How Much Is Boat Insurance
The average cost of boat insurance is $200 to $500 a yearalthough for a really big or expensive boat , insurance can cost around 15% of the boats 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.
How Much Will Boat Insurance Cost Me
11 Minute Read | September 22, 2021
Boats are a highlight of summer! Theyre flashy, fun . . . and freaking expensive to repair or replace. Thats why its better to pay for boat insurance than to hope youll 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 yearor around 15% of your boats value if you have a big, powerful or expensive boat.
Lets talk about what affects the average boat insurance cost, what it covers and where to get it.
The Difference Between Great Insurance And Bare Bones Is Less Than The Cost Of A Tank Of Gas
Are discounts available?
Discounts are available after you have responsibly owned your boat for three to five years, for being claims free, and if you have taken courses at ;Canadian Power and Sail Squadron or Sail Canada. Discounts are not available for holding the required Pleasure Craft Operator Cardthats like asking for a discount because you have a drivers license.
Is my boat insured even when Im not using it?
Yes, when you buy a years policy, your boat is covered in storage, in transit, on the water and over the winter. The risks dont stop when youre not using your boat – its more likely to sink when you are not there, and more electrical fires start in the cold months.
Can my insurance be voided?
Yes, if you are involved in any criminal act such as drinking illegally on your boat – your insurance is void.
What about my trailer?
ICBC requires a license plate, and liability insurance. Physical damage can be added to your boat policy for Agreed Value.
Take time to choose your insurance, Paul advises, to make sure you get everything you need.
He asks, Whats peace of mind worth to you?
Recommended Reading: How To Register Your Boat With The Coast Guard
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.
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.
Payments
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.
Read Also: What Size Boat Battery Do I Need
Factors That Go Into What Boat Insurance Costs
What Does Average Boat Insurance Cover
And now we get to perhaps the most important question here: What does boat insurance actually cover, anyway?
A lot of things, varying from policy to policy.
Take the time to customize your boat insurance plan to suit your needs. Carefully select what you and your family need, given your specific circumstances. To get you started, here are a few of the things covered by the average boat insurance policy, and that most boaters;consider very important:
Medical Costs
If someone is injured in a boating accident thats found to be your fault , then your boat insurance plan will likely cover a good chunk of the medical expenses associated with the boating injuries.
This is also true if you or someone on your boat is hurt in an accident thats someone elses fault. This is important, especially if the other parties involved made the poor choice to skip getting boat insurance!
Liability Expenses
After a boating accident, regardless of whether there were medical bills, there are often legal costs. These could be potentially ruinous if you dont have good boat insurance coverage in place.
Property Damage
If your boat is involved in an incident that causes property damage to another vessel, a dock or part of a marinaor even simply to itselfyoull be glad you have boat insurance when the repairs or replacements are covered by your insurer, and not your personal bank account.
Personal Effects
Read Also: What Is The Best Family Boat
Does Boat Insurance Cover Passengers
Boat insurance covers boat passengers as well as the owner in an accident. Passengers on the boat are covered under the liability portion of the boaters policy.;
However, depending on the policy, this may or may not extend to water skiers you are pulling behind the boat. Be sure to work with a knowledgeable professional who can help evaluate your needs and risks.
Do You Need Boat Insurance
In order to determine if you need boat insurance, you need to assess your needs and keep the costs in mind. Typical boat insurance policies can cost 1-2% of the boats value over the course of a year. These payments are typically split up into monthly payments.;
If your livelihood depends on your boat, such as a boat charter business, youre a fisherman, or offer boat tours then you should definitely get boat insurance. Its also recommended for recreational boat users because boat repairs add up and you dont want the headache and out-of-pocket costs, not to mention liability, if youre in an accident or your boat is damaged in a storm.;
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Does Boat Insurance Cover A Blown Engine
Boat insurance covers a blown engine under some circumstances. Check that with the insurance company issuing the policy. Many policies will cover a blown engine when the cause is a manufacturers defect, but not if is due to normal wear and tear.
Contact an independent agent for assistance with all of your boat coverage.
