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Yacht Insurance: The Definitive Owner’s Guide

A sailing vessel’s indemnification liability coverage is provided through yacht insurance, and it covers any damage to the yacht’s body, property destruction of others, and private property damage aboard the vessel. This insurance may also cover gas supply, towing, and help if your boat gets stuck, depending on the insurance company.

Understanding The Two Parts of Yacht Insurance

Hull insurance.

Hull insurance is a direct and all-risk insurance policy that covers damage and includes an agreed amount of hull insurance. The amount settlement is done when the policy is drawn up, and the payment is in full in the event of a total loss. In addition, there’s the possibility of replacement costs insurance for partial losses. Still, sails, batteries, canvas outboards, and sometimes outdrives aren’t covered and are instead at risk of depreciation.

Indemnity and protection (P&I)

Protection and indemnity (P&I) insurance provides the most comprehensive insurance coverages for liability. Because maritime law is unique, you must have coverages specifically designed to protect you from risk-taking situations. P&I will cover any judgments against you and pay to defend you in admiralty courts.

What are the factors that can influence your yacht insurance?

Insurers consider many factors when deciding whether to offer a policy.

Almost any vessel can be insured – for a price. You should consider the following to make sure the policy you buy meets your needs:

• Age of the vessel
• Value (make sure you consider depreciation over the years of the value of your yacht)
• Speed/Power
• Type of vessel (Sailing, motor, Inboard, Outboard, utility, cruiser, offshore fishing boat)
• Custom built (boats without serial numbers can be tricky to insure)
• Location of use (which ocean are you planning to locate your boat. Make sure you let your insurance know whenever this changes over the months!)

What does yacht insurance usually cover?

Usually, the yacht insurance covers:

Liability protection: the bare minimum insurance

Property damage liability pays for damage to another person’s property caused by the accident you commit. You are covered if your yacht causes damage to individuals or damages other ships, docks, or buildings. Remember that harm or damage might occur due to direct contact with your boat or events induced by your yacht, such as during heavy wakes. In most cases, boat liability insurance covers you against covered claims and litigation involving settlements and legal expenses. To ensure that you have the right coverage, talk to your advisor regarding your needs and potential dangers.

Hull and machinery coverage

Hull insurance will cover any physical injury to your boat, including motors, trailers and equipment, and even accessories in many instances. Damage from wind and fire are typical claim types.

Uninsured boater coverage

Indemnifies bodily injured passengers of the insured watercraft who suffer injuries due to the uninsured owner of a different vessel.

Search and rescue

The maximum amount is $10,000 for costs that an insured incurs to a government entity like the United States Coast Guard (USCG), which provides emergency assistance and is covered at absolutely no cost.

Marine environmental damage and pollution coverage

This protection is available up to $10,000 in penalties and fines in the event of marine environmental damage as per the policy’s conditions. This coverage is added to the insurance company’s liability and OPA limit.

Agreed value coverage or actual cash value coverage

A cash value policy offers lower coverage than an agreed value insurance policy, however, generally with a lower cost. ACV policies provide coverage up to the value of the vessel. ACV policy would protect up to the price of the market for the boat if there was a complete loss, including depreciation and conditions of the vessel when it suffered the loss.

Crew medical and personal coverage

Reasonable medical and related costs are covered for all onboard passengers leaving or boarding the vessel. These benefits are granted per person instead of per event.

If your vessel gets damaged by accident, collision insurance is an optional insurance policy that covers the cost of fixing and replacing the damaged part with less deductible.

Sinking and wreck removal

Insurance for boats generally can cover sinking. However, there are some critical policy limitations. In general, insurance for boats should protect your boat if it sinks due to any covered risk. The policy could reimburse you for the cost of salvage or removal.

What is usually excluded from yacht insurance policies or comes as an extra?

War coverage

Damages caused by acts of war can turn out to be too great to insure, making the repayment too astronomical to be true.

Hurricane insurance

Your boat insurance provider may be able to pay for damages to your vessel caused by wind and hail from a storm in the event of a hurricane unless stated explicitly in the policy. Contact your boat insurance provider to find out what coverage you have during a storm.

Marine life encounters

Most insurance for boats doesn’t provide coverage for marine-related damage such as sharks, whales, and many other species. If you frequently sail in water full of marine creatures, it is possible to discuss a supplemental insurance policy with your insurance provider.

Insects and mold

The majority of yacht insurance policies do not cover insects and mold. It is essential to take the necessary steps to safeguard yourself against any pests on your vessel. So, this means that you must wash, drain, and dry your boat’s equipment after use.

Toys and PWC onboard

The PWC onboard may need to have a separate insurance policy as it is an expensive purchase.

Negligence or criminal acts

No insurance company is accountable for paying for the illegal actions of other people. Damage or loss due to reckless negligence and incompetence is also not acceptable.

Most insurance coverage for boats won’t cover certain events, such as racing on a yacht. Suppose you plan to use your boat to compete. In that case, you might want to consult your insurance representative about supplemental insurance, precisely the possibility of additional liability insurance if there’s a crash in the course.

Kidnapping and ransom

Because of the high stakes involved – human life and assets such as vessels and cargo — as well as the criminal character and challenging legal context, resolving a hijacking or abduction for ransom is a difficult task. Hence, kidnapping and ransom are not included in yacht insurance.

What do you need to know before picking a yacht insurance policy?

When evaluating physical damage cover, the most significant question is whether the insurance is focused on “agreed value” or “actual cash value” damage payout. If there is a complete loss, most agreed value coverage covers the amount shown on the insurance contract. After depreciation, you will receive compensation.

The actual cash value coverage offers protection up to the vessel’s present market worth at the moment of complete loss, after depreciation and the deductibles.

Although the coverage is smaller in an actual cash value insurance than in agreed value insurance, the policy is generally inexpensive.

The next thing you want to consider while choosing your insurance is the deductible and premium.

The amount you self-insure in the case of a loss is your yacht insurance deductibles. Put another way, it is the amount you spend on claims before your insurance comes in.

The next is premium. Choose insurance that can fit your budget to pay your premium on time without fail. 

Another thing to consider is the Intended cruising area. Some policies put restrictions or have a defined area while cruising. So, choose an insurance policy that suits your cruising area so that in case of mishaps, you can get coverage.

Yacht Insurance Requirements

Is yacht insurance mandatory?

While it’s not usually a legal necessity, it is always a good idea. It’s unlikely to cost much, but it might save you a lot of money in a disaster. Even if you or your captain are the finest sailor on the planet, you must consider what would happen if someone else collides with your yacht.

Changing weather may damage your boat, yet you usually have little control over it. Fortunately, most yacht insurance policies aren’t too costly, and the modest additional cost may provide comfort while cruising on the sea.

Does the bank require insurance while you finance the yacht?

Yes, your bank may require proof of yacht insurance if you want to finance the yacht.

Do ports and marinas need your yacht insurance?

For utilizing their facilities, numerous ports and marinas will need you to have boat insurance.

Does renting the yacht require insurance?

If you intend to rent out your yacht, you must have coverage to safeguard your asset, and yacht insurance can be highly beneficial. If you want to rent your yacht, you must get boat insurance to protect yourself from liability hazards, and the insurance covers the majority of liability concerns.

Read also : The yacht charter experience ladder

How much does a yacht insurance cost?

Usually, yacht insurance costs between 1% and 5% percent of the yacht’s value. For instance, you may spend around $2,500 annually to insure a boat worth $100,000.

However, similar to other types of insurance, the cost of your boat insurance depends on you and your vessel. The higher the value of a boat, the greater the insurance cost. Yacht insurance is often costlier than floating insurance since yachts are more expensive. High-powered boats are riskier. Thus, insurance companies consider the kind of engine (inboard or outboard, amount of horsepower, and so on).

How can I lower my yacht insurance cost?

Here are a few steps that you can take to lower your insurance cost.

Limit the cruising area of your yacht

There are navigational restrictions in marine rules, meaning you may only sail inside a specified region. The premiums will be less the smaller and securer the area is.

Have good training and driving records

Insurance companies are interested in your expertise on the water. The completion of a boating course demonstrates proficiency, which reduces your risk. Most insurance companies would consider boating lessons, but they may even provide a rate reduction. Contact your agent to determine whether safety-related boating classes impact your premium rates.

Lower the liability limits

Most insurance companies will require your credit score to establish suitable premiums. Maintaining a good credit score has several advantages, including cheaper insurance prices. To lower your liability limits, consider working on your credit score.

Pick a higher deductible to reduce the premium of your insurance

A greater deductible implies that the policyholder will be responsible for a percentage of the claim, hence decreasing the occurrence of claims. You choose to pay a part of the claim by raising your deductibles out of your cash, and the company will eagerly reduce your premium.

Choose seasonal insurance during the offseason

Fire, theft, vandalism, and winter storms can all cause significant damage and financial burden. You won’t be insured for any winter tragedy that strikes your yacht during the off-season if you don’t have insurance. You’ll be responsible for possibly astronomical expenditures.

Pick a modern boat rather than an old one

A new yacht will cost less to insure than an older one. This is because older ones are susceptible to acquiring defects, while newer ones are not. Further, you can take several steps to improve your yacht’s safety, contributing to lowering your cost. Like, installing an autonomous fire control system may decrease the danger of fire damage and make you eligible for a premium reduction. Additionally, safety devices like radar, depth finders, first aid kits, GPS, emergency kits, and EPIRBs may reduce the danger.

Our advice to find the best insurance broker at the best cost for a yacht

Avoid using your home and car insurer for yachts above 27”.

Usually, boat insurance is meant for vessels less than 26 feet long. Yachts are generally longer than 27 feet, have far more powerful engines, and cost more than smaller vessels.

Yachts typically go greater distances and deeper seas, transport more passengers, need a crew and have several equipment and personal possessions. These variables result in distinct risk exposures and need particular insurance policies, coverage choices, and deductibles.

Maritime law governs rather than state or federal law in deeper seas, which may be more complex. If your boat has a crew, you might be obliged to have Harbor workers and Longshoreman’s covers.

Partnering with an advisor who knows the worth of your boat and how you intend to use your boat can assist you in getting the necessary coverage for any potential catastrophes. You will also need specific insurance coverage if you own a high-performance boat due to the increased risk.

Pick a trustable company with expertise in marine insurance

You can choose your regular insurance provider to get your marine insurance. There are several maritime governing rules when you decide to sail on the sea or plan to sail overseas. Additionally, it is essential to engage with a provider that has a deep understanding of boat and yacht coverage. This is vital at the time of insurance application and in the severe case of a claim.

Special needs might require custom policies

If you have any special needs, additional coverage choices are available for medical costs, private possessions, the boat’s transportation equipment, and more that may be added to any plan. However, that relies on the type of insurance provider you choose.

Optional coverage extensions:

• Trip disruption
• Private property
• Trailer Coverage
• Towing and Emergency Roadside Service
• Uninsured Watercraft
• Individual Liability

Get an experienced yacht broker to help you navigate policies.

You may have 100 policies in front of you and many lucrative offers claiming several things. Yet, making the right insurance takes time and a better understanding of all the coverage. So, an experienced broker can help you navigate all these policies and select one that fits your budget and particular situation.

The best companies for yacht insurance

Many insurance firms provide boat insurance at affordable prices. Shop around to ensure that you receive the necessary information to make an educated selection. Also, there are several websites that offer evaluations of various insurance providers and are excellent starting points for your study.

Communicate with other sailors; determine which aspects they value and why. You would be in a position to make the most excellent option for your requirements when you analyze the services of various companies.

Being on the ocean is a feeling of serenity, tranquility, and impending new experiences. So, this is an encounter you want to go on forever. Further, your sailing boat is a significant investment. Hence, consider having your luxury boat insured to cherish the best of life and keep your investment safe.

Don’t take chances with your yacht, act now and ensure a safe and worry-free sailing experience

Now that you understand the importance of yacht insurance, don’t wait any longer to protect your valuable asset. Contact us today to get a quote and secure peace of mind on the water. Our team of experts will guide you through the process and help you choose the best coverage for your needs.

Frequently Asked Questions

All ship and yacht owners are obliged to have marine insurance, mainly when the vessels will be utilized for commercial or transit reasons and move people, labor, or goods overseas.

our yacht insurance usually protects your yacht against frequent dangers such as drowning, storm, fire, collisions, and theft. You may also be protected by boat insurance if you accidentally harm somebody or destroy their property. Your coverage may cover the following boat components: machinery, attached equipment, hull.

The exclusions from yacht insurance policies include: criminal actions of others, insect infestations, lack of due diligence on the part of the assured or managers, common wear and tear, loss resulting from delay, and intentional wrongdoing by the captain or crew.

The typical cost of boat coverage is between $200 and $500 per year. However, insurance may cost between 1 and 5 percent of the boat’s worth for a yacht or sailboat. For instance, you may spend around $2,500 annually to insure a boat worth $100,000.

Sailboat owners often spend between $250 and $1,500 annually to protect their yachts. This price varies depending on various criteria, including insurance type and insurance amounts, and sailboats usually are less costly to cover than powerboats.

Annual insurance on the yacht will range at roughly 1.5 percent of the boat’s value. The cost to insure a catamaran depends on hull valuation, location, and the boat’s operation.

The insurance coverage of a mega yacht or a super yacht can be around $240,000.

To reduce the cost of yacht insurance, you can take the following steps: installing safety equipment, demonstrating better boat riding skills by undertaking a boating course, considering your deductibles, limiting your sailing area or working on credit scores.

Hull relates to the vessel’s body. The insurance will cover unexpected damage or loss to the boat anywhere inside the policy’s specified maritime boundaries.

Usually, classic boat insurance is provided by specialized insurance firms who specialize or have experience in protecting classic and antique vessels. For covering your old boat, get a quotation from a specialized insurer and verify that your policy provides the protection you want for a sense of security.

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Boat Insurance: An In-Depth Guide

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Table of Contents

Do you need boat insurance?

What boat insurance will pay for, boat insurance costs and discounts, where to buy boat insurance.

Your prized boat probably didn’t come cheap. Whether you own a bass fishing boat or a yacht, it’s important to find the right boat insurance that will come to the rescue if you have damage or theft. Here’s how to understand boat insurance policies.

Your home insurance policy covers your boat in some cases, but it doesn’t go far. Homeowners policies typically cap boat coverage at $1,000 or 10% of your home’s insured value. And liability coverage — which pays for damage your boat does to others — typically isn’t included under home insurance. So a home insurance policy might help you only if your boat is small, slow and inexpensive.

At a glance: Do I need boat insurance?

You can typically buy liability insurance — which pays for damage your boat does to others — in amounts from $15,000 to $300,000, according to the Insurance Information Institute. Here's what else you can expect from a policy:

Check, too, about additional coverage for trailers and accessories, for towing and for damage caused by an uninsured boater.

You can buy two types of damage coverage for a boat:

Actual cash value. This pays the value of your boat at the time of the damage. If your boat is destroyed, your insurance company determines its market value.

Agreed amount value. If your boat is destroyed, your insurer pays you an amount that you and the company agreed on beforehand. If your boat can be repaired, your insurer replaces old items for new ones without deducting for depreciation.

It’s also important to understand what your boat insurance covers before heading out on the water, says Todd Shasha, boat and yacht personal insurance director at Travelers Insurance. He recommends checking whether your policy can cover these scenarios:

Mechanical breakdown coverage. Pays to repair or replace your outboard motor as long as it’s not due to wear and tear.

Salvage. If your boat becomes disabled and a basic tow won’t help, you might need to call a salvage company to recover it. Typically a salvage company will ask for a percentage of the boat’s value as payment, which can be quite expensive. Not all insurance companies offer this coverage.

Gadgets. Not all boat insurers cover expensive accessories like fishing equipment or fancy coolers unless they’re permanently attached to the boat. For example, Travelers offers personal property coverage that pays you if they’re stolen or lost while out on the water. Endorsements, which are additions to your policy, are available if you want to increase the value of your personal property limits.

Some important things to know about boating and your policy:

Navigational limits: If you own a yacht or a larger boat, your policy will have limits outlining where you can navigate your vessel. If you venture outside of the territory you agreed to in the policy, your insurance may not cover you. Typically, the broader your navigation area is, the higher your insurance costs will be.

Layup periods: Taking your boat out of the water is typical during cold weather, and most insurance companies will give you a credit because it’s not being used. But take the boat out for a spin before the layup period ends and you won’t be covered by your insurance policy.

Marine inspections: If your boat is an older model, most insurance companies will want you to have it inspected by a marine surveyor in order to assess the vessel’s condition and market value. For safety’s sake, consider a marine survey even if it’s not required.

Underage operators: You might be tempted to let your 12-year-old drive the boat every now and then. But if your child doesn't meet age and license requirements in your state, your boat insurance policy might not cover you. Age and license requirements for operating personal watercraft vary from state to state. In Virginia and Florida, for example, no one under 14 may operate a personal watercraft. In Texas, children under 13 are barred from driving one unless a licensed operator who's at least 18 is on board. For requirements where you live, check with the boating regulatory agency in your state.

How much you’ll pay for boat insurance depends on the level of insurance coverage you want, as well as the size, horsepower, type and value of your boat.

You can choose your deductible, which is the amount deducted from your insurance check if you make a claim. A typical policy has deductibles of $250 for property damage, $500 for theft and $1,000 for medical payments, according to the Insurance Information Institute. Liability claims against you do not have a deductible.

Insurance companies offer a variety of ways to save money, including discounts for:

Having a diesel-powered boat.

Not having made a previous boat insurance claim.

Carrying other policies, such as car or homeowners, with the same insurer.

Taking safety courses.

Boat insurance is widely available. NerdWallet looked at the top 25 auto insurance sellers in the country and found these that also offer boat insurance:

Offers coverage for boats up to $250,000 in value.

