Boat insurance is the topic that excites everyone when I bring it up during cookouts, dinner parties, or pontoon parties.
Talking about the average cost of boat insurance, broken down into monthly or annual payments, is more fun than anything.
It’s great fun to have your friends get together and calculate the cost of boat insurance that will keep your family covered. Fun stuff, right?
It’s not so exciting to talk about boat insurance, but it is essential. It is.
It is essential for legal reasons (in that you are legally required to have boat coverage in many areas of the United States) and to protect your family’s financial security.
Boat insurance is an investment that boat owners should take into account. This is my answer to the most frequently asked question. This is the question:
Are You Going to Need Boat Insurance?
If the “boat” is a kayak, canoe, or raft made of pallets or twine, then you have to say no.
Boat insurance is required for any boat with a Bennington narrow beam pontoon, Hatteras 100 Raised pilot yacht, or other similar vessels. This is a must if you are a responsible owner/operator of a boat.
If you ask, “Do I need boat coverage from a legal perspective?” You are not required to.
Most states don’t require you to have boat insurance unless your boat is part of a loan or lease agreement. In some states, you don’t even need a boat license.
A boat insurance policy can distinguish between financial ruin and peace of mind. Imagine your boat being stolen or sunk, and you are left without any recourse.
It’s easy to see it this way: While no one legally requires you to put the ski lift stopper down or tie your shoes before you take off, it’s a good idea.
The same goes for boat insurance. Although you would like never to trip or fall off a chairlift, it is essential to use the bar and tie your laces to ensure this doesn’t happen.
When calculating the average boat insurance cost, it is estimated that you will pay 1.5% of the boat’s value at annual rates.
- A boat valued at around $20,000 would only cost $300 to insure.
- You can expect to pay approximately $1,500 for insurance if you have a motorboat worth $100,000.
- You’ll pay around $30,000 yearly for the $2 million yacht. (Sorry, multi-million-dollar yachts can be expensive to insure. That’s just how it is.
These numbers are only a guideline. Many factors could impact the cost of your boat insurance. These factors can reduce the cost of your marine insurance.
Compare Boat Insurance Quotes to Find the Best Deal
Many of the top auto and home insurance providers also offer boat insurance (including Allstate, Progressive, and Geico).
Ask your current insurance company if they can offer you another type of insurance. They will often encourage you to keep your company in-house if they are able.
Other than your regular insurer, check out USAA and Progressive and State Farm, and other major providers.
What Factors Influence Average Boat Insurance Pricing?
You can have boat insurance costs go up for many reasons, but you also have options to lower your boat insurance.
Let’s look at some of the most critical factors influencing average boat insurance rates and cost.
Safety Record
You’ll save money on boat insurance if you don’t have a boating accident or get cited. Safe boating is a wise decision for both the sake of protecting your body and your property.
Discount for Homeowners
Your boat insurance rates may be reduced if you have a home. This could be part of the “bundle” that your insurance company offers.
Even if you have homeowners insurance from one company but boat insurance from another, your home ownership may still be a valid reason for lowering your boat insurance cost.
Payments
You can pay your boat insurance monthly or several times per year. It’s normal. You’ll get a better rate if you pay the whole year’s boat coverage in one lump sum.
Boat Age
Newer boats are more costly to insure than older cars. But there’s one caveat.
Contrary to popular belief, buying a used boat may not result in a reduction in insurance costs. A ship owned by only one person will get you a lower rate from insurance companies. It is often a good idea to keep an older boat and to make any necessary repairs or updates (rather than replacing it).
What does average boat insurance cover?
We now get to the most critical question: What exactly does boat insurance cover? Many things can be protected, varying from one policy to the next.
You can customize your boat insurance plan to meet your specific needs. Consider your unique circumstances and choose the right coverage for you and your family.
Here are some essential things boaters consider to be covered by their boat insurance policies.
Medical costs
Your boat insurance policy will cover most of the costs associated with injuries sustained in boating accidents.
This applies even if your boat or a passenger is injured in an accident caused by someone else. This is especially important if other people involved need to make the right decision not to get boat insurance.
Liability Expenses
There are usually legal costs after a boating accident. These are very costly if you need adequate boat insurance.
Property Damage
Your insurance will cover the cost of repairs and replacements if your boat is damaged in an accident resulting in property damage to other vessels, docks, or parts of marinas – or your ship.
Even something so simple as not putting out boat fenders can considerably cause your boat to scratch the bottom.
Personal Effects
Boat insurance policies cover more than repairs and replacements of dock or boat parts. You can also get help with replacing or fixing damaged or lost items while boating. This includes fishing gear, upholstery navigation hardware, galvanized Steel anchors and propellers, and personal items such as jewelry or phones.
Find great boat insurance rates every year.
You can only stop the boat insurance process once you have it.
Insurance companies use web ads and commercials to promote their products. They want you to switch plans and join them.
Many insurance companies offer attractive rates and incentives to you to switch to their brand. So shop around! You can save thousands over the years by choosing the best boat insurance plan.