TrustedChoice.com Article | Reviewed byJeffrey Green
What Is The Best Type Of Boat Insurance
The best type of boat insurance is insurance coverage that adequately meets your legal and contractual obligations and allows you to feel comfortable about your exposure to risk. Because each individual situation is different, it is important that you determine what coverage factors matter most to you and your family. Spend time researching your options and speak with multiple insurance brokers or agencies. Allthingsboat.com has an excellent review of boat insurance providers.
Read Also: How To Remove Mold And Mildew From Vinyl Boat Seats
Best For Additional Coverage Options: Foremost
;Foremost
- No. of Policy Types: 3
- Coverage Limit: Varies
Foremost offers various boat insurance packages with unique add-ons including trip interruption services.;
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Unique add ons like onboard pet coverage
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Trailer coverage
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Contact agent for specific coverage maximums
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Website could give more details
Foremost is a part of the Farmers Insurance Group of companies. It is a specialty insurance company that has been in business since 1952, and it’s known for providing affordable coverage for boat insurance in all 50 U.S. states. Foremost offers some unique coverage options for an additional premium, including hurricane haul-out, enhanced towing services, fishing tournament fee reimbursement, additional pollution liability coverage, pet coverage and trip interruption service.
There are several discounts available through Foremost that are designed to save you money on your premium. This includes a lay-up discount, paid-in-full discount, boating safety course, protective device discount, multi-policy discount, multi-unit discount, loss-free renewal discount, prior insurance, insured age , and affinity and alliance discounts for boat operators who are a part of an approved affinity group or alliance organization. Coverage is also available for classic boats over 25 years old.;
The Size Of The Engine
A boats engine size will also dictate how much insurance is needed to cover the boat.; Larger engines cost more to maintain, repair, and replace.
If your boat has multiple engines, this will incur more insurance costs.
When a boat with multiple engines is destroyed, all of the engines need to be replaced.; Insurance companies will take this into account when they write up their policy.
Best For Safe Boat Drivers: Progressive
;Progressive
Progressive offers a variety of comprehensive boat insurance policies and offers discounts for safe boat drivers.;
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Need to contact for pricing
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New boaters may be overwhelmed with choices
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Dont insure houseboats
Progressive Insurance is well-known throughout the United States and has an excellent reputation for providing comprehensive coverage at competitive prices. Progressive has been writing boat policies for over 35 years and now insures more than one million watercraft. You can buy a boat policy for several types of personal watercraft vessels up to 50 feet long and up to $500,000 in value.
There are several attractive discounts to reward safe boat owners, including a decreasing deductible, in which your policy deductible will decrease for each policy period you remain accident-free, and a safety course discount for anyone who completes a state-approved safety course. New policyholders will enjoy small accident forgiveness for claims of $500 or less, while customers who have insured their watercraft through Progressive for at least four years and been accident-free for the past three years are awarded large accident forgiveness that ensures no increase in rates for any accident.;
Which Comes First: The Boat Or The Boat Insurance
If you are in the market for a boat, it’s a good idea to consider shopping for insurance first before signing your boat purchase paperwork. Insurance rates can vary, so you may want to factor in the cost of your coverage as you determine which boat you can reasonably afford.
Try narrowing your purchase choices down to two or three boats, and then take information about their specifications to a local independent agent.;
Your agent will get quotes from several insurance companies for you on your potential purchases. You can then determine for yourself which boat will ultimately be better for your needs and budget.
An independent agent in your area can help you evaluate boat insurance rates and options so you can enjoy the water and have peace of mind. If youre thinking about getting a boat, contact a local agent today and get the vital information you need for your best protection.
TrustedChoice.com Article | Reviewed byJeffrey Green
The Owners Credit History/insurance Score
The insurance company will do a soft credit history check.;
This means that their inquiry will not show up on your credit, but they will know your history.;
They will use this information to determine how much your premiums will be on your policy.;
Any history you have with other insurance companies will also come into play.
