As the world becomes increasingly unpredictable, it’s more important than ever to protect the things we value most. For boat owners, this means securing comprehensive insurance coverage to safeguard their beloved vessels against any unforeseen events.
The cost of insuring a boat in the United States is $300 to $500 per year. However, the actual cost varies depending on various factors such as the boat’s value, size, and usage. So, if you’re ready to learn more about what affects boat insurance costs, and how you can save money while still getting adequate coverage, keep reading!
How much does boat insurance cost
Boat insurance costs $200 to $500 per year and 5% of a yacht or sailboat’s value. A $100,000 boat costs around $2,500 per year to insure.
To calculate the boat insurance costs, the general rule of thumb is that you’ll have to pay 1.5% of the value of your boat at annual rates.
- To fully insure a boat worth roughly $20,000, you would only need to pay about $300 each year.
- If you own a $100,000 motorboat, you may expect to pay around $1,500 to insure it.
In low-cost states, an annual policy will cost $263, while in high-cost states the price can reach $527.
| Medium-cost states have $344 annual policy | High-cost states have $527 annual policy | Medium-cost states have a $344 annual policy |
| Arkansas | Arizona | Alaska |
| Colorado | Georgia | Alabama |
| Indiana | California | New Jersey |
| Ohio | North Carolina | Florida |
| New Hampshire | Virginia | New York |
| Pennsylvania | Michigan | Texas |
How much is boat insurance in texas?
With so many elements influencing individual insurance coverage costs, estimating a policy cost without more information is difficult. Nonetheless, personal boat insurance costs $500 to $1,000 per year on average, with the typical cargo insurance coverage in Texas costing roughly $348 per year.
How much is boat insurance in florida?
Here are some average boat insurance costs in Florida as a guide:
- Powerboats under 26 feet – $400 to $1,200 per year
- Powerboats 26 to 35 feet – $800 to $2,500 per year
- Sailboats under 30 feet – $300 to $1,000 per year
- Pontoon boats – $400 to $1,500 per year
- Personal watercraft – $300 to $800 per year
These estimates are just for basic liability coverage of at least $300,000. Adding optional coverages like hull insurance, medical payments, and towing can significantly increase your costs. For example, hull coverage alone on a larger boat could cost $1,000 or more per year.
How much does boat insurance cost in california?
How much is boat insurance a month?
The average boat insurance monthly cost around 28$ a month. It is just about a dollar a day for complete peace of mind.
How much does Narrowboat insurance cost?
Narrowboat coverage cost is much less than that of other boat insurance. On average the narrowboat insurance cost 115£ per month. The cost of narrow boat insurance depends on its actual price as well.
- £30,000 Narrow Boat coverage cost £106
- £50,000 Narrow Boat coverage cost £110
- £70,000 Narrow Boat coverage cost £130
How much does Motor Cruiser boat insurance cost?
On average the Motor Cruiser insurance cost 400£ per month.
- £30,000 Motor Cruiser Insurance cost £133
- £50,000 Motor Cruiser Insurance cost £193
- £75,000 Motor Cruiser Insurance cost £258
- £150,000 Motor Cruiser Insurance cost £536
- £300,000 Motor Cruiser Insurance cost £951
How much does Jeanneau 37 boat insurance cost?
On average, the Jeanneau 37 insurance cost 180£ per month. The cost of narrow cargo insurance depends on the actual price of the Motor Cruiser as well.
- £50,000 Jeanneau 37 Insurance cost £171
- £50,000 Jeanneau 37 for Local club racing Jeanneau 37 Insurance cost £239
How much does Beneteau 40.7 boat insurance cost?
On average the Beneteau 40.7 insurance cost 600£ per month. The cost of narrow boat insurance depends on the actual price of the Motor Cruiser as well.
£80,000 Beneteau 40.7 for local club racing Insurance cost £574
£80,000 Beneteau 40.7 for Regatta/Nationals racing Insurance cost £711
What Factors Influence Boat Insurance Prices?
Factors that influence car insurance rates also influence boat insurance rates, but there are some special considerations for watercraft.
Boat Characterization:
The higher the value of a boat, the more expensive it is to insure. Yacht insurance, for example, almost always costs more than pontoon insurance because yachts are more expensive.
Boat Motor:
Because high-powered watercraft are riskier, insurance companies consider the type of motor (inboard or outboard, amount of horsepower, and so on). Slow and steady wins the race to lower insurance rates!