AAA lowers your deductible by 25% each time you renew your policy and haven’t had a claim.

Average cost of boat insurance from Allstate is about $20 a month, according to Allstate.

Bundle boat insurance with an Allstate homeowners policy and you qualify for up to a 20% discount.

American Family Insurance

Additional coverage options cover personal items and pay for repairs to your boat and equipment, without a deduction for depreciation.

If your boat is disabled, an Amica policy covers towing to nearest port.

If your yacht can’t be repaired, Amica pays to replace it with a new one, without subtracting depreciation.

Auto-Owners

Optional boat insurance coverage is available through homeowners policies.

Country Financial

Country Financial homeowners insurance covers your boat for up to $1,500.

You can buy more coverage under your homeowners policy.

Erie’s standard Boat Protector Policy comes with extras, including payments up to $500 to fix or replace boating equipment and accessories, and payments up to $250 for emergency towing. (Not available in Kentucky.)

Farmers offers seven packages to fit your vessel type and coverage needs.

Geico’s optional premium boat towing service offers unlimited on-water towing (within 25 miles of an approved tower) and pays the service provider directly.

Geico offers several discounts, including one for passing a boat-safety course and for maintaining a good driving record.

You can cover your boat, sailboat or personal watercraft with an endorsement to your Hanover Platinum or Connections homeowners insurance policy.

The Hartford

Additional coverage, which costs extra, is available for your accessories, trailer and boat hull.

Liberty Mutual

You must have a homeowners insurance policy with Liberty Mutual to get boat and watercraft insurance.

Optional coverage includes hurricane protection, which pays up to $250 to move your boat out of danger during a hurricane advisory.

Unforeseen emergency services coverage pays $250 for towing and other services on land or in the water.

Personal watercraft coverage includes liability, collision, comprehensive, uninsured or underinsured operator, and medical payments.

Optional towing and labor also available.

Progressive

Total loss replacement coverage pays for a new boat if your new boat is a total loss within five years of adding the coverage.

Progressive offers several specialized coverage options, including 24-hour roadside assistance if your car breaks down while towing your boat.

Unlike some insurers, Progressive doesn’t require you to submit a navigation plan. Nor does it require an inspection of your boat.

State Farm’s optional emergency service pays up to $500 to service your boat, motor or boat trailer.

Optional wreck-removal coverage pays “reasonable expenses” to raise or remove your boat when it’s required by law.

Travelers splits the cost to move the vessel to safety when you carry “hurricane-escape reimbursement” coverage, which costs extra.

Antique boats get the same comprehensive coverage available in Travelers' basic policy.

USAA members get a 5% discount on boat insurance, but the discount is not available in all states.

USAA is open only to active and retired military and their families.

Juan Castillo is a former staff writer at NerdWallet.

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How Much Will Boat Insurance Cost Me?

11 Min Read | May 29, 2024

Boats are a highlight of summer! They’re flashy, fun . . . and freaking expensive to repair or replace. That’s why it’s better to pay for boat insurance than to hope you’ll get by with zero accidents. 

Boat insurance protects you financially if your boat is involved in an accident where property gets damaged or someone gets hurt. On average, boat insurance costs $200 to $500 a year—or around 1–5% of your boat’s value if you have a big, powerful or expensive boat.

Let’s talk about what affects the average boat insurance cost, what it covers and where to get it.

Do I Really Need Boat Insurance?

That depends on your boat. A standard homeowners insurance policy will generally cover small, inexpensive watercraft like:

• Paddle boats
• Boats with low-powered engines (usually less than 25 horsepower or less than 25 mph maximum speeds)

You can also add a liability rider to your homeowners insurance to cover property damage or injuries if you get in an accident with another boater.

But homeowners policies won’t cover big, powerful boats. You’ll need boat insurance for:

• Charter Boats – Since your boat is your business, you may also need commercial insurance .
• Fishing Boats – including bass boats, fancy offshore rigs and everything in between
• Houseboats – Just like insuring a regular house , you need to insure your home on the water too.
• Personal Watercraft – Watercraft like jet skis are super fun, but they’re also risky—hence the insurance.
• Pontoons – Pontoons are where the party’s at! So make sure your boat and your passengers are protected.
• Sailboats – Activities like long distance travel, racing or historical reenactments require special coverage. Think of sailboats as the classic cars of the sea.
• Speedboats – Fast boats are at higher risk for accidents—which makes insurance a must.
• Yachts – Luxury vessels need insurance because they’re more  valuable and travel farther than most other boats.

All these boats need insurance even if it isn’t required by state law. Why? Because if you’re uninsured, a boating accident can ruin your future—in more ways than one.

Boating accidents caused $55 million in property damage in 2019—and that’s not counting medical bills and lost wages for the 2,559 people who got injured. To make matters worse, 613 people died in boating accidents that year. 1

If you cause those damages, injuries or (God forbid) deaths, you’ll be held liable. That’s why boat insurance is so important: It protects you financially after an accident, so you can focus on more important things.

How Much Is Boat Insurance?

The average cost of boat insurance is $200 to $500 a year—although for a really big or expensive boat (like a yacht or sailboat), insurance can cost around 1–5% of the boat’s value. For example, you may pay about $2,500 a year to insure a $100,000 yacht.

But just like other insurance rates vary, boat insurance costs change depending on you and your boat.

Get trusted coverage that fits your budget.

When you work with a RamseyTrusted pro, you can feel confident knowing they’re going to find the best policy for you at the best price.

What Factors Affect Boat Insurance Costs?

Many of the factors that affect car insurance rates also affect boats—but there are also some unique things to consider for watercraft.

Type of Boat

The more valuable a boat is, the more expensive it is to insure. For example, yacht insurance almost always costs more than pontoon insurance because yachts are more expensive.

High-powered watercraft are riskier, so insurance companies look at the type of motor (inboard or outboard, amount of horsepower and so on). Slow and steady usually wins the race to get low insurance rates!

To be considered in good condition, your boat must meet the U.S. Coast Guard safety standards from the time when it was built. Otherwise, you’ll pay higher premiums because of your boat’s outdated safety features.

Your boat’s age matters—and so does yours.

Older boats are generally cheaper to insure, especially if they’ve only had one owner. You’ll probably also get better rates if you’re between 25 and 60 years old, because that’s when insurers think you’re the most responsible.

Fishing and floating are lower risk than towing water skis or wakeboards. If you use your boat for “risky” activities, your insurance company will charge you higher premiums to make up for the accident they expect you to have.

Boating accidents almost always happen on the water (duh). So if you occasionally take your boat out, you’ll pay less than if you boat every weekend. That’s also why people who live up north typically pay less for boat insurance—the shorter boating season means less time for accidents.

Speaking of where you live, you’ll pay higher premiums for boating in an area with hurricanes (on the ocean), squalls (in the Great Lakes) or other hazards. And you’ll pay less if you live in a state with no coastline. That’s because lakes and rivers are typically safer than the ocean.

Driving Record

You’ll likely get low rates if you’ve got a good driving record (aka no accidents, injuries or recent insurance claims in a boat or car). But your inexperienced teen or your reckless cousin who’s totaled three cars? Not so much.

What Boat Insurance Discounts Can I Get?

There are a lot of ways to save money on boat (or even car) insurance. You can get discounts if you:

• Take boating safety classes
• Use a diesel-powered engine
• Carry ship-to-shore radios, Coast Guard approved fire extinguishers and other safety equipment onboard
• Bundle your boat, home and auto insurance
• Pay your insurance yearly
• Choose a high deductible
• Don’t file a claim for at least two years

What Does Boat Insurance Cover?

Boat insurance covers many costs of an accident—like repairs, salvage and medical bills. Let’s walk through the types of coverage you can get.

Liability is the most important type of boat insurance. It pays for the other person’s repair and medical bills after an accident you caused. And if someone sues you? Your liability coverage should help pay the legal fees.

You can even look into guest passenger liability , which covers you if someone driving your boat with your permission causes an accident

Liability also covers repairs to docks or other objects you hit—plus clean-up costs for oil and other pollutants that your boat released into the water. (Which is good since cleaning up even a small oil spill is insanely expensive.)

Without liability coverage, you’ll have to pay for damages to boats, docks, personal property, a person’s health or the environment. That’s a lot of money. So play it safe and let the insurance company pay instead.

Physical Damage

Physical damage coverage pays to repair or replace your boat if something bad happens to it, like:

• Collisions with other boats, docks, submerged objects or floating debris
• Damage from wind, hail, lightning or other weather
• Theft or vandalism

You can even get an “all risk” policy: Unless a risk is specifically excluded, your insurance will cover anything that happens to your boat—even sinking.

How much your insurance company will pay to repair or replace your boat depends on what type of physical damage policy you choose.

Agreed Value Policy

You and the insurance company work together to decide how much your boat is worth—and that’s the most your insurer will pay you after a covered accident. So if your sailboat’s agreed value is $95,000, your insurer will pay up to $95,000 to replace or repair it.

Agreed value policies offer plenty of coverage for most boats. But if you own a rare boat that’s increasing in value, it will eventually outgrow the agreed value you chose. That’s where the next type of policy comes in.

Actual Cash Value Policy

This policy pays up to the boat’s market value on the day it got damaged. That means you should be able to restore your boat or buy a similar one. You just won’t be able to upgrade on the insurance company’s dime.

For example, let’s say your boat is worth $12,000 and it sinks. The insurance company will only pay you $12,000—even if you originally paid more to buy the boat.  

Medical Payments

This coverage helps pay for medical expenses if you or your passengers get hurt on your boat. It can cover all sorts of injuries from a collision with another boat or even taking a nosedive on water skis.

Personal Property

Personal property coverage helps replace the unattached accessories that made your boat so much fun in the first place—like your fishing gear, navigation system and personal items.

You can even get insurance for your boat trailer (which may be helpful if you’re new to towing trailers).  

Uninsured Watercraft

Imagine that a speedboat makes a huge wake and pushes your boat into some sharp rocks. Your boat is damaged—but the other guy is uninsured. Yikes!

Uninsured watercraft coverage will help pay for your repairs (or medical bills if you or your passengers get hurt). That’s much easier than suing the other boater or—worse—having to foot the bill yourself.

If your boat becomes disabled on the open water, you’ll need to get it towed back to land. That’s what salvage insurance helps pay for.

You can also get insurance that helps pay to remove your boat from the water if it sinks—otherwise, the wreckage could become a hazard to other boaters and cause even more accidents. 

What Boat Insurance Doesn’t Cover

One thing boat, home and auto insurance all have in common: They don’t cover every situation. Here’s what boat insurance doesn’t cover.

Normal Wear and Tear

Boats get old and wear out just like any other machine. So your insurer won’t pay for cosmetic or mechanical issues that come from normal use.

Faulty Machinery

While your insurance policy might cover a mechanical breakdown if it’s out of the ordinary, it won’t cover manufacturer defects or things that broke because you used them wrong or didn’t take care of them. (So you may want to clean out that clogged water pump now.)

Animal Damage

Animals can be a big boating hazard—literally. If a run-in with a dolphin, manatee or other marine animal damages your boat, your insurance policy most likely won’t cover it.

(By the way, it pays to know what animals live in your boating area so you don’t harm them, your boat or the environment.)

Infestations

Another animal that’s not covered? Mussels! These little guys can do major damage. But the insurance company won’t pay for it—or damage from insects, mold or other infestations. It’s smart to check your boat and remove any unwanted passengers.  

Improper Storage and Transportation

Your boat falls off the trailer because you didn’t tie it down? Your “winter storage” is in the yard? Your insurance company will chalk those damages up to your careless behavior and make you pay the bill.

Accidents Beyond Your Navigational Limits

Your navigational limit is where you and the insurance company agree you can boat. Your insurance policy only covers you in that area. Sail outside of it, and you’re on your own.

Accidents Outside Your Layup Period

A layup period is when you take your boat out of the water for a while (usually the winter). If you use your boat after your layup starts or before it’s over, you won’t be covered.

Underage or Unnamed Operators

Each state makes its own rules about how old a kid has to be before they can drive a boat, so check the local laws before letting them take the wheel. And if your child (or another adult) drives your boat regularly, it’s smart to put their name on your insurance policy.

Where Do I Get Boat Insurance?

The easiest way to get boat insurance is to work with an independent auto or homeowners insurance agent.

Our network of Endorsed Local Providers (ELPs) will compare policies from multiple insurers to find the best one for your boat. And our agents will go a step further: They’ll teach you how to actually understand your boat insurance policy so you can be confident you’re getting the insurance you need—without costly extras.

Connect with an agent near you today.

Get coverage you can trust.

When a RamseyTrusted pro is in your corner, you have an insurance guide you can trust who will give you confidence in your coverage.

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Average Boat Insurance Cost (With 15 Examples)

Getting your boat insured can be quite a complicated process if you’ve never done it before, and getting an accurate average price can be almost impossible without spending entire days researching all the various insurance companies.

When I got my first boat I spent two entire weeks looking through all the insurance possibilities, reading all the clauses in the contracts, and getting quotes from all the possible companies. 

When I got my second boat and I had to get it insured I already knew everything that there is to know about boat insurance so I managed to solve everything in just a couple of hours. So to help others that are entirely new to this process I decided to write this guide that will let you know everything that there is to know about insurance, from the average prices, to what influences those prices, to all the things that you have to be careful about.

The average boat insurance cost is around $300 per year ($25 per month), but depending on the type of insurance prices can vary between $150 and $500 per year ($12,5 and $41,5 per month).

Table of Contents

15 Examples of Average Insurance Prices

For those examples I went to multiple insurance companies and requested insurance prices for them for 15 different boats. In this article you will see that there are different types of insurances. For those examples I requested an insurance that will cover basic liabilities, so no extras.

So those are the average insurance costs that I got from multiple insurance companies. But it;s very important to keep in mind that I requested the most basic insurance, so if you want to get some extras you might spend some extra $50 or $100.

Another thing to keep in mind is that the insurance price will differ based on a lot of factors, when I requested a price for the examples above I tried to keep things as average as possible. So I assumed I have no prior experience with boats, very minor driving incidents, that the boat will be used at least a couple of days per month, and that I have an average credit score.

Those things are very important because they can influence the prices quite a lot. So let’s take a closer look at those factors and how they influence the insurance cost.

Factors That Influence Boat Insurance Cost

Use of the Boat , depending on how you will use your boat the cost will increase or decrease accordingly. If you will take your boat out for fishing 3 or 4 times a year then the rates will be quite small, but if you will take it out every weekend for watersports then the rites will be higher.

Boating Experience , having a few years of experience with boats will make the rates cheaper, while having no prior experience will increase them.

Motor Vehicle Driving Record , most people don’t expect this to come into play but it does, and it’s really important. If you have a bad driving record it will reflect in the rates that you will have to pay for your boat insurance.

Other Drivers Experience , when you apply for boat insurance you will be asked who will be driving, and adding a person with no boating or driving experience to the list will increase the cost.

Boat Insurance Records , if you had multiple incidents in the past, your rates will go up.

Horsepower , the more horsepower your boat has, the higher the rates will be, but don’t let this discourage you from getting the boat you want, the increase in price is not that significant.

Specs of the Boat , this includes the year it was made, the model, the maker, inboard or outboard motor, etc.

Credit Score , insurance companies have found that a person with a lower credit score is statistically more prone to boating accidents. So a person with a low credit score will have to pay more for their insurance.

Ways to Reduce the Cost of the Insurance

Depending on the company that you choose, there might be some ways to reduce the cost of the insurance. Sometimes a company won’t put those information on their front page, so you might have to speak to somebody and ask them if they are available.

Multi-policy , most insurance companies will give you a discount if you already have some kind of insurance with them. So if you have your car, or your house already insured call those companies and ask them if they insure boats, and if they offer a discount.

First Owner , make sure you mention that you are the first owner, some companies will offer you smaller rates if you are the first owner. Most companies will ask you about the condition of the boat, but saying that the boat is in good condition, and saying that the boat is brand new can sometimes make a difference.

Changing Companies , if you already have an insurance but you are not pleased with it, mentioning this to another company can get you quite a considerable discount, if you want to change the insurer.

Multiple Boats, ensuring multiple boats will most often result in better rates, but make sure that you mention this from the start and don’t insure separately.

Association Member , if you are a member of an association like the United States Coast Guard Auxiliary (USCG) or United States Power Squadron (USPS), most companies will give you a discount.

Pay in Full , if you pay everything from the start, instead of monthly rates you will obtain quite a significant discount.

Safety Course , if you complete any state approved safety course you will obtain better rates from the insurance company. In the first year this won’t necessarily save you any money, but the next year you won’t have to pay for the course again and the discount will still be there. And since you took a safety course you will also be less likely to hit your boat.

Basic Insurance vs Comprehensive Insurance

Another important thing that will drastically influence the price is the type of insurance that you will get.

Basic insurance will usually only cover liabilities and it’s the cheapest option. What this insurance includes can vary slightly from company to company, but in general you can expect them to include:

• Property damage liability: Covers harm done to another person’s boat, dock, water skis or other possessions
• Pollution liability: Covers you in the event of a fuel spill
• Wreckage removal: Covers your legal obligation to remove debris after an incident

Comprehensive insurances will usually come with multiple options and they include the ones mentioned above, as well as medical treatment, damage to your own boat and some other stuff depending on the company. This option is usually more expensive, but in my opinion it’s usually worth it since a lot of basic insurances don’t cover the damage inflicted to your own boat, and of course the medical treatment.

If you only go fishing a few times a year in calm waters, the basic insurance is probably what you need. But if you want to every weekend of the summer on the boat, then a more comprehensive insurance might be better for you.

