Do you need boat insurance?

You need insurance for a boat if it meets the size requirements for state-mandated liability coverage or if your lender requires it as part of the loan. You may also need insurance if you keep your boat at a marina or yacht club. Non-powered watercraft like canoes and kayaks don't require insurance.

Boat insurance is available for small fishing boats, speedboats, and sailboats. Some boats require specialty watercraft policies, including:

Houseboats used as a main residence
Amphibious or exotic boats
Boats with excessive horsepower or capable of speeds over 75 mph
Boats used for business or commercial purposes
Boats traveling beyond 75-125 nautical miles from shore
Personal watercraft (e.g., jet skis)

Does home insurance cover boats?

Homeowners insurance usually includes limited coverage, such as $1,000 for damage to your boat while stored at your home, and may provide a small amount of personal liability coverage for an injury that occurs while the boat is at your house. It doesn't cover your boat while it's being towed or used on the water, for eitherliability or physical damage. Jet skis and other personal watercraft are typically excluded from homeowners insurance coverage.

Does auto insurance cover boats?

Auto insurance will cover your boat while you are towing it, but only for liability when you are in an accident. It won't cover damage to the boat itself.

For example, if you are towing your boat and have to swerve, causing the boat and trailer to swing into the next lane and hit another car, your car insurance will cover the damage to the other car, and any injuries to its passengers.

What does boat insurance cover?

Boat insurance covers liability, uninsured/underinsured motorist coverage, medical payments, and comprehensive and collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible. for damage to the boat. All of the coverage applies on the water, but when towing the boat, your auto insurance is responsible for liability. Coverage can also be added for fishing equipment and other personal property, towing and assistance and accident cleanup.

Standard boat insurance coverages include:

Liability. Pays for injuries and property damage for which you are at fault if there is an accident involving your boat.
Uninsured/underinsured boaters coverage. Like uninsured/underinsured motorist (UM/UIM) coverage for a car, this protects you if you're involved in a boating accident with an uninsured boat.
Medical payments coverage - can pay for a smaller amount of medical or funeral expenses for you, your passengers and others on your policy. Water sports coverage extends this protection to waterskiing and similar activities outside of the boat.
Comprehensive and collision (physical damage). Pays for damage to the boat regardless of fault from an accident or other incident like vandalism.

Additional boat insurance coverage options include:

Fishing equipment. Covers fishing supplies on the boat or while being transferred on or off the boat.
Personal property. Covers personal effects on the boat or while being transferred on or off the boat.
Towing and roadside assistance. Provides towing on or off the water.
Fuel spill/accident cleanup. Covers removal of debris from an accident.

How much is boat insurance?

Boat insurance ranges from $300 to $10,000+ annually, depending on the type of boat and its size, according to Hotaling Insurance Services. A small boat such as a fishing boat will land on the lower side of the range, while a yacht lands at the top end.

Boat size	Boat types	Average annual cost
Small (14-20 feet)	Fishing boats, bowriders/runabouts, pontoons	$300-$700
Mid-size (21-30 feet)	Cruisers, larger fishing boats, performance boats	$600-$1,500
Large boats (31+ feet)	Cabin cruisers, sportfishing boats, yachts	$1,000-$10,000+

Are there boat insurance discounts?

Yes, boat insurance discounts are available for safety equipment like fire suppression and safety devices and bundling policies with the same carrierAn insurance carrier is the company that provides your car insurance policy and pays claims., as well as taking a boat safety course.

Boat discounts include:

Fire suppression system
Diesel fuel
Safety devices
Bundling with auto, home and other policies
Boat safety courses

How to buy boat insurance

To buy boat insurance, contact a local agent or reach out to insurance companies directly for quotes, compare coverage and rates, and select the policy that best meets your needs.

Gather boat insurance quotes from multiple carriers. You can work with a local agent or contact insurance companies directly; your current home or auto insurance company is a good place to start. Gather three to five quotes with the same coverage levels.
Compare rates and coverage. Look carefully at the rate quotes and what's included. Even if you requested the same coverage levels on all quotes, some carriers may include extras like towing at no charge.
Select and buy your policy. Make your premium payment to get coverage started on your boat policy and request proof of insurance to keep with your boat.

Boating accidents can be very serious, causing thousands of dollars in damage and injuries. Boat insurance protects you and your investment from the financial fallout of an accident, so get it in place before you go out on the water.