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Best Boat Insurance Of 2024

Updated: Jan 3, 2024, 7:02am

Owning a boat gives you plenty of options for enjoying leisurely activities such as sailing, fishing and trips to remote beaches. But problems like collisions, capsizing, theft, fire and storms can bring a dark cloud over your boating adventures.

We evaluated several large insurance companies to find the best boat insurance.

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How to Find the Best Boat Insurance

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Allstate Boat Insurance Options

In addition to typical boat insurance coverage options, Allstate offers:

Allstate’s Premier Boatowners Option   package provides coverage for:

• Uninsured watercraft liability insurance (for accidents caused by uninsured boats)
• Repair cost option when a boat is damaged but not totaled
• Emergency Services

Allstate’s Premier Plus Boatowners Option   provides everything in the Premier package and adds an “agreed value” option. This pays you an agreed amount if your boat is totaled.

Emergency Services   coverage pays for service up to a certain amount, such as $1,000.

The Repair Cost Option   covers the boat, motor, boat equipment and/or trailer for damage.

Allstate Boat Insurance Discounts

Multiple policy discount   when you also buy an Allstate auto, homeowners, condo, mobile home or manufactured home policy.

Boating education discount   when you complete a safety education course approved by the United States Coast Guard Auxiliary, United States Power Squadron or a watercraft enforcement agency of any state.

Homeownership discount   when you or your spouse own a house, condo, mobile home or manufactured home.

Organization discount   for boaters who are members of an organization that promotes safe boating such as the United States Coast Guard Auxiliary or United States Power Squadron.

Allstate Easy Pay Discount   for using Allstate’s payment plan.

Full pay discount   when you pay the total bill.

Early signing discount   when you complete your application at least a week before coverage begins.

• Allstate customers can bundle with other policies to save money
• Discount for using Allstate Easy Pay system
• No special hurricane coverage

GOOD FOR HURRICANES

Geico boat insurance.

Geico Boat Insurance Options

Trailer Assist Roadside Coverage

By adding this endorsement you’ll get coverage for your towing vehicle and insured trailer for expenses such as towing the trailer to the nearest repair facility, flat-tire roadside assistance, battery jumpstarts, fuel delivery and more.

Towing and Assistance Coverage

This pays to tow your boat or trailer from the water or a road to the nearest safe location. Assistance can include delivering gas, oil, tires or replacement parts and the labor at the site. But note that the cost of the gas, oil, tires or parts aren’t covered.

Coverage for Hired Crew

This endorsement extends your Geico boat liability insurance to liability arising from the Jones Act, Death on the High Seas Act or General Maritime Law.

Mechanical Breakdown

If your boat is less than 11 years old and you’re buying hull and towing coverage, you may be eligible to add Geico’s mechanical breakdown coverage for boats.

Ice and Freeze Coverage

This add-on coverage pays you the boat’s actual cash value if it’s damaged by ice and freezing. Without it, ice and freezing is generally excluded.

Charter Guide

You can add insurance if you use your boat as a charter guide service, such as taking customers out on fishing or sightseeing excursions.

Cruising Limit Extensions for the Bahamas or Bahamas and Caribbean

Geico boat insurance generally covers you in U.S. and Canadian coastal and inland waters. You can buy add-on coverage that extends your insurance when you’re boating within certain latitudes and longitudes that are excluded by the main policy, such as the Caribbean, Turks and Caicos, Mexico, Belize and other locations.

Private Dock Liability

This endorsement adds liability coverage for your private dock to your main boat liability insurance.

Captain’s Liability

Do you employ a captain or other paid crew? This endorsement would make them a named insured on the boat insurance policy.

Geico’s Platinum Plus Boat Insurance

Geico’s Platinum Plus is a boat insurance package that offers increased coverage amounts for emergency services, medical payments, personal effects and additional marine environmental damage.

It also adds hurricane preparation coverage that will pay 50% (up to a set dollar limit) to have your boat professional moved when there’s a Tropical Storm or Hurricane watch or warning. It also pays for lashing into ground anchors. It has some post-storm benefits as well for power washing and relaunch.

The Platinum Plus package also lowers your deductible for your dinghy, outboard and navigational electronics.

Geico Boat Insurance Discounts

Look for these possible discounts if you’re buying Geico boat insurance.

Boat safety course or training discount   if you’ve completed an approved boating safety course.

Multiple policy discount   if you have more than one boat insurance policy or another Geico policy.

Years loss-free discount   based on the number of years you’ve been insured and had no claims (excluding claims for hurricane, lightning and towing).

You may have the option to add a “diminishing deductible” for your hull and equipment coverage. For every year you don’t have a hull and equipment claim, your deductible for that coverage will be reduced by 25%.

Is Your Boat Eligible for Geico Boat Insurance?

Here are some of the rules typically used by Geico to determine whether a boat is eligible for coverage:

• Hull length overall is less than or equal to 70 feet.
• Boat must be less than 50 years old.
• The boat can’t have more than four engines.
• Hurricane coverage including post-storm benefits
• Wide selection of coverage add-ons
• Territory extensions for the Bahamas and Caribbean
• Limited discounts

GOOD FOR COVERAGE CHOICES

Markel boat insurance.

Markel Boat Insurance Options

Markel has a wide variety of coverage choices that you can add beyond the basic boat insurance.

Replacement cost coverage

If your boat is less than three years old and is totaled or stolen, Markel will pay for a new boat of the same type, make, class and size.

Consequential damage

Covers damage from fire, explosion, sinking and more that’s due to wear and tear.

Ice and freezing damage

This pays for engine damage when you bought winterization services that didn’t work.

Ultimate drive coverage

Pays for repair or replacement of an outboard or sterndrive in the event of a mechanical breakdown due to wear and tear or defect.

Boat lift coverage

This adds coverage for your boat lift.

Fishing equipment coverage

This add-on will pay to replace fishing gear such as trolling motors rods and reels, lures, tackle boxes and depth finders.

Fishing tournament fee reimbursement

Reimburses you for a non-refundable entry fee if you have to miss a fishing tournament for reasons listed in the policy, such as injury, damage to your boat or a breakdown of your towing vehicle while on the way there.

Racing endorsement

Extends coverage for boat racing.

Port risk ashore

For boats that will be out of the water.

In water port risk and show use

Coverage if the boat is in a show.

Business coverage

You can add extra liability insurance if you earn money from your boat, such as charters and paid guides.

Markel Boat Insurance Discounts

Advance quote discount

Based on how far ahead you get your boat insurance quote before the policy effective date.

Classic boat club member

A discount off your boat liability and physical damage coverage if you are a member of a Classic Boat Club.

Is Your Boat Eligible for Markel Boat Insurance?

Markel may use these rules to determine whether a boat is eligible for coverage:

• Length must be equal to or less than 26 feet.
• Speed must be less than or equal to 120 mph.
• Cannot have more than two main propulsion engines and an auxiliary motor.
• Horsepower cannot exceed the manufacturer’s maximum capacity.
• Extensive coverage selection
• Options for fishing equipment and tournament fees
• Can’t bundle with home or auto insurance for savings

Progressive Boat Insurance

Progressive Boat Insurance Options

Wreckage Removal

Wreckage removal is included when you buy physical damage coverage for your boat, or you can add it. If you’re legally required to remove a wreck, this coverage will apply. Or you’re not legally required to remove the wreck, this coverage can pay for removal under physical damage coverage.

Water Sports Coverage

This is included with Progressive boat liability insurance and covers injury and property damage caused by a person who’s being towed behind your boat for a water sport such as water skiing, wakeboarding and tubing.

Total Loss Replacement Cost/Purchase Price

If your new boat is totaled, this pays to replace it, rather than paying only actual cash value. Owners of boats five years old and older can receive the original purchase price. This coverage includes a diminishing deductible.

Roadside Assistance

Progressive’s roadside assistance coverage for boat owners will get your towing vehicle or trailer to the nearest qualified repair facility.

Fishing Equipment

You can add Progressive’s fishing equipment coverage when you buy physical damage coverage for a boat.

Coastal Navigation

Progressive’s boat insurance policies limit coverage to within 75 nautical miles of the U.S. and Canada and include all inland lakes and rivers. You can buy an add-on that extends your coverage to 125 miles.

Sign & Glide

This add-on to Progressive boat insurance provides water towing and emergency services (such as fuel or a jump-start) if your boat becomes disabled on the water.

Propulsion Plus

Propulsion Plus is available on boats less than 11 years and when you’re also buying Sign & Glide and comprehensive and collision coverage. It’s coverage for the lower units of outboard motors, and the upper and lower units of inboard/outboard motors, if you have a mechanical breakdown, including breakdowns caused by wear and tear.

Trailer Trip Interruption

If you also have roadside assistance for your boat trailer, this pays for meals, transportation and hotel if your towing vehicle or trailer breaks down while you’re towing your boat more than 100 miles away from home.

Hurricane Haul Out

Progressive’s Hurricane Haul Out coverage (not available in all states) applies when there’s a Tropical Storm or Hurricane watch or warning in the county where the boat is located. It reimburses you 50% of the cost to get your boat out of the water.

Progressive Boat Insurance Discounts

• Multi-vehicle discount   for insuring two or more watercraft.
• Multi-policy discount   if you have a Progressive insurance for your home, condo, car or other property.
• Paid in full discount   when you choose the one-pay bill plan.
• Homeowner discount   for owning a house, condo, co-op or manufactured home.
• Original owner discount   if you are the first title-holder to the watercraft.
• Idle assisted steering discount   if your personal watercraft has this feature.
• Boating safety course discount   if you’ve completed a safety course offered by approved organizations like the United States Power Squadron.
• Transfer discount   if you’ve had previous watercraft insurance.
• Responsible driver discount   for people who have not been charged for any accidents or violations on the policy.
• Claim-free renewal discount   when you’ve had no at-fault claims the previous policy year.
• Prompt payment discount   is applied to new policies and then renewals when you’ve had no late payments in the last year.
• Advance quote discount   that varies based on how far ahead you got your quote before the policy effective date.
• Electronic funds transfer discount   when you use the EFT payment bill plan.

Is Your Boat Eligible for Progressive Boat Insurance?

Here are some of the rules typically used by Progressive to determine whether a boat is eligible for coverage:

• No watercraft with maximum speeds over 75 mph (90 mph for bass boats)
• The boat can’t have more than two engines (other than trolling), with some exceptions.

In addition to insurance for liability, boat damage, medical payments and uninsured boaters, Progressive’s boat insurance has the following options.

• Extensive options for coverage add-ons
• Water sports coverage
• Hurricane haul out coverage
• Many possible discounts
• No fishing tournament fee reimbursement

GOOD FOR BASIC COVERAGE

State farm boat insurance.

State Farm Boat Insurance Options

State Farm’s standard boat insurance typically includes:

• Emergency service  including mechanical labor at the place of breakdown and towing.
• Wreck removal   coverage for expenses for raising, removal or destruction of your wrecked boat.
• Fuel spill liability   coverage when you’re legally liable for a spill resulting from owning, maintaining or using your boat.
• First aid expenses  coverage reimburses you for costs related to giving first aid to others.

A State Farm boat insurance policy can also provide:

Fishing Tournament Fee Reimbursement

Adding this endorsement means you’ll be reimbursed for pre-paid and non-refundable fishing tournament fees if your boat is damaged and disabled, your towing vehicle broke down, you’re hospitalized for an illness or injury, and other problems.

Boat Rented to Others

This gives you coverage when you rent your boat to others for their personal (not business) use.

State Farm Boat Insurance Discounts

Safety course   discount if you complete an approved course from a provider such as the U.S. Coast Guard Auxiliary or the U.S. Power Squadron.

Diesel power  discount on basic hull and liability premiums (not available in all states).

• Pays expenses if you deliver first aid
• Fees for missed fishing tournaments can be covered

Just like a sailboat is different from a pontoon, prices of boat insurance vary among insurance companies. To find the best boat insurance price, compare quotes from multiple insurance companies.

You can sometimes find free quotes online at an insurance company’s website, but not all boat insurance providers have online quotes. Instead, you can call the insurance company or an independent insurance agent.

You’ll also want to ask about boat insurance discounts such as:

• Multi-policy discount. You can save by bundling multiple policies with the same insurer, such as boat and car insurance .
• Boat safety discount. Get a discount if you pass an approved boater safety class.
• Diesel-powered boat. Diesel boats are considered less hazardous than gasoline powered boats.
• Boat safety features. You may be eligible for a discount if your boat has features such as fire suppression systems and Coast Guard-approved fire extinguishers.
• Payment discounts. You can often get savings for paying your annual premium in full, going paperless or enrolling in auto-pay.
• Claims free. Your boat insurance company may offer a discount if you have not had a claim in the past two years.

Hull and equipment coverage is one of the foundations of a boat insurance policy. This coverage will pay for damage to your boat and its dinghy, including theft and vandalism.

Another foundation to any boat insurance policy is boating liability insurance. This covers cases where you’re legally liable for injury or property damage to someone else due to use, ownership or maintenance of your boat. Boat liability insurance extends to people who operate your boat with your permission.

Here are other boat insurance types that are available.

• Personal effects coverage pays to replace your belongings that get damaged while they are on the boat, being loaded on or off your boat, or stored in a dock box by the boat.
• Medical payments coverage pays the medical bills of someone who is injured while on your boat or boarding or leaving your boat.
• Uninsured boater coverage pays medical bills for bodily injury due to physical contact between your boat and an uninsured boat.
• Towing and assistance is a standard part of a boat insurance policy.
• Boat trailer insurance pays for damage and theft.
• Fuel and other spill liability insurance pays for the containment and cleanup of a spill, and also property damage to other people caused by your spill. If you’re sued over a spill, this coverage also pays for your legal defense. (Your insurance company might select the lawyer.)

Here are examples of typical exclusions in boat insurance policies.

• Wear and tear
• Gradual deterioration
• Damage from vermin, insects, marine life and other animals
• Mechanical breakdown
• Electrical breakdown
• Structural breakdown
• Overheating or galvanic action
• Ice or freezing
• Mold or mildew
• Marring, scratching or denting
• Blistering or delamination
• Incomplete, improper or faulty repair, maintenance or renovation
• Intentional acts, such as intentional boat damage

Boat insurance contains coverage types to help in different situations, much like car insurance.

Property Coverage for Boats

Property coverage protects the boat against theft and damage due to an accident or sinking. The coverage usually applies to the boat whether it’s on land or water.

You can choose between actual cash value or agreed value, also called replacement cost coverage, in the event your boat is totaled or stolen. The coverage you choose influences your costs and decides how much the insurance company will pay if you file a claim later.

Liability Insurance for Boats

If your boat damages someone else’s property, such as another boat, or injures someone during an accident, your liability insurance pays their damages. It can also cover problems caused to others by your watercraft, such as a large wake. Liability insurance also covers your legal fees if you’re sued over a problem covered by the policy, such as a boating accident.

Medical Payments Coverage

If you or your passengers are injured in a boating accident, medical payments coverage pays for your medical bills.

Uninsured Watercraft Coverage

If an uninsured boater strikes your boat, uninsured watercraft coverage pays your medical bills.

Boat Insurance Add-Ons

As a boat owner, you may need to purchase additional insurance, such as coverage for:

• Boat trailers
• Special equipment, such as fishing gear
• Boating accessories such as radar
• Dock contract liability
• Fishing guide coverage
• Ice and freezing coverage
• Personal property

It’s also important to investigate coverage for fuel spills or wreckage removal in case an accident occurs on the water.

Boat insurance typically costs between $200 and $500 per year, according to Trusted Choice, an industry group for independent insurance agents.

Your boat insurance cost will depend on several factors, such as:

• Type of boat such as fishing boat, pontoon or sailboat
• Length of boat
• Age of the boat
• Region of the country; for example, boat owners in areas impacted by hurricanes may pay more
• Number of engines and horsepower
• How you use the boat, such as recreational boating or commercial charters
• How and where your boat is stored
• Your years of boating experience and the experience of other people on your boat insurance policy
• Safety measures, such as whether you completed a boating safety course
• Your boat insurance claims history

Whether you have agreed value or actual cash value coverage influences how much you pay for boat insurance and how much you get reimbursed if you file a boat insurance claim.

The difference is all about depreciation. Here is the difference between agreed value and actual cash value coverage.

Actual cash value coverage offers cheaper premiums, but it will likely pay you less if your boat is destroyed or stolen. Your insurance company may require that you have this type of coverage if your boat is older—for example, when it’s more than three years old.

If you’re looking for boat insurance quotes, start with your current auto or homeowners insurance company. If you buy boat insurance from the same company you can likely get a bundling discount.

You can sometimes get boat insurance quotes online at insurance company websites, but the availability of online quotes can be limited. You can cast a wider net for quotes by contacting an independent agent, who can provide quotes from multiple insurers.

Before requesting quotes, think about the type of coverage you need. Collect specific information about your vessel, so the insurance company can give you an accurate quote. Also, think about optional coverage you might like, such as towing assistance.

What Do I Need for a Boat Insurance Application?

Along with basic information about yourself and the boat, expect common questions like these on a boat insurance application:

• Have you had any boating or automobile insurance claims, accidents or losses in the past three years?
• List any automobile or boating violation by the owner in the last three years
• Is the boat currently damaged or has it been damaged in the past?
• What is the largest boat you have owned and operated?
• Has the boat been modified?
• Has the owner taken training courses, such as a state-certified safety course

Some states require boat insurance. Also, if you dock your boat or finance it, the marina or lender will probably require coverage.

But even if your state doesn’t require it, consider the implications of going without boat insurance. If you get into an accident, you’ll be on the hook for your own repairs and your liability to others. With the average boat insurance claim hovering around $11,000, according to The Hanover Insurance Group, not having coverage could put you in a sticky financial situation.

The type of insurance you need will depend on the vessel’s size, type and value:

Small Boats

Standard homeowners insurance or renters insurance policies often cover smaller boats like canoes or small sailboats, but usually have limited property damage coverage.

While a homeowners insurance policy typically provides property coverage for a small boat, motor and trailer, it excludes liability insurance. But it’s possible to add boat liability coverage to your home insurance policy for an additional charge.

Larger Boats

If you have a larger and faster vessel like a yacht, you will need to purchase a boat insurance policy. Depending on your boat’s accessories, you may need additional insurance such as trailer coverage.

Also, to increase your liability coverage limits, consider umbrella insurance . It provides extra liability protection for your auto, home and boat, such as extra insurance in case you’re sued for a costly boating accident.

What States Require Boat Insurance?