Final Thoughts

The price of the insurance can vary depending on a lot of factors, but most of those factors won’t change it that much. In most cases a person will have factors that increase and factors that decrease them, for example a person might not have any boating experience so this will add to the insurance coast, but he will have a very good credit score which will reduce the insurance cost.

But as I said in the beginning of the article on average you can expect to pay around $300 for the boat insurance.

John Rivera

My name is John Rivera and I am the creator of BoatingRepublic.com. I’ve been a boat owner for more than 30 years, and a boating instructor for 10 years.

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Average Sailboat Insurance Cost

Last Updated by

Daniel Wade

June 15, 2022

‍ Sailboat insurance is often less expensive than auto insurance, but rates vary based on several important factors.

Sailboat owners typically pay between $250 and $1,500 per year to insure their sailboats. This cost varies based on a number of factors, including policy type and coverage amounts. Sailboats are usually less expensive to insure than powerboats.

In this article, we’ll go over the average costs of sailboat insurance for typical production fiberglass cruising vessels. Additionally, we’ll go in-depth on the factors that contribute to premiums, along with how to reduce the cost of a good sailboat insurance policy.

We sourced the information used in this article from our own analysis of insurance industry averages. We also considered information provided by boat insurance companies, along with the policies they advertise.

Table of contents

‍ Average Annual Sailboat Insurance Price

Sailboat insurance varies, but owners rarely pay more than $1,000 annually for basic coverage. This is considering that the vast majority of sailboats are fiberglass production cruisers between 20 and 40 feet in length, and they aren’t used as often as automobiles.

Sailboat insurance prices range between $250 per year for the most basic coverage (liability, small boats with infrequent use) to $1,500 for comprehensive coverage (average-sized older vessel with somewhat regular use).

But if we were to establish a general rule about sailboat insurance, it’s this: it’s cheaper than car insurance. Sailboat insurance is usually an insignificant cost compared to mooring fees and maintenance.

Is Sailboat Insurance Cheaper than Powerboat Insurance?

Yes, sailboat insurance is usually cheaper than powerboat insurance, even if your vessel comes with an engine. This has a lot to do with speed, power, and accident rates.

Speedboats are particularly expensive to insure, as they’re more dangerous and accident-prone. The cost to insure a small speedboat is often comparable to a large sailboat.

Types of Sailboat Insurance Coverage

There are several types of coverage with different pricing rates. The actual name of these different coverage types varies between companies. But generally speaking, here are the broad types of insurance that you can get for your sailboat.

Basic Liability and Salvage Coverage

The most inexpensive coverage is basic liability, which usually covers accidents you cause only. It doesn’t cover your repair costs, but it does cover damage to other boats, medical expenses for injuries, and wreck removal.

Specialized or Custom Coverage

Specialized coverage varies most in price. This kind of coverage is determined by the owner and covers modifications and expensive equipment.

Let’s say a sailboat owner buys a basic new Catalina 315, then outfits it for offshore use. He installs solar panels, an autopilot, a Garmin radar set, and a costly set of automatic winches and hardware.

With a specialized insurance coverage plan, he can add the value of these very specific items to his repair and replacement plan in case the boat gets damaged or lost along the way.

Comprehensive Coverage

Comprehensive plans offer significantly more coverage. These policies offer towing services, damage costs for you and other boats, uninsured boater protection, repairs and replacement parts, and emergency assistance for things like dead batteries and running out of gas.

What Factors Contribute to Sailboat Insurance Premiums?

Sailboat insurance works much like car insurance, but there are some differences. Like car insurance, sailboat insurance premiums are based on factors including your accident record, the value of your boat, your location, and how often you use the vessel.

Operator Boating Record

Citations and accidents are some of the most important insurance cost factors. This makes sense, as a long history of responsible boating reduces the risk that the company will have to payout.

A minor incident won’t ruin your premiums, but a history of crashes and BWIs will certainly limit your options and increase sailboat insurance prices.

Experience plays a role as well. Documented boating experience, such as policies on other vessels or professional captain certifications, can greatly reduce the cost of sailboat insurance.

Operator Age

Age is another important factor for insurance premium prices. The ages that get the best rates are between 50 and 60. If you look at it on a chart, you’ll see insurance rates top out around age 16 and slowly decline until age 70. At this point, insurance rates begin to increase—but never to the level of a young person.

Sailboat Value

The value of your sailboat also plays a big part in your insurance costs. For example, a $500,000 classical schooner is certainly going to cost more to insure than a clunky $10,000 fiberglass sloop, especially because the owners of more expensive boats generally opt for more coverage.

Agreed Value vs. Actual Value

How does an insurance company decide what to pay out if your boat is a total loss? There are two primary ways these policies work: with either agreed value or actual value.

 Actual value policies are common for new boats, as their value is easy to determine. If a new (or late-model) boat is worth $150,000, then that’s the cost the insurance company will usually cover to replace the vessel.

Agreed value is more common for older and classic boats, as the procedures used to calculate their value aren’t always reliable. Factors such as rarity, design, desirability, and condition may not reflect clearly in analytics—but do on the market.

Agreed value is a number that the owner and the company settle on. It is more holistic than the actual value, as the actual value may be impossible to accurately calculate for some rare and vintage vessels.

Sailboat Age

The age of the vessel has an impact on insurance rates. Usually, an older vessel is thought to be less valuable to a point. This means that a 1970 sailboat is usually cheaper to insure than a 1990 sailboat. The cost difference can be negligible beyond ten years of age, but it’s higher with late-model vessels.

Sailboat Type

Different kinds of sailboats have different insurance rates. Factors under this category include a number of hulls, size, displacement, and cruising characteristics. For example, speedy trick race boats made with carbon fiber are more expensive to insure than bulky fiberglass cruisers.

Location plays a big part in average sailboat insurance costs for a number of reasons. For example, sailboats used in freshwater are typically cheaper to insure than saltwater.

Also, sailboats moored in areas prone to severe weather tend to have higher insurance premiums. For example, premiums in Florida or South Texas account for hurricanes, while premiums in central Oklahoma account for large hail.

Does Your Driving Record Affect Average Sailboat Insurance Cost?

Absolutely; your driving record can have a dramatic effect on your ability to find favorable sailboat insurance rates. This is because insurance needs to consider you and the boat—and how risky you (as a captain) are to insure.

Car accidents, moving violations, citations, and DUIs are detrimental to insurance premiums on and off the water. And they will find out, regardless of what company you choose. Risky drivers are almost always risky boaters as well.

But your driving record can also work in your favor. You may be a new boater who hasn’t had a chance to prove yourself yet. If sailboat insurance and auto insurance had no correlation, you’d be treated like a brand new driver for years, even if you’ve had experience. A safe driving record can reduce your costs and increase coverage options.

Does Liveaboard Sailboat Insurance Cost More?

Yes, liveaboard insurance tends to cost more. This is because you’re on the boat constantly and engaged in activities like cooking, bathing, and electricity use. All of these activities carry risks, which must be considered.

Additionally, liveaboard insurance policies can cover more than typical comprehensive coverage. This includes assets inside the sailboat, such as furnishings, computers, equipment, and other possessions.

Average Sailboat Insurance Costs Differences For Men and Women

Insurance companies consider risk on a wide scale, and they notice trends that are large enough to make a cost difference. One pricing factor to consider is that, after age 27, men tend to pay higher insurance premiums than women.

There’s a simple reason for this—men crash and commit violations more often. Insurance companies have found that, on average, men are more likely to engage in dangerous boating behavior, and thus they are riskier to insure.

The price difference is typically pretty small—between $10 and $100—but this gap widens with accidents, DUIs, and other detrimental incidents. Generally speaking, women can enjoy lower quotes and lower premiums if they have a clean driving and boating record.

How to Reduce Sailboat Insurance Premiums

Reducing your premiums is actually fairly simple, and there are strategies that take only a few hours to complete. The easiest way to reduce your sailboat insurance premiums is to take a boater’s safety course or to get your boating license, even if you’re not required to by law.

You can also reduce your premiums by increasing your hull deductible. This strategy will cost you more out of pocket in the event of an accident, but safe boaters can usually contend with the risk.

Seasonal insurance rates can also be reduced if you haul your boat out or winterize it correctly. If the boat sits in storage for six months of the year, like in a dry slip or a boatyard, you can usually get a pretty hefty winter discount.

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I've personally had thousands of questions about sailing and sailboats over the years. As I learn and experience sailing, and the community, I share the answers that work and make sense to me, here on Life of Sailing.

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How Much Does Boat Insurance Cost?

Table of Contents

Last Updated on March 23, 2022 by Boatsetter Team

Nearly half of boats are uninsured primarily due to high premiums and deductibles, but boating without insurance is the same as driving without it—it’s very risky and in some states, it’s illegal. Let’s look at when you need insurance and how much its’ likely to cost.

Own a Boat? Learn How to Offset the Cost of Ownership by Listing on Boatsetter

Average Boat Insurance Costs: Per Month and Per Year

As a responsible owner, your boat should be insured from the minute you take ownership or control of it. Boat insurance costs vary and can run from $500 per year for smaller boats to thousands of dollars for large yachts.

A rule of thumb is that annual premiums will total 1 to 3 percent of the value of the vessel.

• For example, a $50,000 boat will have annual premiums of $500 – $3,000 and a policy for a $200,000 boat will cost $3,000-$6,000 per year. This doesn’t hold for very large yachts where the percentages as well as the absolute numbers rise dramatically.
• Big yachts will have additional equipment and possibly professional crew , or they may be chartered all of which adds to the overall coverage costs.

You can buy boat insurance online or get a quote from specialized agents like GEICO/BoatUS , who may also be able to provide a boat insurance calculator to get you started.

How Much Should I Insure My Boat For?

There are several factors that will dictate how much you should insure a boat for:

• Size, vessel type and value

New or pre-owned

• Where you will be boating

Size, type and value

Bigger and more expensive vessels will require higher insurance coverage limits and higher premiums. Also, high performance boats (like fast cars) command a premium because of the risks that go with the kind of boating they engage in.

New boats are easier to insure because presumably, there are fewer risks of equipment failure. However, the coverage for new boats may be more expensive simply due to the higher value of the vessel itself.

How much does it cost to insure a used boat? Well, that depends. An insurance company may require a current survey to make certain that the boat is in a seaworthy condition. Surveys cost money and the premiums for older boats may be higher or lower depending on the boat’s condition. Some insurers won’t cover boats older than 20 years.

Cruising grounds (where you’re be doing most of your boating)

Boat insurance costs will vary by state with some being much higher than others. If you boat in waters that are known for hurricanes , you may have to add coverage in certain seasons and geographies. If the boat will be stored ashore for an extended period, you may qualify for a discount.

Outside of insurance, be sure to read our guide outlining the costs of boat ownership and what expenses you can expect.

Why is Boat Insurance So Expensive?

There are risks that go with boating—collision, onboard damage, injury, environmental impact, etc. There are fewer experienced boaters on the water than there are drivers on the road so boat insurance costs can be steep.

How Can I Lower My Boat Insurance Costs?

Some insurers will offer a discount for having multiple policies with the company, for having a good driving record, for paying a year’s worth of premiums up front, or for the owner/operator completing boating safety courses. You can also opt to lower monthly premiums by raising the deductible.

Commercial Boat Insurance, Peer-to-Peer, & Charters

Insurance costs rise when the boat is chartered or used for commercial purposes, because it’s expected that it will be used more frequently and will carry paying passengers.

This extends to peer-to-peer boat rentals, like Boatsetter rentals, where private owners lease their boats with or without a captain. If decide to become a Boatsetter owner and list your boat for rent, you’ll have peace-of-mind through coverage provided by the company’s exclusive peer-to-peer boat rental policy provided through GEICO/BoatUS .

So, is Getting Boat Insurance Worth It?

Absolutely. Accidents happen so whether there are medical costs, expensive property damage, legal fees or the cleanup of an oil/fuel spill, you’ll want the boat you rent or buy to be covered.

Earn an Average of $20,000 or More by Listing Your Boat for Rent on Boatsetter

Zuzana Prochazka is an award-winning freelance journalist and photographer with regular contributions to more than a dozen sailing and powerboating magazines and online publications including Southern Boating, SEA, Latitudes & Attitudes and SAIL. She is SAIL magazines Charter Editor and the Executive Director of Boating Writers International. Zuzana serves as judge for SAIL’s Best Boats awards and for Europe’s Best of Boats in Berlin. 

A USCG 100 Ton Master, Zuzana founded and manages a flotilla charter organization called Zescapes that takes guests adventure sailing at destinations worldwide. 

Zuzana has lived in Europe, Africa and the United States and has traveled extensively in South America, the islands of the South Pacific and Mexico. 

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• Car Insurance

Best Boat Insurance for 2024

Be prepared for anything before you head out on the water

Boating accidents are more common than most people realize. The United States Coast Guard counted 3,844 boating accidents in 2023 alone, which resulted in approximately $63 million of property damage and 564 fatalities. You can never predict when accidents will strike, but you can prepare yourself for any possible catastrophe by purchasing the best boat insurance for your needs.

We evaluated boat insurance policies from more than 20 nationally recognized brands to help you determine who offers the best boat insurance your money can buy before you head out on the water. After our careful analysis, we selected five companies that offer the best boat insurance.

• Best Overall: Allstate
• Progressive: Best for Cheap Boat Insurance
• Nationwide: Best for Policy Bundling
• Foremost: Best Variety of Coverage
• Markel: Best for Fishermen
• Our Top Picks
• Best for Cheap Boat Insurance
• Best for Policy Bundling
• Best Variety of Coverage
• Best for Fishermen
• See More (2)
• Compare Providers

The Bottom Line

Frequently asked questions, methodology, best overall : allstate.

Great coverage including many extras

Average national rates around $25 per month

Limited info online about restrictions and exclusions to coverage

Allstate offers a very comprehensive lineup of options for boat coverage, including:

• Watercraft liability coverage
• Property coverage
• Repair costs
• Medical payments
• Uninsured watercraft coverage
• Additional equipment and personal effects
• Trailer coverage
• Emergency services (such as towing, labor, and fuel, oil, and battery delivery)
• Agreed value

Even though Allstate offers boat coverage starting at about $25 per month, it doesn’t shy away from discounts. You may qualify for the following when you insure your boat with Allstate:

• Multiple Policy Discount – Discount when you combine your boat insurance with an Allstate homeowners policy
• Full-Pay Discount – Discount for paying your full premium upfront
• Homeownership Discount – Discount for owning a home
• Boat Education Discount – Discount when you take an approved boater safety class
• Easy Pay Plan Discount – Discount when you enroll in automatic payments

Limitations

Allstate does not disclose many limitations on its boat coverage. However, some types of coverage and discounts are not to be had in all states, so it’s best to contact a local Allstate agent to verify the availability of coverage and discounts before switching over to Allstate for your boat insurance.

Additional Perks

Allstate offers the best of both worlds to its customers: local agents to help you with your insurance needs, as well as online tools and an 800 number to get questions answered anytime.

Allstate’s website also has a lot of information and resources for boaters, which can be especially helpful to new boaters or those with limited experience in owning a boat. The company offers articles and videos on boat maintenance, dealing with accidents and other marine emergencies, and handling your boat and boat insurance during the offseason.

Progressive : Best for Cheap Boat Insurance

Rates as low as $100 per year

Wide array of coverage

Lots of available discounts

Restrictions on types of boats covered

As expected from one of the industry leaders in personal property insurance, Progressive offers all of the major coverage and more, including:

• Bodily injury and property damage liability
• Comprehensive coverage
• Collision coverage
• Uninsured/underinsured boater (UB/UIB)
• Propulsion Plus mechanical breakdown coverage (add-on, starts at $38 per year)
• Sign & Glide on-water towing (add-on, starts at $30 per year)
• Fishing equipment or carry-on items
• Water sports injury coverage
• Fuel spills and wreckage removal
• Roadside assistance and trip interruption (if you elect trailer coverage)
• Full replacement cost

You can potentially save even more with Progressive by qualifying for some of the following discounts:

• Advanced Quote Discount – For those who obtain a quote and sign up for coverage at least 24 hours before you want it to go into effect
• Transfer Discount – For those who move their boat to Progressive from another company
• Multiple Policy Discount – For those who maintain multiple types of insurance with Progressive (car, boat, motorcycle, homeowners, etc)
• Multi-boat Discount – For those who insure more than one vessel
• Association Discounts – For those who are members of the United States Coast Guard Auxiliary, United States Power Squadron, or USAA
• Original Owner Discount – If you’re the original owner of your boat
• Responsible Driver Discount – For boaters who remain accident-free on the water for at least three years
• Prompt Payment Discount – Automatically discounted so long as you pay on time
• Pay-in-Full Discount – For paying your entire premium upfront

Additionally, Progressive offers these perks that help customers save on their boat insurance over time:

• Small Accident Forgiveness – This prevents your rates from increasing if you end up in a boating accident with a claim under $500.
• Large Accident Forgiveness – This prevents your rates from increasing after an accident if you’ve previously remained accident-free for three years.
• Disappearing Deductible – Your deductible lowers by 25% for each period you remain claim-free until it finally reaches zero.

Progressive boat insurance is only available for boats up to 50 feet in length, and in some states that experience higher hurricane risks, the limitations are 35 feet and $175,000 in value.

Progressive also places some age and value restrictions on the boats it covers. For example, it will not insure the following:

• Boats up to 10 years old and worth more than $500,000
• Boats that are 11 to 20 years old and worth more than $350,000
• Boats over 20 years old and worth more than $75,000
• Boats used as a primary residence
• All houseboats
• Homemade boats without a hull identification number
• Boats with more than two owners
• Boats with steel or wood hulls
• All amphibious land boats, hovercraft, and airboats
• PWCs worth more than $27,000
• Boats that do not meet published U.S. Coast Guard standards

If you aren’t sure if your boat fits into Progressive’s coverage requirements, you should contact Progressive over the phone to ask clarification questions and obtain a quote.

