Boat Insurance: How Much Will It Cost?

Many prospective buyers do not include insurance when estimating the expenses involved in boat ownership. After all, unlike automobile insurance, boat insurance is not mandatory in many states.

That said, most responsible boaters would not consider going out on the water without the security afforded by insurance. Indeed, peace of mind is the most important reason to include boat insurance cost in any prospective budget.

Cost Variables

The cost of marine insurance is hard to generalize as there are many mitigating factors. The type of policy makes a significant difference in premium cost, but boat owners should not sacrifice sufficient coverage for the sake of a lower price.

An all-inclusive policy at the very least should include collision damage, medical liability, property damage liability and comprehensive coverage (in case your boat is stolen or vandalized). Here are some other factors that help determine boat insurance cost:

  • Deductible amount (the higher the deductible, the lower the premium)
  • State where boat is moored
  • Type, use and age of vessel
  • Experience of driver/additional drivers
  • Boating safety record
  • Automobile driving record
  • Cruising range–inland waters or open seas
  • Personal effects–cost of navigational, entertainment and recreational
  • equipment

It is important when determining boat insurance cost to consult with an agent or broker who can determine the best and most cost-effective plan to meet your individual needs. A watertight insurance plan is a crucial part of new boat ownership.