Only two states currently require boat insurance: Arkansas and Utah. Both require residents to insure motorboats or personal watercraft for engines with 50 horsepower or more.

Arkansas residents must purchase a boat insurance policy that includes at least $50,000 in liability coverage per incident.

Utah residents can choose between one of two liability coverage options:

• $25,000/$50,000 bodily injury/death and $15,000 property damage
• A combined policy with a $65,000 coverage limit

How much boat insurance do I need?

The amount of boat insurance you need depends on several factors, such as the age, motor size and value of your boat, lender requirements, marina requirements, state requirements, and intended use.

It’s also a good idea to assess your personal assets, risk tolerance and budget when selecting a coverage amount.

What companies offer boat insurance?

Many insurance companies sell boat insurance, including Allstate, Nationwide, Progressive, State Farm, The Hartford and USAA.

Check with your home and auto insurance companies when looking for boat insurance quotes. Make sure to ask  about bundling discounts that can reduce your rates by having multiple policies with the same company.

Is boat insurance required?

Most states don’t require boat insurance, but it’s still wise to get coverage. Only Arkansas and Utah have boat insurance mandates.

Arkansas requires liability insurance of at least $50,000 for personal watercraft and motorboats with more than 50 horsepower.

Boaters in Utah must carry at least $25,000 and $50,000 for bodily injury/death coverage, $15,000 property damage or $65,000 combined minimum per accident. Those requirements are for motorboats and personal watercraft of at least 50 horsepower.

A lender may also require boat insurance if you’re financing the vessel and many marinas additionally require protection if you’re docking there.

Is my boat covered by home insurance?

Home insurance policies may offer some coverage for watercraft, but it’s often minimal and depends on the boat and insurer. For instance, a home insurer may offer a policy for a small powerboat that goes less than 25-miles per hour.

The coverage may be capped at $1,000 or 10% of the home’s insured value and homeowners insurance policies don’t usually include liability coverage for boats. But you might be able to add a policy endorsement.

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Amy Danise is the managing editor for the insurance section at Forbes Advisor, which encompasses auto, home, renters, life, pet, travel, health and small business insurance. She is a highly experienced editor, writer and team leader with an extensive background in the insurance sector. With a career spanning more than three decades, she has focused her work on consumer-oriented publications.

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Table of Contents

Do you need boat insurance?

What boat insurance will pay for, boat insurance costs and discounts, where to buy boat insurance.

Your prized boat probably didn’t come cheap. Whether you own a bass fishing boat or a yacht, it’s important to find the right boat insurance that will come to the rescue if you have damage or theft. Here’s how to understand boat insurance policies.

Your home insurance policy covers your boat in some cases, but it doesn’t go far. Homeowners policies typically cap boat coverage at $1,000 or 10% of your home’s insured value. And liability coverage — which pays for damage your boat does to others — typically isn’t included under home insurance. So a home insurance policy might help you only if your boat is small, slow and inexpensive.

At a glance: Do I need boat insurance?

You can typically buy liability insurance — which pays for damage your boat does to others — in amounts from $15,000 to $300,000, according to the Insurance Information Institute. Here's what else you can expect from a policy:

Check, too, about additional coverage for trailers and accessories, for towing and for damage caused by an uninsured boater.

You can buy two types of damage coverage for a boat:

Actual cash value. This pays the value of your boat at the time of the damage. If your boat is destroyed, your insurance company determines its market value.

Agreed amount value. If your boat is destroyed, your insurer pays you an amount that you and the company agreed on beforehand. If your boat can be repaired, your insurer replaces old items for new ones without deducting for depreciation.

It’s also important to understand what your boat insurance covers before heading out on the water, says Todd Shasha, boat and yacht personal insurance director at Travelers Insurance. He recommends checking whether your policy can cover these scenarios:

Mechanical breakdown coverage. Pays to repair or replace your outboard motor as long as it’s not due to wear and tear.

Salvage. If your boat becomes disabled and a basic tow won’t help, you might need to call a salvage company to recover it. Typically a salvage company will ask for a percentage of the boat’s value as payment, which can be quite expensive. Not all insurance companies offer this coverage.

Gadgets. Not all boat insurers cover expensive accessories like fishing equipment or fancy coolers unless they’re permanently attached to the boat. For example, Travelers offers personal property coverage that pays you if they’re stolen or lost while out on the water. Endorsements, which are additions to your policy, are available if you want to increase the value of your personal property limits.

Some important things to know about boating and your policy:

Navigational limits: If you own a yacht or a larger boat, your policy will have limits outlining where you can navigate your vessel. If you venture outside of the territory you agreed to in the policy, your insurance may not cover you. Typically, the broader your navigation area is, the higher your insurance costs will be.

Layup periods: Taking your boat out of the water is typical during cold weather, and most insurance companies will give you a credit because it’s not being used. But take the boat out for a spin before the layup period ends and you won’t be covered by your insurance policy.

Marine inspections: If your boat is an older model, most insurance companies will want you to have it inspected by a marine surveyor in order to assess the vessel’s condition and market value. For safety’s sake, consider a marine survey even if it’s not required.

Underage operators: You might be tempted to let your 12-year-old drive the boat every now and then. But if your child doesn't meet age and license requirements in your state, your boat insurance policy might not cover you. Age and license requirements for operating personal watercraft vary from state to state. In Virginia and Florida, for example, no one under 14 may operate a personal watercraft. In Texas, children under 13 are barred from driving one unless a licensed operator who's at least 18 is on board. For requirements where you live, check with the boating regulatory agency in your state.

How much you’ll pay for boat insurance depends on the level of insurance coverage you want, as well as the size, horsepower, type and value of your boat.

You can choose your deductible, which is the amount deducted from your insurance check if you make a claim. A typical policy has deductibles of $250 for property damage, $500 for theft and $1,000 for medical payments, according to the Insurance Information Institute. Liability claims against you do not have a deductible.

Insurance companies offer a variety of ways to save money, including discounts for:

Having a diesel-powered boat.

Not having made a previous boat insurance claim.

Carrying other policies, such as car or homeowners, with the same insurer.

Taking safety courses.

Boat insurance is widely available. NerdWallet looked at the top 25 auto insurance sellers in the country and found these that also offer boat insurance:

Offers coverage for boats up to $250,000 in value.

AAA lowers your deductible by 25% each time you renew your policy and haven’t had a claim.

Average cost of boat insurance from Allstate is about $20 a month, according to Allstate.

Bundle boat insurance with an Allstate homeowners policy and you qualify for up to a 20% discount.

American Family Insurance

Additional coverage options cover personal items and pay for repairs to your boat and equipment, without a deduction for depreciation.

If your boat is disabled, an Amica policy covers towing to nearest port.

If your yacht can’t be repaired, Amica pays to replace it with a new one, without subtracting depreciation.

Auto-Owners

Optional boat insurance coverage is available through homeowners policies.

Country Financial

Country Financial homeowners insurance covers your boat for up to $1,500.

You can buy more coverage under your homeowners policy.

Erie’s standard Boat Protector Policy comes with extras, including payments up to $500 to fix or replace boating equipment and accessories, and payments up to $250 for emergency towing. (Not available in Kentucky.)

Farmers offers seven packages to fit your vessel type and coverage needs.

Geico’s optional premium boat towing service offers unlimited on-water towing (within 25 miles of an approved tower) and pays the service provider directly.

Geico offers several discounts, including one for passing a boat-safety course and for maintaining a good driving record.

You can cover your boat, sailboat or personal watercraft with an endorsement to your Hanover Platinum or Connections homeowners insurance policy.

The Hartford

Additional coverage, which costs extra, is available for your accessories, trailer and boat hull.

Liberty Mutual

You must have a homeowners insurance policy with Liberty Mutual to get boat and watercraft insurance.

Optional coverage includes hurricane protection, which pays up to $250 to move your boat out of danger during a hurricane advisory.

Unforeseen emergency services coverage pays $250 for towing and other services on land or in the water.

Personal watercraft coverage includes liability, collision, comprehensive, uninsured or underinsured operator, and medical payments.

Optional towing and labor also available.

Progressive

Total loss replacement coverage pays for a new boat if your new boat is a total loss within five years of adding the coverage.

Progressive offers several specialized coverage options, including 24-hour roadside assistance if your car breaks down while towing your boat.

Unlike some insurers, Progressive doesn’t require you to submit a navigation plan. Nor does it require an inspection of your boat.

State Farm’s optional emergency service pays up to $500 to service your boat, motor or boat trailer.

Optional wreck-removal coverage pays “reasonable expenses” to raise or remove your boat when it’s required by law.

Travelers splits the cost to move the vessel to safety when you carry “hurricane-escape reimbursement” coverage, which costs extra.

Antique boats get the same comprehensive coverage available in Travelers' basic policy.

USAA members get a 5% discount on boat insurance, but the discount is not available in all states.

USAA is open only to active and retired military and their families.

Juan Castillo is a former staff writer at NerdWallet.

On a similar note...

How Much Does Boat Insurance Cost?

Table of Contents

Nearly half of boats are uninsured primarily due to high premiums and deductibles, but boating without insurance is the same as driving without it—it’s very risky and in some states, it’s illegal. Let’s look at when you need insurance and how much its’ likely to cost.

Own a Boat? Learn How to Offset the Cost of Ownership by Listing on Boatsetter

Average Boat Insurance Costs: Per Month and Per Year

As a responsible owner, your boat should be insured from the minute you take ownership or control of it. Boat insurance costs vary and can run from $500 per year for smaller boats to thousands of dollars for large yachts.

A rule of thumb is that annual premiums will total 1 to 3 percent of the value of the vessel.

• For example, a $50,000 boat will have annual premiums of $500 – $3,000 and a policy for a $200,000 boat will cost $3,000-$6,000 per year. This doesn’t hold for very large yachts where the percentages as well as the absolute numbers rise dramatically.
• Big yachts will have additional equipment and possibly professional crew , or they may be chartered all of which adds to the overall coverage costs.

You can buy boat insurance online or get a quote from specialized agents like GEICO/BoatUS , who may also be able to provide a boat insurance calculator to get you started.

How Much Should I Insure My Boat For?

There are several factors that will dictate how much you should insure a boat for:

• Size, vessel type and value

New or pre-owned

• Where you will be boating

Size, type and value

Bigger and more expensive vessels will require higher insurance coverage limits and higher premiums. Also, high performance boats (like fast cars) command a premium because of the risks that go with the kind of boating they engage in.

New boats are easier to insure because presumably, there are fewer risks of equipment failure. However, the coverage for new boats may be more expensive simply due to the higher value of the vessel itself.

How much does it cost to insure a used boat? Well, that depends. An insurance company may require a current survey to make certain that the boat is in a seaworthy condition. Surveys cost money and the premiums for older boats may be higher or lower depending on the boat’s condition. Some insurers won’t cover boats older than 20 years.

Cruising grounds (where you’re be doing most of your boating)

Boat insurance costs will vary by state with some being much higher than others. If you boat in waters that are known for hurricanes , you may have to add coverage in certain seasons and geographies. If the boat will be stored ashore for an extended period, you may qualify for a discount.

Outside of insurance, be sure to read our guide outlining the costs of boat ownership and what expenses you can expect.

Why is Boat Insurance So Expensive?

There are risks that go with boating—collision, onboard damage, injury, environmental impact, etc. There are fewer experienced boaters on the water than there are drivers on the road so boat insurance costs can be steep.

How Can I Lower My Boat Insurance Costs?

Some insurers will offer a discount for having multiple policies with the company, for having a good driving record, for paying a year’s worth of premiums up front, or for the owner/operator completing boating safety courses. You can also opt to lower monthly premiums by raising the deductible.

Commercial Boat Insurance, Peer-to-Peer, & Charters

Insurance costs rise when the boat is chartered or used for commercial purposes, because it’s expected that it will be used more frequently and will carry paying passengers.

This extends to peer-to-peer boat rentals, like Boatsetter rentals, where private owners lease their boats with or without a captain. If decide to become a Boatsetter owner and list your boat for rent, you’ll have peace-of-mind through coverage provided by the company’s exclusive peer-to-peer boat rental policy provided through GEICO/BoatUS .

So, is Getting Boat Insurance Worth It?

Absolutely. Accidents happen so whether there are medical costs, expensive property damage, legal fees or the cleanup of an oil/fuel spill, you’ll want the boat you rent or buy to be covered.

Earn an Average of $20,000 or More by Listing Your Boat for Rent on Boatsetter

Zuzana Prochazka is an award-winning freelance journalist and photographer with regular contributions to more than a dozen sailing and powerboating magazines and online publications including Southern Boating, SEA, Latitudes & Attitudes and SAIL. She is SAIL magazines Charter Editor and the Executive Director of Boating Writers International. Zuzana serves as judge for SAIL’s Best Boats awards and for Europe’s Best of Boats in Berlin. 

A USCG 100 Ton Master, Zuzana founded and manages a flotilla charter organization called Zescapes that takes guests adventure sailing at destinations worldwide. 

Zuzana has lived in Europe, Africa and the United States and has traveled extensively in South America, the islands of the South Pacific and Mexico. 

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Sailboat Insurance: The Best Options By Far

Last Updated by

Daniel Wade

January 26, 2024

Whether you own a yacht, speedboat, or fishing boat, it certainly didn't come cheap. So it's crucial to find the best sailboat insurance that will come to your rescue if something does happen.

Just like your home or car, your boat is probably one of your most prized assets and needs the right insurance as well. Even though boats are widely known for providing their owners with great recreation and adventure, they come with various types of risks. Whether it's an accident, fire, theft, or damage, these are just some of the disasters that can come your way and that can come your way. And even if boat insurance is not a must in your state or area, having your boat properly insured will keep your head above the water and prevent you from sinking. You, therefore, should understand how to protect your sailboat, yourself, and your passengers.

Boat insurance is essential in covering you in case of a loss of damage to your sailboat. It generally covers most types of watercraft including yachts, speedboats, pontoon boats, fishing boats, leisure crafts, paddle boats, and many more. Boat insurance will cover you from various things including collision damage, bodily injury liability, property damage liability, comprehensive coverage, and other additional coverage options.

The fact that sailboat insurance is widely available can make it quite overwhelming when looking for the right boat insurance for you. But to make it a lot easier for you, we've dug deep into the boat insurance industry and highlight the best sailboat insurance options to go for.

Table of contents

How to Find the Best Sailboat Insurance Coverage for You

There are a few things to consider when looking for the best boat insurance coverage for you.

What Does the Boat Insurance Cover?

It's of great importance to know what will be covered by your preferred boat insurance company before taking your boat out on the water. Needless to say, insurance policies and contracts are always very complex, so taking your time and understanding everything is essential. To give you a head start, here are a few things that your boat insurance should cover.

• ‍ Damage to the boat or permanently attached equipment such as anchors
• Damage arising from fire, theft, vandalism, collision, and lightning
• Property damage liability, which is essentially the damage that your boat causes to someone else's property
• Bodily injury liability, which revolves around the expenses incurred when someone gets injured on your boat or by your boat
• Medical payments for expenses incurred by you and your passengers in the event of an accident
• Guest passenger liability, which revolves around the legal expenses incurred when something happens if another person was using the boat with your permission
• Mechanical Breakdown coverage, which pays for the repair of any part of the boat as long as it's not caused by wear and tear

Some of the things that are not included in the insurance include:

• ‍ Normal wear and tear
• Damage caused by sharks or other creatures
• Defective machinery
• Damage caused by mold and insects

Types of Boat Insurance Policy

It's essential to know the type of boat insurance policy that you want. The two common options include:

Agreed Value - This is the amount that is agreed between you as the boat owner and the insurance company. This boat insurance tends to be more expensive since your boat's depreciation isn't taken into consideration. So in case of an accident, the insurer can even end up paying more than the current value of the boat.

Actual Cash Value - This revolves around the insurer paying up to the current actual value of the boat if anything happens. These premiums tend to be lower since the insurer will calculate the depreciation value and pay depending on the actual value of the boat.

Important Things to Know

Here are some important things to know as far as boat insurance is concerned.

• ‍ Navigational Limits  - These are limits that outline where you can navigate your boat and you may not be covered if you venture beyond the agreed territory. Needless to say, your premiums will be higher if your navigation limits are extensive.
• Marine Inspection  - Most insurers will require your boat to be inspected by a certified marine surveyor to assess the condition for the boat and its market value.
• Layup Periods  - These refer to periods when you take your boat out of the water such as during winter when you're not boating. Most insurers will give you credit but you may not be covered if you take the boat out for a ride during the layup periods and something happens.
• Underage Operators  - Do not be tempted to offer your boat to an underage if he/she doesn't meet the age and license requirements in your area.

Best Sailboat Insurance Companies

Progressive.

As one of the leaders in the insurance industry, Progressive has been providing boat insurance for over 35 years. This company has insured over 1 million boats and has a network of independent agents across the country who are always willing to guide you through their policies.

Although Progressive is widely known for providing auto insurance, its boat insurance offerings revolve around covering small to medium-sized boats measuring not more than 50 feet in length with value not exceeding $500,000. Some of the coverage options to expect from this company include collision coverage, comprehensive coverage, bodily injury and property damage liability, medical payments, mechanical breakdown coverage, and many more.

Unlike most boat insurance companies, Progressive doesn't require boaters to provide a navigation plan. As long as your seafaring adventures are within 75 miles of the U.S. or Canadian coastlines, Progressive will offer a solid and reliable plan for your boat insurance. The company's customizable boat insurance is a cherry on the cake as it makes it a lot easier for boaters to bundle their policies and work within their budgets.

Allstate - Best for Budget

Consistently ranked among the best by various rating institutions in terms of financial strength and customer service, Allstate is one of the biggest providers of boat insurance in the country. With boat coverage options as low as $21 monthly, Allstate offers some of the most affordable coverage options in the boat insurance industry.

The company offers many types of boat insurance and pledge to keep their customers in good and safe hands. From your repair costs, trailer coverage, watercraft liability coverage to uninsured watercraft coverage, and many more, the average cost of boat insurance from Allstate is just about $20 a month.

Nationwide - Best Option for Bundling

Offering unique options for each boater's unique boating lifestyle, Nationwide is widely known for offering the best multi-policy options in the boat insurance industry. In other words, it can give you some of the best coverage options for your boat if you decide to combine your home, car, and boat insurance. With this, you'll get amazing extra perks such as rental reimbursement coverage, optional towing, and road assistance if your boat trailer is included in the coverage.