What Information Will I Need To Provide For Obtaining A Yacht Insurance Quote
When obtaining a;Yacht Insurance Quote;for either a yacht that you already own or one that you are planning to buy, you will need to have the following information to hand:
- All your personal details and contact information
- Full details of people in charge of the yacht including experience, previously owned boats, sailing qualifications and any claims.
- Details of the yacht including model, value, age etc.
- Engine manufacturer, horse power, maximum designed speed and type of fuel.
- Details of the use private,; corporate entertainment or charter
- Value to be insured.; This should be market value or price paid
- Details of the mooring and the location and planned cruising within the first year of the insurance policy.
- And, finally the date of when you would like the yacht insurance policy to commence.
The Type Model And Age Of The Vessel You Want To Insure
Different boats have different sizes and horsepower, and these factors affect the rate of premium. For example, a boat used for fishing, a luxury yacht, and a speedboat owner should all expect different rates.
Like auto insurance, owners of older boats can expect to pay less than owners of newer boats.
Boat Insurance Coverage Faqs
Small Boat Insurance
What is the best coverage for my boat?
It is best to have what is known as an “All Risk” policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer’s defects, defects in design, and ice and freezing.
How much should I insure my boat for?
You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called “Agreed Value” or “Stated Value” coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing “Actual Cash Value” coverage, which means the value of your boat will be replacement cost less depreciation.
What other coverages can I expect with my policy?
The following are standard coverages with standard deductibles and average limits:
- Medical payments, $5,000
- $1,000 limit Personal effects, $250 deductible
- Uninsured boaters liability, between $300,000 and $500,000
- $500 to $1000 limit Towing and assistance, no deductible
- $1,000 limit Fishing equipment, $250 deductible
Who is allowed to operate my boat?
I live in an area where I can’t use my boat in the winter, but my lender requires it be insured year-round. What can I do?
Large Boat Insurance
What are the differences between boat and yacht insurance?
What should I look for in a yacht policy?
What is a normal deductible?
Is Boat Insurance Required
*Boat and PWC coverages are underwritten by GEICO Marine Insurance Company. The TowBoatU.S. Towing Coverage Endorsement is offered by GEICO Marine Insurance Company, with towing services provided by the BoatU.S. Towing Program. Towing coverage only applies to the insured watercraft. This endorsement is not available in all locations and is subject to certain restrictions. Towing coverage is subject to availability and service may be restricted based on the location of the insured watercraft or trailer. Please speak to an agent to discuss details of towing services, limits, exclusions and coverage availability.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
When you click “START QUOTE” you’ll be taken to the BoatUS website for a secure boat quote. Any information you provide will be subject to the privacy policy posted on their website.
BoatUSâBoat Owner’s Association of The United Statesâis the nation’s largest association for recreational boaters providing service, savings and representation for over 50 years.
Does Boat Insurance Cover Engine Damage
Boat insurance sometimes covers engine damage. This varies from company to company, as well as by policy. Some insurance companies have machinery damage exclusions while others do not; it often depends on the age of the motor. Reimbursement may include replacement cost or be subject to depreciation.
Best For Additional Benefits: Boatus
;BoatUS
- No. of Policy Types: 3
- Coverage Limit: Varies
BoatUS offers boat insurance as well as towing services and additional discounts on boat charters and services.;
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Coverage for fishing and watersports gear
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Teamed up with Geico
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Overload of boating services on site
BoatUS offers boat insurance through the Boat Owners Association of the United States and was acquired by GEICO in 2015. The company has been in business since 1966, resulting in a mix of online customer reviews. But a great majority are positive, especially in the area of claims service. BoatUS offers boat policies in all 50 states for many different types of personal watercraft and yachts.
While membership is not required to get a quote, added benefits for BoatUS members include discounts on popular boating and fishing businesses, fuel, slips, and charter cruises. The basic membership fee is relatively inexpensive at $25/year and goes up to an Unlimited Gold Towing membership for $179 that comes with perks like 100% payment dock-to-dock tows as well as $3,000 for tows outside of TowBoatUS service area. Other membership packages include Unlimited Freshwater Towing for $90/year and Unlimited Saltwater Towing for $165/year.