Other companies place restrictions on where you can use your boat, but Progressive gives you the freedom to sail wherever you’d like on any lake or river in the United States, as well as in ocean waters within 75 miles of the coast.

Progressive also waives some requirements that other companies force on customers, such as navigation plans and marine surveys. These requirements often cost customers hundreds of dollars, which means you save even more by using Progressive.

Finally, Progressive offers a variety of online tools and features, including the Name Your Price Tool and a mobile app. These help travelers access their plans and make changes anytime.

Nationwide : Best for Policy Bundling

Multi-policy discount for those who bundle boat insurance and at least one other policy with Nationwide

Boat insurance packages to help customers save money

No online quote tool for boat insurance

Not all coverages and discounts available in all states

Nationwide offers lots of options for boat insurance coverage, including:

• Uninsured/underinsured boater
• Medical payments coverage
• Roadside assistance (for boats and trailers)
• On-water boat towing and labor
• Fishing equipment insurance
• Personal effects insurance

Furthermore, there may be additional savings on your boat insurance when you select one of Nationwide’s boat insurance packages. The company offers a wide range of packages for different types of boaters, such as:

• Weekenders – For those who simply take gear onto their boat and remove it when they’re done, Nationwide offers an affordable package that includes up to $1,000 for fishing equipment, $3,000 for personal effects, and $500 for towing.
• Overnighters – For those who take short boating trips, Nationwide offers up to $2,500 for fishing equipment, $5,000 for personal effects, and $2,500 for towing.
• Light Tackle Anglers – For customers who own a bass boat or smaller fishing boat, Nationwide offers up to $5,000 for fishing equipment, $2,000 for personal effects, and $2,500 for towing.
• Deep Water Pros – For those who fish big waters, gulfs, bays, and oceans, Nationwide offers up to $10,000 for fishing equipment, $5,000 for personal effects, and $2,500 for towing.

The best way to save with Nationwide is by bundling your insurance policies with them. While the company's website claims customers can save up to 20% when bundling home and auto, it does not mention specific savings on bundling another policy with your Nationwide boat insurance. However, customers who choose to bundle a boat policy with their home, auto, or life policy with Nationwide will be awarded a discount.

In general, Nationwide offers these discounts to people who insure boats:

• Multiple Policy and Multiple Boat Discounts – For those who combine home, boat, vehicle, and/or life insurance policies
• Boater Safety Course Discount – For those who complete an approved water safety course
• Diesel Fuel Discount – For those who own a diesel-powered boat
• Paid-in-full Discount – For those who pay their 12-month premium upfront
• Claims-Free Renewal Discount – For those who are claim-free during the previous year

Although Nationwide doesn’t specifically list limitations on where you can obtain its boat insurance, the company does stress that not all products and discounts are available in all states. Contact a local Nationwide agent or use the company’s website to obtain a quote before switching your boat coverage over to Nationwide.

Nationwide offers a digital experience through its website and mobile app. On the website you can take advantage of resources as well as manage your policy through the company’s customer portal.

Foremost : Best Variety of Coverage

Variety of packages and coverage options

Several great discounts

Limitations on who can receive coverage

When it comes to coverage, Foremost offers many standard coverage options, including:

• Watercraft physical damage
• Personal liability
• Uninsured watercraft
• Towing and Roadside assistance
• Personal property

Additionally, Foremost offers numerous packages that let boaters customize the coverage they receive. These include:

• Saver Package – The most affordable package includes cash value settlements in case of a total loss
• Plus Package – Includes all of the basic coverage plus agreed value/total loss replacement cost settlement, watersports liability, diminishing deductible, extended depreciation deferral, and hurricane haul-out
• Elite Package – Offers the most coverage possible, with perks such as boat lift/hoist/cradle coverage, fishing tournament fee reimbursement, pet insurance, trip interruption coverage, enhanced towing services, Bahamas and Mexico navigation coverage, extended total loss replacement, and depreciation deferral
• Pontoon and Pontoon Elite Packages – For the specific needs of pontoon boats
• Classic and Classic Elite Packages – For boats more than 25 years old
• Performance and Performance Elite Packages – For speedboats that reach speeds of 77 mph or greater
• Personal Watercraft Insurance – With features specifically tailored for personal watercraft

Foremost’s discounts include:

• Lay-Up Discount – For those who store their boat for at least three months each year
• Paid-in-Full Discount – For those who pay their entire coverage period upfront
• Boating Safety Course Discount – For those who complete an approved safety course or obtain a marine license
• Protective Device Discount – For those with boats that contain safety features (such as automatic fire extinguishing equipment, monitoring systems, an alarm system, a no-strike lightning system, a theft recovery system, dock assist, NMMA certification and/or a PWC brake system)
• Multiple Policy Discount – For those who hold more than one policy through Foremost or its partner companies (Farmers or Farmers Bristol West)
• Multiple Unit Discount – For those who insure more than one boat
• Loss Free Renewal Discount – For those who go three or more years without claims
• Insured Age Discount – For those 55 or older
• Affinity and Alliance Discount – For members of approved organizations

Although Foremost boat insurance is available in all 50 states, coverage and coverage amounts may vary by state. Foremost also limits and denies coverage based on credit scores , meaning that it may not be the best option for those with poor credit.

Foremost doesn’t offer a lot of perks, but the numerous coverage packages and discounts make it a viable choice if you want to have the ability to customize your coverage.

Markel : Best for Fishermen

Expansive coverage for fishing equipment

Savings of up to 35% with discounts including a diminishing deductible

No options to bundle with homeowners or car insurance

Markel offers boat insurance starting at just $100 per year depending on what coverage you need. Whether you’re a professional fisher or just enjoy fishing for fun, Markel offers lots of coverage, including for:

• Watercraft liability
• Agreed value watercraft and equipment
• Emergency towing
• Personal effects
• Pollution liability
• Replacement cost settlement
• Fishing equipment
• Professional angler liability
• Tournament fee reimbursement
• Crash damage
• Theft away from home
• Wreck removal

Although Markel doesn’t offer some of the discounts that larger insurance companies do, you can still save money through these discounts for:

• Multiple boats
• Outboard propulsion
• Age (when the primary operator is 40 or older)
• Diesel engines
• Experienced boaters (for those with five or more years of boating experience)
• Being accident-free (a diminishing deductible program reduces your deductible by 25% for every year that you remain accident-free until it hits zero)

Markel operates in all 50 states, but you should always consult with a customer service representative to see what boat insurance is available for you.

Additionally, Markel does not currently offer a smartphone app.

Although Markel boat insurance comes with a few limitations, there are some significant perks. For starters, the diminishing deductible program is one discount option that not all companies provide. Moreover, Markel is the only company we found that offers discounts for boaters over the age of 40, which can help older people who fish for fun save money.

The most notable perk with Markel, though, is the large amount of coverages it has as standard policy. The professional angler option provides replacement cost coverage for fishing equipment and personal items, in addition to covering the boat itself. These coverage options make Markel a standout pick for anyone who uses their boat for fishing in any capacity.

Compare Best Boat Insurance

Boat insurance protects one of your most expensive possessions and gives you peace of mind when out on the water. When selecting a policy, don’t forget to compare all the fine print and see which companies offer the best discounts and other perks to help you get the most bang for your buck.

Do I Need to Have Boat Insurance?

Though boat insurance is not required in every state, you shouldn’t go without it in most cases. If you end up in an accident or stranded out in the ocean somewhere, you’ll be glad you have it.

It’s recommended that you obtain boat insurance if you own one of the following types of boats:

• Large sailboats
• Personal watercraft (such as WaveRunners)
• Motorboats (anything that runs faster than 25 mph)

Conversely, if you’re just using a canoe, a small-engine boat, or an inexpensive boat worth less than $1,000, you may not need boat insurance.

What Should I Look for When Shopping for Boat Insurance?

There are many factors to consider when shopping for boat insurance. For starters, you’ll need to decide if you want a policy that uses an agreed value policy or an actual cash value (ACV) policy. ACV policies are typically cheaper, but they provide less payout in the event of a total loss.

Furthermore, you’ll want to look for exclusions and restrictions to boat coverage. For example, some companies will only insure boats up to a certain size, whereas others will not insure boats used for commercial purposes. Knowing the specifics of your boat and what you’ll use it for can really help you find the best policy to fit your needs.

Once you find several companies that will cover your boat, read the entire list of standard coverage inclusions and compare. Where one company may offer towing as a standard feature, another company may only offer it if you pay an extra monthly fee. Noting these small differences could really save you money.

Finally, consider a company’s reputation and the attention it gives to its boat insurance. Some specialty insurance companies focus solely on coverage for boats and other recreational vehicles, while other companies just offer boat insurance as an extra to attract more customers. Noting this can help you get the best coverage from experts who know what they’re doing when it comes to boats.

Does Homeowners Insurance Cover My Boat?

Although some homeowners insurance policies cover boats, these typically come with several limitations. In most cases homeowners policies treat your boat like any other household possession (i.e. a television or couch), meaning that your policy will only cover the boat up to a certain value (10% of your home’s insured value in most cases). What’s more, liability insurance for your boat isn’t typically included under your homeowner's insurance. This means you’d be out any liability or injury costs in the event of a boating accident.

What Does Boat Insurance Cover?

At first glance coverage for your boat may look and sound a lot like auto insurance coverage. This makes sense given that a boat is basically a car that you drive in the water.

• Bodily injury liability : Just like your car insurance policy, your boat insurance will cover costs associated with injuries you may cause others, such as medical bills, lost income, and pain and suffering.
• Property damage liability : Just as car insurance covers property damage to other vehicles and stationary objects, boat insurance also covers damage to docks and other boats.
• Collision coverage : Collision coverage is usually an optional coverage for cars, and it’s the same for boats. This type of insurance covers repairs and replacement of your own boat in the event of an accident. As with any other policy, though, always read the fine print on collision coverage; not all insurance providers will cover your boat if it sinks.
• Comprehensive coverage : Comprehensive coverage protects your boat against all non-accident-related damage to your boats, such as theft, vandalism, and other potential hazards.
• Umbrella coverage : In most cases, your insurance company will only insure your boat if you or other listed drivers on your policy are driving the boat. However, the exception to this rule is an umbrella policy . If you obtain this type of coverage, any driver is covered unless they are specifically excluded from the policy.
• Additional types of coverage : Depending on the insurance company and the policy you select, you may also receive coverage for medical payments, roadside assistance, wreckage removal, watersports, fuel spills, carry-on items, fishing equipment, trip interruption, uninsured boater, trailers, and towing (both for the boat on a trailer and in the water).

When selecting the best boat insurance providers, we compared policies and discounts for more than 20 nationally recognized insurance companies that offer boat policies. We also looked at each company’s financial strength, customer satisfaction ratings, and reviews. We feel confident that our evaluations provide a useful guide to help you select a boat insurance company, but we always encourage you to shop around and compare quotes before signing on the dotted line for any insurance policy.

Thomas Barwick / Getty Images

United States Coast Guard. “ Coast Guard Releases 2023 Recreational Boating Statistics .”

Insurance Information Institute. “ Boat Insurance and Safety .“

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Superyacht insurance: How to choose the best policy for your yacht

Related articles.

Picking insurance coverage for your superyacht can be fraught with difficulty. BOAT reveals what owners really need to know when it comes to yacht insurance and how to keep the process as pain-free as possible if the worst happens.

When it comes to superyacht insurance, shopping around for the best deal may not be the smartest tactic. “Many of the insurance policies and contracts out there are quite similar, but, as with everything, the devil’s in the detail. Sometimes what may appear to be a really good option might contain some restrictions or exclusions in cover that might catch the unwary person out,” says Mike Wimbridge, managing director of Pantaenius UK.

Indeed, insuring superyachts worth tens to hundreds of millions of pounds, plying waters subject to windstorms and even perhaps political upheaval, is complicated. There are a lot of considerations at play and in the end what you see on your policy is what you get. “Marine insurance is not specifically regulated, meaning policy forms don’t have to be approved by any regulators in any country or state like other types of consumer insurance do. So whatever you get on your policy contract is what you get today for insurance, and it could be different for everyone,” says Nancy Poppe, North American Yacht Practice Leader at Willis Marine Superyachts.

In general, there are two types of insurance a yacht needs: Hull and Protection & Indemnity (P&I). Hull covers physical damage to the vessel and its appurtenances, while P&I is marine liability insurance for third-party liability, explains Poppe. The larger the yacht and/or the more complex its cruising programme, the more likely this coverage will be split with P&I provided by a P&I Club. “They offer a single shot $500 million P&I limit, and they can very easily offer all of the certificates,” says Spencer Lloyd, president of AssuredPartners’ yacht speciality team. “For instance, there’s something now called the Nairobi Wreck Removal endorsement and some of the companies that do both Hull and P&I do not have the ability to issue these certificates for a yacht travelling in foreign waters.”

The marine insurance market currently is a bit turbulent, which means not every yacht is insurable. A few years ago a large number of underwriters – overwhelmed by hurricanes and fires – pulled out of the marine market, creating a hard market where demand exceeded supply. It’s since stabilised to some extent, helped by the fact that 2021 churned up no serious windstorms, but underwriters today can still afford to be picky.

Wimbridge likens the last few years to “panning for gold”, as the market was shaken up to see where things lie. “The London market, the traditional home of the superyacht market, is not comfortable below USD10 million. So the more domestic markets are picking those risks up, whether that be US or Europe or Australia. I think above 10 million, it’d be fair to say the London market has been choosy over recent years,” says Wimbridge. But he is seeing more competition creeping in for what insurers would class the more desirable risks in the megayacht area, so that’s leading to a steadying of the market. The under-$5 million market, though, is more volatile, subject to holes when a single underwriter pulls out.

Factors that affect a yacht’s insurability include its age (even if it’s refit), whether it will be based in a windstorm-prone area, and the owner’s experience, explains Poppe. “For boats that, say, want to summer in Florida and winter in the Caribbean, there are very limited choices particularly in the smaller end of things. And first-time owners jumping into large-sized vessels with no prior ownership experience and not hiring a full time professional manager – there's limited, if any, options for coverage there,” she says. With this in mind, she advises any prospective owner to secure an offer of insurance before they accept an offer to buy a yacht.

Once the insurance is in place, the communication doesn’t stop. There are a few situations where it’s common that the underwriter requires advance notice or coverage can be excluded. One of these is yard work.

“A lot of yacht policies will exclude welding and hot work until you notify them first and beforehand,” says Lloyd, explaining that the underwriter will typically want to see a copy of the yard’s insurance certificate, any independent contractor’s liability, a drawing of what welding is going to take place and a gas-free certificate if the tanks have to be cleared of flammable liquids. The difficulty he has seen lately is when the shipyard wants a complete waiver of liability, a situation he deems unfair. “A lot of times the company insuring the yacht will come back and say, ‘Hey, we want a $10,000 to $15,000 additional premium for the exposure of what you're having done’.”

How underwriters consider named windstorms also differs, with at least one excluding all coverage for yachts under 500 gross tonnes. “In the old days, the bigger boats didn't necessarily need a hurricane plan. But in this day and age, most underwriters are asking to see the hurricane plan for all sized yachts,” says Poppe.

“If you're going to be in the shipyard, having work done during hurricane season, you need to give your underwriter a lot of advance notice,” she continues. “If you're not going to be able to move the vessel to sea in the event of a storm coming, you are probably going to face either no coverage for windstorm or a quite high deductible for windstorm.”

Another point that could be lost in the fine print is itinerary exclusions. “For instance, there are parts of the world that are deemed to be political hotspots, so they tend to be excluded from the war cover,” says Wimbridge.

Insurance companies also want to be involved in choosing the captain. “They have gotten much more strict about captain resumes,” says Lloyd. “Rule of thumb was the captain must have a minimum of two years’ experience on similar-size boats to the one that they are applying for. And some have raised it to three years. We are in a constant battle because with so many boats being sold, there’s not enough qualified people to fill the positions. And how does the mate, who is good and capable but doesn’t have the resume, take the next step?”

With all of these considerations, it’s crucial that the owner – whether they are dealing directly with an underwriting agent like Pantaenius UK or working with a broker like Poppe or Lloyd – is being advised by someone they trust and someone experienced in insuring yachts of a similar type and cruising programme.

In the end, insurance is a relationship business, Wimbridge points out. “The selection of the insurance partner and, if appropriate, the insurance broker, I think is paramount because those parties are experts in this process and often the clients aren’t. And in many cases, the ultimate client isn’t the one doing the negotiation. Depending on how large the boat is, there can be several people in that chain involved in the pre-discussions, offering their own thoughts and advice, which might not necessarily be the most helpful. The advice in all aspects of this is to choose the right partner, people that will give you proper advice.”

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We'll Help You Find the Best Boat Insurance in Minutes

Our nationwide network of local independent agents is ready to help you find the perfect coverage at the best rate..

TrustedChoice.com Article

How will this quote help me?

Your quote is based on several common factors to give you a clear picture of the cost you can expect, though an independent agent can shop around and maybe even improve your rate!

NOTE:  This quote is not final, though we did work with professional actuaries to help get you a ballpark figure to get started.

Do you have to have boat insurance on a boat?

Only two states require boat insurance by law, but there are a few instances where you may need it. If you dock your boat at a marina, they may require some form of coverage in order to protect their business. Also, if you finance your boat, nearly every lender will require coverage to protect their investment; use our list of the best boat insurance companies as a starting point.

Other than that, you should always have at least liability coverage on your boat to protect yourself against lawsuit costs if you cause bodily injury or property damage to another party. Property coverage is optional, but again, the more comprehensive your coverage, the better it can protect you.

How much is boat insurance?