This is a company that will offer you amazing deals and discounts of up to 25% if you choose to bundle your boat insurance with at least one other policy provided by the company. What's more; they offer affordable packages for fishing equipment ($1,000), personal effects ($3,000), and towing ($500). 

United States Power Squadron (USPS) Boat Insurance Program - Best for USPS Members

USPS is one of the few boat insurance companies that strictly offer insurance for boats. This may be quite disadvantageous for those looking for bundling options but it's great if you're looking for a company that puts its total focus on ensuring your safety and that of your vessel while out there on the water.

As such, this company offers automatic coverage for water skiing, hurricane safe harbor reimbursements, and personal effects coverage of up to $1,500. It also offers automatic fuel spill liability not exceeding $854,000. This is a company that offers among the most competitive packages for serious boaters out there. They offer online quotes, same-day coverage, and policy discounts if you pay premiums in bulk as well as round the clock claims processing.

Markel - Best for Anglers

If you're an angler looking for the best boat insurance for your vessel and fishing equipment, as well as other personal effects, look no further than Markel. With its professional fisherman policy, this company offers replacement cost coverage of up to $5,000 for fishing equipment and cost coverage of up to $10,000 for personal effects.

The company also offers discounts for operators aged 40 and above, accident-free discounts, and discounts for anglers or boaters with more than five years of experience. The best part is that you can save up to 35% on your boat insurance premium if you qualify for these discounts.

So whether you're a professional angler or just fishing for fun, Markel offers some of the best boat insurance coverage options for anglers. You'll be in safe hands with just $100 per year but this may depend on the coverage options that you need.

BoatUS - Best for Additional Benefits

Acquired by Geico in 2015, BoatUS has been offering boat insurance through its affiliation with the Boat Owners Association of the United States. It offers all types of coverage options including actual cash value coverage, liability-only coverage, and full coverage at an agreed value.

The best part for considering BoatUS for your boat insurance is that the company has some of the best additional benefits in the boat insurance industry. For example, all policies must include fuel spill liability coverage and supplemental medical coverage. This, therefore, means that the total costs of your insurance premiums will be reduced significantly thanks to these deductibles and additional benefits. You can also get discounts for good driving records and the completion of approved safety courses. For members, there are even more additional benefits.

State Farm - Best for Emergency Services Coverage

As one of the best-known names in the insurance industry in the country, State Farm might be your go-to-guys if you're looking for the best emergency services coverage. The company offers optional emergency services for up to $500 to service your boat, boat trailer, or motor in case of any damage as stipulated in your coverage contract. The company's optional wreck-removal coverage can also be ideal for you if you're looking for reasonable expenses if you're required by law to raise or remove your boat or wreckage.

The company also provides multi-policy discounts, which can be ideal for you if you want to cut down paperwork and combine your home, auto, and boat insurance. So whether you're a proud owner of a yacht or a modest kayak, State Farm can provide coverage options for your unique needs, especially in times of emergency.

Foremost - Best for Flexible Coverage Options

Known for offering affordable boat insurance coverage options across the country, Foremost can be a great option for you if you're looking for a boat insurance company that can offer coverage options that are suited for your unique insurance needs. Some of its unique coverage options include enhanced towing services, hurricane haul-out, additional pollution liability coverage, fishing tournament fee reimbursement, trip interruption service, pet coverage, and many more.

Most of these coverage options are flexibly tailored to lower your premiums and make boat insurance quite affordable. This company is widely known for insuring specialty risks and can easily offer good, better, and best coverage packages depending on how much you're willing to pay and the types of coverage options that you want.

Hagerty - Best for Classic Boats

Just like classic cars, we all know that classic boats are a rarity and you certainly want the best insurer for your unique an exotic classic boat. Of course, owners of classic boats have special needs that might not be the same as other boats, and this requires a company that offers these specialties. Well, Hagerty takes immense pride as one of the best boat insurers for classic boats.

The company not only offers personalized insurance services but also utilizes actual cash value to determine the right coverage limits for your boats. Its agents are also affiliated with well-known boating clubs whose members are generally proud owners of classic boats. So you can consider joining one of these boating clubs and you might be in for significant discounts on your insurance premiums for your classic boat. 

United Marine Underwriters - Best for Personalized Customer Service

Having provided boat insurance across the United States except in New Mexico for nearly three decades, United Marine Underwriters takes immense pride in presenting itself as a specialty boat insurance company that puts a lot of emphasis on customer service, happiness, and safety.

This company offers liability limits of up to $1 million and you get various discounts if you meet certain thresholds. For example, you'll get substantial discounts if you complete one of the recognized boat safety courses that are approved by the National Association of State Boating Law Administrators and the Coast Guard Auxiliary and Power Squadron. The company also assigns you a primary service person to take care of all your servicing needs, which is why it's widely known for its excellent customer service.

Legally speaking boat insurance is not a must in many states unless you come you're planning to boat in Utah, Hawaii, and Arkansas. However, the peace of mind that boat insurance gives you when out on the water can never be underestimated. And because your boat is probably one of your most prized possessions, it's essential to choose the best sailboat insurance option; something that covers all your needs.

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I've personally had thousands of questions about sailing and sailboats over the years. As I learn and experience sailing, and the community, I share the answers that work and make sense to me, here on Life of Sailing.

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Average Cost of Boat Insurance

Average boat insurance cost by state, factors influencing cost, top five boat insurance companies, how to save money on boat insurance.

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How Much Does Boat Insurance Cost?

Cost depends on your location and other factors

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Average boat insurance costs range from $245 to $652 per year ($20 to $54 per month), depending on where you live and other factors. However, what it will cost to insure your boat could be different. Learn how much you can expect to pay for boat insurance, the best companies offering boat insurance, and how to reduce costs.

Using its 2020 and 2021 data, Progressive calculated the average annual premium for boat owners in all 50 states. The insurer then broke down the averages into three price categories: low-, medium-, and high-cost. Each state’s average premiums are likely slightly lower or higher than the average for the category.

States with low-cost boat insurance tend to be inland without direct access to a coastline. States on the Great Lakes also tend to have lower insurance rates because the boats used there are smaller than those used on the ocean, and the boating season is shorter than in southern states.

Boat insurance costs tend to be more expensive for residents of coastal states because boats in these areas are usually bigger and more expensive. Also, since the weather is warmer year-round, people can use their boats throughout the year, which means a higher likelihood of accidents.

The state-by-state averages below can give you an idea of what you might pay for boat owner’s insurance . However, the actual cost of your policy will depend on factors like the insurance company you use, the size and value of your boat, and your experience as a boater.

*Average rates are from Progressive, based on 2020 and 2021 boat insurance data.

Besides the insurance company you work with, there are a few other key factors that impact how much your boat insurance is per year. Knowing these can help you predict your boat insurance cost and identify discount opportunities.

• Location : Where you live and keep your boat is one of the top factors influencing costs. Some states, like Alabama, New York, and Florida, are considerably more expensive than inland states like Arkansas and Wisconsin.
• Type of watercraft : Insurers have different rates for different types of watercraft like fishing boats, motorboats, pontoon boats, and sailboats. In general, the more expensive the watercraft, the more expensive the boat insurance. Jet skis are a separate category, too.
• Your boat’s age : New boats are more valuable than older boats. As a result, they cost more to insure because the damage would be more expensive to repair or the boat more expensive to replace.
• Your boat’s horsepower : High-horsepower boats tend to have higher premiums than boats with less horsepower.
• Your boating history : Insurers will consider how long you’ve been boating. The more experience you have, the lower your rates. They also consider whether you’ve had any past boating accidents. Those would increase your premium.
• Your driving record : Insurers may also look at your car driving record while calculating your policy premium. People who are safe drivers tend to be safe boaters, so they pay less.
• Whether you’ve taken safety measures : Insurers give discounts if you take safety measures for your boat, like installing an automatic fire suppression system or Emergency Position Indicating Radio Beacon (EPIRB). You could also qualify for a discount for passing an approved boat safety course recognized by the Coast Guard.

Best for Fishermen: Markel

Whether you fish commercially, in tournaments, or just for fun, Markel provides policies tailored to your needs. It provides extra coverage for fishing equipment and professional angler liability on top of its coverage for standard boat insurance.

Best Value: Allstate

Allstate does an excellent job offering quality boat insurance that is also competitively priced. Its plans include comprehensive coverage amounts for property damage, medical injuries while boating, and liability . Its plans start at $25 per month and offer numerous ways to get discounts. If you need help planning your insurance, Allstate offers a large library of online materials and support from local agents.

Best for Cheap Boat Insurance: Progressive

If you’re trying to get the lowest price on your boat insurance, Progressive may be a good choice. It advertises rates as low as $100 per year ($8.33 per month) and offers multiple discounts. A downside is that Progressive only covers boats up to 35 feet in hurricane areas.

Best for Policy Bundling: Nationwide

Insurance companies tend to give you a discount if you buy multiple types of insurance from one insurer.  Nationwide offers bundle discounts if you combine your boat insurance with Nationwide home, auto, or life insurance policies. Nationwide also offers other discounts to help you save money, such as covering multiple boats at once and taking a boating safety course.

Most Customizable Coverage: Foremost

If you have a unique watercraft or special needs for your insurance, Foremost offers the most customizable coverage. It offers Saver, Plus, and Elite Packages, each with increasing levels of coverage. It also offers coverage for specific watercraft such as fishing boats, performance boats, cruisers, and pontoons.

• Only get the coverage you need : Consider how you use your boat, and make sure the insurance policy isn’t offering coverage you don’t need. For example, if you store your boat in the winter, you may not need insurance during those months. If you only use your boat in lakes and streams, see whether you could get a reduced rate based on your limited use.
• Bundle insurance policies : Insurers offer discounts if you buy multiple lines of insurance from them. If you buy your boat insurance from the same company that you have car ,home, and/or life insurance with, you could potentially save on all of them.
• Shop around : Before buying a boat insurance policy, collect quotes from a few different companies. You might find that one insurer offers a better deal than others.
• Ask about discounts : Insurers offer different discounts. For example, discounts may be given for enrolling in automatic payments, covering multiple boats at once, storing your boat during the winter, and going a certain number of years without an accident or watercraft violation.
• Invest in safety : Insurance companies offer discounts if you show you’ve got the right safety equipment on your boat like life jackets, life rafts, fire extinguishers, EPIRBs, and visual and sound signaling devices. They may also give you a discount if you take a boat safety course. 
• Increase your deductible : The deductible is what you pay out-of-pocket before your boat insurance covers damages. By increasing the deductible, you lower the premium. Just make sure you have enough savings to cover the deductible should you need to pay it.
• Don’t file claims for minor damage : If you have a minor accident, consider paying for damages out-of-pocket instead of using your insurance. In the long term, you could come out ahead since your insurer may raise your premium once you’ve filed a claim. 

How to Choose the Best Boat Insurance 

Consider your boating needs.

The right boat insurance company depends on how you use your boat. What kind of boat do you have? Do you go out on the ocean or on inland lakes? Do you fish and have fishing equipment? Do you live on the boat? If you meet with an insurance agent in person or call the insurer, be sure to provide all the relevant information so you can get the best boat insurance for your needs.

Understand Different Boat Insurance Types

There are different types of boat insurance coverage, just like there are different types of auto insurance coverage. Here are a few you’ll likely encounter as you look for a boat insurance policy: 

• Property insurance : Covers damage and repairs to your own boat after an accident. It also covers theft. Additionally, property coverage typically protects your boat when it’s on land, too.
• Liability insurance : Covers damage you cause to others from an accident that was your fault
• Medical payments insurance : Can help pay for medical bills If you or your passengers are injured in a boat accident
• Uninsured watercraft coverage : Can help pay for repairs if another boater damages your watercraft and doesn’t have insurance

You could save money by forgoing some of this protection, provided you are comfortable covering the cost of damage yourself. For example, if your boat is less expensive, you may only take out liability to cover damage to others and take on the risk of paying out-of-pocket to repair your boat after an accident.

Compare Multiple Quotes

Each boat insurance company has pros and cons. Collecting quotes can help you measure what value you’re getting from each insurer. You may find that one insurer offers a much lower cost for boat insurance than others while providing a similar level of coverage. Some companies also offer an online boat insurance cost calculator to give you a rough estimate of what their policies cost.

Read Through the Policy’s Fine Print

Each boat insurance policy has specific rules and restrictions. Make sure you understand how the policy will pay to repair damages to your boat. For example, an actual cash value (ACV) policy pays based on what your boat is worth on the date of an accident. An agreed-value policy pays a set amount you and the insurer agree on—the amount is the same even if your boat has fallen in value by the time of the accident.

You should also see what kind of restrictions are in your policy. For example, are you prohibited from heading outside certain geographic boundaries or using your boat in a competition?

Speak With an Insurance Expert

For more help navigating boat insurance policies, meet with an insurance agent. Another option is to contact an insurance broker. A broker sells policies from multiple insurers, and can help you compare how much boat insurance is at different companies.

What Does Boat Insurance Cover?

Liability boat insurance covers damage to your own watercraft as well as theft. If you cause an accident, it could also cover the damage caused to the other person. What a boat insurance policy covers specifically depends on the contract terms.

Do I Need Boat Insurance?

Yes, you probably need boat insurance if you own a boat. While your homeowners insurance policy may offer some coverage for boat damage and theft, the typical coverage maxes out at $1,500, and the policy won’t cover accidents on the water. You may need extra boat insurance if don’t want to pay out-of-pocket for repairs. At the very least, consider a liability policy to cover damage you may cause to others during an accident.

Is Boat Insurance Required?

Most states do not require boat insurance . However, if you keep your boat at a marina, the marina may require it. If you took out a loan to buy your boat, the lender likely will ask you to buy insurance.

What Does Boat Insurance Not Cover?

Boat insurance generally does not cover maintenance or damage from normal wear and tear. Boat insurance also usually does not cover damage from insects, mold, or animals. Your boat insurance policy should specifically say what it does not cover.

Does Boat Insurance Cover Hurricane Damage?

A typical policy would cover damage to your boat from the wind and hail from a hurricane. If your boat ends up damaging someone else’s property because of the storm, boat insurance liability protection would cover that, too. Be sure to check your policy specifics, though, to make sure it covers hurricane damage.

Progressive. “ How Much Is Boat Insurance: Average Cost .”

Progressive. “ Boat Insurance: Get a Quote Online .” 

Ryan Agency. “ Does My Homeowner's Insurance Cover My Boat? ”

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How To Make Yacht Insurance Suck Less

We’re starting our 6th year as liveaboard offshore sailors. And without a doubt, yacht insurance has been the most unexpected pain in the arse!

We’d always been told: Getting sailboat insurance the first year would be a challenge.  It will be the most expensive for year one because we were newbies…with almost zero sailing experience. But those two warnings were quickly followed up with a little optimism: As you stretch your sea-legs, gain more sailing experience and log more time on the water, options would open up and insurance would get cheaper.

Lies. All Lies.

And it’s not just us, it’s every offshore USA flagged boat owner we talk to. Yacht insurance as an American sailor abroad just kinda sucks. Especially in the South Pacific (for some odd reason). I can’t offer up any words of wisdom on how to fix this mind-bending insurance system, but we have learned a lot on how to best present ourselves and our vessel.

Of course, we are NOT experts and there is still a lot we don’t know. But, if you’re a newbie buying your first boat or a fellow sailor struggling to get offshore, bluewater, around-the-world coverage, hopefully, this information will make the process suck a little less.

Here are the biggest tips we’ve learned about getting boat insurance.

Why is it so difficult to get offshore yacht insurance???

We ask this question to all the insurance brokers we contact and here are some of the responses we’ve received.

• “The current yacht insurance market is getting hard to place coverage for cruisers abroad, and with the majority of the south pacific closed it isn’t very appetizing for US or London Insurers to provide coverage. Inevitably with time, the insurance industry will reopen.”
• “Big, negative changes in the boat insurance markets due to 100,000+ lost vessels in the last 3 years.”
• (increase in natural disasters: hurricanes, floods…)
• “If anyone asks you to sign a Broker of Record Letter , they are trying to get you a quote that I’ve already sent to you…the number of options (or offshore insurance) are narrowing down!”
• Underwriters had a lot of losses in the hurricanes and have really cut down on writing new business that involves long passage making and remote places. If the vessel has a claim, it is hard to find a haul-out, get work done, adjustors, survey, etc.

Why We Need Insurance

Our catamaran is our home, transportation, and everything we own. To us, it’s just not worth risking. In the past, sailors talked about cruising without insurance and how it wasn’t necessary. But the rules are changing. Even in the 5 years, we’ve been sailing we’ve noticed more and more places where sailboat insurance is a requirement. If you plan to sail around the world, here are some of the reasons why you may need yacht insurance.

• Many countries are mandating insurance for entering yachts (Australia, Portugal, and others). And some countries like Panama and Ecuador have required proof of insurance from us when checking into the country.
• Marina’s, Mooring Balls, and Haul Out Yards will require proof of insurance.
• If you have a loan on your vessel, the bank will most likely require insurance.
• Hit and Run Boaters are also a thing.  Insurance is expensive and many boaters choose to go without.  Imagine when that person accidentally bashes into your boat while you’re on a provision run…it’s not likely they’re going to drop the hook, dinghy over and leave a note on your boat with their contact info.  Shoot, even if you see them do it what are the chance you’re going to get money out of them?  If you have ‘hit and run’ coverage your insurance company will pay for the repairs.
• Liability! There are a lot of scenarios we could talk about here (dragging anchor, busting off a mooring, hitting a $10,000,000 mega yacht at a fancy marina) and it’s all about what else we could damage that isn’t our boat. If we were to run up a reef, we become responsible for not only the removal and repair of our vessel but any damage to the reef, the property we’re on, and even the government agencies that maintain the oceans/fisheries. Talk about going bankrupt in a hot second!

3 Important Questions To Ask

There is a lot of industry jargon to interpret when it comes to boat insurance. It’s important to do your homework, read the policies, research anything you don’t understand, and ask a lot of questions. Here are some of our standard inquires.

• Is this an ACTUAL CASH value or AGREED AMOUNT value policy? We want Agreed Amount .  If the insurance company has agreed to insure our vessel at $300k, then we should receive a payout near that agreed value (not whatever some random computer says the generic value is. We have a lot of upgrades on our boat that the average coastal cruiser or charter boat wouldn’t have).
• Salvage: Who picks up the bill if the boat needs to be salvaged? (from sinking, hurricane damage, etc) When we have a claim, how much help will the insurance company give us? For example, if the boat is damaged in a storm: Who handles the Salvage claims and repair process (find salver, crane, trucking, towing, repair facility, angry property owners, govt. official/agencies). To handle all of this on your own can be EXTREMELY STRESSFUL.
• Consequential Damage: Does the policy have consequential damage coverage: For example what if a corroded through-hull causes the boat to sink (thinking of our single-hulled friends), or a fire breaks out and we don’t have automatic fire suppression in the engine locker (because we don’t)…If we don’t have consequential damage coverage, then a total loss claim could be chalked up to wear and tear.

