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How Expensive Is Boat Insurance

Types Of Boat Insurance Coverage

Q& A – How costly is boat insurance for a year of Looping?

This will depend on the type of policy, but common coverage add-ons include:

  • Specialized Coverage: Coverage for something specific on your boat like an expensive prop or navigation equipment.
  • Salvage: Coverage that pays to remove your boat due to damage, from substantial to minor.
  • Consequential Damage: Covers a loss that was the result wear and tear rather than an accident .
  • Towing: Towing your boat across a body of water to safety can cost $400 per hour.
  • Cruising Extension: You can get temporary, additional coverage if you plan on leaving the USA .

Operating A Boat Under The Influence

Consumption of alcohol was the main cause of lethal boat accidents in 2019, as indicated by information from the U.S. Branch of Homeland Security and the U.S. Coast Guard. Like drunk driving, handing a boat when under the influence of liquor or drugs is illegal in each state. Also, government law prohibits boating under the influence , which the U.S. Coast Guard enforces. It prohibits all boaters from handling vessels while being drunk or under the effect of drugs. This law is even applicable on foreign boats in U.S. waters.

Penalties for boating while being under the influence of alcohol or drugs, vary from one state to another, and also on the jurisdiction of the waters, however, it generally includes:

  • Jail time
  • Suspension or revocation of boat operator privileges
  • Suspension or revocation of drivers license

Along with facing federal and state penalties, you may get severe consequences from your insurance organization. For starters, on the off chance that you get into an accident as a result of handling a boat while you were drunk or high, your insurance organization may just pay out a liability claim against you. It probably will not cover harm to your own boat. Your insurer could also choose to drop your boat insurance coverage after a drunk boating accident.

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.

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What Factors Affect Your Boat Insurance Cost

A number of factors, some in your control and some not, can have an impact on your boat insurance rates. If you sail on a lake that has a high rate of claims, the cost of your coverage will be higher than for a lake where there are far fewer claims.

Additional factors that affect your boat insurance rates include:

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Best Boat Insurance Providers Of 2021

Boat insurance cost

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Best For Emergency Services Coverage: State Farm

State Farm

  • No. of Policy Types: 1
  • Coverage Limit: Varies

State Farm is a well-known insurance provider that offers additional coverages including emergency services reimbursement.

  • Coverage for houseboats and jet-skis

  • No online quotes for boat insurance

  • Website needs more detailed information

  • Need to contact agent for policy details

In business since 1922, State Farm is one of the best-known names in insurance in the United States. They offer boat liability and property damage insurance for common risks like storms, collision, theft, and more, with add-on coverage options available . Their property damage coverage extends protection not only to equipment permanently attached to your boat but also to accessories such as detachable canopies, life preservers, and seat cushions. State Farm has resources available for boat owners including articles on boat trailer safety tips, boat safety, and water safety. Boat insurance is available for a multitude of watercraft: runabout/sport boats, cruisers/yachts, sailboats, bass boats, jet skis, houseboats, and kayak/canoes.

The Cost Of Boating Accidents

Take a look at some statistics from the Coast Guard for 2019 about boating accidents:

  • 4,168 accidents involving recreational boats resulted in $55 million in property damage.
  • 556 deaths and more than 2,559 injuries were due to boating accidents.
  • 70% of boating deaths were drownings.
  • 33% of deaths occurred when the driver had no boater safety instruction.
  • Open motorboats were listed in 47% of all boating accidents.
  • Alcohol was deemed the leading factor in fatal boating accidents.

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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. Its very different and, in some cases, more difficult to write the risk on.

Boat Insurance Coverage From Erie Insurance

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When something unexpected happens to your boat, ERIE offers coverage1 for:

  • Physical damage to your boat and boating equipment as well as the trailer or outboard motor, if its included in your policy. So if your boat is vandalized or it hits another boat, a rock, a log or a marine obstacle, insurance can help cover the damages.

  • Liability for injuries to other people or harm to property.

