vaults tend to benefit from scaled pricing. If you’re insuring a significant amount of Bitcoin, that can lower your rate. If you’re seeking a policy above $15M, then you may qualify for custom pricing.
• Low profile lifestyle and/or have a kidnap & ransom (K&R) policy
  A low profile is the best protection from wrench attacks, and discounting is available for those without high public profiles. While higher profiles default to a higher rate, if you already have a K&R policy in place, a significant discount is available. 

Let’s Break That Down

We care a lot about where your keys are located and if they are all sitting in your bedroom drawer, then that’s riskier than spreading them out to different physical addresses. Physical separation of your keys protects you from a range of risks, including natural disasters, theft (including violent theft like wrench attacks), and even personal mistakes. When your keys are spread out, your vault is harder to compromise, and that makes it easier for us to offer you a lower premium.

Next, we look at how you plan to use the Trident wallet. Every time you move Bitcoin, there's a chance something could go wrong. So if your vault is designed for long-term cold storage, and you're not constantly accessing your signing devices or pulling them out of secure storage, we take that into account. Fewer sends mean lower risk and better pricing.

We also care about your experience level. If this is your first time holding Bitcoin in cold storage, that’s not a dealbreaker, and we are a perfect solution for those who want the benefits of self-custody and holding their own keys but want the extra security afforded by AnchorWatch. But if you’ve been managing your own custody for the past few years without any incidents, then that track record carries weight. It shows us you take your custody seriously.

Lastly, your vault size matters. If you're insuring a larger amount of Bitcoin, then that opens the door to additional discounts. It’s a combination of economies of scale and the reality that large holders tend to take care in planning and personal security. We price accordingly.

How Much Does It Cost?

Our rates start at $4,000 per million of coverage. When you join our team for a call, we’ll walk you through your options, point out any areas for improvement, and help you qualify for the lowest rate possible.

At the end of the day, we want to work with long-term holders who are serious about protecting what they own. If that sounds like you, let’s talk.

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