Terms are Negotiable

Don’t take the initial quote as gospel. Just because a quote comes back with restrictions and requirements doesn’t mean they can’t be negotiated. If you don’t like something, ask about what you can do to change it.  Provide additional documentation, upgrade something, take a higher deductible, take a first aid class…ya never know unless you ask.

If the policy says you need to be out of the hurricane zone by June 1 st , but your boat isn’t ready to leave, ask for an extension and provide the reasoning. They may give you an extra couple of weeks at no cost. It’s worked for us while we were in Florida.

Crew requirements can be modified. If the underwriter says you need a 4-person crew, resend your sailing resume and plea your case and experience. Explain how your vessel is set up for single-handing, or how you’ve sailed with a smaller crew in more challenging conditions. If it’s compelling, they can make adjustments.  We’ve had to do this a couple of times over the years before paying for a new insurance policy,

If a new policy requires a haul-out and survey, but it’s not possible (or cost-prohibitive) to get this at your current location, tell them your intentions are to get a survey once you arrive at the next destination. They may give you 30 or 60 days after arrival to complete it. One of our quotes for 2021 agreed to let us delay the survey until after we arrived in NZ.

Rates We Have Paid

We all like real-world numbers and not hypotheticals. So here is a very quick glance at what we have paid over the past 6 years of being offshore sailors.

Remember, we have had to find a new policy every freaking year.  Each year we contact everyone on the list below for quotes, but this year (2021) we hit a new record: The worst quote we’ve ever received at a whopping $11,300 from LJJ (a Lloyds of London underwriter).

We insure our 2005 Leopard 43 Sailing Catamaran at a value of $320,000 usd.

• 2016, Florida/Bahamas: $3860
• 2017, Florida/Bahamas/Panama/Ecuador: $4943
• 2018, Ecuador/ French Polynesia: $4655
• 2019, French Polynesia/Cook Islands/Niue/Tonga: $5517
• 2020, Tonga: $6674
• 2021, Tonga/New Zealand – $4305  (Brokerage: The Marina Shop NZ)

Who To Contact

Yacht Insurance is a complicated world filled with what feels like way too many cooks in the kitchen. There are insurance brokers, insurance companies (including mutual insurance associations), reinsurance companies, and adjusters. To further confuse things, many of the insurance companies are backed by insurance giants like Markel and Lloyd’s of London.

For simplicity’s sake, we’re breaking this up into 2 groups: Yacht Insurance Brokers and Yacht Insurance Companies.

Finding companies that insure US-flagged vessels and provide coverage in our intended cruising area is difficult. One year a company won’t quote us, the next they will. It changes every year and so even if you don’t get a favorable quote one year, try again next year.

Yacht Insurance Brokers

A broker is who we contact to get the quotes and they may work with or submit our information to 1 or 100 different insurance companies to get quotes. We contact at least half a dozen brokers every year for quotes. TIP : If you’ve already received quotes from certain companies, tell the broker in advance so they don’t spend their time getting you exactly the same quotes. Here are the brokers we contact each year. Ask your fellow sailors for their broker information too.

• The Marina Shop (NZ), Contact: Bill Garlick
• International Waters Insurance Services, Contact: Susan Waters
• Novamar Insurance, Contact: Charlie Bailey
• Bailey’s Insurance (NZ), Contact: Ken Monk
• W.R. Hodgens Marine Insurance, Contact: Bill Hodgens
• Global Marine Insurance Agency, Contact: Susan Everhard

Yacht Insurance Companies

This is who is writing and backing the policy (underwriter, reinsurance). Here are the ones we’ve tried with notes on quotes or responses.  Your experience with each will no doubt be different.

• Jackline – Will not insure yachts with lithium batteries
• Yachtinsure Limited – Not insuring in the S. Pacific
• Concept – Medium-High quote, loads of restrictions
• LJJ Associates – Highest Quote
• Kemah Marine – High Quote, Few Restrictions
• Admiral Marine – Only insures European vessels
• Chubb Insurance – Cannot quote yachts outside the USA
• Club Marine – Only insures coastal cruising (250 nm from land) in AU, NZ, and TAS
• Pantaenius – High Rate Quotes for the Atlantic & would not quote us for the S. Pacific
• National Specialty Insurance (State National) – Insured us in 2019 & 2020
• Global Yacht Cover – Insured us in 2018
• DUAL Aqua – Insured us in 2017

Sailing Resume, Boat Resume & Maintenance Log

Probably the biggest lesson we’ve learned is to invest time in creating and maintaining a sailing resume, boat resume, and maintenance log. We’ve had multiple insurance brokers compliment us on our approach with these documents and tell us it does make a big difference.

Sailing Resume

Think of it just like a personal job resume. You can even use the free templates online from Microsoft word or whatever program you have. If you want some examples, search for yacht crew resume and you’ll find bunches. But, here is what we have on ours.

• Any professional sailing instruction or certifications (ASA courses). A list or table of the number of days, sizes of vessel, and level of instruction such as basic introduction, skippering training, bareboat charter, off-shore training.
• A good headshot of us at the helm.
• Any safety instruction or certifications. First Aid, First Responder…we even list our PADI open water certification.
• List of boats that you have owned, the type of boat, the size, and for how long.
• We include what country or body of water it was in.
• We note the nautical miles sailed.
• Note if it was a multi-day (list how many days) or overnight passage.
• Special endorsements that you have been given by an instructor (ex: catamaran sailing, engine maintenance, maneuvering and docking, heavy weather, etc.). Letters of recommendations from certified captains can help prove competency.

Boat Resume

I haven’t been able to find any examples online but I think of it much like a for sale listing.  Lots of photos (front, sides, back, top-down) and I list out every safety benefit I can muster.  We include:

• Year, Make, Builder, Length:  2005 R&C Leopard 43 Sailing Catamaran.
• Home Port, Registration (US Coast Guard), MMSI number, Hull ID number.
• Tender information (and photos): Year, make, construction type, registration, hull ID, engine.
• Description of the boat, how it’s known as a bluewater sailboat built for reliable construction, seaworthiness, and performance. With extra emphasis on reinforced construction, sealed bulkheads, high-quality materials…
• Images of the layout of the boat from the manufacture (scans of original brochure).
• List out all additional upgrades and safety equipment (anything showing redundancy, additional safety, or reliability)
• Details of our sail plans for the year (passage from Tonga to New Zealand, coastal waters of New Zealand)
• Quick List of Crew and experience. The cliff notes version of our sailing resumes.

Maintenance Log

This one is fairly straightforward. We have photos from our haul-outs and list work completed, upgrades, and replacements.

We have our most recent survey and a signed survey compliance list from the yard proving that we completed the tasks mandated by the marine surveyor. But ask your broker before sending this, if your survey is more than 2 years old they may want you to ‘keep it in your pocket’ and only provide it if the underwriter requests it.

We also keep a maintenance log of our engines and routine maintenance. We let the broker know this is available upon request.

Tips To Get The Best Quote

There are a lot of factors that affect boat insurance costs. The age and condition of the vessel, the cruising area, and your experience all matter. But there are a lot of extra details worth considering.

• Select the highest deductible you can afford. Often it’s automatically set at 5%-10% on quotes. If you can afford 15% or 20% it can save a substantial amount each year.
• Umbrella Policy: Insure personal articles through another insurance company like homeowners, renter’s insurance, personal items policy, etc.
• Be realistic with your estimated values and revisit them each year. If similar boats are selling for $100k don’t try to insure your boat for $150k. If you paid $10k for your RIB 5 years ago, consider lowering the estimated value to reflect the market value.
• Limit Emergency Evacuation and Towing benefits. Seek 3 rd party companies as they are sometimes less expensive and provide more comprehensive services. For example DAN (Divers Alert Network) or programs like Sea Tow or Boat US.  Also, check with your health insurance company about the costs of adding medical evacuation.
• Safety: Upgrade your safety gear like Bilge Pumps, EPRIB, Off-Shore Life vests, Life Raft, Flares, AIS MOB, etc. One insurance company wanted to make sure our vessel had an EXTRA 1500 gph bilge pump that could be easily wired and placed in the bilge for emergencies.
• Cruising Plans: Be realistic with your Cruising Plans and understand the navigational limits. Cruising grounds requested can play a big role in coverage and cost. Some countries are considered safer to visit and cost less to insure. For example, it is possible to sail to Cuba, but many insurance agencies will charge an extra premium because navigation aids aren’t kept up and charts aren’t always accurate, making it more challenging to navigate. You can often add locations mid-policy, sometimes for free, or for way less than adding it to your planned navigation route from the start.
• Stay out of hurricane or cyclone zones when possible.
• Storm Plan: If you boat in a hurricane zone, your insurer may expect you to provide a hurricane plan. If a storm approaches, will you have it stored in a hurricane-proof facility or will you sail it to a safe harbor? How will you secure it? How many anchors & lines do you have, and what thickness? The right answers can affect your rates, maybe even lower them, but be prepared to follow the plan because your coverage may require it.
• Lock up your dinghy, and dinghy engine even on the davits. Lock lockers with valuable items like SCUBA compressors, or expensive toys. Take photos for proof. Many of our policies had notes in the “fine print” saying if a dinghy (or locker) wasn’t locked up, they wouldn’t cover the loss.
• Recent Marine Survey (Less than 3 Years Old, Proves the Age and Condition of the Vessel).
• Install an Automatic Fire Suppression System.
• Enlist more crew for passages.
• Go propane-free.
• Complete higher certifications (such as a Captain’s License).

🙏 THANK YOU!

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Hello there! I honestly don’t know what to say, so I am going to tell you a bunch of random facts instead. I'm a fish eating vegetarian who hates spiders and loves snakes. I almost never took vacations growing up. I wanted to be Pippi Longstocking (still do). I misspell about every other word I write and still struggle with grammar. I love splurging on a good high tea (which is really hard to find these days). And whatever you do, don’t tell me I can’t do something, because then I'll HAVE to do it!

Comments (87)

Becky de Sancha

I follow your channel weekly but have doubled back to this article as we are now having a HUGE problem with insurance. We have a 1992 catamaran which we have spent the last 4 years renovating and are almost ready to set sail. We are in Madeira and plan to head to Africa for the first leg of our journey. Our problem we can’t get insurance. Everyone says no, due to the age of the boat and destination we plan. It was a struggle to just get Portugal and they won’t even cover Canary Islands. How on earth will we get world wide. We are happy with just third party so it all seems crazy. Your article was very useful. I am going to try a different approach by adding resume for us… I have RYA Yacht Master. Also resume of the boat as they just see the age and not all the work we have done. My partner is a professional fibreglasser and worked on hundreds of boats. Thank you for your article. Very informative as usual. Becky

I enjoy watching your videos and learned much from this article on insurance. Thanks for the hard work you put into your art.

I have a very unique physical issue that insurers may think increase risk. I am concerned they may turn me down. Do insurance companies ask for information such as the results of physical examinations or eye tests?

Curious Minion

I’m unclear if you’re asking about health insurance for you, or loss/damage insurance for the boat. If health insurance, then yes, most policies ask you to disclose known health issues or require a physical exam. If for the boat, then I don’t believe they will ask. At least as far as U.S. companies are concerned. Curious Minion

How about coverage limits – in particular Third Party Liability (TPL)? is $1M enough TPL?

That’s a question for an agent as it may be dependent on where in the world you are, your type of boat, experience, etc. Curious Minion

Nice insurance summary, a few minor corrections; Jackline is the name of a policy created by the late Al Golden, founder of the brokerage firm IMIS, sold only by them (now IMIS/Gowrie) and is underwritten by Markel. They will consider Lithium but only from UL rated/ABYC TC-13 complaint systems such as Lithionics. Keep up the good work.

You mention that insurance is mandated for entry into Australia. I’ve just looked at the Australia website listing their entry requirements. An insurance policy is not listed. What is your source for stating insurance is required for Australia?

TTRPG Sailor

I cannot say thank you enough for this! We used the video and the blog to help get our insurance, and without it I do not think we would have succeeded! Thank you for all the help!

First, that was a very informative and thoughtful video and write up. Thanks!! Very timely as I need to make a registration decision and insurance decision over the next few months for a catamaran (circa 50 ft). I am considering US or BVI registration. Both US and BVI (Red Ensign) have solid standards and reputations (as opposed to some flags of convenience), and I hope I never need either the US Navy or British Navy to protect me but both are very professional. I expect to have the boat in US, Bahamas and Caribbean for next few years. Does anyone have experience and a viewpoint about insurance rates and availability between these two places of registration?

No video this week – I hope you are both all right! xxx

They announced on social media and Patreon that they were taking a week off. Follow them @gonewiththewynns for real-time updates and bonus content! Curious Minion

Who insured you 2016?

It’s Sunday, where are you? Are you both OK?

They announced on social media that they are taking the week off. For real-time updates and extra material, follow them on social media (FB, IG, Twitter) @gonewiththewynns Curious Minion

Richard Marshall

We’ve been sailing our Leopard 47 in the South Pacific for four years. All this information you’ve organized is like gold. Thanks so much for taking the time to put all this together! It will help a lot of other cruisers. I don’t know about you, but we very pleased with Bill at The Marina Shop. It seemed like we finally had sane and sensible coverage. Global Yacht has been very easy to deal with regarding cruising plan changes…and price!

All the best! Rich and Michelle on Pogeyan

Really enjoying your vids, and the quality of the production. Insurance oh oh! Not sure whether this apocryphal, but a couple going on a circumnavigation, (inc Pacific) said that fitting a forward scan sonar, and lightning strike mitigation, gave them a useful discount on their insurance quote. It seems that a growing number of ‘Pacific’ losses/damage are coming from reef/coral impacts.

In case you haven’t seen it. SpaceX/Starlink have just filed with the FCC for permission to beam to Trucks, Planes, and Boats. Source – Verge.com & Elon Musk Tweet.

Alan Solomon

Thank you for getting back with me. If Jason’s hair matched his eyes he would be a spectacle. Blue hair on Jason? He is good like he is now! Pretty much earth tones for hair. No?

Judith Eller

Excellent article. Lots of good ideas and points on insurance. We are looking for off shore cover (NZ to Fiji) and our insurer requires a third crew member on top of a husband and wife team. My husband has a lot of blue water experience and is a boat builder- he built the boat ( a Ron Given Catamaran 14.5) to a very high standard to go off shore and we have completed all the courses ( 2 First Aid off shore and coastal, Survival at Sea, Coastal navigation and boat masters). Thanks for putting in so much detail.

Bernard Schaer

Not my topic at all, but I’m always looking forward to your next vid on Sunday. It’s been a fixture ever since your (and my) RV’ing days… Thanks! Bernard

Long shot, but did you try Geico? Their quote was only slightly higher than Markel. My first year of boat ownership the ins company wanted me to train under a captain for a number of hours. I wrote a letter explaing my career flying hot-air balloons for nearly 30 years. They waived the requirement. They would not back down on the requirement of having two propane sniffers within about 8′ of each other? (one at the galley’s range and one at the Sig Marine heater).

James Pierdon

Next time you cut his hair cut it all off. That bulky mess looks aweful.

James, we’ve never asked for fashion advice. Commenting on people’s looks or haircuts is in poor taste. I am his wife and his barber and I am good with it and that is all that matters.

Good for you Nikki!

You mentioned having access to Netflix. If you haven’t already, you might want to check out their documentary “My Octopus Teacher.” Wonderful both in plot line and in scenery/photography.

Watched it and loved it!

I’m in shock of how much money it goes to Insurance wao!!!

JR Thornton

Was wondering if you have had any insurance claims in last 5 years?

Paul Smyers

I’m curious about this as well, but pretty sure they’d talk about it if they had. We’ve been on a similar catamaran for nearly 3 years and it’s been the same frustration for insurance for us and we’re still in US waters, with no claims.

Never a single one!

Wow. You guys got a ton of comments. An important issue for sure that should be researched annually for the best deal. To bad you don’t get dollars off and/or restrictions lifted as well as continued coverage for coming year(s) for continued accident-free safe passage? Fortunately for me, I have no need for boat insurance at this time because I do not own or sail a boat now. But who knows what the future holds. I may win the Lottery and become your neighbor. Anything is possible. 😊 On another note in the beginning of this weeks video I noticed that Nikki’s eyes are the same color as your hair. Very cool. 😎 I was surprised when you pushed Jason overboard. The Hawaiian music was in the background, you pushed him overboard, he said Ugh 🤣 and I could not stop laughing!! In closing, the water is so blue, crystal clear and your Tropical surroundings so abundant. Pink Floyd said it best, I wish I was there”. Happy and Safe.

Yes, you never know what the future holds…we could be neighbors one day! As for the eyes, yes interesting isn’t it. I used to think it was boring (colored my hair a lot) and now I like it. But, how cool would it be if Jason’s hair matched his eyes! Then he would really look like he was born of the sea. 🧜🏻‍♂️

I have 2 friends who live in NZ. (I am in Jacksonville, FL) If that is where you’re headed, and mailing things to them to deliver to you will help, let me know!

Seven On the Sea

Great Right up guys. Appreciate the research and thought put into this article.

🤙🏻 Really love your avitar logo!

Scott Summers

Hi Nikki and Jason, I found your channel on you tube a few weeks ago and have been binge watching the sailing series ever since. My self and my daughter have been watching you over dinner every night. I feel like I’ve watched 5 years of your life in as many weeks. This was the first video we have actually had to wait for. Now the weekly wait is going to seem like forever. Lol.

I must say that ever since the “It’s getting Complicated” video I have been concerned that you might have to sail for Australia. Not that I don’t wan’t you to come here, but the situation with borders and lock downs due to Covid is, shall we say fluid. Brisbane just today (29th March) went into lock down again over just a few cases. I would hate to see you guys stranded at sea due to bureaucratic BS. The state Premiers (Governors in USA terms) here are trigger happy when it comes to lock downs and every state has it’s own criteria, so it’s just plain confusing at the best of times. The states that do shut borders are also being very uncompromising about it too. There were a number of incidents between Queensland and New South Wales. For example a injured child from NSW was medi-vaced to a Brisbane hospital and the parents had to do 2 weeks quarantine before they could visit. As a parent I can only imagine the stress that caused.