Boat Condition:
Your boat must also have to meet US Coast Guard safety standards since it was built to be deemed in good condition. Otherwise, you’ll have to pay higher premiums because your boat’s safety measures are out of the current.
Age of Your boat’s
In general, older boats are less expensive to insure, especially if they have only one owner.
You’ll probably also obtain better rates if you’re between 25 and 60 years old because that’s when insurers think you’re the most responsible.
Risk Uses:
Towing water skis or wakeboards is less dangerous than fishing or floating. If you use your boat for “risky” activities, your insurance company will raise your premiums to compensate for the accident they anticipate you will have.
Frequency of boat use:
Boating tragedies almost always occur on the water (duh). So if you only use your boat sometimes, you’ll spend less than if you use it every weekend.
This is also why people in the north tend to pay less for boat insurance—the shorter boating season means less time for accidents.
Boat use Location:
In terms of where you reside, boating in a region prone to hurricanes (on the ocean), squalls (in the Great Lakes), or other hazards will result in higher premiums.
And if you reside in a state without a coastline, you’ll pay less. This is due to the fact that lakes and rivers are often safer than the ocean.
Driving History:
If you have a clean driving record, you should be able to acquire affordable rates (aka no accidents, injuries, or recent insurance claims in a boat or car).
But what about your inexperienced teen or your irresponsible cousin who has totaled three vehicles? Not at all.
How can I get a low-cost Boat Insurance policy?
There are numerous methods for saving money on boat (or even car) insurance. Discounts are available if you:
- Attend boating safety courses
- Make use of a diesel engine
- Ship-to-shore radios, Coast Guard-approved fire extinguishers, and other safety equipment should be carried onboard
- Combine your boat, home, and auto coverage policies
- Pay your insurance premiums on a yearly basis
- Select a high deductible
- For at least two years, do not file a claim.
- Insuring multiple boats under the same policy
- There have been no reported boating accidents.
What Does Commercial Boat Insurance Cover?
Boat insurance covers many costs associated with an accident, such as repairs, salvage, and medical bills. Let’s go over the various types of coverage available
- Third-party Liability coverage
- Physical damage accrued due to boats Collisions, docks, submerged objects or floating debris, wind, hail, lightning or other weather, Theft or vandalism, and Fire.
- Actual Cash Value Policy on boat damage
- coverage for medical expenses
- Personal property coverage
- Uninsured Watercraft
- Salvage coverage
What Doesn’t Boat Insurance Cover?
Boat, home, and auto policies all have one thing in common: they do not cover every situation. Here are some things that insurance does not cover.
- Damage from normal wear and tear
- Manufacturer defects or items that broke because you misused or neglected them.
- Marine animals damage your boat, your insurance policy most likely won’t cover it.
- Inadequate storage and transportation as a result of careless behavior.
- Accidents Occurring Outside Your Navigational Limits.
- You will not be covered if you use your boat after your layup begins or before it is completed.
- Unidentified or underage boat operators
Boat Insurance Add-Ons Coverages
A variety of specialty coverage add-ons are also available. These optional coverage items can assist in covering additional costs associated with owning, storing, transporting, and using your boat.
The following are some of the most popular insurance add-ons:
Roadside assistance:
This covers the cost of emergency roadside services if your vehicle breaks down while towing your boat.
Watersports injuries or damages:
Covers fees charged while participating in watersports such as water skiing or tubing.
Fuel spill cleanup:
Pays for cleanup after your boat spills fuel into the water. Fines and other costs associated with the spill are sometimes covered.
On-water towing:
Covers the cost of towing your boat to shore if it breaks down while out on the water.
Wreckage removal:
Covers the cost of removing your sunken or wrecked boat from the water.
Damage from ice and freezing:
Covers the cost of repairs if your boat was damaged by ice or cold after improper winterization.
For an additional monthly fee, mechanical breakdown insurance (MBI) covers repair costs in the event of a mechanical breakdown. This works similarly to an extended warranty on a car with a reputable company.
Hurricane haul-out: Covers the cost of relocating your boat if it is in a hurricane’s path.
Boat trailer: For an additional fee, covers damage to your boat trailer.
Personal property: This insurance covers the cost of personal items such as life jackets, phones, navigation equipment, and so on.