The cost of any boat insurance policy depends on a number of factors, including your boat's size, value, and horsepower. Boat insurance policies can range from the low hundreds to tens of thousands of dollars annually, depending on what kind of coverage you need.

Do I need to insure my boat trailer?

Insuring your boat trailer is always a safe bet. Though your boat trailer may be protected by your home or car insurance policy, you can also add coverage to your boat insurance for your trailer. It's best to talk to your independent insurance agent about your boat, the trailer, and how you use it to determine the right coverage amount.

Does boat insurance cover passengers?

If your policy includes medical payments coverage, it will cover injuries to your passengers if you get into an accident. Medical payments coverage is an important option because just one accident can cause injuries that are extremely costly to treat.

Does boat insurance cover theft?

Typically, yes. But it's important to review your specific boat insurance policy with your independent insurance agent to make sure. Every carrier and every policy is different, but the more you know about your own policy, the better it will help protect you. 

Does boat insurance cover hurricanes?

In most cases, yes, your boat will be covered against hurricane damage. But, as with any other natural disaster or unexpected event, you'll want to double-check your policy.

Does boat insurance cover engine damage?

No, boat insurance often excludes defective machinery or maintenance costs. Wear and tear is a natural outcome of use and not covered by your policy.

What is the cost difference in insuring different kinds of boats?

The size and value of your boat are two of the most impactful features on the cost of your coverage. Insurance for a $20,000 boat can cost an average of only $300 per year, while insuring a $2 million yacht can cost as much as $30,000 per year.

Does boat insurance cover me if I hit a rock?

If you have collision coverage on your boat insurance, you should be covered for the cost of repairs if you hit a rock.

Does boat insurance cover a blown engine?

In certain cases, boat insurance may cover a blown engine if the disaster was due to a listed peril. For example, ice and freeze damage to engines is typically covered. However, blown engines due to the owner's negligence are not covered.

BOAT INSURANCE

Find the perfect agent to shop multiple insurance companies on your behalf, saving you time and money.

Boat owners can experience a lot of joy and excitement brought by their watercraft, but they also have to anticipate potentially costly disasters ahead of time. Aside from accidents on the water, your boat is also vulnerable to theft, vandalism, flood damage, and more. That's what makes having boat insurance so critical.

An independent insurance agent can help protect your vessel with the right boat insurance long before you ever need to file a claim. But first, here's some boat insurance 101.

What Is Boat Insurance?

Boat insurance is designed to cover boat owners and their watercraft in case of many different disasters, including accidents, fire, and more. These policies are made to protect boats that have motors, like yachts, pontoon boats, etc., but they don't cover kayaks or canoes. Boat insurance is important because homeowners insurance doesn't provide enough coverage on its own for most watercraft.

Do You Have to Have Insurance on a Boat?

Only two states actually require boat insurance coverage , but there are a few situations where you may need it. First, if you dock your boat at a marina, they may require some form of coverage in order to protect their business. Second, if you financed your boat, nearly every lender will require coverage to protect their investment.

Further, there are certain types of boats that are more important to insure than others due to their value, risk level, and more. Here's a handy guide to whether you need boat insurance for your vessel.

Most often, boat insurance is purchased for:

• Utility boats
• Fishing boats
• Pontoon boats

Despite all the fun to be had with a boat, accidents and disasters can happen. The easiest way to protect yourself and others, and get you back on the lake after a situation, is with the right boat insurance.

Best Boat Insurance Companies

While many carriers offer boat insurance, it's helpful to know some of the top names in the industry before you start shopping. Here are a few of our highest-recommended boat insurance companies.

An independent insurance agent can help you get the right boat insurance policy for you from one of these top-rated carriers, or another that best meets your needs.

Do I Need Boat Insurance?

The only two states that require boat insurance by law are Utah and Arkansas. Boat owners in these states must have coverage for personal watercraft or for powerboats with 50 horsepower or greater. Otherwise, if you live elsewhere and your boat is designated for personal use, you're not technically required to have insurance for it. 

However, if you lease or otherwise finance your boat, you're likely to be required by your lender to carry boat insurance, and often you'll need both collision and comprehensive coverage. When docking your boat, you're often also required by the marina to have liability coverage. However, with boating accidents being so common, it's important to at least consider getting boat insurance for yourself.

Most Common Types of Boating Accidents

Notice that the top five causes of boating accidents are due to human error, such as inattention, improper lookout, alcohol use, and inexperience. Since you can't often blame the boat for an accident or other disaster, it's even more critical to ensure that your vessel is covered with the right insurance.

How Much Is Boat Insurance?

The average annual cost of boat insurance ranges from $200 to $500 depending on the type of boat you have and other factors. It also depends on which types of coverage you need, and how much coverage you need. For folks who only purchase liability coverage, you might pay less than $100 annually. 

Often, you can expect the annual cost of your boat insurance to be about 1.5% of the value of your boat. For example:

• $20,000 boats cost about $300 annually to insure
• $50,000 boats cost about $750 annually to insure
• $100,000 boats cost about $1,500 annually to insure
• $500,000 boats cost about $7,500 annually to insure
• $2 million boats, like yachts, cost about $30,000 annually to insure
• If you are looking for boat insurance for older boats , costs will vary significantly

The cost of your boat insurance might not be this simple to figure out, though. For more help calculating the cost of your premiums, use our boat insurance calculator or reach out to an independent insurance agent for a quote.

What Factors Influence Boat Insurance Costs?

Like any form of coverage, boat insurance costs depend on several factors, including:

The make, model, and value of your boat

Your boat's make, model, and value influence the cost of boat insurance because the more expensive your boat is to replace or repair, the more expensive your coverage must be. If your boat is valued at less than $20,000, you will pay approximately the average cost in your state. If your boat is valued above $500,000, you might pay up to 2,250% of the average cost in your state. 

Your boat's length

Boat insurance costs also depend on the length of your boat. Be prepared to pay about 66% more for your coverage if your boat is 100 feet or longer, but if your boat is less than 20 feet, you may pay 12% less than average rates in your state.

Your boating records

If you've had six or more accidents or violations within the past five years, you can expect a 90% increase in your boat insurance premiums. However, if you've had no incidents during this time, you can expect a 40% decrease in your boat insurance premiums.

Your location

Boat insurance premiums vary considerably by the state you live in. Many factors can influence insurance costs by location, including crime rates, property values, and more.

How you use your boat

Depending on the risk level of the activities you perform with or on your boat, your premiums may be higher or lower. Using a boat for towing can be riskier than using it just for fishing, so boats used for fishing would be likely to have lower boat insurance premiums.

How often you use your boat

Similar to auto insurance, how often you use your boat can also influence your boat insurance rates, because the more you use it, the more likely an accident or other disaster is to occur. For boats that only get taken out on occasion, premiums for boat insurance can be much lower than those that get used daily on the water.

An independent insurance agent can provide you with quotes for boat insurance from several carriers near you.

What Discounts on Boat Insurance Exist?

Many insurance companies offer several discounts on boat insurance to help lower the cost of your premiums. Here are just a few common boat insurance discounts:

• Boater safety course discount: You might qualify for a discount on boat insurance if you complete a state-approved boater safety course.
• Bundling discount: Many insurance companies offer discounts if you bundle your boat insurance with another policy through them, such as auto insurance or home insurance.
• Paid-in-full discount: Many insurance companies lower your overall premium if you pay for your entire year's worth of coverage up-front.
• Homeowners discount: Some insurance companies even offer discounts on your boat insurance just for being a homeowner, even if your coverage is not through the same carrier. 
• Clean boating history discount: You're likely to be rewarded with a boat insurance discount by many carriers if you've maintained a clean, accident and violation-free boating record. 

Your independent insurance agent is a great ally in helping you find any discounts you may qualify for on boat insurance, no matter which carrier you go through.

What Does Boat Insurance Cover?

Boat insurance provides a lot of important protection, not only for your boat, but also for you, your passengers, and everyone else on the water or at the marina. Boat insurance typically includes the following primary coverages:

• Personal property damage:  Provides reimbursement for your boat, trailer, and engine if they're damaged by a covered peril like vandalism, fire, etc.
• Medical payments:  Provides reimbursement for treatment of injuries to you and your passengers who get hurt by your boat or while on your boat.
• Property damage liability: Provides reimbursement of property damage lawsuit costs from third parties due to your boat.
• Bodily injury liability:  Provides reimbursement for injuries to anyone who gets physically harmed by your boat.

The following coverages are commonly added to standard boat insurance:

• Uninsured/underinsured boaters:  Covers injury expenses if the other boater is responsible but doesn’t have any, or enough, insurance to cover your expenses. 
• Fishing equipment:  Sometimes included, you'll be reimbursed up to a certain limit, like $1,000. 
• Water sports liability: Some policies exclude water sports from your liability coverage and some don't, but this coverage is important if you'll be doing stunts, etc.
• Emergency assistance on the water:  Also known as boat towing insurance, coverage provides water towing and other assistance services through a maritime dispatch center. 
• Roadside assistance for your boat and trailer:  This coverage guarantees that the towing company will take your vehicle, boat, and trailer to the nearest facility if you get stranded on the road. 

If you have questions or concerns based on your plans on the water, it's best to talk to your independent insurance agent. They can help you find and increase coverage so that it works best for you. 

Important Additional Coverages for Boats

Beyond the common coverages, it's always recommended to consider additional coverages that can help tailor the policy to your unique risks. Here are several optional boat insurance coverages worth considering:

• Collision: Provides coverage for collisions between your watercraft and other vessels or objects. You're also covered if your boat capsizes on the water.
• Comprehensive:  Covers other disasters beyond collision like theft, vandalism, storm damage, and more.
• Hurricane hauling services:  Covers the cost of moving your watercraft out of the county where it's docked in case of emergency. 
• Personal property coverage:  Personal property is usually covered under your homeowners policy, even when the boat isn't at your house. However, your deductible is often higher, so you can add personal property coverage on your boat policy to avoid a homeowners claim. 
• Wreckage and fuel removal:  Reimburses cost to recover or destroy wreckage and fuel if you get in an accident. 
• Replacement cost or agreed value:  Newer and more expensive boats can be insured for agreed value, which means you'll recover the full amount you paid for it, without depreciation. 
• Pet coverage:  If you boat with a pet on board, this provides up to $1,000 towards veterinarian fees if they're injured on the boat. 

An independent insurance agent can recommend the additional boat insurance coverages that are a good match for you.

What Is Boat Rental Insurance Coverage?

Boat rental insurance is often required by boat rental companies to protect against lawsuits that may arise when you operate a rented vessel. If a third party sues you for claims of bodily injury or property damage when you're operating a rented boat and you don't have boat rental insurance, you'll have to pay out of pocket for your defense and settlement costs.

What Boat Insurance Will Pay For

Before settling on a boat insurance policy, it's important to understand just what it will reimburse you for and what it won't. Here's a breakdown for further clarification.

If you still have questions about what's covered or not covered by boat insurance, your independent insurance agent can help.

Finding Discounts and Savings on Boat Insurance

Fortunately, there are typically several discounts available for boat insurance. While options vary by insurance company, here are some common discounts:

• No claims history discount: If you've never filed a claim on your boat insurance, your carrier is likely to reward you with a discount over time.
• Diesel-powered boat discount: Some boat insurance companies offer discounts for watercraft with diesel-powered engines.
• Safety course discount: You might be eligible to receive a discount on your boat insurance if you complete a state-approved safety course.
• Bundling discount: Often you can save money on boat insurance if you bundle it with another type of coverage, such as home insurance, through the same carrier.

An independent insurance agent is your greatest ally when it comes to finding discounts on boat insurance. 

Why Choose an Independent Insurance Agent?

Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut through the jargon and clarify the fine print so you know exactly what you’re getting.

Independent insurance agents also have access to multiple insurance companies, ultimately finding you the best boat insurance, accessibility, and competitive pricing while working for you.

More Choices

Our independent insurance agents work for you, not the insurance companies. That means you always get the best coverage options to choose from.

Better Prices

When you have options from multiple companies, it's easier to find the best coverage at the right price, at no extra cost to you.

Local Services

There's an independent agent in every city who always understands the insurance coverage you need most based on local laws and needs that apply to you.

What our customers are saying

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Multiple Options

I tried finding insurance myself but I wasn't coming up with very much. I contacted Trusted Choice and they looked at various options and presented it to me. Everything with the agent went very smoothly... He knew exactly what we wanted and searched accordingly. I was able to choose the one that I thought was best so it worked out for me. I'm happy that I did it that way.

I needed insurance for the home that I was buying and based on the pricing, I went with Trusted Choice. The process was all done online and I didn't really have to do too much. The website was also easy to use and navigate and it was not overly intimidating. Everybody that I've dealt with also seemed good and professional. It was a positive experience.

One-On-One Attention

Every year I search for insurance to make sure that I’m getting the best bang for my dollar. I went with an independent agent because if I go through them, I get that one-on-one instead of being just a number.... The experience was great.

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TrustedChoice.com was real helpful when I needed to get insurance. The agent gave me the basics of what I'd be getting if I got insurance with them.

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Boat Insurance Guide

Boat Insurance Guide: Costs & Coverage

When it comes to insuring your boat, it’s often best to separate your boat insurance from your homeowner's policy. Many homeowners’ policies limit or don’t cover marine-specific risks, such as salvage work, wreck removal, pollution or environmental damage; but there are exceptions.

Types of Boat Insurance

• Boat Insurance Costs
• Boat Insurance FAQs

Insurance Factors

Insurers consider many factors when deciding whether or not to offer a policy. Almost any vessel can be insured— for a price. You want to consider the following to make sure the policy you purchase meets your needs:

• Age of Boat
• Speed/Horsepower
• Condition (Does it meet US Coast Guard Standards in effect at the time it was built?)
• Primary residence (If the boat is used as a primary residence)
• Type (Inboard, Outboard, utility, cruiser, bassboat, saltwater fishing boat, performance boat)
• Homemade (Boats without a serial number are tricky but many kits are okay)
• Houseboats with no motor
• Ownership (more than 2 owners)
• Where it will operate (Ocean, lakes, bays, rivers, Great Lakes)

There are two basic types of boat insurance— “agreed value” and “actual cash value.” How depreciation is handled is what sets them apart.

An "agreed value" policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat (some partial losses may be depreciated).

"Actual cash value" policies cost less up front, but factor in depreciation. In other word, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policy—and if often gives a substantial savings.

Kinds of Boat Insurance Policies

• Personal Watercraft ( PWC )
• Yacht  - generally, vessels 26' and smaller are called "boats,” and "yachts" are 27' and larger. Yacht coverage tends to be broader and more specialized because larger boats travel farther and have more unique exposures.
• Boat & PWC Rental  - Although this is generally not required, rental insurance will help cover any damage the vessel, as well as the operator and passengers.
• Boat Clubs  - covers all members of club while operating a boat.
• Professional (ProAngler, Fishing Guides & Charters)  - These policies are very customizable and can cover items like travel to a tournament, equipment and more.

What Boat Insurance Policies Cover

How and where you boat determines the type of coverage you need. An "all risk" policy will offer the best protection. However, an “all risk” policy does not cover every type of loss. In insurance terms “all risk” just means that any risk not specifically omitted in the policy is covered. Typical exclusions include wear and tear, marring, denting, animal damage, manufacturers’ defects, design defects, ice and freezing.

You may also be able to add extra coverage. Available options may include: medical payments, personal effects, uninsured boaters liability, and towing and assistance. Most policies will cover permanently attached equipment, as well as items like anchors, oars, trolling motors, tools, seat cushions, and life jackets. Be sure to discuss these options with your agent.

Types of Boat Insurance Coverage

This will depend on the type of policy, but common coverage add-ons (in addition to basic ones above) include:

• Specialized Coverage:  Coverage for something specific on your boat like an expensive prop or navigation equipment.
• Salvage:  Coverage that pays to remove your boat due to damage, from substantial to minor.
• Consequential Damage: Covers a loss that was the result wear and tear rather than an accident (rot, mold, corrosion).
• Towing: Towing your boat across a body of water to safety can cost $400 per hour.
• Cruising Extension: You can get temporary, additional coverage if you plan on leaving the USA (typically to Mexico or the Bahamas).

Insurance Claims

Hopefully, you will never need to make a claim but if you do, it’s good to be prepared. You are not required to carry proof of insurance on your boat, but it’s a good idea keep claim information handy for an emergency. Ask how the claim process works when you’re shopping for policies. Naturally, it should be quick and easy. In addition, find out if your agent (or other representative) will be available if you need help dealing with the aftermath of a claim, such as arranging for towing or salvage, rather than just cutting a check and leaving.

Shopping for Boat Insurance

Start with a little fact-finding. Ask your boating friends which company they use and how their claims have been handled. The way an insurer has handled claims in the past is a good indicator of the quality of service you can expect in the future.

State insurance regulatory agencies are also a good reference and can be found online.

Boat Insurance Cost Factors

• Cruising Area: Where you boat.
• Boating Safety Education: If you have been formally trained or certified.
• Good Driving Records: Both boating and driving.
• Liability Limits: The higher the limit the higher the cost.
• Deductible: The higher the deductible the lower the premium.
• Towing insurance requirements for offshore fishing (for example, a 20-mile tow could cost $3,000).

If you boat in a hurricane zone, your insurer may expect you to provide a hurricane plan. If a storm approaches, will you have it stored in a hurricane-proof facility or will you tow it or skipper it to a safer harbor. The answer can affect your rates, even lower them, but be prepared to follow the plan, because your coverage may hinge on it.

Insurance Discounts

There are a few ways to reduce your boat insurance costs. For example, if your boating is restricted by seasons and your boat is in storage during the winter, you can get deductions for winter layup. Many insurers offer discounts for good driving records and for anyone who has completed boater education classes. Finally, it usually costs less to be insured in fresh water versus salt, so be sure to discuss where you boat with your agent. You may earn extra savings by bundling your coverage with the same company that insures your home and/or car.