Now that you have the insurance issue solved (at least for 12 months) my advice would be to stay in Tonga for as long as possible, order in what you can to fix what you can and come here or NZ later on when the vaccines have rolled out properly (think Christmas time here in Aus) and things are getting closer to normal, I mean it’s more or less normal for Australians but for over seas visitors I think it’s still pretty bad, not the least of which is quarantine. I suspect it won’t be long before it is mandatory for visitors to be vaccinated, so you might want to look in to how you can get that done, if at all possible.

FWIW I work in manufacturing (I have a machine shop) and have access to many things (stainless steel fittings for example) and those I don’t I can make (lol) so if I can help you out with sourcing parts I am happy to help and make up a crate to send it to Tonga. If nothing else someone with feet on the ground in Aus might be useful too.

Good luck to you both.

Deran Eaton

Nikki, Jason,

Thanks for covering this boat insurance topic so comprehensively. Definitely appreciated.

Insights into marine underwriting, based on your testimony — 1) No actuarial consistency is apparent, as the diverse premiums, deductibles, and unrealistic restrictions lists together indicate. 2) When you’ve documented how much of Curiosity’s maintenance log in YouTube video of boat projects (notably hull projects), the willful ignorance of marine underwriters to regard that makes THEM the larger risk for you, because they care more about THEIR interests than yours. Even “Windwalker” has insurance: After a derecho “Windwalker” couldn’t escape snapped her original spar mast (39 years of galvanic corrosion at the spreader joint), my claim adjuster admitted he knew very little about boats and maritime risk assessment. So I gave him an education. And the claim was paid. 3) How many marine underwriters on your search list have a ‘sailing resume’ themselves? Maybe you should ask for theirs when volunteering yours. Ignorance breeds fear, and that contributes to underwriters costing themselves out of that business, or behaving faithlessly with their clients.

Some things you might want to consider for increasing your “sailor resumes” — 1) Learn and master non-electronic navigation skills to wean yourselves from GPS dependence. Celestial navigation using a sextant, for example. 2) Be crew when possible in some one-design monohull sailboat racing. Why: Sharpens your think-on-the-feet sailing prowess, crew teamwork, rules of the road practice, and keeping composure in collision situations (especially around race course marks). In my youth, J-24s served this fun well. 3) Float plan taking Curiosity into exploring the higher latitudes, north or south. So far you’ve just kept to the tropics. 4) Opposite of the “Millennium”, some experience sailing a small boat also diversifies one’s sailing resume. “Windwalker” would be honored to host you both someday for some ‘picnic excursions’ sailing motorless near bald eagle, osprey and striped bass realms. She’s a 42-year old Boston Whaler Harpoon 4.6m.

And for increasing the “boat resume” — 4) Consider a better tender. Rigid-hull inflatables like the “Minion” are light on the davits, but a Boston Whaler built like “Windwalker” won’t sink even when literally chainsawed into multiple pieces. The pieces will still float, keeping safe each soul aboard, plus the outboard motor and other properly secured gear. 5) Keep some redundant spares aboard for essential equipment. I notice Keith W. on “Zatara” does this.

Fair Winds, Happy Easter, and Following Seas,

S/V “Windwalker”

Robert Beltz

Interesting information. Insurance and lawyers.. if we didn’t have em, we wouldn’t need em. Would it make a difference if your boat was a Panamanian registry? Remember no fault insurance? That’s next to the biggest scan ever done. The really big scam is suing someone for damages they caused. Did you know that in many, or possibly most, states it is illegal for the trial lawyers to mention any involvement of insurance companies. This way, the jury is led to believe their verdict will directly effect the defendant, rather than an insurance policy covering all the requested damages.

As far as taking a village. No. It takes two people with incredible fortitude and the ability to sell themselves and their adventures. You run a very special business whose product is an engagement with your followers, some of whom are able to monetarily support your business. Congratulations, you provide a means for many to live your adventures vicariously and others to compare notes on their experiences. You come across as very friendly people and thus the great connection with your followers.

We have our 2005 Broadblue 42 insured by Travelers through Jack Martin and Associates. No problems yet, no claims, but we haven’t really gone anywhere yet. We are slowly upgrading the boat for ocean passages. On our list are a parachute sea anchor (haven’t yet decided whether to include a series drogue as running before the weather with our stern to breaking seas with a boat having a large glass sliding door seems unwise), 4000 gph pump (separate switch and high water alarm) in each hull with (the original smaller ones at the very bottom of the bilge to keep it as dry as possible), automatic fire suppression for the engine compartments with auto shut down (I priced a Xintex system at about $1000), and new jack lines. Our current insurance waived the life raft since we weren’t going offshore yet, but I guess that will have to be added in the future. But, it does more to decrease the safety margin of the boat in a variety of conditions by adding unnecessary weight. There has been a debate about carrying one on a cat. The only practical reason I can think of is having to abandon if there is a fire at sea that cannot be controlled. Besides, why does the insurance company care? The boat is lost whether or not the crew survives. We also will upgrade our washdown pump so it can be used for firefighting. I saw one cat in a listing that had a gasoline powered emergency pump mounted under the helm seat. Seems like overkill but would be great for firefighting. Also planning on carrying a damage control kit. They are commercially available, but maybe better to customize your own. The refusal to insure boats with lithium ion batteries is a strange one. Maybe the older chemistries, with Co for example, but the later LFPs are not nearly the fire danger. Seems to me that cruisers, especially liveaboards should be a separate insurance classification from weekend warriors. Living on your boat, cruising it far from home, means you are always working on it, thinking about improving it, learning to sail safely, ingraining navigational regs in your head by doing it all the time. And since it is your home, you will do everything you can to protect it from storms, or any other damage that can occur from lack of maintenance. You are more likely to repair things before they become a safety issue, and more likely to be a knowledgeable, and practiced sailor. As opposed to a weekend warrior who cracks a beer before starting the engine, and regards the water as a free-fire zone, and doesn’t care about his boat being left at the slip in the path of a hurricane because that’s why he has insurance.

Alan M Peterson Jr

Hi Rich, do you know if travelers covers in French Polynesia?

Sorry, I do not.

Susan / IWIS

No, they don’t.

My Sunday morning routine…grab my Irish Breakfast Tea, fruit, and cheese, and watch your weekly update. I’m as addicted to the three of you…Jason, Nikki, and Curiosity, as I was to CBS Sunday Morning’s, “On the Road with Charles Kuralt”. Thank you much.

Michael D Raichel SR

So glad you share some of your week with everyone. Since you spent a lot of time on Inssurance lately, it makes “cents” that would be the brunt of this video. And wow,… so much anxiety this is …. looks like you took a beating in 2019 and 2020… with those super high tanga prices. (And very little to no sailing those years) It does look like you picked a winner for this year,… from the looks of the chart you posted,… 2nd best rate ever!

Thx for the boat economics…. I now know more than before I clicked. I’M sure you helped other sailors with that hot tip out of NZ.

thx fir the ride…happy sailing Michael

Gerald German

Jason: Love your well made professional videos. However do yourself a favor and please get a quote from my Insurance broker whom I have used for the past 20 years I have owned by then new power boat. Like you i Had zero experience when i bought this brand new $350,000 trawler. Unlike you I have never been further North than Nova Scotia or further South than the Bahamas. However this broker/agent as always been able to get me unbelievable low rates year after year. This has always been done by making only one phone call to him annually. Kevin Severance insurance – agent Garrett Hack 281-333-3100.

Great write up! Thanks for all of the details.

How much of a discount do you think getting rid of propane gets? We may follow suit.

It honestly varies from company to company. You would have to ask for a quote, then ask for a quote without propane. Remember to also add a little note on why being propane-free makes your vessel safer. The obvious is never obvious when it comes to insurance. Seems we have to spell out everything for them.

Mark Solomon

Congratulations on getting your insurance for another year! You mentioned the broker, but did you say which insurance company you are going with?

Good for you Nikki, you got him into the water when you pushed… Jason, you need to try harder for payback…

For ins. purposes, would both of you pursue Captain’s Licence cert or would it be sufficient to reduce rates if just one got it? Although if both were got CL would be overall better resume, I expect. I guess it would be a cost decision: how long would the cost of getting CL take to be recovered by lower premiums or other advantages. You’ll have to tell us when we have to officially start referring to one or both of you as Captain Wynn!!! (Although you may not want to show this video to whoever would be certifying Nikki as a good Captain, since you push your crew overboard… [Grin])

For ins. purposes, would both of you pursue Captain’s Licence cert or would it be sufficient to reduce rates if just one got it? Although if both were got CL would be overall better resume, I expect. I guess it would be a cost decision: how long would the cost of getting CL take to be recovered by lower premiums or other advantages. You’ll have to tell us when we have to officially start referring to one or both of you as Captain Wynn!!!

Deborah Kerr

Boring insurance stuff but turquoise water? Yes please!!! So happy you found ins. coverage for another year! Love the drone footage over paradise!! ⛵️🏝🐠🌊🐠⚓️😎🤠 Thank you!!

Gary Church

Amen on boat insurance! It appears boat insurance underwriters know nothing about boats, especially those that are used internationally.

We were at Cap Cana Marina on the eastern shore of the Dominican Republic which has had 2 hurricanes in the last 100 years. Insurance company insisted we be basically in NC by June 1 which had been hit be 8 hurricanes in the last 10 years. In fact we sat through a Cat 1 whose eye past within 10 miles of us when there last fall.

Add this to your list of crazy inconsistent requirements and no concept of the current international pandemic requirements and it’s easy to conclude these yahoos know nothing about boating.

Great Video again and glad that dilemma is over for this year….

JOHN SCHRETLEN

Very informative video. I wonder if European or Australian/New Zealand or Canadian offshore sailors have the same insurance hassles. A neighbour left Canada eight years ago to sail south and then around the world. I’ve only seen him once since – a few years ago – and we talked a lot about everything. Yet he did not mention insurance once. So perhaps it was not an issue for him, and he does solo sailing unless he finds free crew that want to sail where he’s going next.

Also, just watched “On The Road with Mary Van Compernole” on YouTube yesterday. Congratulation to Mary, but also I have to pat you on the back for giving her the “confidence nudge” required to get into RVing. Look what you started!

Debra Perfitt

Hi John, Yes Canadians get the same queries as Americans, which is why I’m paying so much attention to this article. Our vessel is also in Tonga, on the hard. We just haven’t figured out how to get home yet from NZ. Been here over a year. Need insurance soon.

About Creativity

Very good, “Confidence, Clarity and a sense of purpose are all things that need to be established, and re-established, daily.”

William Domb

Puzzled you can use a VPN with Netflix.

They detect this.

Have to have a second channel type or shut down to do Netflix.

Different with surfshark?

Went and looked at surfshark. They are DIFFERENT and allow Netflix libraries.

Paul Bartomioli

Thank you! A very informative post. The insurance lie, “premiums will decrease…” is industry-wide. Insurance is legal gambling. The insurance company is gambling the premiums will provide a profit after all their expenses are paid. Hurricane season this year threw all of them on the ground. Even the big underwriters are not immune.

I have wondered about self-insurance, but the drawback is that you must have liquid funds equal to your valuation. In your case, approximately $230k. Getting rid of propane makes sense. What IF you did not have a diesel engine? Would the ROI of switching to all-electric make sense? How long will the reduction in premiums for not having diesel fuel take to pay for the upgrade? Technology is advancing. I have heard you can buy sails that are solar cells. Just another thought

Michael Magill

This year is unlike any other year on record, first with the Pandemic all over the world causing countries to spend billions on vaccines and health care and so so many deaths of people, families hurt by this businesses lost and never coming back. We have been stuck here for over a year and still can’t go anywhere. Yes they have the vaccines and yes we are getting our shots but our lives will never be the same. So glad you have insurance, as i look forward to your updates each week and if they weren’t here , would feel very sad that you had been taken away by whatever means as well. Wish you two smooth sailing and take care please, your a breathe of fresh air each week thousands look forward to your updates, and glad you let us tag along each week!!!

Monica Cordell

Thanks for all the recommendations like gear on the boat and Surf Shark! …Working on the dream to get out on the water.

…and the boat bloopers. Nice to get peeks at what doesn’t make it into the video and a glimpse of “production”.

I have been following a boating blog for the boat Buffalo Nickel for awhile and they touched on the insurance issue in their latest blog which I quote here:

On a more logistical note, those of you who are American and cruising outside the US may have encountered the same boat insurance issues that we have: limited availability at rapidly rising rates. No US carrier would even look at us for the passage from Japan to Alaska. For various minor and unrelated reasons, we decided to flag our FPB 70 in the Marshall Islands rather than the US. As an unintended consequence, we were able to get great coverage at a decent cost from Pantaenius Europe using a broker in Germany who is terrific. This was only possible because we were not US-flagged. The “flag of convenience” process is pretty easy, and something to consider if you are having similar insurance challenges.

Thank you. I have wondered that, as well. WHAT if you are not a US-flagged vessel? Look at commercial shipping. Are there ANY US-flagged vessels? While the reasons are many, reducing operating costs has to be pretty high up on the list

There you go. i knew it was possible.

Marjorie Nehlsen

Going through the same thing now with house insurance and managed to find one that was $600 less than original insurer. Had to have a $100 house inspection but still saved $500. All done checking different insurance companies for another year, except for auto.

You don’t bundle your home and auto?? I can hear the cries of anguish from Flo and Jake

Due diligence, annually. Once we had USAA on the house, and GEICO for the cars. Now we are bundled with Jake. Next year, who knows. We are honest about our risks and desires, but there are many things demanding our dollar. There are no loyalty points with insurance or phone plans. Years ago we bundled with Progressive. Every year it went up. “Well, things go up.” Until we took stock, and, WOW. Nikki and Jason don’t face complacency. With their nomadic lifestyle, they must search every year. They say, with extraordinary power, comes with extraordinary responsibilities. The same goes for joy and difficulties. Only you can make the trade off work.

As an insurance Underwriter for 20 years (Home & Auto) I cannot begin to tell you what a service you have provided to other potential sailors. It’s all about being fully educated before you launch and truly a major decision. Good luck and most importantly, stay safe.

Thanks for all the recommendations like gear on the boat and Surf Shark!

Thanks guys – interesting stuff and great refs. Brad & Kyra, Carrollton.

Great insight. We have the same thing with our classic cars as far as agreed upon pricing. Anyhow, that’s interesting. Lots of great information here. Yeah. Your insurance is more than double our 5000 Sq foot house! Wow.

Chris and Barb in Loudon TN

Have you inquired if the ProTeng RV fire suppression or the Elide Fire Ball suppression options? Perhaps insurance won’t recognize those as real solutions?

Keep up the great work We enjoy sailing with you both each week

Thanks so much for this detailed post Nikki/Jason! Our new boat arrives later this fall and we’re headed your direction so we’re anticipating insurance issues and this will be a huge help! Question – is there any benefit to flagging a vessel outside of the U.S. for insurance purposes that you’re aware of – i.e., easier to get coverage in remote areas, less expensive, etc? Thank you both again for sharing your cruising adventures and experiences with all of us!

Yes, that is my question, too. Why not change your flag?

There’s a lot of info on that if you Google it, but 2 big negative points are that your vessel is now bound by the laws of whatever country you pick, and it can also affect where you’re allowed to travel (as in, 2 countries with bad relations prohibit vessel entry into each others’ territories). You will also loose some protections that U.S. citizens aboard a U.S. registered vessel are given. Curious Minion

There must be big reasons why most of the worlds shipping is done that way. Since most countries hate us, I doubt that there are many protections left. Picking a good country solves the rest of the problems.

They’re called “flags of convenience” for a reason. Panama has very low annual fees and little in the way of inspection. They also allow transfer of ownership with very little paperwork. And crew can be from wherever the owner can find them. US flagged commercial vessels must have American officers and at least 75% deck crew (it used to be 100% but that changed a few years ago).

None of this is of advantage to Curiosity. And likely not of much interest to the insurance companies since they would ask “and what’s YOUR flag?”

Oh, and while many countries may hate us (not that I believe that) our Coast Guard is larger than most navies and the willingness to stomp on some country for pushing around our citizens is a pretty sufficient hammer. Whether or not the Sixth Fleet does come to your aid is one question, knowing that the skies over somebody’s country might fill up with F/A 18s suffices in most cases.

By the way, it is your passport that matters; not your ships country.

Roger Franz

Good post with plenty of good information. What struck me as a land lover, boat insurance is sort of a combination of home and auto insurance. Hitting that mega yacht will be a cost that a home owner would not incur. I wonder if what you are experiencing is like homeowners in areas where wildfire risk is greatest. Their premiums for years were considered reasonable. What then became known is that yearly wildfire risk was not adequately figured into premiums. What was reasonable then doubled or tripled. Counties allowed home developments in areas where the home would likely burn done before the fire department reached the home. While development will occur, those homeowners are now adjusted to the new normal of much higher premium levels and in some cases insurance only available through state programs. So, $11000…sounds high to the past, but if you think of the future it likely will be the norm. Good luck. Great details.

I worked for a company inspecting homes for insurance, new, renewal. The company I work for got a new client in 2019. California based. I live in CT. So, why would a California insurance company decide to expand in CT and other northeastern states?

Roy V Bertalotto

I sold my boat last year when the total amount of insurance I’ve paid over the past few years was greater than the value of the boat! And like you stated, more and more I was being asked for insurance, especially with a Hazard Material rider……Big $$ …..Sold the big boat and bought a 14′ Aluminum boat with a 30hp motor…..and I’m having WAY more fun with the little boat……Trailer it, haul it out and store next to the house. No worries when storms brew and zero insurance cost. Good Luck to you two….

I can’t believe you have to do this every year! I’m so glad you guys have coverage and you can Put that troublesome task behind you!

Great post Nikki/Jason. We feel your pain on this subject as well! Our insurance jumped from $3800 in year one, 2017, to well over $12,000 annually in 2021. We are a bit different as a Charter Dive Boat operator (on a sailing catamaran), but the industry has completely lost its mind! I fear that many of the 100k boats you mentioned is an excuse by the industry participants and sadly, many claims are somewhat less than legit. We have friends who have given up and started their own funds to protect themselves. The challenge, as you aptly pointed out, is those marinas, nations, etc. that require proof of insurance. Pretty difficult to create your own insurance company. I’ve had friends who checked into it. UGH!

All the best in your travels to NZ and beyond!

Love watching y’all even when discussing boring crap like insurance.

James Mertz

Not boring so much as scary.

