Boat Insurance: Coverage and Costs (2025)

Boat insurance can help protect your vessel from loss, damage, theft, and more. Although not every state requires it by law, boat insurance is a smart investment for several reasons, including financial protection, covering liability, and compliance with legal requirements.

Here’s what you should know about boat insurance coverage types, costs, and optional add-ons for your watercraft.

What boat insurance covers

Basic watercraft insurance is similar to a standard auto insurance policy. It usually offers the following coverages:^[1]

• Liability coverage may help pay for any property damage you cause to docks and other boats. It can also cover injuries to your passengers and other boaters resulting from an accident you caused.

• Collision coverage can help pay for necessary repairs to your boat after a crash, whether you or another boater caused it. It may also cover repairs if your boat capsizes or sinks.

• Comprehensive coverage protects you against damage from events outside your control, like theft, fire, vandalism, and storms.

• Medical payments coverage can help pay medical bills for you and your passengers caused after a covered event. This coverage applies regardless of fault.

• Uninsured/underinsured boater coverage kicks in if you’re involved in an accident with another boater who doesn’t have insurance or whose coverage is insufficient.

As with car insurance, you could stick to a basic liability policy or opt for comprehensive and collision coverage for increased protection.

Optional coverages to consider

Several other coverages exist in addition to basic boat insurance coverage. Here are some optional coverages to consider adding to your boat policy:

• Towing and roadside assistance can cover breakdowns or the cost of towing your boat to the dock.

• Agreed-value coverage locks in a payout value for expensive boats so that you don’t need to worry about depreciation.

• Personal effects coverage can pay for damaged or lost fishing gear, scuba gear, electronics, marine binoculars, or clothing.

• Trailer coverage is helpful if your trailer is damaged or stolen.

• Pollution liability coverage helps with costs associated with fuel spills, like cleanup, legal defense, and civil penalties.^[2]

• Bumbershoot (marine insurance) coverage increases liability coverage for boat-related businesses, including marine operators, boat dealers, commercial boat manufacturers, and more.^[3]

If you think one or more of these add-on coverages would be a good fit, ask your insurer for more information when you request a quote.

What boat insurance doesn’t cover

All types of insurance policies, including boat insurance, have certain events or named perils that they cover and ones they exclude. If you make a claim for an issue caused by an excluded event, the insurer will probably deny it.

Boat insurance policies typically exclude the following issues:

• Normal wear and tear or mechanical breakdown

• Damage from racing or commercial use

• Damage from mold, rot, and pest infestations

• Animal or marine life damage

• Damage or accidents caused by unauthorized operators

• Use outside covered geographic areas, such as international waters

Do you need boat insurance?

Boat insurance can be a helpful tool to protect your investment — but the law doesn’t always require it. In fact, only Utah, Arkansas, and Hawaii require boating insurance.

Even if your area doesn’t require boat insurance, your lender might (if you have a loan on the boat), or the marina where you moor your boat might.

Either way, buying a policy is a wise choice for several reasons:

• It protects your financial investment, which may be significant.

• It shields you from lawsuits or liability claims.

• Some waterways may require proof of liability coverage.

Your homeowners insurance policy may offer some coverage for your boat. But coverage is usually limited. A boat-specific policy provides significantly more coverage and helps protect your investment.

Types of boats covered by insurance

The coverage level and cost of your boat insurance policy will vary depending on the type of vessel you own. Some common types of boats that insurance covers include:

• Canoes and kayaks

• Fishing boats

• Houseboats

• Jet Skis and other personal watercraft

• Pontoon boats

• Sailboats

• Wake boats

• Yachts

Your insurer may require special coverage if you own a high-value yacht or a boat that you use for commercial purposes. It’s wise to verify this information before purchasing a policy.

How much does boat insurance cost?

The cost of boat insurance varies from owner to owner. Generally, you’ll pay between $200 and $657 per year, or between 1% and 5% of your boat’s value.

Your quoted price will depend on the following factors:

• The type and size of your boat

• The value of your boat

• Your boat’s storage location (for example, in a marina or on a trailer)

• Your usage frequency

• Where you use the boat (for example, inland lakes versus the ocean)

• Your geographic location

• Your personal boating experience and insurance claims history

• The coverage limits and deductibles you choose

Your insurer may offer discounts on boat insurance. Some potential ways to get discounts include:

• Bundling policies

• Insuring multiple boats

• Completing a boat safety course

• Being the boat’s original owner

• Installing safety or security features, like Coast Guard-approved fire extinguishers or ship-to-shore radios

• Owning a diesel-powered boat, which is less likely to explode than a gasoline-powered boat

• Paying your full premium up front

How to get boat insurance

If you’re ready to insure your vessel, follow these steps to secure a policy:

1. Gather your boat’s details. You’ll need information about your boat, including the make, model, year, hull ID, and value.

2. Select your desired coverage. Consider the types of boat insurance available and the coverage limits that best suit your needs and budget.

3. Compare quotes from multiple insurers. This is the best way to find a policy that fits your budget. Check policies’ coverages and costs to ensure you’re not missing out on anything you need.

4. Ask about discounts. Many insurers offer discounts, such as those for bundling multiple policies, completing a boat safety course, or lower premiums during lay-up periods.

5. Review exclusions and deductibles. Before purchasing, verify that your chosen policy offers the appropriate coverage and that you can afford to pay the deductible when making a claim.

Boat insurance FAQs