Best Boat Insurance: Comprehensive Coverage For Your Vessel

Boat insurance is a necessity for boat owners, especially considering the many navigational hazards that can be encountered on the water. While it is only required by law in a few states, it is a good idea to insure your boat in case of accidents, mishaps, or damage. The best boat insurance company for you will depend on your specific needs, such as the type of boat you have, how often you use it, and your budget. Some companies that offer boat insurance include Allstate, American Family Insurance, Geico, Progressive, State Farm, Farmers, Markel, and Nationwide. These companies offer various coverage options, add-ons, and discounts, so be sure to do your research and compare quotes to find the best fit for your boat insurance needs.

What does boat insurance cover?

Boat insurance covers repairs to your boat due to accidents, theft, fire, storms, and other perils. It also offers liability protection in the event your watercraft injures someone or damages their property.

Boat insurance policies vary, but they typically include property damage and liability coverage.

Property Damage Coverage

Property damage coverage insures your vessel against damages or loss caused by collisions with other boats or objects (such as a dock or buoy), theft, sinking, fire, storms, and other risks. The property covered may include the hull, motor, fittings, furnishings, and other equipment. This coverage is also known as comprehensive and collision coverage.

Liability Coverage

Liability coverage includes bodily injury liability, which helps pay legal expenses and settlements if you're found at fault for someone's injuries during a crash, for example. Property damage liability covers damages to others' property, such as a boat or dock you collide with.

Additional Coverage Options

Boat insurance companies may offer add-ons to augment their base policy's coverage. These can include:

• Medical payments coverage: Pays for the treatment of injuries, like medications or X-rays, you or your passengers sustain in a covered accident.
• Roadside assistance: Covers part or all of the cost of towing your boat trailer if it breaks down. Some plans also cover labor for on-site vehicle repair.
• Wreck or wreckage removal: Helps cover the cost of removing your boat or any debris from the water after an accident or if your boat sinks.
• Mechanical breakdowns: Covers the cost of repairing or replacing an outboard motor, unless the issue is due to general wear and tear.
• Watersport injuries or damages: Pays for injuries directly related to water sports, like tubing, wake surfing, or water skiing.
• Fuel spill coverage: If your boat spills fuel or oil due to an accident or leaking tank, this coverage can help pay for cleanup or legal costs.
• Personal effects coverage: Pays for the replacement cost of fishing equipment, scuba gear, clothing, electronics, and more.
• Uninsured/Underinsured boater: Covers injuries caused by a collision with a boater who doesn't have insurance or has insufficient coverage.
• On-water towing: Covers the cost of towing if your boat leaves you stranded. It may also cover jump starts, soft un-groundings, and fuel delivery. Depending on your plan, you may have to pay a deductible per towing service.
• Ice and freezing damage: Pays for damages to your boat's engine or body caused by improper winterization. It may cover your boat while docked outside or if the storing facility's heating system fails.
• Hurricane haul-out: Reimburses the cost of moving your boat out of the water before a hurricane or other named storm.
• Extended navigational limits: Boat insurance typically only covers losses and injuries that happen within designated geographical limits. You'll have to purchase additional coverage to extend these limits to other areas, like Alaska, the Bahamas, Mexico, or the Caribbean.

Do I need boat insurance?

Boat insurance is not a legal requirement in most U.S. states. However, there are several reasons why you may want to consider it. Firstly, accidents happen. There were 5,265 recreational boating accidents in the U.S. in 2020, resulting in 767 deaths, 3,191 injuries, and about $62.5 million in property damage. Boat insurance can cover you in the event of accidental damage, fire, theft, or collision. It can also cover you for any damage your boat causes to another boat or property, as well as any injuries sustained by passengers.

Secondly, if you are renting a dock, mooring your boat, or storing it at a marina, insurance will likely be required. Similarly, if you take out a loan to purchase a boat, the bank or credit union holding the loan will probably require insurance.

Boat insurance is also mandatory in some states. Arkansas and Utah require insurance for boats with engines of more than 50 horsepower. Hawaii also requires some form of liability coverage.

Even if none of the above applies to you, boat insurance can offer peace of mind and protect you from unexpected events.

How much does boat insurance cost?

The average cost of boat insurance is between $200 and $500 per year, but this can vary depending on several factors. Some sources state that the average cost is around 1.5% of the boat's value, with some insurance companies offering policies that are worth between 1% and 5% of the boat's value.

The cost of boat insurance depends on several factors, including:

• The type of boat (fishing boat, pontoon, sailboat, etc.)
• The region of the country (for example, boat insurance is typically more expensive in areas that are prone to hurricanes)
• The number of engines and the boat's horsepower
• How the boat is used (recreational boating or commercial charters)
• How and where the boat is stored
• The owner's years of boating experience
• Safety measures, such as whether the owner has completed a boating safety course
• The owner's boat insurance claims history

Boat insurance is typically more affordable in states with no coastline, as boats tend to be smaller and the boating season is shorter.