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Selecting the Right Insurance Policy for Your Boat or PWC

• By Lenny Rudow
• February 21, 2024

You can choose to work with a major company, such as getting Geico boat insurance or Progressive boat insurance, or you can go to a smaller provider. But one thing is for sure: If you have a boat or PWC, you will need insurance coverage. However, just which coverage is best for your needs can be a be a bit confusing. Just like for homes and automobiles, there are many different levels of coverage, terms and types you’ll need to sort through. Are you ready to dive into the details?

Article at a glance:

• Different types of boat insurance
• Choosing between the insurance options
• How to purchase insurance

Comparing Different Boat Insurance Policy Types

When purchasing boat insurance, you’ll generally need to choose between three different types: agreed hull value, actual cash value, and liability only. Unlike automobile insurance, the type of coverage you get isn’t mandated by law in most states (though it is in Arkansas and Utah). Most people decide which plan to opt for depending on the value of the boat, the age of the boat, how it’s financed, and where they keep or use it.

– LOWER YOUR RATES – Taking a boating safety course won’t just make you a better skipper. It could also help you save big on insurance. Safety Tip Provided by the U.S. Coast Guard

Agreed Hull Value

Insurance policies that cover the agreed hull value specify a valuation of the boat, which will be the amount you receive in case of a total loss. This type of policy tends to cover (and cost) more than the others. Smaller insurance companies might not even offer it, while the big players like Geico boat insurance and Progressive boat insurance generally do. These policies often can be purchased with additional forms of coverage, like fuel-spill liability, towing coverage, or roadside assistance for trailer boaters.

Actual Cash Value

Actual cash value policies are the most common and cover your boat for its current market value. Because they take depreciation into account, they’re generally less expensive than agreed hull value policies. Actual cash value policies can usually be purchased with additional forms of coverage too.

Liability Only

The least expensive option is liability-only boat insurance, which only covers things like medical payments arising from accidents or protection from other boaters who are uninsured. Many marinas and boatyards will require you to have liability coverage at the very least.

– DON’T FORGET THE RADIO – A VHF marine band radio is your first line of communication on the water, allowing you to talk to the Coast Guard and other boat traffic. Use Channel 16 only for hailing and emergencies. Safety Tip Provided by the U.S. Coast Guard

Choosing Boat Insurance Coverage Options

Different policies can cover different events, like theft, hurricane haul-outs or salvage assistance. Depending on where you live, these can be more or less important. Someone in Iowa probably doesn’t need hurricane haul-out coverage, for example, while a boater in Florida most certainly does. You’ll also usually need to meet certain coverage requirements if your boat is financed because the lender will want to know they’ll get paid in case of an incident. Some of the most important options to consider include medical payments, uninsured boater coverage and salvage coverage.

Medical Payments

Most comprehensive policies will include some level of medical-payment coverage, which takes care of expenses in case someone aboard gets injured. These are generally capped at a certain level, which varies by policy.

Uninsured Boater

You can do everything right and still have an accident thanks to someone else. If they don’t have insurance, you’ll be glad you have uninsured boater coverage.

Total Salvage

Salvaging a boat can be very expensive, and laws can require owners of stricken vessels to have them salvaged. These policies usually cover salvage expenses up to the hull value of the boat.

How to Purchase Boat Insurance

In most cases, purchasing boat insurance is just a click away because you can get quotes online and compare the different options on the insurance company websites. With larger, more expensive boats, however, having an accredited surveyor inspect the boat might be necessary. This is usually the case when it comes to getting insurance for used boats.

Discounts for Boater Safety Courses

Boater education doesn’t just keep you and your family safe on the water. It can also help you save big on insurance. Providers offer discounts of up to 15 percent on boat insurance for completing a boating safety course. Check with your provider, and find classes through the Coast Guard Auxiliary or U.S. Power Squadron.

– INVEST TO IMPRESS – A boating course is a great way to gain confidence and boat-handling skills. A little practice now will make it look easy when everyone is watching. Safety Tip Provided by the U.S. Coast Guard

Closing Remarks & FAQ

Beyond any legal or financing requirements, which insurance you opt for is a personal decision, just as it is with a home or automotive policy. Choose more coverage and spend more on the premiums, or choose less and save on the cost, just as long as the decision lets you sleep well at night.

• What are the main types of boat insurance policies? Agreed value, actual value and liability only are the three main types of boat insurance policies.
• What are some typical boat insurance coverages one should consider? The most common are medical payments, uninsured boater, total salvage, towing, hurricane haul-out, fuel-spill liability, theft, roadside assistance and personal-effects coverage.
• How does location factor into boat insurance coverage? It impacts the need for weather-related coverage, and it can require you to have a documented “storm plan” for taking care of the boat when a named storm approaches. Location can also affect theft coverage, uninsured boater coverage and other protections.
• Will boat insurance cover anyone who operates the vessel? This depends on the policy. Most will cover other operators and family members who use the boat with your permission, but they won’t cover renting or leasing your boat to someone.
• Should boat insurance be bundled with other insurance products? It’s up to you, but you can save money by doing so in many cases.
• Is it ever wise to operate a boat without any insurance coverage? That depends on your personal tolerance for risk. That said, it’s far more worrisome with some boats than others. At one extreme, taking a rowboat out on a lake without insurance is probably fine, but casting off the lines on an uninsured million-dollar yacht would certainly seem dicey.
• More: Boating Safety , coast guard , finance and insurance , How-To , Water Sports Foundation

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How Much Will Boat Insurance Cost Me?

11 Min Read | Nov 21, 2023

Boats are a highlight of summer! They’re flashy, fun . . . and freaking expensive to repair or replace. That’s why it’s better to pay for boat insurance than to hope you’ll get by with zero accidents. 

Boat insurance protects you financially if your boat is involved in an accident where property gets damaged or someone gets hurt. On average, boat insurance costs $200 to $500 a year—or around 1–5% of your boat’s value if you have a big, powerful or expensive boat.

Let’s talk about what affects the average boat insurance cost, what it covers and where to get it.

Do I Really Need Boat Insurance?

That depends on your boat. A standard homeowners insurance policy will generally cover small, inexpensive watercraft like:

• Paddle boats
• Boats with low-powered engines (usually less than 25 horsepower or less than 25 mph maximum speeds)

You can also add a liability rider to your homeowners insurance to cover property damage or injuries if you get in an accident with another boater.

But homeowners policies won’t cover big, powerful boats. You’ll need boat insurance for:

• Charter Boats – Since your boat is your business, you may also need commercial insurance .
• Fishing Boats – including bass boats, fancy offshore rigs and everything in between
• Houseboats – Just like insuring a regular house , you need to insure your home on the water too.
• Personal Watercraft – Watercraft like jet skis are super fun, but they’re also risky—hence the insurance.
• Pontoons – Pontoons are where the party’s at! So make sure your boat and your passengers are protected.
• Sailboats – Activities like long distance travel, racing or historical reenactments require special coverage. Think of sailboats as the classic cars of the sea.
• Speedboats – Fast boats are at higher risk for accidents—which makes insurance a must.
• Yachts – Luxury vessels need insurance because they’re more  valuable and travel farther than most other boats.

All these boats need insurance even if it isn’t required by state law. Why? Because if you’re uninsured, a boating accident can ruin your future—in more ways than one.

Boating accidents caused $55 million in property damage in 2019—and that’s not counting medical bills and lost wages for the 2,559 people who got injured. To make matters worse, 613 people died in boating accidents that year. 1

If you cause those damages, injuries or (God forbid) deaths, you’ll be held liable. That’s why boat insurance is so important: It protects you financially after an accident, so you can focus on more important things.

How Much Is Boat Insurance?

The average cost of boat insurance is $200 to $500 a year—although for a really big or expensive boat (like a yacht or sailboat), insurance can cost around 1–5% of the boat’s value. For example, you may pay about $2,500 a year to insure a $100,000 yacht.

But just like other insurance rates vary, boat insurance costs change depending on you and your boat.

Have you started budgeting yet?

A budget (like insurance) is something you need at every stage of your money journey. With EveryDollar, you’ll make a plan for your money – so you can save more and spend smarter.

What Factors Affect Boat Insurance Costs?

Many of the factors that affect car insurance rates also affect boats—but there are also some unique things to consider for watercraft.

Type of Boat

The more valuable a boat is, the more expensive it is to insure. For example, yacht insurance almost always costs more than pontoon insurance because yachts are more expensive.

High-powered watercraft are riskier, so insurance companies look at the type of motor (inboard or outboard, amount of horsepower and so on). Slow and steady usually wins the race to get low insurance rates!

To be considered in good condition, your boat must meet the U.S. Coast Guard safety standards from the time when it was built. Otherwise, you’ll pay higher premiums because of your boat’s outdated safety features.

Your boat’s age matters—and so does yours.

Older boats are generally cheaper to insure, especially if they’ve only had one owner. You’ll probably also get better rates if you’re between 25 and 60 years old, because that’s when insurers think you’re the most responsible.

Fishing and floating are lower risk than towing water skis or wakeboards. If you use your boat for “risky” activities, your insurance company will charge you higher premiums to make up for the accident they expect you to have.

Boating accidents almost always happen on the water (duh). So if you occasionally take your boat out, you’ll pay less than if you boat every weekend. That’s also why people who live up north typically pay less for boat insurance—the shorter boating season means less time for accidents.

Speaking of where you live, you’ll pay higher premiums for boating in an area with hurricanes (on the ocean), squalls (in the Great Lakes) or other hazards. And you’ll pay less if you live in a state with no coastline. That’s because lakes and rivers are typically safer than the ocean.

Driving Record

You’ll likely get low rates if you’ve got a good driving record (aka no accidents, injuries or recent insurance claims in a boat or car). But your inexperienced teen or your reckless cousin who’s totaled three cars? Not so much.

What Boat Insurance Discounts Can I Get?

There are a lot of ways to save money on boat (or even car) insurance. You can get discounts if you:

• Take boating safety classes
• Use a diesel-powered engine
• Carry ship-to-shore radios, Coast Guard approved fire extinguishers and other safety equipment onboard
• Bundle your boat, home and auto insurance
• Pay your insurance yearly
• Choose a high deductible
• Don’t file a claim for at least two years

Ways to Save on Car Insurance Checklist

Don't let car insurance costs get you down! Here's a checklist for easy ways to save.

What Does Boat Insurance Cover?

Boat insurance covers many costs of an accident—like repairs, salvage and medical bills. Let’s walk through the types of coverage you can get.

Liability is the most important type of boat insurance. It pays for the other person’s repair and medical bills after an accident you caused. And if someone sues you? Your liability coverage should help pay the legal fees.

You can even look into guest passenger liability , which covers you if someone driving your boat with your permission causes an accident

Liability also covers repairs to docks or other objects you hit—plus clean-up costs for oil and other pollutants that your boat released into the water. (Which is good since cleaning up even a small oil spill is insanely expensive.)

Without liability coverage, you’ll have to pay for damages to boats, docks, personal property, a person’s health or the environment. That’s a lot of money. So play it safe and let the insurance company pay instead.

Physical Damage

Physical damage coverage pays to repair or replace your boat if something bad happens to it, like:

• Collisions with other boats, docks, submerged objects or floating debris
• Damage from wind, hail, lightning or other weather
• Theft or vandalism

You can even get an “all risk” policy: Unless a risk is specifically excluded, your insurance will cover anything that happens to your boat—even sinking.

How much your insurance company will pay to repair or replace your boat depends on what type of physical damage policy you choose.

Agreed Value Policy

You and the insurance company work together to decide how much your boat is worth—and that’s the most your insurer will pay you after a covered accident. So if your sailboat’s agreed value is $95,000, your insurer will pay up to $95,000 to replace or repair it.

Agreed value policies offer plenty of coverage for most boats. But if you own a rare boat that’s increasing in value, it will eventually outgrow the agreed value you chose. That’s where the next type of policy comes in.

Actual Cash Value Policy

This policy pays up to the boat’s market value on the day it got damaged. That means you should be able to restore your boat or buy a similar one. You just won’t be able to upgrade on the insurance company’s dime.

For example, let’s say your boat is worth $12,000 and it sinks. The insurance company will only pay you $12,000—even if you originally paid more to buy the boat.  

Medical Payments

This coverage helps pay for medical expenses if you or your passengers get hurt on your boat. It can cover all sorts of injuries from a collision with another boat or even taking a nosedive on water skis.

Personal Property

Personal property coverage helps replace the unattached accessories that made your boat so much fun in the first place—like your fishing gear, navigation system and personal items.

You can even get insurance for your boat trailer (which may be helpful if you’re new to towing trailers).  

Uninsured Watercraft

Imagine that a speedboat makes a huge wake and pushes your boat into some sharp rocks. Your boat is damaged—but the other guy is uninsured. Yikes!

Uninsured watercraft coverage will help pay for your repairs (or medical bills if you or your passengers get hurt). That’s much easier than suing the other boater or—worse—having to foot the bill yourself.

If your boat becomes disabled on the open water, you’ll need to get it towed back to land. That’s what salvage insurance helps pay for.

You can also get insurance that helps pay to remove your boat from the water if it sinks—otherwise, the wreckage could become a hazard to other boaters and cause even more accidents. 

What Boat Insurance Doesn’t Cover

One thing boat, home and auto insurance all have in common: They don’t cover every situation. Here’s what boat insurance doesn’t cover.

Normal Wear and Tear

Boats get old and wear out just like any other machine. So your insurer won’t pay for cosmetic or mechanical issues that come from normal use.

Faulty Machinery

While your insurance policy might cover a mechanical breakdown if it’s out of the ordinary, it won’t cover manufacturer defects or things that broke because you used them wrong or didn’t take care of them. (So you may want to clean out that clogged water pump now.)

Animal Damage

Animals can be a big boating hazard—literally. If a run-in with a dolphin, manatee or other marine animal damages your boat, your insurance policy most likely won’t cover it.

(By the way, it pays to know what animals live in your boating area so you don’t harm them, your boat or the environment.)

Infestations

Another animal that’s not covered? Mussels! These little guys can do major damage. But the insurance company won’t pay for it—or damage from insects, mold or other infestations. It’s smart to check your boat and remove any unwanted passengers.  

Improper Storage and Transportation

Your boat falls off the trailer because you didn’t tie it down? Your “winter storage” is in the yard? Your insurance company will chalk those damages up to your careless behavior and make you pay the bill.

Accidents Beyond Your Navigational Limits

Your navigational limit is where you and the insurance company agree you can boat. Your insurance policy only covers you in that area. Sail outside of it, and you’re on your own.

Accidents Outside Your Layup Period

A layup period is when you take your boat out of the water for a while (usually the winter). If you use your boat after your layup starts or before it’s over, you won’t be covered.

Underage or Unnamed Operators

Each state makes its own rules about how old a kid has to be before they can drive a boat, so check the local laws before letting them take the wheel. And if your child (or another adult) drives your boat regularly, it’s smart to put their name on your insurance policy.

Where Do I Get Boat Insurance?

The easiest way to get boat insurance is to work with an independent auto or homeowners insurance agent.

Our network of Endorsed Local Providers (ELPs) will compare policies from multiple insurers to find the best one for your boat. And our agents will go a step further: They’ll teach you how to actually understand your boat insurance policy so you can be confident you’re getting the insurance you need—without costly extras.

Connect with an agent near you today.

Get coverage you can trust.

When a RamseyTrusted pro is in your corner, you have an insurance guide you can trust who will give you confidence in your coverage.

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About the author

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.

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Chubb has been a leading provider of yacht insurance for over 100 years, offering some of the most comprehensive policies available for private, pleasure watercrafts. Being on the water is an experience of peace, calm, and new adventures on the horizon. It’s an experience you want to protect. Our Masterpiece® Yacht insurance policy offers superior coverage for pleasure yachts 36 feet or greater in length. And for captained vessels 70 feet or greater in length and valued at $3 million or more, our  Masterpiece Yacht Preference policy has the specialty coverages you and your crew need.

Masterpiece® Yacht Policy Highlights

Agreed Value Coverage

We pay the entire agreed amount, with no deductible, for a total loss. With our Masterpiece Yacht Select policy, eligible vessels can receive Replacement Cost coverage up to 120%.

Liability Protection

Limits of coverage to suit your personal needs, including: legal defense costs, liability as required by the Oil Pollution Act of 1990, wreck removal, and Jones Act coverage for paid crew.

Replacement Cost Loss Settlement

Repair or replacement of covered property is paid for without deduction for depreciation for most partial losses.

Uninsured/Underinsured Boater Coverage

Pays for bodily injury to persons aboard the insured watercraft who are injured by an uninsured owner or operator of another vessel.

Medical Payments

Reasonable medical and related expenses are included for all those onboard, boarding or leaving the covered vessel. These benefits are provided on a per person basis, rather than per occurrence. Optional and customized limits are available.

Search & Rescue

Up to $10,000 for the expenses incurred by an insured in relation to a governmental unit such as the United States Coast Guard (USCG) who provide emergency aid and assistance are included for no additional charge. With our Masterpiece Yacht Select option, coverage is available up to $25,000.

Longshore and Harbor Workers’ Compensation Act (LHWCA)

When Liability coverage is purchased, coverage is automatically provided for those employed aboard the vessel who are within the jurisdiction of the LHWCA.

Personal Property & Fishing Equipment Coverage

Protection is automatically included for the clothing, personal effects and fishing gear of the boat owner and their guests. Optional higher limits are available.

Coverage for Marinas as Additional Insured

Marinas, yacht clubs and similar facilities where clients keep their vessels are included as Additional Insureds.

Trailer Coverage

We automatically include coverage up to $5,000 for your trailer used with your insured vessel. Higher limits are available.

Emergency Towing & Assistance

Our policy includes this coverage with optional higher limits available.

Boat Show & Demonstration Coverage

We automatically provide this coverage, at no additional charge.

Precautionary Measures

We will pay up to the policy limit the reasonable costs incurred to haul, fuel or dock the insured watercraft endangered by a covered peril.

Bottom Inspection

We will cover the reasonable costs to inspect the bottom of an insured vessel after grounding, stranding, or striking a submerged object. There is no deductible for this coverage.

Oil Pollution Act of 1990 (OPA) Coverage

If Liability coverage is purchased, our policy provides coverage in addition to the Liability limit, up to the required OPA statutory limits, regardless of the Liability limit chosen. Additionally, if the OPA statutory limit is increased in the future, our policy will automatically increase the applicable OPA limit to match the new higher statutory limits.

