How to Insure a Boat – and the Best Insurance Providers
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There’s no denying the simple pleasure that is feeling the cool breeze on your face on a warm summer day spent on a boat. However, no matter how pleasant it is, there’s also no denying the responsibility of owning and maintaining a boat. As with any significant investment, an insurance policy can provide you with protection and peace of mind.
It’s a common misconception that an auto or home insurance policy is all you need to protect your boat. These insurance policies might offer limited coverage for specific situations — like if your boat is vandalized — but even then, you could be left with a hefty bill to handle on your own. Neither auto nor homeowners insurance policies are made to cover boats.
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What is boat insurance?
Boat insurance is a specific type of insurance that is designed to cover boats and other types of personal watercraft. Boat insurance is not legally required in most states, but some states do require its residents to have boat insurance. However, if you finance a boat, the lender may require you to have specific types and amounts of insurance coverage for it. Ports and marinas may also require you to carry a boat insurance policy to use their facilities.
How much does it cost to insure a boat?
Just as if you are insuring a car, boat insurance costs vary on the size of the boat you are insuring, its age, your age, and a variety of other factors. The average cost of boat insurance ranges between $200 and $500 per year.
How to buy boat insurance
You can purchase boat insurance from most major insurance companies. Like an auto insurance policy, you may qualify for discounts on the boat insurance policy for things like passing safety courses and maintaining a good driving record. If you already have an auto or homeowners insurance policy, you might want to check with your insurer to see if you qualify for a discount on boat insurance.
As with other types of insurance, you can request a free boat insurance quote online.
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Overview of the best boat insurance providers
Insurer | Best for |
Allstate | Agreed value option |
BoatUS | Variety of coverage options |
GEICO | 24/7 assistance |
Markel | Affordable coverage |
Nationwide | Boating insurance packages |
Progressive | Discounts |
State Farm | Personalized service from agents |
USAA | Discounts for military members |
Best boat insurance companies
Allstate
Allstate offers year-round coverage for your boat or watercraft, both on the water and in storage. This insurer also provides other types of insurance, including auto, motorcycle, homeowners, and business. Each policy is customizable to help you get the deductible and coverage limits that best fit your budget and needs.
Boat insurance policies from Allstate can also be customized with a variety of optional coverage types. This includes medical costs, liability coverage, property coverage, and repair cost endorsement coverage. Like auto insurance, there is also emergency services coverage, which can reimburse for the costs of towing and mechanical labor or the delivery of a battery, fuel, or oil.
There are some additional coverages that you may want to consider from Allstate as well. It offers an agreed value option, which will reimburse you the amount your boat was worth at the start of the policy, regardless of depreciation or the current market value. You can also purchase additional boat equipment coverage for boat accessories such as anchors and navigation gear.
One of the benefits of choosing a policy from Allstate is that you can take advantage of the multi-policy discount. This can help you save money by simply carrying another type of coverage from Allstate in addition to your Allstate boat insurance policy. You can even save on your boat insurance policy if you own an uninsured home with Allstate. Allstate also offers discounts for setting up automatic payments and passing a boat education course.
BoatUS
Boat Owners Association of the United States (BoatUS) is the nation’s largest organization of recreational boat owners. GEICO backs insurance from BoatUS. Additionally, BoatUS offers other services to recreational boaters, including financing and an on-the-water towing fleet.
This company is unique because boating experts service it. It offers custom policies with various coverage options, including agreed hull value, actual cash value, and liability-only coverage. More than that, the company can help guide you toward which coverage option is best for your boat or personal watercraft.
In addition to these base coverage options, there is a wide range of custom add-on coverages. This includes dock contract liability, lifetime repair guarantee, mechanical breakdown coverage, and more. If your boat is winterized by a marine professional, you can also add ice and freezing coverage, covering ice and freeze damage.
BoatUS offers membership, and with membership comes exclusive savings opportunities. This includes discounts on services and products through BoatUS’s business partners. Members also have access to special rates and benefits from BoatUS travel partners.
Geico
Geico makes it clear that it understands boating by being upfront about the benefits of customizing your boat insurance policy. The company explicitly describes the common types of watercraft on its website to help you select and understand the type(s) of coverage that you need. It also makes its exclusions and policy details clear, including that Actual Cash Value policies depreciate all subject to depreciation.
Since Geico is closely affiliated with BoatUS, it has a particular interest in boat insurance policies. This can benefit you because if you’re new to boating and boat insurance, you can rest assured knowing that Geico has licensed agents who genuinely understand boating and can guide you.
In addition to offering customizable boat insurance policies, Geico offers 24/7 claims handling and towing. You can even use the BoatUS app to request assistance from TowBoatUS if you ever need a tow. You’ll also have access to fuel delivery services and other services that you might need in an emergency.
Geico doesn’t offer as many boat insurance discounts as some of its competitors, but some benefits exist. The multi-policy discount can help you save if you have an auto insurance policy through Geico. You may also be able to qualify for savings if you pass boat safety courses.
