Table of contents
Table of contents
Boat insurance can cover repair or replacement costs for your boat after a covered incident, like an accident, theft, or storm damage. It also pays for damages and injuries you cause to others while boating.[1]
Without a boat insurance policy, you risk hefty out-of-pocket costs following unexpected events with your boat.
Here’s what you should know about the best boat insurance companies, common coverage types, and how to zero in on the right plan.
Quick Facts
Boat insurance typically includes liability, collision, and comprehensive insurance and excludes coverage for wear and tear, corrosion, manufacturer defects, and racing.
Boat policies usually cost between $200 and $500 annually, or between 1% and 5% of your boat’s value for more comprehensive coverage.
You can potentially save on coverage for your vessel by shopping around, taking a boating safety course, bundling your insurance policies, and increasing your deductible.
Best boat insurance companies
No single boat insurance company is best for everyone. The right choice for you will depend on a number of insurance factors, such as the type of boat you have, how you use it, and where you live.
Start your search with five of the best boat insurers below.
Progressive: Best for discounts
Progressive insures boats valued up to $500,000 and up to 50 feet long. All the insurer’s boat insurance policies include automatic coverage for wreckage removal and fuel spill.
You can also add on Propulsion Plus to protect yourself financially after a mechanical breakdown, even if it’s the result of wear and tear. With this coverage, Progressive will repair or replace the lower unit of your outboard motor or the upper and lower units of your inboard/outboard motor.
ConsIn hurricane-prone areas, only insures boats that are 35 feet and worth $175,000
Standard coverage doesn’t include uninsured/underinsured watercraft insurance
Poor reviews on Better Business Bureau (BBB) website
Chubb: Best for luxury boats
Chubb’s lineup of boat insurance policies is for luxury vessels. If you own a boat worth up to $3 million or a more expensive captained yacht, you can insure it with the Masterpiece Yacht or Masterpiece Yacht Select plan.
Both plans include total and partial loss settlement, emergency towing and service, and wreck removal. But the Select option has higher limits and adds coverage for pet injuries, fishing tournaments, and more.
Nationwide: Best for boat insurance packages
Nationwide covers a variety of vessels, such as sailboats, ski and surf boats, and pontoon boats. It covers boats worth no more than $350,000. Nationwide’s boat insurance packages accommodate the needs of various boaters. If you’re a weekend boater, for example, you can opt for a plan with up to $1,000 in coverage for fishing gear, $3,000 for personal effects, and $500 for towing.
Pros Variety of boat insurance packages
Available coverage for fishing equipment and personal property
Local agents to help you find your ideal coverage
USAA: Best for military members
USAA sells boat insurance products to members of the military community, including coverage for fishing boats, motorboats, Jet Skis, WaveRunners, pontoon boats, and sailboats.
USAA also partners with Markel American Insurance Company to offer coverage for specialty boats, including yachts, long boats, boats worth more than $150,000, and corporate or LLC-owned boats. You can also find coverage for a boat you live on for most of the year.
ConsAn option only for boaters in the military community
Doesn’t advertise add-ons
Specialty coverage underwritten by a separate company
Foremost: Best for customizable coverage
Foremost makes it easy to customize your boat insurance through three convenient packages. The company has a budget-friendly Saver package, a value Plus package, and a more expensive Elite package, which offers all the extras. You can also choose a specialized package for your pontoon boat, classic boat, personal watercraft, or performance boat.
ConsCoverages and discounts vary by state
Fewer add-ons than competitors
Can’t file insurance claims via the mobile app
What boat insurance covers
Boat insurance has multiple coverages, including the following:
Liability coverage: Liability insurance pays for damages and injuries you cause in a boating accident. It includes docks, other boats, and your passengers during watersport activities.
Collision coverage: Collision policies cover repairs or replacement for your boat, motor, trailer, and boating equipment if you collide with another boat or object, regardless of fault.
Comprehensive coverage: Comprehensive insurance covers non-collision damage from events outside of your control. These may include theft, fire, storms, and falling trees.
Medical payments (MedPay) coverage: MedPay policies help pay for medical bills you and your passengers may face after a covered accident, regardless of who caused it. Depending on your state, it may kick in once you’ve met your health insurance limits.
Towing and assistance coverage: Towing and assistance insurance can reimburse you for towing, fuel delivery, or labor during an emergency on the water. It usually includes a deductible and possibly a maximum annual limit.[2]
What boat insurance doesn’t cover
Although boat insurance is typically comprehensive, most policies have certain exclusions:
Wear and tear: A boat policy won’t usually cover repairs that result from regular wear and tear. It’s your responsibility as a boat owner to maintain your boat and prolong its lifespan.[3]
Corrosion: When your boat becomes immersed in water, it’s subject to corrosion, such as rust. Unfortunately, boat insurance won’t cover it.
Manufacturer defects: If your boat has a defect, it’s usually up to the manufacturer rather than the boat insurance company to resolve it.
Commercial use: Unless you have a commercial boat insurance policy, boat insurance won’t protect you from damage when you use your boat as a water taxi or rent it out as part of a business.
Racing: Racing is typically an exclusion on most boat insurance policies, but some companies will cover it.[4]
How much boat insurance costs
The cost of boat insurance varies greatly and depends on several factors. Your boat’s type, value, and horsepower, as well as your location, usage habits, coverage limits, and deductible, will affect how much you pay for coverage.
A basic liability policy typically costs between $200 and $500 per year. For more comprehensive coverage, you’ll typically pay between 1% and 5% of your boat’s value.
Tips for saving on boat insurance
You can follow these tips to save money on your boat insurance policy:
Shop around
Do your research and compare quotes from at least three different boat insurance companies to find the most affordable coverage for your unique needs.
Complete a boating safety course
Some boat insurers will reward you with a discount after you take an approved online or in-person course on boating safety.
Bundle your coverage
If you need another type of insurance plan, such as home insurance or car insurance, bundle your boat insurance with the same company to save money.
Choose a higher deductible
As long as you can cover higher out-of-pocket costs after a covered claim, a higher deductible will lead to lower premiums.
Secure your boat
You may score a cheaper rate if you furnish your boat with burglar alarms, fire extinguishers, and other safety features.[5]
)
)
){kind=small}
){kind=small}
){kind=small}
)
)
){kind=small}
){kind=small}
)
