Table of contents
Table of contents
Boat insurance helps you repair or replace your boat if it’s stolen or involved in an accident.[1] It also pays for property damage and injuries your boat causes to others. While homeowners insurance or a renters policy may provide limited coverage for rowboats or canoes, you’ll need a separate insurance policy to cover a yacht, power boat, or personal watercraft.
Most states don’t require boat insurance, but a boat insurance policy is essential to protecting yourself financially.
We’ve compiled a list of boat insurance companies to help with your research and included a few tips on choosing a policy.
Quick Facts
If you own a large or fast watercraft, boat insurance helps protect against costly damage and personal injury lawsuits if your boat is in an accident.
You can buy boat insurance from national home and auto insurers — like Progressive and Travelers — or a specialty boat insurance company like SkiSafe.
Boat insurance costs depend on factors like the watercraft and your boating experience, but you’ll pay about 1.5% of your boat’s value annually.[2]
Types of watercraft that boat insurance covers
A boat insurance policy can cover the following watercraft types, depending on the insurer and the specific watercraft insurance policy you purchase.
Good to Know
Your homeowners or renters insurance policy may cover damage to certain small watercraft, such as canoes, sailboats, and small powerboats, under personal property coverage.[4] Some homeowners insurance companies also sell an endorsement that provides liability coverage for small boats.
How much does boat insurance cost?
The cost of boat insurance depends on several factors, including:
Boat location and navigation limits
Boat owner’s age
Boat type and speed
Credit-based insurance score
Driving record
Homeownership and marital status
Policy options and coverage limits
Previous insurance and claims history
Other discounts
Safety equipment
Years of boating experience
A yacht insurance policy costs more than personal watercraft coverage. And adding physical damage coverage or emergency towing costs more than liability coverage alone.
Your boat insurance premium also depends on your chosen policy type, which affects how much your insurer will reimburse you when you file a claim.
Actual cash value: Actual cash value coverage pays your boat’s depreciated value if it’s totaled. If the damage is repairable, the insurer deducts a percentage of the total repair cost for depreciation.
Agreed amount value: If you have an agreed amount value policy, you’ll receive a predetermined amount if you total your watercraft. Your policy will also cover parts replacement without deducting for depreciation.
Total replacement cost coverage: Some boat insurers offer replacement cost coverage. If your boat is totaled, this coverage gives you a brand-new model, even if it costs more than you originally paid for it.
Industry experts estimate that a typical boat insurance policy costs about 1.5% of your vessel’s value per year. For large yachts, annual insurance premiums may cost up to 6% of the boat’s value.
In 2023 and 2024, average boat insurance premiums from Progressive ranged from $267 per year in Minnesota to $839 per year in Florida.
How to choose the best boat insurance company
Follow these steps when choosing insurance for your boat:
1. Decide what coverages you need
Depending on where you live, state law may mandate bodily injury and property damage liability coverage for your boat. Physical damage coverage protects your investment, and you can add optional coverages such as guest passenger liability and towing.
2. Pick a policy type
Decide whether you want actual cash value, agreed amount value, or replacement cost coverage. While actual cash value coverage typically has cheaper premiums, you won’t get full reimbursement if you need to file a claim.
3. Research boat insurance companies
Check whether your current homeowners or auto insurance company offers boat insurance. If you need specialized coverage, like mechanical breakdown insurance, consider working with a dedicated boat insurance company or a specialty insurer.
4. Compare quotes
Collect boat insurance quotes from several companies so you can compare premiums.
5. Check customer reviews
Compare customer reviews for the boat insurance companies you’re considering on third-party sites like Trustpilot.
8 ways to save on boat insurance
Here are some things you can do to lower your boat insurance costs:
Take a boating education course. Some boat insurance companies offer a boating safety course discount for completing an approved course. Check with your insurer for options in your area.
Install safety equipment. Safety equipment reduces the risk of a claim, so it might earn you a discount. Storing a Coast Guard–approved fire extinguisher on board or installing devices like an automatic fire suppression system, GPS, or radar could save you money on your boat insurance premium.
Consider bundling. If your homeowners, renters, or auto insurance company offers boat insurance, bundling your coverage could earn you a multi-policy discount.
Choose the right watercraft. When buying a boat, consider both the sticker price and the insurance premiums. For example, a physical damage policy typically costs less for boats with diesel engines.
Ask about other discounts. Ask your boat insurance broker or agent whether you qualify for other discounts. Factors like being married, owning a home, having a clean driving record, or having previously insured a boat could help you save money.
Skip unnecessary coverages. If you want to reduce your premium, stick with the base policy and consider forgoing optional add-ons such as fishing equipment coverage or accident forgiveness.
Choose a high deductible. If your insurer offers deductible options, choosing a higher deductible can reduce your premium. Remember that you’ll have to pay that amount out of pocket if you need to file a claim.
Compare quotes from multiple boat insurers. During the boat insurance quote process, compare pricing from several companies to ensure you get the best deal.
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