In addition, the cost of boat insurance can be affected by the type of coverage chosen. There are three main types of boat insurance: actual cash value insurance, agreed value insurance, and total replacement value insurance. Actual cash value policies are generally the most affordable, as they pay for the replacement cost minus depreciation. Agreed value insurance provides a set amount that the owner will receive if the boat is considered a total loss. Total replacement value insurance replaces damages with new items without considering depreciation.

When purchasing boat insurance, it is important to consider the specific coverage needed, such as liability coverage, personal effects coverage, and medical payments coverage. By comparing quotes from multiple insurance companies and considering available discounts, boat owners can find the best policy for their needs.

How to choose a boat insurance provider

Choosing a boat insurance provider is an important decision, and there are several factors to consider when selecting the right one for your needs. Here are some key points to keep in mind:

Types of Boat Insurance Policies

Firstly, understand the two main types of boat insurance policies: actual cash value and agreed value. The former takes into account the depreciation of your boat and pays out the current value at the time of a loss, whereas the latter is based on an agreed-upon value between you and the insurer, regardless of depreciation. Agreed value policies tend to be more expensive but offer more comprehensive coverage.

Company Specialization

You can choose between traditional large, national insurance companies and marine insurance companies specializing in watercraft and boat insurance. While specialized companies may offer tailored plans, national companies often have more discounts and allow you to bundle multiple policies, which can result in significant savings.

Coverage Options

When selecting a boat insurance provider, carefully review the coverage options they offer. Standard coverage typically includes damage to the boat and equipment, bodily injury liability, medical payments, and property damage liability. However, you may also want to consider additional coverage, such as salvage, mechanical breakdown, and additional equipment insurance.

Discounts and Savings

Boat insurance can be expensive, so look for providers that offer discounts. Taking a boating safety class, installing safety features, and bundling policies (e.g., home, auto, and boat insurance) are common ways to reduce costs. Additionally, some companies offer discounts for things like having a boating license, being a certain age, or having a clean boating record.

Customer Service and Reputation

Opt for a boat insurance provider with a strong reputation for excellent customer service. Look for companies with 24/7 assistance, online chat functions, and easy ways to get a quote. Check customer reviews and ratings to gauge their responsiveness and claims handling process.

Financial Strength

It's crucial to select a financially stable insurance provider to ensure they can pay out claims, even after a significant regional disaster. Check the ratings from credit agencies like AM Best, Moody's, and Standard & Poor's to assess their financial strength and security.

Navigational Limits

If you plan to take your boat beyond U.S. waters, pay close attention to the navigational limits outlined in the insurance policies. Some companies offer extended coverage for additional fees, allowing you to explore international waters with peace of mind.

Additional Benefits

Some boat insurance providers offer unique benefits, such as membership programs with discounts on boating stores, towing services, and marine retailers. These added perks can enhance your boating experience and provide valuable savings.

Get Multiple Quotes

Before making a decision, be sure to get multiple quotes from different providers and compare their coverage options, discounts, and customer service. This will help you make an informed choice that best suits your needs and budget.

How to save on boat insurance

Boat insurance is not a legal requirement in most states, but it is a good idea to have it in case of an accident or mishap. The cost of boat insurance will depend on several factors, including the type of boat, its size, speed, age, and your age, boating experience, and credit history. Here are some ways to save on boat insurance:

• Choose an actual cash value policy: This type of policy will factor in depreciation when paying for damages, which can result in a lower premium.
• Lower liability limit and increase deductible: Opting for a lower liability limit and a higher deductible can reduce your monthly premium, but keep in mind that you may have to pay more out of pocket if an accident occurs.
• Insure multiple boats: Many insurance companies offer discounts if you insure more than one boat under the same policy.
• Bundle your policies: You can often get a discount if you bundle your boat insurance with your homeowners or car insurance policies.
• Pay your insurance in full: Some companies offer a discount if you pay your insurance premium in full instead of in instalments.
• Take safety courses: Completing a boating safety course can qualify you for a discount on your boat insurance.
• Maintain a good driving record: Having no boating accidents or motor vehicle violations on your record can lead to lower insurance costs.
• Install safety devices: Adding safety features such as fire extinguishers or a fume detector to your boat may make you eligible for a discount.
• Choose a diesel-powered boat: Insurance companies may offer lower rates for diesel-powered boats.
• Don't use your boat year-round: If you don't use your boat during certain months, known as a "lay-up" period, you may be able to get a discount on your insurance.

Frequently asked questions