Markel
Markel advertises that it offers boat insurance policies for as little as $100/year. In addition to boat insurance, Markel also offers different insurance products for personal watercraft, yachts, ATVs, and motorcycles.
There are a few things that set Markel apart from some of its competitors. The company doesn’t just sell an insurance product and move on; instead, it constantly reviews and refines its policies to ensure that they’re meeting the current needs of the marketplace. Markel also offers loss control services to help reduce the risk of policyholders facing an insurance loss.
Markel isn’t a household name in the insurance business, but even so, it still offers valuable discounts for its policyholders. This includes the experiences boater discount, which lowers your premium if you have five or more years of boating experience. There’s also a diminishing deductible program, multi-unit discount, diesel engine discount, and more.
Since Markel specializes in niche markets, it offers some unique benefits. From looking at the Markel website, it’s apparent that the company is knowledgeable about boat insurance and what boaters need. This includes a thorough FAQ section that answers everything from basic questions about filing an insurance claim to whether waterskiing affects the cost of boat insurance.
Nationwide
Nationwide is a company that offers a variety of products and services, including insurance, banking, investing, and retirement planning. For businesses, Nationwide offers insurance, employee benefits, and banking, among other services. Insurance customers have access to Nationwide’s On Your Side® Review — an annual free insurance review. This review allows you to get an assessment from a Nationwide insurance professional to ensure that you have the most appropriate coverage. It also gives you a chance to discuss upcoming life changes and new discounts for which you may be eligible.
You can get all of the coverage that you’d expect from Nationwide. The structure and labeling of the coverage are very similar to auto insurance coverages, which makes it easy for those familiar with auto insurance policies to compare the coverages. This includes bodily injury liability, property damage liability, collision, comprehensive, medical payments coverage, and uninsured/underinsured motorist coverage. Optional add-on coverages include on-water boat towing & labor, roadside assistance, and personal effects insurance.
In addition to offering customizable coverage for boat insurance policies, Nationwide also offers boat insurance packages. This allows you to select an insurance package based on the type of boater that you are. For example, the weekenders package offers coverage designed for boaters who don’t leave gear on their boat. If you’re a serious boater who enjoys fishing, light tackle anglers and deep water pros packages are also. Roadside assistance is included for free with every boat insurance package.
Currently, Nationwide offers a variety of discounts that can help policyholders save on boat insurance policies. This includes a multi-policy discount for combining home, boat, vehicle, and life insurance policies. There’s also a discount for insuring more than one boat with Nationwide. You can also save by paying your 12-month premium in full, remaining claims-free during a policy term, completing an approved water safety course, and buying a diesel-powered boat.
Progressive
Progressive is a household name in the insurance business, so it’s not out of line to expect good value from its boat insurance policies. Fortunately, Progressive delivers. Not only does it offer robust standard coverage and optional add-on coverages, but it also makes it easy to understand what each coverage means.
A standard boat insurance policy from Progressive includes full replacement cost coverage. This means that as long as you carry comprehensive and collision coverage for your boat, Progressive will pay the cost of returning your watercraft to its pre-accident condition or better. There’s also bodily injury and property damage liability coverage to help you with legal expenses and the cost of repairing or replacing property damaged by your boat. Fuel spill, wreckage removal, roadside assistance, and watersports coverage complete a standard boat insurance policy from Progressive.
While Progressive’s standard boat policy covers most situations, there are some cases where you might want more protection. Progressive’s optional coverages include total loss replacement, Sign & Glide® on-water towing, fishing equipment or carry-on items, and Propulsion Plus® mechanical breakdown coverage. Interestingly enough, many of the standard auto insurance coverage types are optional coverages for Progressive’s boat insurance policies. This includes comprehensive, collision, uninsured/underinsured boater, medical payments, and trailer trip interruption coverage. Progressive’s boat insurance even covers up to $1,000 in veterinary bills or death benefits if your dog or cat is injured or killed in a covered boating accident.
Progressive’s discounts and savings opportunities are impressive, even for boat insurance. In addition to the usual multi-policy and multi-boat discounts, you may qualify for the responsible driver, original owner, or transfer discounts. Members of the United States Coast Guard Auxiliary (USCG), United States Power Squadron (USPS), and USAA (in most states) are also eligible for membership discounts. Further savings are available if you remain accident-free and claim-free over specific time frames.
State Farm
State Farm does things a bit differently than some of its competitors. There are 19,000 agents nationwide ready to provide personalized service for its customers. For some, this can be a hassle because you might not be able to get all of the information you need online. However, it can also be a benefit because it gives you easy access to someone who can help you find the right coverage. It might even save you time, so you don’t have to spend all day browsing and researching boat insurance coverages.
Boat insurance policies from State Farm can cover multiple types of boats and personal watercraft. This includes runabout boats, yachts, sailboats, fishing boats, houseboats, kayaks, canoes, and jet skis. Standard coverage includes liability insurance, which can help protect you if your watercraft causes injury to another person or their property. There are also additional coverages that are automatically included in a base contract, including coverage for emergency service, temporary repairs, and wreck removal.