  • Medical costs for injuries to you, your family members and others.

With ERIEs boat insurance coverage, weve also built in extras, such as coverage1 for:

  • Emergency services, including towing to the nearest marina if your boat motor breaks down, when youre stranded on the water2 or run out of fuel, oil or battery life.3
  • Certain personal effects in or on the boat, such as clothing or fishing equipment.4
  • Fire extinguisher recharge or replacement after its used to fight a covered fire.5

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Find What You Should Be Paying For Coverage

Our independent agents shop around to find you the best coverage.

If having fun on the water appeals to you, then you might find yourself in the market to buy a boat. You could purchase a boat for fishing, speed boating or sailing, or a pontoon to float around casually. Just as you insure your car and your home, it’s a good idea to get adequate insurance coverage for your boat.

As you research your options for boat insurance, you might have some questions about the cost, what kind of coverage you should purchase, and what insurance company carries the best policies for your dollar.

An independent insurance agent can help answer your insurance questions and get you on the right track for saving on your boat policy. Contact an independent agent today to get started.

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Our independent agents shop around to find you the best coverage.

How Are Yachts Categorized Concerning Insurance

A boat is any vessel that is 26 and smaller. These will have basic coverages and feel more like auto insurance policies.

However, a yacht is classified as 27 and larger, which will have broader, more specialized coverage. This is because yachts are more complicated, faster, bigger, and hold more stuff.

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How Much Does A Boat Insurance Cost

In the United States, private ownership of boats is obviously not as crucial and ubiquitous as owning cars. However, the interest of Americans in recreational boating is also difficult to ignore, considering that over 87 million adults participate in any of its related leisurely activities . Recent statistics have counted up to 13.28 million American households owning boats.

While 2.65 million American families are planning to buy a boat, it is also important for prospective owners to be aware of its potential dangers. The US Coast Guard submitted a report concerning the fate of unfortunate boat owners in 2016 counting a total of 4,463 accidents that incurred up to $49 million worth of property damage. The need for boat insurance is predicated by these frequencies, especially given the fact that open motor boats account for 47% of these accidents.

How Much Is Boat Insurance A Month

Best Boat Insurance Calculators in 2020 ...

The average yearly cost of boat insurance is two or three hundred dollars, however it can run more than $1,000 each year, contingent upon the sort of boat and your personal profile. The sort of boat, its length, and its normal use will generally direct your boat insurance rates. Regardless of whether you have a speed boat, a small fishing boat, or a yacht will have a major effect in what you pay. In general, boat insurance costs $200 to $500 per year on an average. This makes roughly $17 to $42 each month.

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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.

Were 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 dont necessarily share the same view of risk!

Get A Boat Insurance Policy To Protect Your Investment

Boat insurance helps you enjoy peace of mind as you navigate your boat or personal watercraft . So if you travel across lakes, rivers, or ocean waters of the United States we can help. Whether you’re looking for a new boat insurance policy or just to save money on an existing policy, we’re can help you get started with a free boat insurance quote.

Make boating better, together. Experience and a name you can trust go a long way when you’re shopping for boat insurance. That’s why the GEICO Marine Insurance Company has teamed with BoatUS, the nation’s largest group of recreational boat owners. Since 1966, BoatUS has been helping to make boating safer, more affordable, and fun. Together, we share a passion for all things boating.

We all want cheap boat insurance rates, but customer service is what matters. Protect your investment with boat insurance you can count on and get your free online boat insurance quote today.

