How much are boat insurance rates?
There are many factors used to determine how much your boat insurance will be. The average cost of boat insurance in the US is $300 to $500 annually. However, your boat insurance rates may sometimes exceed $1000 annually.
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
UPDATED: Nov 27, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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The average cost of boat insurance in the US is $300 to $500 annually. It is possible, however, for your costs to exceed $1000 annually. There are a great many factors used to determine just how much your boat insurance will be.
If don’t already own a boat and you are planning to buy one, then you should get boat insurance quotes before you make your purchase. This will help you to determine whether or not these premiums will fall into your budget.
In most states, there are no laws governing boating insurance. Yet anyone who owns a boat must know what boat insurance is and how it works. Yet, you can purchase a boat and use it without buying insurance for it.
This is a risky move, however, because if you cause an accident, you are still responsible for the damages incurred during the accident. In addition, if someone gets hurt while on your boat or because they were struck by your boat, you are responsible for their medical costs.
Keep reading to learn what affects your boat insurance rates, what your boat insurance covers, what boat insurance costs, and how to save money on your overall premiums.
Don’t let boating accidents, medical bills, or property damages sink your dream of owning a boat. Compare actual rates and get affordable boat insurance coverage from licensed insurers near you.
What affects your boat insurance rates?
So how much is boat insurance? As mentioned above, many factors are used to determine just how much you will pay for boat insurance.
While the national average boat insurance cost in the US is $300 to $500 annually, this represents the cost of boat insurance if you choose to add your boat to an already existing policy, such as your auto insurance policy or homeowners policy.
If you choose to purchase a separate policy for fishing boats, a speed boat, or a bass boat, then you will see a significant increase in your premiums; however, many people find that it is worth it to pay more for the additional personal watercraft coverage they receive.
If you choose to add a boat to an existing policy, you need to be aware of the limitations:
- The maximum boat size for this type of addition is 26ft
- This coverage will not cover the cost of your personal belongings on your boat
- It takes into account issues that can occur on the water such as gasoline spillage
If you are looking for a basic affordable option, then this is certainly the way to go. If you want a more comprehensive policy, then you will need to select an independent boating policy that takes into account many of the unfortunate things that can occur while you are boating.
Another thing that will affect your rates is whether you choose a named peril policy or an all risk policy. A named peril policy is a policy that only covers damages caused by specifically named incidences. Things like striking an object under the water, striking another boat, theft, acts of nature and so on. The fewer things that you cover the more affordable your policy will be.
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What is the general cost of boat insurance?
An all risk policy covers pretty much everything. Sometimes insurance companies will exclude specific things, such as lightning, but that will be policy specific. An all risk policy will include conditions such as:
- Total loss of boat
- Hull damage
- Equipment damage
- Medical expenses from bodily injury
An all risk policy is more expensive than a named peril policy.
You will also need to choose between actual cash value and agreed upon value for your boat coverage. Actual cash value is the more affordable option because it only pays the market value of your boat if you experience a total loss.
The agreed-upon value, however, is usually the purchase price of the boat, which allows you to purchase a new boat of the same kind if you experience a total loss.
Things like your driving record, credit score, age and gender all affect your premiums as well. While it may seem unfair, women over the age of 27 with good driving records will have lower premiums than men over the age of 27 with good driving records.
While statistically speaking women have better driving records, studies also show that they exhibit more caution on the water than men.
If you are a teen or a young adult under the age of 25, expect your rates to be significantly higher than those of an older person do. Simply put, the younger you are the more of a risk you pose.
You will also find that the type of boat and how fast it can go will affect your rates. If your boat exceeds a speed limit of 50mph, you will pay more. The faster it goes the more you will pay. In addition, the placement of your motor affects your rates as well.
An outboard motor is less expensive because it isn’t enclosed inside of your boat, which allows for easy access and the ability to quickly put out a fire if necessary. Expensive boats will cost more to insure.
How you use your boat will have a major affect on your rates. A fisherman, for example, will pay less than a charter boat that carries passengers.
You may find that there are other factors that determine your rates depending on where you live. Some states have less stringent guidelines than others in terms of the expectation from boaters.
What does boat insurance cover?
We touched a bit on what your different type of insurance will cover so to keep things simple a basic policy attached to your homeowners or auto insurance offers you liability coverage for the passengers on your boat and for any other boats or people you might strike. In addition, it will cover the loss of your boat on land and in the water, so long as the predetermined criteria are met, which will be policy specific.
An independent boat insurance policy offers boat liability coverage, the same as above, and total loss of your boat. In addition, it covers your personal effects inside of your boat including recreational devices, cell phones, etc. It does not, however, cover personal watercrafts such as jet skis. There are separate policies for these.
Depending on the company you choose, there may be optional coverages you can add to your policy for a greater level of protection.
What are the best boat insurance companies?
When it comes to insurance, “best” is subjective, as different people will be looking for different things in an insurance company. However, the following companies are known to offer good coverage options and reasonable boat insurance rates:
- Allstate
- Progressive
- Nationwide
- Foremost
- Markel
Though insurance rates will vary based on personal factors, Progressive is often the cheapest option for boat insurance, as its policies start at just $100/month.
If you’re looking specifically for yacht insurance, Consumer Reports recommends you check out Chubb Insurance, as this company specializes in yacht policies.
Keep in mind that you can usually get a multi-policy discount if you choose to buy your auto insurance policy and boat insurance policy from the same company.
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How do you get a boat insurance quote?