If that’s not enough for you, State Farm’s optional coverages might have what you’re looking for. You can choose to add on coverage for boat rentals, including liability insurance for vacation rentals and rental reimbursement and liability if you need to rent a boat while yours is being repaired. If you rent your boat to other people, you might be able to use an endorsement to cover any possible property damage, injury, and liability claims that arise when your boat is rented out to someone else. Uninsured/underinsured watercraft coverage is considered an optional endorsement with State Farm. Its most unique coverage, though, is probably the fishing tournament fee reimbursement. If you cannot participate in a fishing tournament due to a covered loss or family emergency, this can reimburse you for the non-refundable entry fees.
If you’re considering State Farm, it’s important to remember that it relies heavily on its insurance agents. For those who like to work one-on-one with an agent, this can be a huge selling point. However, it can also make things more difficult if you’re looking to make a quick decision. While some coverage information is available online, the website often prompts you to reach out to an agent to learn more or get a boat insurance quote.
USAA
USAA offers insurance, banking, investment, and retirement products to U.S. military members and spouses. Children of USAA members may also be eligible for its products and services. USAA is often a good choice for insurance products for those who qualify because of its discounts and coverage options. For boat insurance, USAA partners with Progressive and Markel.
Right off the bat, USAA offers a 5% members-only discount for most types of boats and personal watercraft. Like many discounts, this isn’t available in all states but already provides a savings boost for those with access to it. There are also discounts for passing a state-approved boating safety course, being a responsible boat operator, and remaining claims-free.
USAA’s boat insurance policies are fairly standard. It covers damages from theft, vandalism, fire, and weather events. The policies have liability insurance for both bodily injury and property damage. There’s also collision coverage and medical payments coverage for yourself if an uninsured boater injures you. USAA specifically mentions that a standard boat insurance policy does not cover maintenance or normal wear and tear like auto insurance policies.
If you’re considering USAA for boat insurance, you might be wondering about its partnerships with other insurance companies. USAA has partnered with Progressive for more than 30 years and with Markel for over 10 years. So, to get a boat insurance quote, USAA will direct you to its partners’ websites. Progressive handles watercraft with a value under $150,000. Markel handles high-value boats such as yachts.
Best boat insurance providers summary
Insurer | Online quotes | Discounts and savings opportunities |
Allstate | Yes | Multi-policy discount, FullPay® discount, homeownership discount, boat education discount, Easy Pay Plan® discount |
BoatUS | Yes | Membership savings on services and products from business partners, special rates and benefits from travel partners, and discounts on things like fuel and repairs |
GEICO | Yes | Multi-policy discounts, boat safety course discounts |
Markel | Yes | Experienced boater discount, diminishing deductible program, multi-unit discount, outboard propulsion discount, 40 or over discount, diesel engine discount |
Nationwide | Yes | Multi-policy discount, multi-boat discount, boater safety course discount, diesel fuel discount, paid in full discount, claims-free renewal discount |
Progressive | Yes | Multi-policy discount, responsible driver discount, original owner discount, transfer discount, association discount, multi-boat discount, advanced quote discount, pay in full discount, prompt payment discount, safety course discount, small accident forgiveness, large accident forgiveness, disappearing deductibles |
State Farm | No | Boat education course (an agent may have more information about additional discounts) |
USAA | Yes | Members-only discount, safety course discount, responsible operator discount, claims-free discount |
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FAQs
What are boat insurance costs based on?
\nSeveral factors include the type of boat you’re insuring, where you use your boat, your boating and driving record, and the deductible you choose for your policy. The average cost ranges between $200 and $500 annually.
Do all states require boat insurance?
\nOnly Arkansas, Utah and Hawaii require boaters to insurance their boats. However, many marinas and ports require insurance so you'll need to check on marinas you would like to harbor in to see its requirements.
How do I find the best boat insurance coverage?
Compare policies from multiple insurers. You might want to start with your current auto insurance company to see if you can qualify for a bundling discount.
What’s the difference between boat and marine insurance?
Boat insurance is for recreational boaters, and marine insurance is for commercial vessels.
Why you should use boat insurance
Whether you have a fishing boat or pontoon boats, there’s always the possibility of an accident. You may even want to consider getting boat insurance for your boat trailer and boat accessories. Having a good insurance policy might cost you money upfront, but it can save you much more if you’re ever involved in an incident with your boat.
The bottom Line
Unlike auto insurance, boat insurance is not required in most states. Even so, it’s a good thing to have for peace of mind. Boat insurance coverages are similar to auto insurance coverages in some ways, but there are also unique coverage options specific to the needs of recreational boaters.
Fortunately, there are a variety of insurers who offer boat insurance. Many auto insurance companies offer this type of coverage. There are also niche insurers who specialize in boat and personal watercraft insurance. It’s important to consider your options before deciding on an insurance company carefully. Some insurance companies might not cover your vessel or offer the type of coverage you need. Getting insurance quotes and comparing your options is the best way to find the most affordable and effective policy based on your needs.
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Ashley Hart is a lead copywriter and digital marketing expert covering finance, law, real estate, music, entertainment, health and wellness.
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