Temporary Substitute Watercraft

Up to $5,000 to charter a temporary substitute watercraft if the insured vessel is out of commission due to a covered loss and cannot be repaired within 72 hours. With our Masterpiece Yacht Select policy offering, the limit of Temporary Substitute Watercraft is increased to $10,000.

Marine Environmental Damage Coverage

This feature provides protection up to $10,000 for fines and penalties as a result of marine environmental damage, as defined by the policy terms. Coverage is provided in addition to the insured's applicable Liability and OPA limits. With our Masterpiece Yacht Select policy offering, the limit of Marine Environmental Damage Coverage is increased to $25,000.

57% of boating accidents happen on calm days with waves less than 6 inches.

Chubb offers some of the most comprehensive protection and services available rain or shine.

*Source: 2016 Recreational Boating Statistics, United States Coast Guard

Masterpiece Yacht Preference

Masterpiece Yacht Preference fulfills the specialty insurance needs of luxury yacht owners with captained vessels 70 feet in length and greater, valued at $3 million or more.

No depreciation applies on the following items

Machinery inside the hull, Personal Property, dingy/tender, and Personal Watercraft.

Emergency Towing Service

We include coverage up to the amount of Property Damage with no deductible.

The medical payments limit offered is on a per occurrence basis, and we will pay costs incurred up to three years from the date of occurrence.

Marina as Additional Insured

The marina, yacht club, or similar facility where the insured yacht is docked, moored, or stored is included as an Additional Insured.

Captain and Crew Coverage

Liability coverage is extended to the captain and crew members serving aboard the insured yacht.

Defense Costs

Defense costs are included in addition to the limit of liability and includes up to $50,000 loss of earnings.

Mooring or Slip Rental Agreement Waiver

When waiver of subrogation is required through a written contract by a yacht club, marina, or similar facility used for the purpose of storage or slip rental, our Masterpiece Yacht Preference policy will permit an insured to waive their rights of subrogation.

Masterpiece® Recreational Marine Insurance Brochure

Your client’s guide to watercraft protection. Make sure they’re protected, with the right coverage, so they can relax on and off the water.

Related Coverage

We provide exceptional boat insurance with tailored protection.

We help you stay ahead and informed with these helpful tips and tricks

12 safety tips for recreational boaters

As the weather warms up, many of us head to lakes, rivers, or the ocean to fish, waterski, cruise, and relax onboard a boat, yacht or other personal watercraft. 

Understanding boat insurance

A comprehensive guide to finding the right boat insurance coverage.

This information is descriptive only. All products may not be available in all jurisdictions. Coverage is subject to the language of the policies as issued.

Find an Agent

Speak to an independent agent about your insurance needs.

Yacht In s urance

The best yacht insurance rates.

From America's boat insurance experts since 1984

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The Differences between Boat & Yacht Insurance

When you look at a boat insurance policy, you'll notice the language is unlike your typical homeowner's or auto policy. What you may not know is that vessel insurance can even vary from policy to policy, depending on a variety of factors.

Yachts are classified as vessels 27 feet or more in length, while boats are 26 feet or less. No matter what type of vessel you have, when it comes to the type of policy, seek out Agreed Value. Agreed Value policies are cover all damages, except for sails, outboard motors, canvas covers, cushions or other specified items. They do not reflect depreciation or market value, which means you will get a greater settlement in the event of a claim. Other policies such as Actual Cash Value may be cheaper, but they also factor in depreciation and market value and will subtract that from your payout.

Also, when it comes to navigation limit, boat and yacht insurance policies can vary due to different exposures. For example, a boat policy typically includes unlimited overland transportation on a trailer, while a larger yacht policy would restrict overland trailering to only several hundred miles.

Deductible amounts can also differ. A yacht policy can offer deductibles of up to 3 percent for any hull damage. However, deductibles for a total loss, marine electronics loss or a windstorm loss can vary depending on your particular policy. By contrast, a boat policy offers a flat deductible, typically of $250, $500 or $1,000.

Because yachts inherently incur more risk due to their size and navigation, the liability feature of yacht insurance provides broad coverage designed to shield you from the effects of the maritime law. Your coverage is much broader than with a typical watercraft liability policy, and offers protection to permissive users, captain and crew liabilities, along with the Jones Act, a federal law that allows a seaman who gets injured on the job to bring a suit for damages against his or her employer.

Besides, yacht insurance addresses salvage to a damaged yacht, legal liability to remove a sunken wreck and uninsured boater coverages. In a typical boat policy, only general liability protection is included. For example, if your boat sinks in the Great Lakes or any of its tributaries, the U.S. Coast Guard says it must be raised. There will be salvage costs, fuel clean-up - and you'll have to pay the bill regardless of your coverage.

While most yacht policies provide salvage coverage, they do so in different ways. Some choose to limit the dollar coverage to a stated amount or percentage of the hull amount.

Another very important part of the salvage issue is wreck removal. Some companies include wreck removal under their hull coverage, which then limits its value. A true yacht policy will include it under the protection and indemnity limit, which will provide much higher limits and additional coverage.

Get Your Insurance Quote

Another difference is that in yacht policies, your legal defense is in addition to protection and indemnity limits, while boat policies offer legal defense within the limit of liability.

Yacht policies have warranties, including the seaworthiness, navigation limits territories and navigation lay-up limits. While some boat policies do not require warranties, others may incorporate them.

Many boaters consider adding their vessels to their homeowner's insurance in an attempt to reduce their costs. Although the cost is substantially less when you add a boat to a homeowner's policy, but you don't get near the coverage. In this case, the old adage still holds true - you get what you pay for. The bottom line is not the amount of your policy premium, but how much you will collect at the time of loss.

For more information on boat and yacht insurance, or to talk to an experienced agent about different coverage options, contact NBOA Marine Insurance. Representing several A+ rated carriers, their insurance specialists will be able to create a customized policy that fits your specific needs and would be happy to answer any questions you may have.

Call 1-800-248-3512 or start your online boat insurance quote today.

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Cost of Boat Insurance

The average cost of boat insurance is between $200 and $500 per year, but rates vary widely depending on many factors like coverage and vessel type

Key Takeaways:

• Boat insurance can cost as little as $100 and can be priced over $1000 for boats with a lot of power or value.
• Factors that affect the cost of boat insurance include the type, condition, storage location and cruising area.
• Many insurance companies offer multiple discounts including auto and boat insurance bundling discounts.

When it comes to shopping for coverage, the cost of boat insurance is one of the top concerns for most people. But because boat premiums vary greatly due to a wide range of factors, your monthly payment might differ from the average estimates.

To help make sense of how boat insurance costs work, we at the Guides Auto Team put this guide together. You’ll find information about how boat premiums are calculated, what kinds of coverage you can buy and strategies for getting the lowest rates. We also recommend some of the best boat insurance companies to help you get started on your search.

What Is the Average Cost of Boat Insurance?

The average cost of boat insurance ranges from about $200 to $500 per year . However, this figure is a rough estimate based on the most common types of boats. In reality, boat premiums can range anywhere from less than $100 per year to thousands of dollars annually.

Boat Insurance Cost Factors

There is such a wide variation in the cost of boat insurance because of all the factors that go into calculating rates. Insurers take information about you, your boat and your marine activities into account when considering your premiums.

Type of Boat

The kind of boat you want to insure is one of the primary factors in the cost of marine insurance. Generally speaking, larger and more expensive boats drive higher premiums. Powerboats with more horsepower also tend to cost more to insure.

These are the most common types of watercraft you can insure:

• Fishing boats
• Personal watercraft (PWC) such as Jet Skis
• Pontoon boats
• Powerboats/speedboats

Boat Condition

The condition of your boat contributes to the cost of your boat insurance premiums. This is because boats in better condition are more valuable as property. Boats in poor condition are also more likely to suffer further damage.

For your boat insurance policy, you can typically choose your deductible — the amount you have to pay out of pocket for repair or replacement. Just like with auto insurance, your premium will usually go up as your deductible goes down.

Cruising Area

Part of your premium is based on where you intend to use your boat. The greater area you cover, the more you can expect to pay for boat coverage. In addition, insurers assign different risk factors to different areas. If you plan to sail in areas with more storms, for example, you may pay a higher rate.

Storage Location

Where you store your boat is also a factor in your rates. If your boat is stored in areas that frequently experience events like floods, tornadoes or hurricanes, you’ll likely pay more for coverage.

Boating Experience

Many insurers take into account how much experience a boater has when determining premiums. Some may offer lower boat insurance rates to mariners who have operated a boat for more than a few years, sometimes in the form of a discount. Older boat owners often pay lower premiums than younger ones as well.

Lay-Up Period

People in many parts of the country can’t or don’t use their boats during certain parts of the year. This period of time is known as a lay-up period, and some insurers offer reduced rates if you declare one that’s long enough. However, if you use your boat during this period, any physical damages you incur will not be covered.

Boat Insurance Discounts

Discounts are an easy way to save on the cost of boat insurance. Not every provider offers the same discount opportunities, but these are the most common:

• Multi-policy : Boat insurance is one type of coverage that you can bundle with other insurance products like homeowners, renters or auto insurance. 
• Multi-boat : Many insurers offer discounts if you cover more than one watercraft under the same policy. PWCs are sometimes excluded from this discount. 
• Boat safety course : You can complete a state-approved boat safety course to receive one of the most common discounts in the boat insurance industry.
• Pay in full : You may be able to save on boat coverage if you pay for your premium up front rather than across monthly payments.
• Claims-free : Many insurers offer discounts for boaters who maintain a set amount of time without filing a boat insurance claim. 
• Responsible driver : Boaters who go for an extended period of time without an accident on their driving record can earn a discount from many providers.
• Association : Some insurers offer discounts to members of the U.S. Coast Guard Auxiliary, other military groups, professional organizations and more.
• Diesel fuel : You can save with some insurers if you have a diesel-powered engine on your motorboat rather than a gasoline-powered one.

Boat Insurance Coverage

There is as much range in boat insurance coverage as there is in boats themselves. You can choose liability-only policies that satisfy state or marina regulations, high-limit comprehensive coverage with loads of specialty add-ons and everything in between.

Standard Boat Coverages

The standard boat insurance coverages are similar to those for auto insurance:

• Property damage liability : Covers damages to other parties’ boats and property in an accident for which you are found at fault. 
• Bodily injury liability : Covers other parties’ medical expenses, lost wages and related costs in a boating accident for which you are found at fault.
• Collision insurance : Covers damages to your boat, regardless of who is at fault for an accident.
• Comprehensive coverage : Covers damages to your boat from sources other than an accident, such as fire, theft, vandalism or weather.
• Medical payments : Covers medical expenses for your party related to a covered accident.
• Uninsured boater coverage : Covers property and injury expenses if an at-fault boater lacks sufficient coverage.

Boat Insurance Add-Ons

You’ll also find a wide range of specialty coverage add-ons. These optional coverage items can help cover other costs related to owning, storing, transporting and using your boat. Here are some of the most common boat insurance add-ons:

• Roadside assistance : If your vehicle breaks down while towing your boat, this covers the cost of emergency roadside services.
• Watersports injuries or damages : Covers costs related to damages and injuries sustained while participating in watersports like water-skiing or tubing. 
• Fuel spill cleanup : Covers the cost of cleaning up after your boat spills fuel into the water. Sometimes covers fines and other costs related to the spill.
• On-water towing : Covers towing costs to get your boat to shore if it breaks down on the water.
• Wreckage removal : Covers the cost of pulling your wrecked or sunken boat out of the water.
• Ice and freeze damage : Covers the cost of repairs if your boat was damaged by ice or cold after an improper winterization.
• Mechanical breakdown insurance (MBI) : Covers repair costs in the case of a mechanical breakdown for an additional monthly fee. With a reputable company, this works similar to an extended warranty on a car.
• Hurricane haul-out : Covers the cost of relocating your boat if it’s in the path of a hurricane.
• Boat trailer : Covers damages to your boat trailer for an additional fee.
• Personal property : Covers the cost of personal items like life jackets, phones, navigation equipment and more.
• Commercial liability : Covers liability costs if your boat gets into a covered accident while being used for business purposes.
• Boat rental liability : Covers liability costs if someone driving a boat you rent to them is found at-fault for a covered accident.

Actual Cash Value vs. Agreed Value

Most boat insurance companies offer two types of policies: actual cash value coverage and agreed value coverage. Though they sound similar, the difference can be significant if a boating accident results in a total loss.

With an actual cash value policy, your insurer pays out the current estimated value of your boat at the time of the accident. An agreed value policy, on the other hand, pays out a predetermined amount set by your insurer when you start the boat policy.

With an agreed value policy, you won’t lose value due to depreciation. As a result, agreed value boat insurance policies typically cost more than actual cash value policies.

What Boat Insurance Doesn’t Cover

You can purchase marine coverage for a wide range of boats and purposes. However, there are some causes of damage that providers, for the most part, won’t cover. Here are some of the most common exclusions:

• Damage from animals
• Damage while using drugs or alcohol
• Damage from underage drivers
• Deterioration
• Manufacturing defects
• Renovations
• Servicing and maintenance
• Wear and tear

Do You Need Boat Insurance?

In most cases, boat insurance is optional. However, there are a few scenarios in which boat insurance is necessary:

• Your lender requires it : Some finance companies mandate that you get insurance coverage on your boat until you pay off your loan.
• Your state requires it : Arkansas and Utah require boat owners to maintain an insurance policy, but they are the only states that do.
• Your marina requires it : Some marinas require boats that dock there to carry liability insurance.

There may be some other situations that require you to have boat coverage, but these are the most common.

Boat Owner Risks

Even if you aren’t required to carry marine insurance, there are strong arguments to have it. Driving, transporting and storing a boat all come with risks that insurance can help manage.

Here are some of the most common:

• Collisions : Boats can suffer damage when they hit other boats or stationary objects such as piers and rocks.
• Damage during storage : Boats can get damaged in storage if they’re scratched, dented or mishandled while being moved around.
• Damage while moored : Marinas are high-risk areas for damage, with many boats and people navigating the area.
• Damage during transit : Whether from road debris, inclement weather or a car accident, there are many ways your boat can be damaged during transport.
• Swamping : Even experienced boaters occasionally run their boat into a sand bar or ground in shallow water. This can cause damage to your boat and may require help getting unstuck. 
• Sinking : There are many reasons a boat can sink. If it does, you’ll often have to pay to have it removed in addition to the loss of your vessel.
• Storm damage : Hurricanes and other powerful storms can damage your boat, even while it’s in storage.
• Theft : Boat theft does happen. According to the National Insurance Crime Bureau (NICB) , there were 4,240 watercraft thefts in 2019 alone.
• Fire : Onboard fires are one of the most common risks for boat owners. Insurers typically offer discounts for installing onboard fire safety equipment.

Boating Accident Statistics

Boating accidents are more common than you may think. According to data from the United States Coast Guard (USCG), there were 5,265 reported boating accidents in 2020, resulting in 3,191 injuries and 767 deaths.This same data also suggests that boating accidents — and the property damage costs resulting from those accidents — are on the rise.

In 2020, the number of boating accidents increased by 26.3% from 2019. The number of injuries from boat accidents rose by 24.7% and deaths from those accidents increased by 25.1% from the previous year.

USCG data shows that the cost of property damage from boat accidents is also on the rise. Boating accidents accounted for $62.5 million in damage in 2020. This is an increase of nearly 36% since 2017. 

While boat insurance may not be required for you, it’s almost certainly a good idea to have in most cases. Having a boat accident without it could easily turn into a financial disaster. On the other hand, having sufficient coverage can help insulate you from financial risk and provide valuable peace of mind.

Does Homeowners Insurance Cover Your Boat?

Your homeowners insurance policy may offer liability coverage for your boat. Many of these policies come with coverage for restitution and legal expenses if you are found at fault in a boating accident.

Your homeowners insurance likely covers damages to your boat in limited situations. These are some of the more common sources of damage that a homeowners policy is likely to cover:

• Falling objects

Your boat may be covered under these situations, but most homeowners policies only pay up to $1,000 in damages. For many policies, $1,000 is a common deductible. This means it might not make sense to file a damage claim through your homeowners policy.

How To Save on the Cost of Boat Insurance

Some factors that affect the cost of boat insurance are things you can’t easily change, such as your age or location. But if you’re looking for the cheapest boat insurance , there are a few things you can do to help lower your premiums.

Decide How Much Boat Insurance You Need

In most situations, it’s good to get as much coverage as you can comfortably afford. However, if you’re trying to save money on boat insurance, you can cut coverage to the bare minimum that you may need.

For example, if your homeowners policy offers liability coverage of up to $100,000, you may want to reduce the amount of liability coverage on your boat insurance plan. Reducing your stated cruising area and cutting out add-ons can also help lower your premium.

Increase Your Deductible

With most insurers, your premiums tend to go down as your deductible goes up. So if you’re looking to save on the cost of boat insurance, raising your deductible is one way to do it.

However, raising your deductible also means you’re at risk of paying more out of pocket if you have a covered accident. If you can’t afford to pay your deductible, you won’t be able to complete your claim. Be sure that you can afford a higher deductible before making that change.

Look For Discounts

As we mentioned earlier, most companies offer at least a few discounts to help you save on the cost of boat insurance. In many cases, you can combine some of these discounts for even more savings.

Insurers typically list most of their discounts online, but more may be available. Before you sign a contract, be sure to ask your insurance agent about any discount opportunities.

Establish a Lay-Up Period

Some boat insurance companies offer pricing that includes a discount for a lay-up period. If you know that you won’t use your boat for an extended period of time each year, such as during winter months, establishing a lay-up period with your insurer could bring your boat insurance premiums down.

Take a Boat Safety Course

Most insurers offer a discount for completing a state-approved boat safety course — and for good reason.

Cost of Boat Insurance: Conclusion

The average cost of boat insurance is between $200 and $500 per year. However, with so many variables at play, there’s a good chance that your premiums can fall outside this range. Ultimately, getting a quote is the only way to get an accurate estimate of what boat insurance will cost you.

Boat Insurance Recommended Providers

While the cost of boat insurance is an important consideration, the quality of a provider should factor into your decision as well. When you start to shop for coverage for your boat, these providers are a good place to start.

Progressive: Editor’s Choice

Progressive offers a wide range of boat insurance options and a large selection of discounts to help bring the cost of coverage down. The company’s coverage and pricing were enough to earn it our Editor’s Choice among all insurers in our study. Most boaters should be able to find the coverage they need at a competitive price with Progressive.

