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How Much Is Boat Insurance?

docked boat at lake with boat insurance

Long weekends like Labor Day are the perfect time to take the boat out. Before you do, its important you consider getting boat insurance. After you find out how much it costs and if you need it, you’ll be ready to enjoy your time on the water. 

The Cost of Watercraft Insurance

Let’s dive right in by looking at how much boat insurance (also known as watercraft insurance) costs. Companies consider various factors when determining prices, like the boat’s age, value, horsepower, and condition, among other factors. Also, the type of policy you purchase will impact the cost.

You have two basic options when buying boat insurance. You can purchase an agreed value policy, which means it covers the boat based on its value when you bought the coverage. Then, there is an actual cash value policy. It factors in depreciation when covering your boat and costs less annually. Still, you won’t get as much money if your watercraft is a total loss. It’s not uncommon for insurers to require older boats to get an actual cash value instead of an agreed value policy.

Even with these different factors, most people end up paying around 1.5 percent of the boat’s value each year. That’s not much money at all. If you have a boat worth approximately $20,000, you can probably insure it for about $300 each year. 

Is Boat Insurance Required?

According to the National Association of State Boating Law Administrators, only Arkansas, South Dakota, and Utah require liability insurance for boaters. Even if you live in a state that doesn’t require watercraft insurance, it’s still wise to purchase a policy. While your homeowner’s insurance policy might cover some boat-related expenses, the coverage limit is typically small. The company might only pay for $1,000 toward a claim. That means you might be on the hook for lots of money. 

What Does Boat Insurance Cover?

happy familiy taking a selfie on their boat with boat insurance

Boat insurance generally doesn’t cover wear and tear, defects, or damage from marine life and mold. However, it does cover:

  • Damage from Accidents, Natural Disasters, and Vandalism
  • Bodily Injury Liability
  • Property Damage Liability
  • Guest Passenger Liability
  • Medical Payments

Does Watercraft Insurance Cover Theft? 

Boat insurance typically covers theft when the watercraft gets stolen from a dock, mooring, or marina. Depending on the circumstances, boat insurance might work as secondary coverage. For example, if it gets stolen from a marina storage building, the building owner’s insurance might be the primary coverage. 

Getting Boat Insurance

It’s a good idea to get boat insurance and an even better one to shop around, so you don’t overpay for coverage. Contact a licensed insurance agent to compare quotes from different providers. Then, you can find an affordable policy that will protect you and your boat. With the right coverage, you can continue to enjoy boating each year without worrying about going over your budget if something outside of your control happens. It’s easier to have fun when you aren’t stressed.

Did you know that Freeway offers watercraft insurance? We can help you navigate through quotes and find the best one for your needs and budget. Start your free boat insurance quote online, over the phone, or at one of our offices near you.

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