Before you buy your new vessel, it’s a good idea to determine your insurance costs based on your needs.

Boat Insurance Coverage FAQs

Small Boat (29' or less) Insurance

What is the best coverage for my boat?

It is best to have what is known as an "All Risk" policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer's defects, defects in design, and ice and freezing.

How much should I insure my boat for?

You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called "Agreed Value" or "Stated Value" coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing "Actual Cash Value" (ACV) coverage, which means the value of your boat will be replacement cost less depreciation.

What other coverages can I expect with my policy?

The following are standard coverages with standard deductibles and average limits:

• Medical payments, $5,000
• $1,000 limit Personal effects, $250 deductible
• Uninsured boaters liability, between $300,000 and $500,000
• $500 to $1000 limit Towing and assistance, no deductible
• $1,000 limit Fishing equipment, $250 deductible

Who is allowed to operate my boat?

Most policies will allow anyone to operate your boat so long as you have given them permission. There are exceptions, of course, especially with high performance boats or personal watercraft so always read your policy. But beware, too many additional drivers often results in increased premiums.

I live in an area where I can't use my boat in the winter, but my lender requires it be insured year-round. What can I do?

Ask your insurance agent if they offer what is commonly referred to as a “lay-up” discount. You have year-round coverage with a discount for the months your boat is in dry storage.

Large Boat (Greater than 29') Insurance

What are the differences between boat and yacht insurance?

Generally "boats" are considered to be 26' and smaller, and "yachts" are 27' and larger. Generally speaking yacht coverage is broader and more specialized because larger boats travel further and have more unique exposures.

What should I look for in a yacht policy?

There are two main section s of a yacht policy. Hull insurance is all risk direct damage coverage that creates a very broad insuring agreement. It will include agreed amount hull coverage, meaning all parties agree at the time the policy is written on the value of the vessel and that value will be paid in the event of a total loss.

A true yacht policy also includes replacement cost (new for old) coverage on partial losses, with the exception of sails, canvas, batteries, outboards and sometimes outdrives, which are depreciated. Protection and indemnity insurance is the broadest of all liability coverages, and because maritime law is unique, you will need coverages that are designed for those exposures. Such things as Harborworkers and Longshoreman's coverage and Jones Act (crew) coverage can be critical, as an uncovered loss in this area could run into hundreds of thousands of dollars. Besides providing payment of judgments against you, P&I also provides for your defense in Admiralty Courts.

What is a normal deductible?

A yacht policy usually carries a percentage of the insured value deductible, for instance a 1%, deductible means a boat insured for $100,000 would have a $1,000 deductible. Most lenders allow a maximum deductible of 2% of the insured value. Beware of "named special deductibles" such as storm damage of 10% or more.

What are some of the other standard coverages I can expect?

These standard coverages have standard deductibles and average limits:

• Medical payments, $10,000 limit
• $5,000 limit personal effects, $250 deductible
• $500,000 limit uninsured boaters liability, no deductible
• $1,000 to $3,000 limit Towing and assistance, no deductible
• $1,000 Hurricane haul out coverage. Small percentage of limit as deductible. Hurricane warning must be posted by NOA. Payment made to move boat to safe location, haul out or make special preparations to withstand storm.

What is Breach of Warranty?

That is coverage that primarily protects the lienholder's interest in your boat, paying off the balance owed but nothing more. If you breach the warranties in the policy, such as promising not to go outside your navigational limits, not to use your boat during the lay-up period, not to use your boat for anything but private pleasure use, and you do NOT have this coverage and experience a loss, you don't get paid for that loss and neither does the lender. You could end up making payments on a boat you cannot use.

Editor's Note: Information Courtesy of National Marine Lenders Association .

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Cost of Boat Insurance

Laura Shaugnessy is a freelance writer from Florida with almost 20 years of experience. She specializes on topics in personal finance and the auto industry, and she enjoys country music.

RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.

• Boat insurance can cost as little as $100 and can be priced over $1000 for boats with a lot of power or value.
• Factors that affect the cost of boat insurance include the type, condition, storage location and cruising area.
• Many insurance companies offer multiple discounts including auto and boat insurance bundling discounts.

When it comes to shopping for coverage, the cost of boat insurance is one of the top concerns for most people. But because boat premiums vary greatly due to a wide range of factors, your monthly payment might differ from the average estimates.

To help make sense of how boat insurance costs work, we at the Guides Auto Team put this guide together. You’ll find information about how boat premiums are calculated, what kinds of coverage you can buy and strategies for getting the lowest rates. We also recommend some of the best boat insurance companies to help you get started on your search.

What Is the Average Cost of Boat Insurance?

The average cost of boat insurance ranges from about $200 to $500 per year . However, this figure is a rough estimate based on the most common types of boats. In reality, boat premiums can range anywhere from less than $100 per year to thousands of dollars annually.

Boat Insurance Cost Factors

There is such a wide variation in the cost of boat insurance because of all the factors that go into calculating rates. Insurers take information about you, your boat and your marine activities into account when considering your premiums.

Type of Boat

The kind of boat you want to insure is one of the primary factors in the cost of marine insurance. Generally speaking, larger and more expensive boats drive higher premiums. Powerboats with more horsepower also tend to cost more to insure.

These are the most common types of watercraft you can insure:

• Fishing boats
• Personal watercraft (PWC) such as Jet Skis
• Pontoon boats
• Powerboats/speedboats

Boat Condition

The condition of your boat contributes to the cost of your boat insurance premiums. This is because boats in better condition are more valuable as property. Boats in poor condition are also more likely to suffer further damage.

For your boat insurance policy, you can typically choose your deductible — the amount you have to pay out of pocket for repair or replacement. Just like with auto insurance, your premium will usually go up as your deductible goes down.

Cruising Area

Part of your premium is based on where you intend to use your boat. The greater area you cover, the more you can expect to pay for boat coverage. In addition, insurers assign different risk factors to different areas. If you plan to sail in areas with more storms, for example, you may pay a higher rate.

Storage Location

Where you store your boat is also a factor in your rates. If your boat is stored in areas that frequently experience events like floods, tornadoes or hurricanes, you’ll likely pay more for coverage.

Boating Experience

Many insurers take into account how much experience a boater has when determining premiums. Some may offer lower boat insurance rates to mariners who have operated a boat for more than a few years, sometimes in the form of a discount. Older boat owners often pay lower premiums than younger ones as well.

Lay-Up Period

People in many parts of the country can’t or don’t use their boats during certain parts of the year. This period of time is known as a lay-up period, and some insurers offer reduced rates if you declare one that’s long enough. However, if you use your boat during this period, any physical damages you incur will not be covered.

Boat Insurance Discounts

Discounts are an easy way to save on the cost of boat insurance. Not every provider offers the same discount opportunities, but these are the most common:

• Multi-policy : Boat insurance is one type of coverage that you can bundle with other insurance products like homeowners, renters or auto insurance. 
• Multi-boat : Many insurers offer discounts if you cover more than one watercraft under the same policy. PWCs are sometimes excluded from this discount. 
• Boat safety course : You can complete a state-approved boat safety course to receive one of the most common discounts in the boat insurance industry.
• Pay in full : You may be able to save on boat coverage if you pay for your premium up front rather than across monthly payments.
• Claims-free : Many insurers offer discounts for boaters who maintain a set amount of time without filing a boat insurance claim. 
• Responsible driver : Boaters who go for an extended period of time without an accident on their driving record can earn a discount from many providers.
• Association : Some insurers offer discounts to members of the U.S. Coast Guard Auxiliary, other military groups, professional organizations and more.
• Diesel fuel : You can save with some insurers if you have a diesel-powered engine on your motorboat rather than a gasoline-powered one.

Boat Insurance Coverage

There is as much range in boat insurance coverage as there is in boats themselves. You can choose liability-only policies that satisfy state or marina regulations, high-limit comprehensive coverage with loads of specialty add-ons and everything in between.

Standard Boat Coverages

The standard boat insurance coverages are similar to those for auto insurance:

• Property damage liability : Covers damages to other parties’ boats and property in an accident for which you are found at fault. 
• Bodily injury liability : Covers other parties’ medical expenses, lost wages and related costs in a boating accident for which you are found at fault.
• Collision insurance : Covers damages to your boat, regardless of who is at fault for an accident.
• Comprehensive coverage : Covers damages to your boat from sources other than an accident, such as fire, theft, vandalism or weather.
• Medical payments : Covers medical expenses for your party related to a covered accident.
• Uninsured boater coverage : Covers property and injury expenses if an at-fault boater lacks sufficient coverage.

Boat Insurance Add-Ons

You’ll also find a wide range of specialty coverage add-ons. These optional coverage items can help cover other costs related to owning, storing, transporting and using your boat. Here are some of the most common boat insurance add-ons:

• Roadside assistance : If your vehicle breaks down while towing your boat, this covers the cost of emergency roadside services.
• Watersports injuries or damages : Covers costs related to damages and injuries sustained while participating in watersports like water-skiing or tubing. 
• Fuel spill cleanup : Covers the cost of cleaning up after your boat spills fuel into the water. Sometimes covers fines and other costs related to the spill.
• On-water towing : Covers towing costs to get your boat to shore if it breaks down on the water.
• Wreckage removal : Covers the cost of pulling your wrecked or sunken boat out of the water.
• Ice and freeze damage : Covers the cost of repairs if your boat was damaged by ice or cold after an improper winterization.
• Mechanical breakdown insurance (MBI) : Covers repair costs in the case of a mechanical breakdown for an additional monthly fee. With a reputable company, this works similar to an extended warranty on a car.
• Hurricane haul-out : Covers the cost of relocating your boat if it’s in the path of a hurricane.
• Boat trailer : Covers damages to your boat trailer for an additional fee.
• Personal property : Covers the cost of personal items like life jackets, phones, navigation equipment and more.
• Commercial liability : Covers liability costs if your boat gets into a covered accident while being used for business purposes.
• Boat rental liability : Covers liability costs if someone driving a boat you rent to them is found at-fault for a covered accident.

Actual Cash Value vs. Agreed Value

Most boat insurance companies offer two types of policies: actual cash value coverage and agreed value coverage. Though they sound similar, the difference can be significant if a boating accident results in a total loss.

With an actual cash value policy, your insurer pays out the current estimated value of your boat at the time of the accident. An agreed value policy, on the other hand, pays out a predetermined amount set by your insurer when you start the boat policy.

With an agreed value policy, you won’t lose value due to depreciation. As a result, agreed value boat insurance policies typically cost more than actual cash value policies.

What Boat Insurance Doesn’t Cover

You can purchase marine coverage for a wide range of boats and purposes. However, there are some causes of damage that providers, for the most part, won’t cover. Here are some of the most common exclusions:

• Damage from animals
• Damage while using drugs or alcohol
• Damage from underage drivers
• Deterioration
• Manufacturing defects
• Renovations
• Servicing and maintenance
• Wear and tear

Do You Need Boat Insurance?

In most cases, boat insurance is optional. However, there are a few scenarios in which boat insurance is necessary:

• Your lender requires it : Some finance companies mandate that you get insurance coverage on your boat until you pay off your loan.
• Your state requires it : Arkansas and Utah require boat owners to maintain an insurance policy, but they are the only states that do.
• Your marina requires it : Some marinas require boats that dock there to carry liability insurance.

There may be some other situations that require you to have boat coverage, but these are the most common.

Boat Owner Risks

Even if you aren’t required to carry marine insurance, there are strong arguments to have it. Driving, transporting and storing a boat all come with risks that insurance can help manage.

Here are some of the most common:

• Collisions : Boats can suffer damage when they hit other boats or stationary objects such as piers and rocks.
• Damage during storage : Boats can get damaged in storage if they’re scratched, dented or mishandled while being moved around.
• Damage while moored : Marinas are high-risk areas for damage, with many boats and people navigating the area.
• Damage during transit : Whether from road debris, inclement weather or a car accident, there are many ways your boat can be damaged during transport.
• Swamping : Even experienced boaters occasionally run their boat into a sand bar or ground in shallow water. This can cause damage to your boat and may require help getting unstuck. 
• Sinking : There are many reasons a boat can sink. If it does, you’ll often have to pay to have it removed in addition to the loss of your vessel.
• Storm damage : Hurricanes and other powerful storms can damage your boat, even while it’s in storage.
• Theft : Boat theft does happen. According to the National Insurance Crime Bureau (NICB) , there were 4,240 watercraft thefts in 2019 alone.
• Fire : Onboard fires are one of the most common risks for boat owners. Insurers typically offer discounts for installing onboard fire safety equipment.

Boating Accident Statistics

Boating accidents are more common than you may think. According to data from the United States Coast Guard (USCG), there were 5,265 reported boating accidents in 2020, resulting in 3,191 injuries and 767 deaths.This same data also suggests that boating accidents — and the property damage costs resulting from those accidents — are on the rise.

In 2020, the number of boating accidents increased by 26.3% from 2019. The number of injuries from boat accidents rose by 24.7% and deaths from those accidents increased by 25.1% from the previous year.

USCG data shows that the cost of property damage from boat accidents is also on the rise. Boating accidents accounted for $62.5 million in damage in 2020. This is an increase of nearly 36% since 2017. 

While boat insurance may not be required for you, it’s almost certainly a good idea to have in most cases. Having a boat accident without it could easily turn into a financial disaster. On the other hand, having sufficient coverage can help insulate you from financial risk and provide valuable peace of mind.

Does Homeowners Insurance Cover Your Boat?

Your homeowners insurance policy may offer liability coverage for your boat. Many of these policies come with coverage for restitution and legal expenses if you are found at fault in a boating accident.

Your homeowners insurance likely covers damages to your boat in limited situations. These are some of the more common sources of damage that a homeowners policy is likely to cover:

• Falling objects

Your boat may be covered under these situations, but most homeowners policies only pay up to $1,000 in damages. For many policies, $1,000 is a common deductible. This means it might not make sense to file a damage claim through your homeowners policy.

How To Save on the Cost of Boat Insurance

Some factors that affect the cost of boat insurance are things you can’t easily change, such as your age or location. But if you’re looking for the cheapest boat insurance , there are a few things you can do to help lower your premiums.

Decide How Much Boat Insurance You Need

In most situations, it’s good to get as much coverage as you can comfortably afford. However, if you’re trying to save money on boat insurance, you can cut coverage to the bare minimum that you may need.

For example, if your homeowners policy offers liability coverage of up to $100,000, you may want to reduce the amount of liability coverage on your boat insurance plan. Reducing your stated cruising area and cutting out add-ons can also help lower your premium.

Increase Your Deductible

With most insurers, your premiums tend to go down as your deductible goes up. So if you’re looking to save on the cost of boat insurance, raising your deductible is one way to do it.

However, raising your deductible also means you’re at risk of paying more out of pocket if you have a covered accident. If you can’t afford to pay your deductible, you won’t be able to complete your claim. Be sure that you can afford a higher deductible before making that change.

Look For Discounts

As we mentioned earlier, most companies offer at least a few discounts to help you save on the cost of boat insurance. In many cases, you can combine some of these discounts for even more savings.

Insurers typically list most of their discounts online, but more may be available. Before you sign a contract, be sure to ask your insurance agent about any discount opportunities.

Establish a Lay-Up Period

Some boat insurance companies offer pricing that includes a discount for a lay-up period. If you know that you won’t use your boat for an extended period of time each year, such as during winter months, establishing a lay-up period with your insurer could bring your boat insurance premiums down.

Take a Boat Safety Course

Most insurers offer a discount for completing a state-approved boat safety course — and for good reason.

Cost of Boat Insurance: Conclusion

The average cost of boat insurance is between $200 and $500 per year. However, with so many variables at play, there’s a good chance that your premiums can fall outside this range. Ultimately, getting a quote is the only way to get an accurate estimate of what boat insurance will cost you.

Boat Insurance Recommended Providers

While the cost of boat insurance is an important consideration, the quality of a provider should factor into your decision as well. When you start to shop for coverage for your boat, these providers are a good place to start.

Progressive: Editor’s Choice

Progressive offers a wide range of boat insurance options and a large selection of discounts to help bring the cost of coverage down. The company’s coverage and pricing were enough to earn it our Editor’s Choice among all insurers in our study. Most boaters should be able to find the coverage they need at a competitive price with Progressive.

Keep reading: Progressive boat insurance review

BoatUS: Best Member Organization

BoatUS is a member organization that has partnered with well-known auto insurer Geico to offer insurance tailored specifically for boaters. The company offers a few coverage options — such as unlimited on-water towing — that may come in handy for serious mariners who spend a lot of time on the water.

Keep reading: Geico boat insurance review

Cost of Boat Insurance: FAQ

Below you’ll find frequently asked questions about boat insurance pricing:

How much should I insure my boat for?

Boat insurance professionals recommend insuring a powerboat for at least $1,000,000 in liability coverage, though the amount of coverage depends in part on the type of boat you own. With the high cost of medical coverage and the expense of some boats, a single boating accident could easily result in hundreds of thousands of dollars in damages.

Is boat insurance monthly or yearly?

Depending on your provider, you should be able to pay for boat insurance either monthly or with a yearly upfront payment. Some insurers offer discounts for paying up front.

Does boat insurance cover hitting a rock?

Boat insurance covers hitting a rock if you have collision and comprehensive coverage on your policy. Damages to your boat will not, however, be covered if you only have liability coverage.

What is the average deductible for boat insurance?