Keep reading: Progressive boat insurance review

BoatUS: Best Member Organization

BoatUS is a member organization that has partnered with well-known auto insurer Geico to offer insurance tailored specifically for boaters. The company offers a few coverage options — such as unlimited on-water towing — that may come in handy for serious mariners who spend a lot of time on the water.

Keep reading: Geico boat insurance review

Cost of Boat Insurance: FAQ

Below you’ll find frequently asked questions about boat insurance pricing:

How much should I insure my boat for?

Boat insurance professionals recommend insuring a powerboat for at least $1,000,000 in liability coverage, though the amount of coverage depends in part on the type of boat you own. With the high cost of medical coverage and the expense of some boats, a single boating accident could easily result in hundreds of thousands of dollars in damages.

Is boat insurance monthly or yearly?

Depending on your provider, you should be able to pay for boat insurance either monthly or with a yearly upfront payment. Some insurers offer discounts for paying up front.

Does boat insurance cover hitting a rock?

Boat insurance covers hitting a rock if you have collision and comprehensive coverage on your policy. Damages to your boat will not, however, be covered if you only have liability coverage.

What is the average deductible for boat insurance?

Examples of some average deductibles for boat insurance are $250 for personal effects or fishing equipment and no deductible for towing and assistance, according to Discover Boating . Deductibles will vary greatly depending on the coverage you choose and your situation.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best boat insurance companies. We collected data on dozens of marine insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Reputation : Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability : Boat insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Coverage : Boaters can benefit from a wide variety of specialty coverage options. We evaluated companies based on the amount and diversity of coverage add-ons they offer for boat insurance.
• Cost : As boat insurance costs are highly variable, our research team mainly considered the availability of policy discounts.
• Customer Experience : Our research team took into account companies’ industry reputation with organizations such as the Better Business Bureau (BBB) as well as the ease and availability of in-person, over-the-phone and online services.

*Data accurate at time of publication.

More on boat insurance

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Boat insurance Q&A: Everything you need to know about why premiums are rising

• How to start boating: Everything you need to know to get afloat
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In light of recent price hikes for leisure boat insurance policies, Alex Smith interviews five leading insurance providers to find out why it’s happening.

What differentiates boat insurance from other forms of insurance?

According to our interviewees, boat insurance is different to home or car insurance in several key ways. Its policies are usually more tailored and individual; they are often based on agreed values rather than market values; and they tend to involve face-to-face client relationships rather than automated online aggregators. But the most critical difference is that a boat is a relatively expensive and highly mobile asset with a very dynamic risk profile.

Jeremy Entwistle from GJW Direct explains: “A house, though valuable, is a static entity; and a car has the benefit of user-friendly road networks and signage to help moderate risk. But whether in harbour or at sea, a boat brings with it the potential for big losses from a wide range of risks, including fire, theft, groundings, sinkage, break-in, collision, poor maintenance, extreme weather events and machinery breakdown. It’s very different and, in some cases, more difficult to write the risk on.”

But are the underlying principles the same?

Yes, the calculations and processes are much the same. “An underwriter assesses the risk and applies a rate to that risk against the sum insured,” says Steve Risk from Coleman Marine. “That results in the premium. The premium is the income the insurer will take, minus any that the broker might be earning, and the insurer then applies the premium against any claim activity.

“If there is a premium of £2,000 and a claim of £10,000, the insurer is facing a deficit, so the fundamentals of the marine market are similar to any other insurance.”

What percentage of the boat insurance premium goes out again in claims?

It varies from one category to another but in recent years, and most notably between 2008 and 2018, far more has been paid out in boat insurance claims than has been taken in premiums. It was a period during which insurance companies clamoured for business, driving premium prices down and implicitly encouraging the customer to buy boat insurance on the basis of price.

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That generated a problematic business model, as Richard Power from Fastnet Marine Insurance explains: “It got to a stage when it was clear that those rates were unsustainable. In fact, during the three years to the end of 2017 in the Lloyds yacht insurance sector (which is a pretty good benchmark for the sector as a whole), claims exceeded premiums by between 180 and 300%.”

Is that why boat insurance premiums have risen faster than inflation?

Yes. In the last two years, boat insurance premiums have risen sharply. While the extent varies with size and category of boat, most insurers agree that the general scale of the increases is somewhere between 25% and 60%. Larger boats have seen the highest increases but there have been increases across the sector that leisure boaters have baulked at.

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Jeremy Entwistle from GJW Direct notes that customers will also have been hit by the Government doubling Insurance Premium Tax over the last couple of years. That said, boat insurers are still battling for market share and there are plenty of ongoing customer initiatives. To add to this, over the last couple of years online quoting has improved and customers can quickly get boat insurance quotes themselves rather than waiting a couple of days.

We’re a long way from price comparison websites dominating the boat insurance market like they do in motor insurance, but this transition puts power in the hands of customers to shop around, check their cover and get a policy that is priced for what they really need. Always remember that boat insurers don’t necessarily share the same view of risk!

Why have the price increases happened?

The increased premiums of the last couple of years are a direct result of an industry attempting to rebalance the books after a period of unsustainable pricing. Simon Tonks from Pantaenius explains: “The industry has struggled for profitability over the years, with competition driving the price down, at the same time as attritional claims and larger losses were affecting the market. Despite these things, premiums really didn’t increase for a long time so the market is just now catching up with that.”

On board fires are one of many possible risks…

What caused under-pricing in the past?

Prior to the financial crisis of 2007-2008, boat insurance companies would generally gather data to identify the ‘burning cost’ – the actual cost of claims on an annual basis – in relation to a given yachting sector. That would then be factored into the calculations in order to determine a premium rating model that could accommodate the burning cost while providing sustainable returns for investors.

After the crisis, with a flat stock market, “a lot of people stepped into yacht insurance, providing policies of varying degrees of coverage, quality and security,” says Richard Power. “And that drove down the rates that are used to calculate premiums at the same time as the values to which they are applied were reducing, so you had a double whammy of premiums dropping through the floor.”

Richard believes that the ‘burning cost’ model was “pretty much thrown out the window in the second half of the 2000s and most insurers just started writing the business for income.” That incurred a much higher risk than would ideally be taken on with a proper rating model and it inevitably incurred huge claims and big losses when damaging weather events struck.

…extreme weather events are another

Why are boat insurance price increases happening now?

Given the disparity between income and payouts, the boat insurance increases have become increasingly inevitable – but the timing of them has been conditioned by various other factors. Hurricane Irma in 2018, a succession of storms in European waters and a flurry of Mediterranean yacht fires seem to have been critical. The UK’s inland waterways have also experienced flooding; and the loss of various providers from the boat insurance market has also been a factor.

Are the boat insurance increases justified?

The consensus would suggest that they are. Barrie Sullivan from Y Yacht Insurance said: “These recent increases aren’t merely justified; they’re essential. Quite a lot of insurers have moved out of the market because they’ve made no money and most of the insurance companies and underwriters are owned elsewhere. The owners of these big corporations are in it to make money, not to subsidise. If they’re subsidising any part of their emporium, they will simply shut it down.”

Have we been paying too little for too long?

It certainly looks that way. Given the increasing scale, value and complexity of yachts, the proliferation of big loss weather events and yacht fires, and the higher rate of boat insurance claims, it seems we have been paying too little. Jeremy Entwistle said: “At one point, we sat there and watched what was almost a race to the bottom. We watched people slashing prices and we had to sit there and take the pain. Now a sense of balance has been restored.”

“The market has transformed from a buyer’s to a seller’s market” – Richard Power, Fastnet Marine Insurance

Are we paying for the industry’s mistakes?

In terms of current boat insurance premium increases, it’s fair to say that we’re now paying the price required to bring about a new and more sustainable equilibrium for marine insurers – and that’s a consequence of a short-term, price-driven approach to securing new business in which boat insurance companies were all, to a degree, complicit.

Are we paying for other boaters’ mistakes?

In terms of a claim-free boat owner helping settle the bill for the accident of another through increased boat insurance premiums, the answer to this is not clear cut. Yes, there is an overall pot, which seeks to retain a positive balance between premiums and claims.

But on the other hand, boat insurers all seek to mitigate the risk and to spread the cost by means of investment and re-insurance, as Jeremy Entwistle points out: “The insurance pot isn’t really just one pot, because we spread that around through re-insurance. So a superyacht claim wouldn’t all come from the same fund. You would dip into several in a situation like that to ensure that the owner of a 20-foot runabout isn’t taking the pain for a superyacht that’s worth a thousand times as much.”

Are boat insurance increases a result of freak weather and climate change?

Four of the five interviewed insurers agreed that climate change has become significant in terms of the timings, frequency and geographical spread of damaging weather events. Jeremy Entwistle said: “What used to be the ten-year storm and the 50-year storm are now two and five year events. They’re far more regular. We’ve seen a lot more hurricanes and named storms in recent years and they inevitably have a big impact.”

Boats face a much wider range of risks than houses

What is the likely impact of coronavirus on boat insurance?

For owners in most countries, the simple reality that they haven’t been able to use their boats for a while is bad news. But in the absence of specific cover built into a contract to cover marina fees or lack of use during enforced down time, it’s a hit the boater will be compelled to take.

What is more critical, however, are the potential implications for yacht owners in the Caribbean, as Barrie Sullivan points out: “In the Caribbean, most clients have been told where they can and can’t be during the hurricane season . And because travel is now restricted and a lot of the countries where there is safety and shelter are not accepting any more people, there will be a lot of boaters in the Caribbean who are stuck with their yachts in areas where they won’t get hurricane cover.

“And this is an incredibly sad dilemma because there’s no real solution to it. My view is that, having learnt their lessons through expensive mistakes in the past, no insurers are going to break their rules to accommodate it.”

Will we face further boat insurance rises next year?

While there is some suggestion that some boat insurance companies may add an additional security buffer to their premiums, the consensus suggests that any further increases in the next two years are likely to be inflationary.

Richard Power explains: “Insurers are getting back to where they intended to be. They’re still under pressure from their backing investors to deliver a return but in the UK market, as long as named storms don’t cause too many claims, then certain types of boats will have seen the peak and can now expect to see a flattening off.”

Are boat insurance policies all the same?

Yes and no. Most boat insurance policies from established marine providers are All Risk (rather than Named Peril) policies with Third Party (rather than Hull) cover, because it’s difficult now to park your boat without liability protection. But where boat insurance policies differ the most is in the exclusions – in other words, in what is not covered or in what can only be covered at extra cost.

What are the key boat insurance clauses to look out for?

While clauses covering cruising regions, machinery, personal effects and leaving a boat at anchor should always be carefully scrutinised, another area to be aware of is who is entitled to operate the boat. Most UK policies allow anyone qualified to operate the boat with the owner’s permission, as long as they are not paying for it and are not therefore chartering the boat.

Maintenance is also key because, as Richard Power points out, there are responsibilities on both sides of a boat insurance contract: “The insurer has a responsibility to settle all bonafide claims in a timely manner. And the owner has a responsibility to maintain the boat that’s being insured in a seaworthy manner. And there’s now a lot more scrutiny in claims where the root cause is a lack of maintenance.”

Jeremy Entwistle is in full agreement; “One of the biggest things to be aware of on older boats is wear and tear and corrosion. That’s where the grey areas tend to appear. There’s a fine line between a policy that’s picking up the bill after an accident and a maintenance contract that’s picking up the bill for something that should have been replaced or repaired before it failed.”

Are some boat insurance providers better at paying out than others?

In the wake of big losses, a great many companies have dropped out of the market, which means that in general, the boat insurance companies that remain take a transparent and sustainable long-term approach to their business dealings. Steve Risk explains: “It’s a long-held myth that insurers are there to take premiums without paying claims.

If a client has a claim that is recoverable under their insurance policy, then once the insurance policy has become a contractual agreement between the insurer and the policyholder, insurers will always look to pay that claim. The only difference between insurers is the way they go about servicing the claim – in terms of the level of service, communication, accessibility and responsiveness. But the end result is the same.”

Plainly then, it is vital to be candid, honest and explicit at the boat insurance policy writing stage – a principle roundly supported by Richard Power: “There are certain protections, where, if the insurer doesn’t ask a specific question, the customer doesn’t have to disclose it. But to be safe as a buyer, it’s useful to play a proactive role. My advice would always be to bare your soul.”

Is there anything I can do to reduce my boat insurance premium?

As with other forms of insurance, the key methods of reducing your premium involve reducing the Agreed Value (the sum insured), increasing the excess and shopping around for a better boat insurance deal. The building of insurer-client relationships is also becoming more highly valued than it was in the past, but as Richard Power points out, “the market has transformed, within the space of six months, from a buyer’s market to a seller’s market”.

As a result, price flexibility is now constrained by the resumption of sustainable rating systems – and the giveaway bargains of the past are simply no longer available.

Should I buy boat insurance on price or cover?

While it remains possible that new players will be tempted by the rewards of a recovering boat insurance industry, thereby kickstarting a fresh crusade for lower prices, the consensus, as things stand, seems all but universal. The nature, breadth and relevance of the cover is the chief priority in securing proper protection for your yacht. The price is then largely defined by that.

First published in the July 2020 edition of Motor Boat & Yachting.

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'Everything is rising at a scary rate': Why car and home insurance costs are surging

Scott Horsley

Ezra Croft from North Carolina saw his annual homeowners' insurance surge to $1,600, a $700 increase. Many others across the country are also seeing surging auto and home insurance premiums. Courtesy of Ezra Croft hide caption

Ezra Croft from North Carolina saw his annual homeowners' insurance surge to $1,600, a $700 increase. Many others across the country are also seeing surging auto and home insurance premiums.

Ezra Croft has never filed an insurance claim, and his house in Raleigh, North Carolina isn't close to a stormy coastline or a fire-prone forest.

So Croft was surprised when his annual homeowner's insurance premium shot up to $1,600, or $700 dollars more than he was paying just a couple of years ago.

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"I'm a middle income guy," Croft says. "Don't make a ton of extra money. At this point I'm teetering on the point of inaffordability."

Similar complaints can be heard all over the country. On average, insurance companies sought to raise homeowners' premiums by more than 11% last year, according to S&P Global Market Intelligence .

Auto insurance premiums are climbing even faster , far outpacing overall inflation .

Take Paul Morro. His auto insurance bill just jumped by $600 a year.

"Here's the kicker," Morro says. "My wife and I both work from home. So we have no commute to speak of."

He's bracing himself for the bill to insure his house, in Herndon, Va.

"It just feels like everything is rising at a scary rate," Morro says.

Why insurance costs are surging

Insurance companies insist they're just playing catch-up, after two years of big losses. For every dollar in home and auto premiums they collected last year, insurance companies paid an average of $1.10 in claims and expenses, according to the Insurance Information Institute.

"Nobody wants to have that higher-price bill," says Sean Kevelighan, the institute's CEO. But he added companies "need to price insurance according to the risk level that's out there."

Inflation is partly to blame for those big payouts. The cost of fixing or replacing damaged homes and cars has jumped sharply in recent years as a result of rising labor and material prices.

Even as those prices start to level off, though, insurers are having to contend with a mounting toll of natural disasters, and not just in the usual places like Florida and California.

A car remains in the wreckage after a house and garage were abruptly destroyed by a landslide as an atmospheric river storm inundates the Hollywood Hills area of Los Angeles on Feb. 6, 2024. A spate of natural disasters is helping lead to soaring insurance premiums across the country. David McNew/AFP via Getty Images hide caption

A car remains in the wreckage after a house and garage were abruptly destroyed by a landslide as an atmospheric river storm inundates the Hollywood Hills area of Los Angeles on Feb. 6, 2024. A spate of natural disasters is helping lead to soaring insurance premiums across the country.

Last year, there were around two dozen severe storms in the U.S. with billion-dollar price tags, spreading lightning, hail and damaging winds through many parts of the country.

"While a lot of these storms don't make national headlines, they do tend to be very costly at the local level," says Tim Zawacki, principal research analyst for insurance at S&P Global Market Intelligence. "And the breadth of where these storms are occurring is something that I think the industry is quite concerned about."

As a result, insurance premiums are likely to keep climbing this year even as overall inflation cools.

Insurers have a lot of pricing power

While state regulators have some power to limit those price hikes, insurance companies tend to get their way. Regulators know that if they move too aggressively to limit premiums, insurance companies might stop offering coverage altogether.

"The insurance companies have become really aggressive in their bullying," says Doug Heller, director of insurance for the Consumer Federation of America. "You've heard a lot about companies that are threatening to pull out of the market if they don't get what they want. Generally speaking that bullying has worked."

Douglas Heller, director Of insurance at the Consumer Federation of America, speaks during a Senate Banking Committee hearing about the property insurance market on Capitol Hill in Washington, D.C., on Sept. 7, 2023. Anna Moneymaker/Getty Images hide caption

Douglas Heller, director Of insurance at the Consumer Federation of America, speaks during a Senate Banking Committee hearing about the property insurance market on Capitol Hill in Washington, D.C., on Sept. 7, 2023.

Last week, the Treasury Department hosted a roundtable with consumer and environmental groups to discuss the ways climate change is rattling insurance markets. The department also plans to host a meeting on the topic with insurance industry stakeholders.

Customers can sometimes save money by shopping around. Alicia Pitorri switched insurance carriers after the cost of her family's auto policy jumped more than a thousand dollars.

"It was Liberty Mutual," she says with a rueful laugh. "We've since switched to State Farm since the renewal went up so much."

Extreme weather, fueled by climate change, cost the U.S. $165 billion in 2022

Pitorri, who lives in Nashville, says while she managed to shave a few hundred dollars off the bill, she's still paying a lot more than she did two years ago.

"What can you do?" she asks. "You need insurance. You can't have a vehicle or a house without them. So you have to pay for it. And you figure out where you can cut other things to make sure you can drive around."

Going without insurance

Auto insurance is required in nearly all states. And lenders typically require homeowners who have a mortgage to carry insurance as well. Still, as premiums keep climbing, more people are scaling back their coverage or even going without.

Ezra Croft considered dropping his homeowners' coverage, but ultimately decided to pay the higher premium.

"I'm fairly good at home repairs, but if something like a tree fell on my house or a tornado or a fire, I don't know what I would do," Croft says.

A survey by the Insurance Information Institute last year found 12% of homeowners had no insurance, up from 5% four years earlier. Going without coverage is risky, though, for both individuals and communities.

"Insurance is an important product, not only for economic stability but for community resilience," says Heller. "We are very concerned that these escalating premiums are going to lead to escalating rates of uninsured drivers and homeowners, which makes us all quite vulnerable."

• homeowners insurance
• auto insurance
• severe storms
• climate change