Do You Need Boat Insurance? Answer to Common Questions

Introduction to Boat Insurance

From languid lake cruises to windswept sunset sails, boating excursions can provide endless fun. While boating may be a largely recreational activity, evaluating the risk of owning a marine vehicle is important. Depending on your type of marine vehicle, you may have wondered about boat insurance. At Infinity Insurance Agency, Inc. (IIA) we want to take the guesswork out of wondering ‘Do you need boat insurance? Boat insurance can help cover some losses associated with certain boat and watercraft ownership. Boat insurance can potentially cover repairs needed after an accident or pay to replace your boat if it's stolen.  

Follow along to learn more about the basics of boat coverage and determine if this coverage is right for you.

What is boat insurance?

Like car insurance, boat insurance can provide coverage in the case of an accident to the boat itself or for property damage, theft, or natural disaster. Boat insurance differs from auto in that boat insurance is usually offered as a choice between two coverage types, actual cash value coverage or agreed amount coverage. Car insurance is generally based on the car’s actual market value. This means as a boat owner you can opt for actual cash value coverage, which takes depreciation into account when it comes to paying for repairs, or agreed amount coverage, which can help pay for repairs based on the value of your boat as agreed upon by you and your insurer at the time of purchase coverage. All different types of boats can be covered by boat insurance policies from fishing boats to personal watercraft. Boat insurance is a type of watercraft insurance, but watercraft insurance is an umbrella term that includes watercrafts and yachts.  

Is boat insurance required?

Unlike auto insurance, which is widely mandated throughout the United States, boat insurance is only required in two states, Utah and Arkansas. However, many marinas throughout the country will require boat insurance for you to keep your boat at their facility. If you used a bank loan to pay for your boat, it is also possible your bank or lender may require insurance coverage. As a boat owner, it is your responsibility to ensure you adhere to all laws and regulations of the waterways and state parks you will be frequenting. Boats and watercraft tend to be costly investments, and even if boat insurance is not required in your state, it can be helpful to acquire coverage to offset the potential costs of an unexpected accident or repair.  

What does boat insurance cover?  

While liability insurance is the minimum required by a few states and most marinas, there are many types of boat coverage including the following:  

• Property damage liability coverage - This type of coverage can pay up to your coverage limit for damages to another boat, marina, or dock if your boat caused the damage under a covered incident.
• Bodily injury liability coverage - This type of coverage can offset costs associated with medical expenses if someone on your boat or another boat is injured during a covered accident.  
• Collision coverage - This type of coverage can cover the costs associated with damage incurred by a covered collision with another boat or watercraft.  
• Comprehensive coverage - This type of coverage can offset repairs and or replacements needed after covered incidents such as fires, extreme winds, vandalism, or theft.
• Uninsured/underinsured boater coverage - This type of coverage can help cover the costs incurred after a covered accident with another boater who lacks sufficient insurance.
• Medical payments coverage - This type of coverage can pay up to your coverage limit for medical expenses for you and your passengers.

Coverage may differ from one carrier to another. You can discuss with your agent additional coverage options such as towing and assistance, fuel spill coverage, and wreckage removal coverage.

What types of boats are covered?

From motorboats to sailboats, several types of boats can be covered under boat insurance.  

Some of the most popular types of boats covered can include:

• Powerboats  
• Fishing boats
• Sailboats
• Pontoon boats.  
• Personal watercraft such as jet skis  

How much does boat insurance cost?

Like auto insurance, boat insurance costs can vary drastically based on your location, boat type, age, size, horsepower, and intended usage. The average annual cost of a boat insurance policy can range from $255 in Minnesota to $753 in Florida. In general, boat insurance tends to be more affordable in Northern States, or states with no coastline. Typically, northern or lake states are home to smaller boats and shorter boat seasons. States that are located on the Gulf of Mexico tend to have bigger and more expensive boats and take part in a longer boating season. Other factors that contribute to boat coverage costs include the coverages and deductibles you select, based on your boating history, and where you chose to store your boat.

Boat insurance discounts*

IIA works with multiple carriers that may offer potential discounts.

Boat owners may be able to take advantage of savings by utilizing any of the following discounts potentially available through our carriers:

• Multi-policy - Earn potential discounts through obtaining multiple policies such as homeowners, auto, or commercial.
• Responsible driver - Lower your coverage rate through a clean boating history within the last three years.
• Original owner - If you are the original boat owner you could score potential savings on your coverage rate.
• Transfer from another company - If you have carried boat insurance in the past you could be eligible for a discount.  
• Association - Discounts may be available for members of the United States Coast Guard Auxiliary (USCG), United States Power Squadron (USPS), or the United Services Automobile Association (USAA).
• Multi-boat - If you are insuring multiple boats, you could be eligible for discounts.  
• Pay in full - Choosing to pay your annual policy in full could earn you savings.
• Safety course - By completing any state-approved safety course you could earn even more savings on your coverage.  

*Please note that these listed coverages and discounts may differ from one carrier to another.

Days full of sunshine and saltwater make for unforgettable memories. However, owning and operating a boat is not without risks. Obtaining the right boat insurance coverage is essential before beginning your boating journey.  

Ready to cast off? Call Infinity Insurance Agency Inc., today at 1-855-478-3705 to speak to an agent or receive a free boat insurance quote.