Examples of some average deductibles for boat insurance are $250 for personal effects or fishing equipment and no deductible for towing and assistance, according to Discover Boating . Deductibles will vary greatly depending on the coverage you choose and your situation.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best boat insurance companies. We collected data on dozens of marine insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Reputation : Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability : Boat insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Coverage : Boaters can benefit from a wide variety of specialty coverage options. We evaluated companies based on the amount and diversity of coverage add-ons they offer for boat insurance.
• Cost : As boat insurance costs are highly variable, our research team mainly considered the availability of policy discounts.
• Customer Experience : Our research team took into account companies’ industry reputation with organizations such as the Better Business Bureau (BBB) as well as the ease and availability of in-person, over-the-phone and online services.

*Data accurate at time of publication.

If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides. com .

MarketWatch Guides may receive compensation from companies that appear on this page.
The compensation may impact how, where and in what order products appear, but it does not influence the recommendations the editorial team provides. Not all companies, products, or offers were reviewed.

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Boat Insurance Near Me: How to Find the Best Insurance in Your Area

Boating can be very exciting, and there is nothing quite like the feel of the sun on your face as your vessel rides the waves. A good watercraft can be very expensive, and that is why it is important to protect it with high-quality boat insurance . You must be strategic about your policy, though. Get too little coverage, and you could be making a costly mistake. Get coverage from an unreliable carrier, and you might end up paying expensive premiums that do not offer the level of protection you need. 

Fortunately, you can get the coverage you need without overpaying. Keep reading to discover everything you need to know to find the best boat insurance in your area. 

Why Do You Need Boat Insurance?  

Simply put, you need protection for your vessel for the same reason you need it for your car: to protect against unexpected events and accidents. What does boat insurance cover? While the exact policy may vary from carrier to carrier, you can typically get the same protections for your vessel that you get for your automobile in the form of liability, collision, and comprehensive coverage, plus a few extras specific to watercraft. 

For example, despite the vastness of the ocean and your local lakes and rivers, it is entirely possible your vessel accidentally collides with another vessel, a swimmer, the dock, or even floating debris. In such cases, liability protection helps pay for the damage you cause and, if needed, your legal fees if you get taken to court. 

You can also get collision and comprehensive coverage for your watercraft. Collision helps to pay for your repairs regardless of who was at fault for an accident. That gives you peace of mind that a single incident will not ruin your sailing dreams. Comprehensive, meanwhile, protects the ship even when you are not aboard, which is great if you are worried about things like vandalism and theft. 

Ocean of Options: Types of Watercraft Coverage  

Another way automobile and marine insurance are similar is that a wide array of watercrafts are covered. Just as a car coverage policy helps protect everything from eco-friendly electric vehicles to large, gas-guzzling trucks, watercraft coverage helps protect anything that can transport you over the water. 

You can get a policy for your large sailboat, but you can also get one for your humble pontoon. Luxurious cabin cruisers and powerboats are protected, and so are basic fishing boats. Even your jet skis can be covered by your watercraft policy. Remember to ask your agent about liability, collision, and comprehensive policies, as they can help you choose the best plan for your watercraft. 

Navigating Boat Insurance Costs  

One of the most popular questions is, “How much does boat insurance cost?” Unfortunately, there is no one-size-fits-all answer. Nationally, the average cost for the most common type of boat ranges from $200 to $500 annually. 

Because of the sheer variety of crafts covered, the exact amount an owner will pay for coverage depends on many factors. This includes what type of vessel you are insuring, what its overall length is, how many engines it has, and the amount of horsepower it has. Even the way you use it affects the policy cost, as it is usually more expensive to get a policy for a commercial charter vessel or a racing ship than it is to get a policy for a simple recreational boat. 

Because there is no uniform answer to the question of how expensive this coverage is, you may worry that you will end up paying too much. Fortunately, good carriers can help develop a custom boat policy best suited to your needs. Ideally, custom policies ensure you and your vessel are properly protected without making you pay for additional coverage you do not need. Of course, getting the best custom policy begins with finding a good local carrier and understanding the basics of boat insurance . 

Local Assistance: Best Boat Insurance Near You  

You can find any number of carriers around the country who will offer you policies that sound too good to be true. What most sailors do not realize until it is too late, however, is they would have been better off hopping on the computer and searching for “boat insurance near me.” 

The reason is simple: Just as local agents understand your neighborhood roads better than someone who has never stepped foot in your town, they also better understand the waters where you will be enjoying your time on the water. That means they understand how crowded those waters may be and the unique threats your vessel will be facing. Between that and their understanding of factors like local criminal activity (allowing them to calculate how likely your ship is to get vandalized or stolen), local agents can provide the best custom policy for your exact needs. 

Geographical Aspects of Boat Insurance Services  

Even in your local area, you will find no shortage of carriers happy to offer you boat policies. How, then, can you find the best coverage and best carrier in your geographic area? 

The short answer is that you should use all the local resources available to help you find the best carrier in the area. Instead of simply searching the internet, consider asking your fellow sailors who they rely on for coverage. Use social media and online review sites to see what other locals are saying about different carriers. Word-of-mouth is one of the best ways to learn about different companies, too. 

By working with an agent in your area, you can rest assured that they offer coverage options that account for the situations you are most likely to encounter in your local waters. 

Making the Most of Your Insurance Policy  

At the end of the day, making the most of this policy is all about getting the exact coverage you need without paying for excess options that you are unlikely to ever use. This starts with choosing the right deductible.  

As with automobile coverage, a lower deductible means you pay less before your coverage kicks in, but the monthly premiums are more expensive than if you had a higher deductible. Assuming you have a more expensive vessel and are not too stressed about slightly higher premiums, you may prefer that lower deductible because it will make it easier to repair or replace your ship in the event of a catastrophe. 

It is also valuable to be honest with your carrier about when and where you are most likely to operate your watercraft. If, like most boaters, you are unlikely to take your vessel out during the winter months, then you may be able to get a discount for the lay-up period of your vessel. Similarly, if you are mostly boating close to home, you may be able to get discounts for having a limited area of navigation.  

After all, nobody should pay more for coverage than they have to, and the money you do not unnecessarily throw away on your coverage can be used to give your ship some long-awaited upgrades (like redoing the decking or finally adding those LED lights). 

Boat Insurance Frequently Asked Questions  

Choosing coverage for your vessel can be relatively complex once you start getting into the details. Below are answers to the most frequently asked questions about these policies. 

Is My Boat Already Covered by Homeowners Insurance?  

This is a common myth, but it is incorrect. In most cases, your homeowners policy will not cover damage to your vessel or any liability issues that may occur. You will need to get a separate policy to protect your investment before you take your vessel out onto the water. 

Will Coverage Protect Me If I Need Assistance on the Water?  

In most cases, your boat policy will cover the costs of towing your vessel when it is inoperable. You will be towed to the nearest repair facility, and other costs may also be covered. 

Who Do I Need to Add to My Policy?  

As the owner and operator, you are fully protected. Depending on your policy, others may also be protected, including family members, marina workers, and anyone else who periodically operates your vessel. Check your policy to verify exactly who is on it and avoid any nasty surprises after an accident. 

Get a Quote on Affordable Boat Insurance Today  

Now you know how to find the best watercraft insurance in your area, what it covers, and why it’s important. But do you know which local office is ready to help you fully enjoy a life of adventure on the high seas? 

At InsureOne, we care about your boat just as much as you do, and we are here to offer you the kind of top-notch protection your vessel deserves. When you are ready to enjoy peace of mind out on the water, get a quick and easy quote online . Of course, you can also pick up the phone and give us a call at 800-836-2240 . Finally, feel free to find an InsureOne office near you and visit us in person. 

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Boat insurance Q&A: Everything you need to know about why premiums are rising

• How to start boating: Everything you need to know to get afloat
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In light of recent price hikes for leisure boat insurance policies, Alex Smith interviews five leading insurance providers to find out why it’s happening.

What differentiates boat insurance from other forms of insurance?

According to our interviewees, boat insurance is different to home or car insurance in several key ways. Its policies are usually more tailored and individual; they are often based on agreed values rather than market values; and they tend to involve face-to-face client relationships rather than automated online aggregators. But the most critical difference is that a boat is a relatively expensive and highly mobile asset with a very dynamic risk profile.

Jeremy Entwistle from GJW Direct explains: “A house, though valuable, is a static entity; and a car has the benefit of user-friendly road networks and signage to help moderate risk. But whether in harbour or at sea, a boat brings with it the potential for big losses from a wide range of risks, including fire, theft, groundings, sinkage, break-in, collision, poor maintenance, extreme weather events and machinery breakdown. It’s very different and, in some cases, more difficult to write the risk on.”

But are the underlying principles the same?

Yes, the calculations and processes are much the same. “An underwriter assesses the risk and applies a rate to that risk against the sum insured,” says Steve Risk from Coleman Marine. “That results in the premium. The premium is the income the insurer will take, minus any that the broker might be earning, and the insurer then applies the premium against any claim activity.

“If there is a premium of £2,000 and a claim of £10,000, the insurer is facing a deficit, so the fundamentals of the marine market are similar to any other insurance.”

What percentage of the boat insurance premium goes out again in claims?

It varies from one category to another but in recent years, and most notably between 2008 and 2018, far more has been paid out in boat insurance claims than has been taken in premiums. It was a period during which insurance companies clamoured for business, driving premium prices down and implicitly encouraging the customer to buy boat insurance on the basis of price.

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That generated a problematic business model, as Richard Power from Fastnet Marine Insurance explains: “It got to a stage when it was clear that those rates were unsustainable. In fact, during the three years to the end of 2017 in the Lloyds yacht insurance sector (which is a pretty good benchmark for the sector as a whole), claims exceeded premiums by between 180 and 300%.”

Is that why boat insurance premiums have risen faster than inflation?

Yes. In the last two years, boat insurance premiums have risen sharply. While the extent varies with size and category of boat, most insurers agree that the general scale of the increases is somewhere between 25% and 60%. Larger boats have seen the highest increases but there have been increases across the sector that leisure boaters have baulked at.

Article continues below…

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Jeremy Entwistle from GJW Direct notes that customers will also have been hit by the Government doubling Insurance Premium Tax over the last couple of years. That said, boat insurers are still battling for market share and there are plenty of ongoing customer initiatives. To add to this, over the last couple of years online quoting has improved and customers can quickly get boat insurance quotes themselves rather than waiting a couple of days.

We’re a long way from price comparison websites dominating the boat insurance market like they do in motor insurance, but this transition puts power in the hands of customers to shop around, check their cover and get a policy that is priced for what they really need. Always remember that boat insurers don’t necessarily share the same view of risk!

Why have the price increases happened?

The increased premiums of the last couple of years are a direct result of an industry attempting to rebalance the books after a period of unsustainable pricing. Simon Tonks from Pantaenius explains: “The industry has struggled for profitability over the years, with competition driving the price down, at the same time as attritional claims and larger losses were affecting the market. Despite these things, premiums really didn’t increase for a long time so the market is just now catching up with that.”

On board fires are one of many possible risks…

What caused under-pricing in the past?

Prior to the financial crisis of 2007-2008, boat insurance companies would generally gather data to identify the ‘burning cost’ – the actual cost of claims on an annual basis – in relation to a given yachting sector. That would then be factored into the calculations in order to determine a premium rating model that could accommodate the burning cost while providing sustainable returns for investors.

After the crisis, with a flat stock market, “a lot of people stepped into yacht insurance, providing policies of varying degrees of coverage, quality and security,” says Richard Power. “And that drove down the rates that are used to calculate premiums at the same time as the values to which they are applied were reducing, so you had a double whammy of premiums dropping through the floor.”

Richard believes that the ‘burning cost’ model was “pretty much thrown out the window in the second half of the 2000s and most insurers just started writing the business for income.” That incurred a much higher risk than would ideally be taken on with a proper rating model and it inevitably incurred huge claims and big losses when damaging weather events struck.

…extreme weather events are another

Why are boat insurance price increases happening now?

Given the disparity between income and payouts, the boat insurance increases have become increasingly inevitable – but the timing of them has been conditioned by various other factors. Hurricane Irma in 2018, a succession of storms in European waters and a flurry of Mediterranean yacht fires seem to have been critical. The UK’s inland waterways have also experienced flooding; and the loss of various providers from the boat insurance market has also been a factor.

Are the boat insurance increases justified?

The consensus would suggest that they are. Barrie Sullivan from Y Yacht Insurance said: “These recent increases aren’t merely justified; they’re essential. Quite a lot of insurers have moved out of the market because they’ve made no money and most of the insurance companies and underwriters are owned elsewhere. The owners of these big corporations are in it to make money, not to subsidise. If they’re subsidising any part of their emporium, they will simply shut it down.”

Have we been paying too little for too long?

It certainly looks that way. Given the increasing scale, value and complexity of yachts, the proliferation of big loss weather events and yacht fires, and the higher rate of boat insurance claims, it seems we have been paying too little. Jeremy Entwistle said: “At one point, we sat there and watched what was almost a race to the bottom. We watched people slashing prices and we had to sit there and take the pain. Now a sense of balance has been restored.”

“The market has transformed from a buyer’s to a seller’s market” – Richard Power, Fastnet Marine Insurance

Are we paying for the industry’s mistakes?

In terms of current boat insurance premium increases, it’s fair to say that we’re now paying the price required to bring about a new and more sustainable equilibrium for marine insurers – and that’s a consequence of a short-term, price-driven approach to securing new business in which boat insurance companies were all, to a degree, complicit.

Are we paying for other boaters’ mistakes?

In terms of a claim-free boat owner helping settle the bill for the accident of another through increased boat insurance premiums, the answer to this is not clear cut. Yes, there is an overall pot, which seeks to retain a positive balance between premiums and claims.

But on the other hand, boat insurers all seek to mitigate the risk and to spread the cost by means of investment and re-insurance, as Jeremy Entwistle points out: “The insurance pot isn’t really just one pot, because we spread that around through re-insurance. So a superyacht claim wouldn’t all come from the same fund. You would dip into several in a situation like that to ensure that the owner of a 20-foot runabout isn’t taking the pain for a superyacht that’s worth a thousand times as much.”

Are boat insurance increases a result of freak weather and climate change?

Four of the five interviewed insurers agreed that climate change has become significant in terms of the timings, frequency and geographical spread of damaging weather events. Jeremy Entwistle said: “What used to be the ten-year storm and the 50-year storm are now two and five year events. They’re far more regular. We’ve seen a lot more hurricanes and named storms in recent years and they inevitably have a big impact.”

Boats face a much wider range of risks than houses

What is the likely impact of coronavirus on boat insurance?

For owners in most countries, the simple reality that they haven’t been able to use their boats for a while is bad news. But in the absence of specific cover built into a contract to cover marina fees or lack of use during enforced down time, it’s a hit the boater will be compelled to take.

What is more critical, however, are the potential implications for yacht owners in the Caribbean, as Barrie Sullivan points out: “In the Caribbean, most clients have been told where they can and can’t be during the hurricane season . And because travel is now restricted and a lot of the countries where there is safety and shelter are not accepting any more people, there will be a lot of boaters in the Caribbean who are stuck with their yachts in areas where they won’t get hurricane cover.

“And this is an incredibly sad dilemma because there’s no real solution to it. My view is that, having learnt their lessons through expensive mistakes in the past, no insurers are going to break their rules to accommodate it.”

Will we face further boat insurance rises next year?

While there is some suggestion that some boat insurance companies may add an additional security buffer to their premiums, the consensus suggests that any further increases in the next two years are likely to be inflationary.

Richard Power explains: “Insurers are getting back to where they intended to be. They’re still under pressure from their backing investors to deliver a return but in the UK market, as long as named storms don’t cause too many claims, then certain types of boats will have seen the peak and can now expect to see a flattening off.”

Are boat insurance policies all the same?

Yes and no. Most boat insurance policies from established marine providers are All Risk (rather than Named Peril) policies with Third Party (rather than Hull) cover, because it’s difficult now to park your boat without liability protection. But where boat insurance policies differ the most is in the exclusions – in other words, in what is not covered or in what can only be covered at extra cost.

What are the key boat insurance clauses to look out for?

While clauses covering cruising regions, machinery, personal effects and leaving a boat at anchor should always be carefully scrutinised, another area to be aware of is who is entitled to operate the boat. Most UK policies allow anyone qualified to operate the boat with the owner’s permission, as long as they are not paying for it and are not therefore chartering the boat.

Maintenance is also key because, as Richard Power points out, there are responsibilities on both sides of a boat insurance contract: “The insurer has a responsibility to settle all bonafide claims in a timely manner. And the owner has a responsibility to maintain the boat that’s being insured in a seaworthy manner. And there’s now a lot more scrutiny in claims where the root cause is a lack of maintenance.”

Jeremy Entwistle is in full agreement; “One of the biggest things to be aware of on older boats is wear and tear and corrosion. That’s where the grey areas tend to appear. There’s a fine line between a policy that’s picking up the bill after an accident and a maintenance contract that’s picking up the bill for something that should have been replaced or repaired before it failed.”

Are some boat insurance providers better at paying out than others?

In the wake of big losses, a great many companies have dropped out of the market, which means that in general, the boat insurance companies that remain take a transparent and sustainable long-term approach to their business dealings. Steve Risk explains: “It’s a long-held myth that insurers are there to take premiums without paying claims.

If a client has a claim that is recoverable under their insurance policy, then once the insurance policy has become a contractual agreement between the insurer and the policyholder, insurers will always look to pay that claim. The only difference between insurers is the way they go about servicing the claim – in terms of the level of service, communication, accessibility and responsiveness. But the end result is the same.”

Plainly then, it is vital to be candid, honest and explicit at the boat insurance policy writing stage – a principle roundly supported by Richard Power: “There are certain protections, where, if the insurer doesn’t ask a specific question, the customer doesn’t have to disclose it. But to be safe as a buyer, it’s useful to play a proactive role. My advice would always be to bare your soul.”