Commercial liability insurance covers liability costs if your ship is involved in a covered accident while being used for business.
Boat rental liability protects you from liability costs if someone driving a boat you rent to them is found to be at fault in a covered accident.
Which states mandate boat insurance?
Currently, only two states require boat insurance: Arkansas and Utah. Residents must insure motorboats or personal watercraft with engines of 50 horsepower or more in both states.
Residents of Arkansas are required to acquire marine insurance that includes at least $50,000 in liability coverage per incident.
Utah residents are bound to choose between two types of liability insurance:
$25,000/$50,000 in bodily harm/death damages and $15,000 in property damage
A combined policy with a coverage limit of $65,000
Do I Need to Buy a Boat Insurance policy?
Boat insurance is required in some states. In addition, if you park your boat or finance it, the marina or lender will almost certainly require insurance.
Even if your state does not mandate it, consider the consequences of not having marine insurance. If you are involved in an accident then you will be responsible for your own repairs and liability for others.
According to The Hanover Insurance Company, the typical boat insurance claim cost is roughly $11,000, so not having coverage could leave you in a bind financially.
The size, kind, and worth of the vessel will influence your insurance needs.
Small boats:
Smaller boats, such as canoes or small sailboats, are frequently covered by standard homeowners or renters insurance policies but typically have limited property damage coverage.
Homeowner’s insurance covers a small boat, motor, and trailer’s property but not liability. However, you may add boat liability coverage to your home insurance for a price.
larger boats
If you own a yacht or other fast watercraft, you need insurance. Depending on your boat’s attachments, you may need supplementary insurance like trailer coverage.
Consider umbrella insurance to increase your liability coverage limits. It covers your car, home, and boat in the event of an expensive boating accident.
Here’s a handy guide to determining whether your vessel requires marine insurance.
| Boats that require boat insurance | Boats that don’t require boat insurance |
| Boats with 25 horsepower or greater | Boats having less than 25 horsepower |
| Yachts boats | Small engine boats |
| Big sailboats | Small sailboats |
| WaveRunners boats | Canoes boats |
| Jet boats | Cheap boats |
10 Best Companies for Boat Insurance:
While many companies offer water insurance, it’s helpful to know some of the top names in the industry before you start shopping. Here are a few of our top-rated boat insurance companies.
- Progressive
- Geico
- Allstate
- Nationwide
- Farmers
- State Farm Insurance company
- BoatUS
- Safeco
- Markel
- Travelers
Is my home insurance going to cover my boat?
Watercraft coverage may be included in home insurance policies, but it is often limited and varies depending on the boat and insurer. A home insurer, for example, may provide coverage for a small powerboat that travels at less than 25 miles per hour.
Most homeowners insurance policies don’t cover boats and limit coverage to $1,000 or 10% of the home’s insured value. However, you may be able to include a policy endorsement.
Impact of Driving boat Under the Influence of Alcohol
Alcohol was a contributing factor in 16% of fatal boat accidents in 2021 and was the leading cause of fatal boat crashes.
What are the main Kinds of Boats Insurance policy?
There are two types of marine insurance: “agreed value” and “actual cash value.”
An “agreed value” policy covers the boat for the amount it was worth at the time the policy was written. While it may be more expensive in the beginning, there is no depreciation for a total loss of the boat (some partial losses may be depreciated).
“Actual cash value” policies are less expensive up front, but they account for depreciation. In other words, the policy will only pay up to the boat’s actual cash value when it is declared a total or partial loss. As your boat ages, your insurer will most likely insist on an actual cash value policy, which often results in significant savings.
What is a normal deductible in boat insurance?
A yacht policy typically has a deductible that is a percentage of the insured value; for example, a 1% deductible means that a boat insured for $100,000 would have a $1,000 deductible.
Most lenders allow a deductible of up to 2% of the insured value. Be wary of “named special deductibles,” such as 10% or more for storm damage.
Reasons for denial of boat insurance claims:
Events stated on your policy are only covered by marine insurance. However, even if your policy covers it, your claim may be denied. Here are a few common reasons why this could be the case:
- You were under the influence of alcohol or drugs while operating a boat.
- Failure to maintain your watercraft properly
- Damages or injuries in excess of the policy limits
- Making errors when filing a claim
- Failure to protect your boat before a storm
- Using your boat for business purposes (this usually requires marine insurance tailored for businesses)