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Best Boat Insurance Of 2021

  • Rates starting at around $21 per month

  • Great coverage including many extras

  • Limited info on restrictions and exclusions to coverage


Allstate offers a very comprehensive lineup of options for boat coverage, including:

  • Watercraft liability coverage
  • Additional equipment and personal effects
  • Trailer coverage
  • Emergency services
  • Agreed value


Even though Allstate offers boat coverage starting at about $21 per month, it doesnt shy away from discounts. You may qualify for the following when you insure your boat with Allstate:

  • Multiple Policy Discount Up to 20% off when you combine your boat insurance with an Allstate homeowners policy
  • Full-Pay Discount 10% off for paying your full premium upfront
  • Homeownership Discount 10% off for owning a home
  • Boat Education Discount 5% off when you take an approved boater safety class
  • Easy Pay Plan Discount 5% off when you enroll in automatic payments


Unlike other insurance companies, Allstate places very few limitations on its boat coverage. However, some types of coverage and discounts are not to be had in all states, so its best to contact a local Allstate agent to verify the availability of coverage and discounts before switching over to Allstate for your boat insurance.

Additional Perks

Allstate offers the best of both worlds to its customers: local agents to help you with your insurance needs, as well as online tools and an 800 number to get questions answered anytime.

Take A Boater’s Safety Course

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In some states, you’re not required to have a boater’s license for a sailboat. These states seem to dwindle in number every year, but it’s possible that you live aboard and have never been licensed. Many insurance companies offer discounts if you take a boater’s safety course, so it’s worth considering.

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How Does Boat Insurance Work

Boat insurance works similarly to car insurance, but it covers the financial loss of large boats instead of automobiles. You generally pay a set monthly fee for coverage on your boat, and in exchange can place claims against financial loss or damage for things related to your boat. When the claim is received by the insurance provider, they will investigate to determine the fault of any accident, what the damage costs are, and how much should be covered. Once that is complete, the insurance carrier will send you a check for the amount of coverage you are entitled to for whatever claim you submitted.

Get The Best Rates On Boat Insurance

Whether it’s water skiing, fishing, or just cruising around, nothings better than being out on the boat. But before you get on the water, make sure your vessel is covered by a great boat insurance policy. At, you can get the best boat insurance quotes from all the top providers in your province. Just contact us at and well help you compare rates and find the right coverage for your boat.

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Claims Service Satisfaction Guarantee

You can count on 24/7 claims service from experienced insurance specialists, backed by a Claims Service Satisfaction Guarantee. This is an industry-leading promise that guarantees a cheque for the full amount of your current premium if youâre not happy with the claims service for your covered claimDisclaimer3.

What Percentage Of The Boat Insurance Premium Goes Out Again In Claims

factors affection the cost of boat insurance

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.

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 , claims exceeded premiums by between 180 and 300%.

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What Factors Affect Average Boat Insurance Pricing

There are a lot of things that can make the cost of your boat insurance go up, but there are also plenty of ways you can get lower boat insurance prices, too.

Lets look at a few of the most common factors that affect boat insurance rates.

Safety Record

The more years you spend without having a boating accident or citation, the less youll pay for boat insurance. Its also a good idea to be a safe boater just for the merits of avoiding bodily injury and property damage, of course.

Homeowners Discount

If you own a home, chances are good that your boat insurance rates can be lowered based on that asset. This may come as part of a bundle your insurer will offer.

Even if you get homeowners insurance from one company and boat insurance from another, the latter may still consider your home ownership as a valid reason to offer lower boat insurance rates.


If you pay your boat insurance by the month or a few times a year, thats fineits standard, in fact. However, if you can pay for the entire years boat insurance in one lump sum, youll likely get a better rate.

Boat Age

As with cars, newer boats are usually more expensive to insure. Theres just one caveat.

Why Are Northern States Typically Less Expensive Than Southern States

Boat insurance rates are generally more affordable if you live in a state with no coastline, and many coastal states are in the southern part of the United States. Along the coast, you’ll usually find bigger and more expensive boats used in the oceans and on the Gulf of Mexico. The Great Lakes states tend to fall in the low-cost category because boat lengths tend to be smaller, with many boaters taking advantage of inland lakes and rivers. The length of the boating season also has a big impact on the cost of boat insurance. Many northern states have shorter boating seasons and lower policy costs than southern states where the boating season is generally much longer.

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