Most people are concerned about the price of insurance when they shop for coverage. Because boat insurance premiums can vary widely due to many factors, you may find that your monthly payment is different from what the average estimate is.
Guides Auto Team has put together this guide to help you understand how boat insurance rates work. This guide will provide you with information on how premiums for boat insurance are calculated, the types of coverage that can be purchased, and ways to get the best rates. You can also find some recommendations for the best boat insurers to get you started.
Boat insurance rates are influenced by several factors
- Length. Boats and yachts tend to be 26 feet or shorter.
- Value. As expected, higher-value boats cost more to cover. You can estimate the cost of insurance by evaluating the value of your vessel.
- Type. Different types of boats require different insurance.
- Age. Although older boats are typically cheaper, they require more maintenance and upkeep.
- Horsepower/Speed Faster engines are often more expensive in terms of boat insurance costs.
- Cruise area. Boating in oceans, lakes, and bays or on rivers, Great Lakes, or other bodies of water carries different risks.
- Coverage Options. There are many options available when it comes down to coverages and limits, deductibles and coverages for personal items, fishing gear, and boat accessories. Your boat insurance costs will be affected by the coverages that you choose.
- Driving and boating history. Do you have any violations, accidents, or claims within the last 5 years?
- Courses on boating safety Training or certification that is formal can reduce the cost of insurance.
Average Boat Insurance Prices: Monthly and Annually
Your boat should be covered as soon as you become the owner or have control over it. The cost of boat insurance can vary from $500 for small boats to thousands for larger yachts.
As a rule, annual premiums should be between 1 and 3 percent of vessel value.
- A $50,000 boat would have a premium of $500-$3,000 per year, while a policy on a $200,000 vessel will cost $3,000 to $6,000 annually. The percentages and absolute numbers are much higher for large yachts.
- The cost of insurance for large yachts is higher because they have more equipment, a professional crew, or are chartered.
You can purchase boat insurance online, or receive a quote through a specialized agent like GEICO/BoatUS. They may be able to provide a boat calculator to help you get started.
Boat Insurance Coverage
Boat insurance is available in a wide range of options. Liability-only policies can be tailored to meet state or marina requirements, comprehensive coverage that includes a wide range of add-ons is available and you can even choose a high-limit policy.
Standard Boat Covers
Standard boat insurance policies are similar to auto insurance.
- Property Damage Liability: Covers damage to boats and other property of others if you are found responsible for an accident.
- Bodily Injury Liability: Covers medical costs, lost wages, and other related costs for third parties in an accident involving a boat.
- Collision Insurance: Covers damage to your boat regardless of fault.
- Comprehensive coverage : Covers damage to your boat caused by sources other than accidents, such as theft, vandalism, or weather.
- Medical Payments: Covers your party’s medical costs resulting from an accident covered by the policy.
- Uninsured Boater Coverage: Covers injury and property expenses when the boater at fault lacks adequate coverage.
Boat Insurance Add-Ons
There are also a variety of add-ons for specialty coverage. These optional coverage options can cover additional costs associated with owning, storing, and transporting your boat.
These are the most popular boat insurance add-ons.
- Roadside Assistance: If your vehicle breaks while towing a boat, you will be covered for emergency roadside service.
- Damages or injuries from watersports: Covers damages or injuries sustained during watersports such as waterskiing or tubing.
- Fuel Spill Cleanup: Covers costs of cleaning after your boat spills gasoline into the water. Sometimes, the insurance covers fines or other costs associated with the spill.
- On Water Towing : Covers the towing costs for your boat if it breaks on the water.
- Wreckage Removal: Covers costs of pulling your sunken or wrecked boat from the water.
- Damage caused by ice and freezing: Covers repairs for damage to your boat due to ice, or cold following an incorrect winterization.
- Mechanical Breakdown Insurance (MBI) : Covers repairs in the event of a mechanical failure for a monthly fee. This is similar to an Extended Warranty for a vehicle with a reputable provider.
- Hurricane haul out: Covers costs of moving your boat in the path of an approaching hurricane.
- Boat Trailer: Covers damage to your boat trailer at an extra fee.
- Personal Property: Includes the cost of items such as life jackets and navigation equipment.
- Commercial Liability: Covers the liability costs in case your boat is involved in an accident when it’s being used to conduct business.
- Boat Rental Liability: Covers the costs of liability if a person driving a boat that you rent is found to be at fault for an accident covered by this policy.
What Boat Insurance Doesn’t Cover
Marine insurance is available for many different types of boats. There are certain types of damage that most providers won’t cover. Here are some common exclusions.
- Animals can cause damage
- Drug or alcohol abuse can cause damage
- Damage caused by underage drivers
- Manufacturing defects
- Maintenance and servicing
- Wear and tear
Are you looking for boat insurance?
Boat insurance is usually optional. Boat insurance may be necessary in certain situations.
- Your lender may require it Some lenders will insist that you insure your boat while you are still paying off your loan.
- Your state may require it: Only Arkansas and Utah require boaters to have insurance.
- Your marina may require it Some marinas require that boats docked there carry liability insurance.
Other situations may also require boat insurance, but these are by far the most common.
The conclusion of the article is:
Average boat insurance costs between $200 and 500 per year. Many factors can affect your boat insurance premiums, so they may fall outside of this range. A quote will give you an estimate of how much boat insurance is going to cost.