In many cases, especially if you’re going with a big national brand like Allstate or Progressive, you can get a boat insurance quote online by providing some basic personal information. Other insurers may require you to speak to an insurance agent over the phone for a personalized quote.
You may also wish to meet with an independent insurance agent in your area, as they can go over all of your options and help you find the right policy for your needs.
How do you save money on your boat insurance?
To save money on your boat insurance you need to:
- Take a boating safety course
- Maintain a good driving record
- Maintain a good credit score
- Store your boat in a boathouse or in locked storage when it isn’t in use to reduce the risk of theft and weather-related damage
- Have your boat appraised by the insurance company before you get it insured
When your insurer appraises your vessel they can verify the presence of life jackets, life boats and other safety devices that can reduce your rates. This may be a requirement by your insurance company anyway.
Lastly, you are going to save money on your boat insurance if you take the time to shop around. Getting quotes from multiple companies is the best way to ensure that you get the lowest rates possible. You’ll also want to ask each company about any insurance discounts they offer.
In this day and age, there is no reason why you should take the time to do this. With quote tools like we offer here, you can get multiple quotes in just a few minutes time. What’s more, our quote tool doesn’t use your personal information to hassle you with phone calls and emails. We only collect the information necessary to give you an accurate quote.
Case Studies: A Comprehensive Exploration of Actual Case Studies for Boat Insurance Rates
Case Study 1: John’s Speedboat
John owns a 25-foot speedboat worth $40,000. He lives in a coastal area with a high risk of hurricanes and opts for comprehensive coverage. As a responsible boater with a clean driving record, John receives a boat insurance quote of $800 per year.
Case Study 2: Sarah’s Sailboat
Sarah is the proud owner of a 35-foot sailboat valued at $80,000. She primarily uses her boat on freshwater lakes and has installed safety features such as an anchor alarm and a GPS tracking system. Due to her diligent safety measures and the lower risk associated with freshwater boating, Sarah is offered boat insurance at a rate of $600 per year.
Case Study 3: Michael’s Yacht
Michael owns a luxurious 50-foot yacht worth $500,000. He frequently sails in the open ocean and has a history of boat accidents, including a recent collision. Given the high value of his yacht and the increased risk associated with his sailing habits, Michael is quoted a premium of $5,000 per year for comprehensive coverage.
Case Study 4: Lisa’s Fishing Boat
Lisa is an avid angler who owns a 20-foot fishing boat valued at $15,000. She primarily uses her boat on a nearby river and has completed a boater safety course. Due to the smaller size of her vessel and the relatively low-risk boating environment, Lisa receives a boat insurance quote of $300 per year.
Case Study 5: Mark’s Personal Watercraft
Mark enjoys riding his personal watercraft, a jet ski, in an inland lake. His jet ski is valued at $10,000, and he opts for liability coverage only since it is not required in his state. As a result, Mark’s insurance premium is relatively low, at $200 per year.
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Frequently Asked Questions
How much are boat insurance rates?
Boat insurance rates can vary depending on several factors. These factors may include the type and size of the boat, its value, the intended use of the boat, the location where it will be operated, the boater’s experience and claims history, and the coverage options selected. It is best to obtain quotes from multiple insurance providers to get an accurate idea of the rates for your specific circumstances.
Are there any discounts available for boat insurance?
Yes, many insurance companies offer various discounts that can help lower your boat insurance rates. Some common discounts include multiple policy discounts , claims-free discounts, safety equipment discounts, and boater education discounts. It’s worth discussing potential discounts with your insurance provider to see if you qualify for any savings.
Can I insure any type of boat?
Most insurance companies offer coverage for a wide range of boat types, including motorboats, sailboats, fishing boats, pontoon boats, personal watercraft such as Jet Skis, and yachts. However, the availability and terms of coverage may vary depending on the insurance provider and the specific characteristics of your boat. It’s best to check with insurance companies to ensure they offer coverage for your particular type of watercraft.
Do I need boat insurance if I only use my boat occasionally?
While boat insurance is not legally required in all jurisdictions, it is still highly recommended, even if you only use your boat occasionally. Accidents or damage can occur at any time, and having insurance can protect you from costly repairs, liability claims, or other financial burdens that may arise from unexpected incidents. It’s always better to have coverage in place, even if you don’t use your boat frequently.
Does boat insurance cover me if I boat in different locations?
Many boat insurance policies provide coverage for boating in different locations, including coastal waters, inland lakes, rivers, and even international waters. However, it’s important to review the policy details and discuss any specific navigational limits with your insurance provider. Some policies may have restrictions on coverage based on the geographic area or may require additional endorsements for certain locations.
Can I add additional coverage to my boat insurance policy?
Yes, most insurance companies offer additional coverage options that can be added to your boat insurance policy for an extra premium. These additional coverages may include coverage for personal belongings, fishing equipment, emergency towing, wreck removal, pollution liability, and more. It’s advisable to discuss your specific needs and preferences with your insurance provider to determine the additional coverages that are available and suitable for your situation.
What should I do if I have a claim for my boat?
If you need to file a claim for your boat, you should contact your insurance provider as soon as possible. They will guide you through the claims process, provide you with the necessary forms and documentation requirements, and assist you in assessing the damage and estimating the costs. It’s important to provide accurate and detailed information about the incident, take photos or videos of the damage, and keep any relevant receipts or records. Working closely with your insurance provider throughout the claims process will help ensure a smooth and timely resolution.
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.