Is there anything I can do to reduce my boat insurance premium?

As with other forms of insurance, the key methods of reducing your premium involve reducing the Agreed Value (the sum insured), increasing the excess and shopping around for a better boat insurance deal. The building of insurer-client relationships is also becoming more highly valued than it was in the past, but as Richard Power points out, “the market has transformed, within the space of six months, from a buyer’s market to a seller’s market”.

As a result, price flexibility is now constrained by the resumption of sustainable rating systems – and the giveaway bargains of the past are simply no longer available.

Should I buy boat insurance on price or cover?

While it remains possible that new players will be tempted by the rewards of a recovering boat insurance industry, thereby kickstarting a fresh crusade for lower prices, the consensus, as things stand, seems all but universal. The nature, breadth and relevance of the cover is the chief priority in securing proper protection for your yacht. The price is then largely defined by that.

First published in the July 2020 edition of Motor Boat & Yachting.

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How Much Does Boat Insurance Cost? (3 Helpful Examples)

Boats are expensive assets, and many finance companies insist that new owners have insurance.

Even if people buy their boats outright, they often decide to insure them anyway.  

So how much does boat insurance cost?   Let’s find out!

Table of Contents

3 Typical Boat Insurances Cost Examples

As we will see in a second, many factors go into boat insurance, so absolutely knowing the costs ahead of time isn’t possible.  

However, you can estimate annual costs based on 1.5% of the boat’s value.  

So a $100,000.00 boat should have an annual insurance cost of $1,500.00.   Individual factors will come into play, but, in general, the 1.5% rule is reasonably accurate for estimation.

However, here are a few basic examples I found from other boaters around the web:

2003 Scout 242 Abaco with a 225 HP Yamaha motor in Northern California. Hull value of $70,000.00. The owner has full coverage and is paying $658.00 a year for insurance.

1963 Bertram 25 with two 135 HP motors on Orange Beach, Alabama. The value is $55,000.00, and the owner is paying $583.00 annually.

2008 MayCraft 2000cc with a replacement value of $26,000.00. The boat is located in Delaware, and the owner is paying $348.00 a year.

12 Factors That May Impact Boat Insurance Costs

Boat insurance costs will vary based on many factors.   Insurance companies use their own expertise to determine which factors they use and how they are weighted.

These factors may include but are not limited to:

The type of boat being insured.

The value of the boat being insured.

The intended use of the boat.

The location of the boat.

The age of the boat.

The size of the boat.

The size of the engine on the boat.

How often the boat is used.  

The owner’s years of boating experience.

The owner’s credit history

The owners boating safety education

The type of policy being purchased.

Let’s dive into each of these.

1) Type of Boat

The type of boat you have will greatly affect how much insurance you need and how much it will cost you.  Unpowered boats without sails are cheaper and less likely to have issues while out on the water.

A boat with an inboard engine will be more expensive than a boat with an outboard engine. 

This means that all-things-equal, a boat with an outboard engine will cost less to insure. Rarer boat types are also more expensive to insure.  For example, a catamaran will be more expensive to insure than a monohull boat.

2) The Boat’s Value

The more expensive the boat, the more expensive it is to insure.  This is especially true if you’re financing the boat.

Your financing company will demand that you get an insurance policy that will cover the loan if the boat is damaged or destroyed.

Unfortunately, boats depreciate quickly, and often, the boat’s value will be less than what is still owed.  As a result, the boat owner will need to get an insurance policy that will cover the difference.

Many companies will refer to this as an “agreed value” policy.

This means that the insurance company and the boat owner will agree on a price payout for the boat should it suffer catastrophic damage.  In this case, the owner can have the agreed-upon price match the remaining balance of the loan.

Another option is a “market value” policy.

With a market value policy, the insurance company will reimburse you based on the boat’s current market value.  In most cases, the current market value will be less than the value you originally paid.

Make sure you know which type of policy the insurance company is offering before you sign.

3) The Intended Use of The Boat

A boat’s intended use can also determine how much the insurance company will charge a boat owner.  This is especially true if the boat is being used for commercial purposes.

For example, a commercial fisherman or lobster hunter will usually pay a lot more for insurance than a person who uses their boat recreationally.

This is especially true if the person is using their boat as a charter or ferry boat.

Even the types of activities on the boat can affect the pricing of the insurance policy.  For instance, a tour boat that serves alcohol will have a higher risk profile than a boat that does not.

In this case, the boat owner may have to add additional insurance riders onto their base plan.

4) The Location of The Boat

Some areas of the world are more dangerous to boat in than other areas.  The insurance plan you get will reflect this reality.

For instance, a person using their boat off the coast of Alaska is far more likely to suffer damage to their boat than someone who uses their boat in a sheltered inlet in New Jersey.

Even the areas that the boat will be driven through can change the cost of insurance.  For example, a boat owner in Philadelphia who uses their boat in New Jersey will have to drive through the city to get to their destination.

This increases the chances that the boat will be in an auto accident and thus increases insurance costs.

5) The Age of The Boat

Insurance companies will ask you the age of your boat.  They will also ask you the age of the motor.  An older boat may not be worth as much as a newer boat; however, it may be more prone to breaking down.

Because of this, you may find that a slightly older boat is more economical to insure than a brand new boat or a much older boat.

If you’re wondering why a boat that is more prone to breaking down might cost more to insure, there are two reasons for this.  First, an older boat is more likely to sink.   Second, recovering a broken down boat is expensive.  

Insurance policies normally cover the recovery of broken-down boats, making the policy on older boats more expensive.

6) The Size of the Boat

In general, a larger boat will cost more to insure than a smaller one.  This is because more things can go wrong on a larger boat.

Also, larger boats are usually more expensive in general, so you’ll need more insurance to cover the boat if it needs to be repaired or replaced.

On top of this, any boat that is larger than 26’ may be considered to be a yacht.  Insurance companies will always charge more to insure a yacht over a standard boat.

One other thought to keep in mind too is that huge boats can’t be easily trailered or towed.  In this case, the insurance company will want to know where and how the boat is being stored so that they can adjust the cost of the policy they write for you.

7) The Size of the Engine

A boat’s engine size will also dictate how much insurance is needed to cover the boat.  Larger engines cost more to maintain, repair, and replace.

If your boat has multiple engines, this will incur more insurance costs.

When a boat with multiple engines is destroyed, all of the engines need to be replaced.  Insurance companies will take this into account when they write up their policy.

8) How Often the Boat is Used

A boat that is used regularly has more opportunities to be damaged.  For this reason, many insurance companies will want to know how many hours the boat is used each month.

Boats that are used more often may have a higher premium than boats that aren’t.

9) The Owners Years of Boating Experience

If you are new to boating, expect to pay more for insurance.  

Unfortunately, new boaters are at higher risk for accidents.   This fact will raise your insurance rates.

10) The Owners Credit History/Insurance Score

The insurance company will do a “soft” credit history check.  

This means that their inquiry will not show up on your credit, but they will know your history.  

They will use this information to determine how much your premiums will be on your policy.  

Any history you have with other insurance companies will also come into play.

11) The owners boating safety education

Taking a boater’s safety course will lower your rates for insurance.  

Make sure that any course you take is accredited.

12) The type of policy being purchased.

We recommend that you buy marine insurance designed to cover property and injury-related specifically to the boat.  

However, your boat may be covered by different types of policies.  

Here are 4 types of policies that may apply:

• Homeowner’s insurance policies.
• Vehicle insurance policies.
• Marine insurance policies.
• Umbrella insurance policies.

1) Homeowner’s Insurance

People who store their boat on their property may be able to use their homeowner’s insurance policy should the worst happen.

This is especially true if the boat is small and stored inside the house or the garage.

For example, a kayak stored in the basement of a person’s house will be covered if the house burns down and the kayak is destroyed.

In fact, some homeowner’s insurance policies may protect the kayak even if it is chained up at the home’s back dock.  However, the same rule might not apply to a larger boat.

A homeowner’s insurance policy will often only cover up to $1,000.00.  This means that if your $700.00 canoe is stolen, your insurance company may reimburse you.

However, it also means that if your $35,000.00 boat is stolen, you’ll only be reimbursed $1,000.00 for it.

For this reason, most people will get an additional insurance policy to help cover their boat.

On top of this, a homeowner’s insurance policy cannot cover a boat that is out on the water or out on the road.  This means that a person will need to get another policy whenever they intend on using the boat.

Failure to do so will leave them out of luck should something happen.

Not only this, but a homeowner’s insurance policy isn’t going to cover things like towing.  Towing a boat that is stranded out on the water can get expensive.

Typically, a boaters insurance policy will completely pay for this service.

It might not always be needed, but it is nice to have when it is.

2) Vehicle Insurance

A vehicle insurance policy may help to cover a boat as well.

However, this only applies to the boat while it is being transported to the water.

For example, a person may get into an auto accident while towing their boat to a boat ramp.

If the person backs their boat into somebody else, the vehicle insurance will cover the cost of repairing the other vehicle damaged in the accident.

However, this same coverage will not cover the cost of repairing any damage done to the boat.

Some auto insurance policies may not provide any coverage at all for the boat owner.

These insurance policies will stipulate that the boat is not covered when being towed.

This is especially true when the vehicle is not rated to tow the boat.

For this reason, you must always use an appropriately sized tow vehicle to tow your boat.  You can get a feel for how much boats and trailers weigh by visiting our page titled, “how much do trailers weigh .”

3) Marine Insurance

The most popular type of insurance for a boat is a marine insurance.

This type of insurance will cover a boat while it is on the road, in the water, in storage, or at home.

Location Impacts The Insurance Cost And Coverage

If your $35,000.00 boat were stolen from your home, a full coverage insurance policy would reimburse you for the $35,000.00, depending on the type of policy.

In this case, you’d file a police report and a claim, and you’d have your boat replaced.

On the Road:

If you were to back into another car with your boat, a full-coverage policy would help you pay for the damages to both the other vehicle as well as your boat.

Your premium might go up after this accident, but at least you’d be covered.

In Storage:

A person’s boat isn’t always kept at home.

Many people store their boats in storage facilities or even at the dock.  Marine insurance will help protect the boat even when it’s in storage.

In the Water

A lot can happen to a boat while it’s out on the water.  Boat engines can break down, and people will often need to be towed back to town.

As we said earlier, towing is expensive, and oftentimes the coast guard will send boat owners a bill for this expense.  Marine insurance will usually cover this for a small fee.

Another situation that often happens is that boats collide with docks, other boats, and even the ground.  This can cause considerable damage to the boat, but luckily marine insurance can cover this as well.

However, one thought to keep in mind is that boat owners living in coastal regions will need to have a plan to deal with hurricanes.

In fact, many insurance companies will demand that a person have a hurricane plan for their boat already in place.

For example, a person might say that they’ll put their boat in a storage facility further inland before a hurricane hits.  Alternatively, they may make plans to bring the boat to an area not affected by the hurricane.

Either way, the person will need to follow their hurricane plan, or they’ll forfeit their right to collect any damages incurred as a result of the hurricane.

As you can see, marine insurance is the most comprehensive insurance that a person can get for their boat.  For this reason, most people with boats valued at over $1,000.00 should get marine insurance.

4) Umbrella Insurance Policies

Another policy that people can get for their boat is an umbrella policy.

An umbrella policy basically protects anything a person wants to protect.

These policies are usually very specific, and everything that the person wants to guard against will need to be negotiated between them and the insurance company.   Umbrella policies are normally only offered to loyal customers or people with a long term record of no incidents.

Self-Insurance

Some people opt not to get any insurance at all.  In this case, they are basically insuring themselves.  This might not be a bad idea for people with inexpensive boats without power.

The average person can realistically expect to replace a $300.00 kayak if it happens to be destroyed or stolen.

This being said, sometimes self-insurance is a bad idea.  For example, a person with a larger boat might hurt someone with it while out on the water.  In this case, they could be open to a high-priced lawsuit.

Having an umbrella insurance policy or a marine insurance policy would help them fight against any potential lawsuits that might come their way.

There are several ways to obtain discounts when shopping for insurance.   Discounts will vary by the insurance provider, but most offer discounts if you bundle, take a boater safety course, or have additional safety equipment installed.

The primary way to obtain discounts is to bundle your boat insurance with your home and car insurance.   Most insurance companies offer discounts to those who have all of their policies with the company.

Another way previously mentioned is to take a boater safety course.   Many courses are offered online and will not only give you valuable information and skills, but they also will give you a discount on your boat insurance.

Many discounts are based on added safety equipment.   From anti-theft devices to depth finders, the equipment you have installed matters, so make sure to tell your insurance agent everything about your boat.

Other discounts may be granted if you are married or own a home.  

Final Thoughts

My recommendation would be to call a few places and get quotes for marine insurance.  It is best to start with the same company that insures your home or car.   Insurance agents are also a great place to get information.   Always ask detailed questions and compare plans and prices until you get the best deal for you and your boat.

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Trending Topics

Follow our news, recent searches, marine parade hawker who placed record s$10,000 bid for stall says it is worth it, advertisement.

Ms Yang Ailan, the hawker who bid a monthly rent of S$10,158 for a stall at Block 84 Marine Parade Central, said it is rare to have a vacant stall at the hawker centre.

Ms Yang Ailan, 51, bid over S$10,000 for a nearby vacant stall at Marine Parade Central Market and Food Centre. (Photos: CNA/Koh Wan Ting)

This audio is generated by an AI tool.

Koh Wan Ting

SINGAPORE: A hawker who submitted a bid of more than S$10,000 (US$7,600) to rent a stall in Marine Parade said the record offer was worth it. 

Ms Yang Ailan, who already runs a drink stall in the same food centre, made the second-highest bid of S$10,158 for the vacant unit in Marine Parade Central Market and Food Centre.

News reports said this was the highest bid for a hawker stall in the last six years, although the National Environment Agency (NEA) has not confirmed this.

The NEA manages all 120 hawker centres in Singapore, comprising more than 14,000 stalls.

The stall at Block 84 Marine Parade Central received three other bids ranging from S$8,113 to S$9,500, according to a tender notice in July detailing the five highest bids. The highest bid of S$10,680 for the stall was withdrawn. 

Vacant stalls in hawker centres managed by the NEA, like this Marine Parade food centre, are rented out through monthly tenders.

Successful bidders will pay rent at the tendered offer for the first three years of their tenancy period. After that, the rental will be adjusted to the market rate determined by an independent professional valuation that factors in footfall, stall size and market conditions.

Rents higher than the market rate will be adjusted downwards, while those below the market rate will be increased accordingly. 

Hawker stalls may also be restricted in what they can sell. This Marine Parade stall is allowed to sell cooked food, halal cooked food, Indian cuisine, drinks or cut fruits, according to the NEA tender notice. 

The results of the tender have not been released. NEA states on the tender notice that bids are subject to its evaluation and that it could reject any bid, even if it is the highest. 

STALL FOR SON

Ms Yang runs a drinks stall just four units away from the one she is setting her sights on. 

The 51-year-old Singaporean has been running the stall for more than 10 years, and hopes her son can start his own cooked food business if she gets another stall – although the family has not decided what to sell. 

When CNA visited her stall last Wednesday (Aug 14), she said the new stall was worth the S$10,000 bid. 

Everything in Marine Parade is "expensive", from home prices to shop rentals, Ms Yang said in Mandarin.

She added that it was rare to have a vacant stall up for bidding in this hawker centre. To top it off, the location of this stall is better than another stall in the same hawker centre that was rented out for S$6,800 last September, she said. 

Footfall at the centre has also been boosted by the Jun 23 opening of Marine Parade MRT station near the hawker centre. 

"It increased the crowd by up to 20 per cent," said Ms Yang, pointing out that the centre also gets many tourists with four hotels in the vicinity.

She did not expect her bid to be the highest.

"My son has the intention to learn. Usually, after he comes back after work, he will come to help me, like he is doing part-time work," she said.

She asked that her son's details not be published to protect his privacy. He is currently not in the hawker trade but is an able cook, she said. 

Asked why he wanted to be a hawker, Ms Yang said: "Your parents are getting older by the day, you cannot just let them do all the hard work right?" 

Since the two stalls are so close, the family can help each other out when one of them steps away, she said. 

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Footfall not enough to sustain high rent.

Hawkers CNA spoke to were doubtful the stall was worth a monthly rent of S$10,000. Several said they did not think that the footfall at the food centre was high enough.

Mr Vijai Singh, who has been manning a drinks stall in the hawker centre since 1976, said customer traffic could not compare to the 1980s. 

"Compared to the 80s last time, people want to pay S$6,000 to rent also nobody want to give. Business was so good, I rent out for what," said the 70-year-old.

"The crowd is not there. Too many places opened already," he said, giving the example of Marine Parade's only shopping mall, Parkway Parade, competing with other malls in the east. 

Another hawker agreed that the area had limited appeal. Mdm Lai, who has been selling roast duck at the hawker centre for about 30 years, said business has not improved significantly. 

Both Mr Vijai and Mdm Lai said that even though pedestrian traffic spiked when Marine Parade MRT station first started operating, the crowd at the market has since returned to normal levels. 

"The passing crowd here is not large. Those who patronise my stall are usually regulars who live in the area, unless there is church service," Mdm Lai said in Mandarin, referring to the handful of churches in Marine Parade. 

Both felt that the current footfall would not be sufficient to cover a high rental. 

Other expenses, such as ingredients that have increased in price, also add to their operating costs, they said. Both said the stall would have to set high prices for its food, which might turn off customers. 

Tendered bids for stalls at the hawker centre ranged from S$313 to nearly S$7,000 between January 2018 and May this year, according to tender notices on NEA's website. The lowest was a tendered bid of S$313 for a stall selling Indian cuisine in March 2020. 

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