The Ultimate Boat Insurance Comparison and Tips

Boat Insurance – Boat ownership brings joy and adventure, but it also comes with a set of responsibilities, such as securing reliable boat insurance to safeguard your investment. Accidents can happen, and being prepared with the right coverage can make all the difference. In the United States alone, thousands of boating accidents occur each year, emphasizing the need for proper protection.

It’s essential to understand that your standard homeowner’s insurance policy usually does not extend to cover your watercraft. While there might be exceptions, relying solely on this coverage might leave you underinsured. This is particularly pertinent for older boats, as their value tends to depreciate rapidly. To ensure adequate protection, you should allocate around 1 to 2 percent of your boat’s current value to insurance. Just like with car insurance, many cost-saving techniques apply when shopping for boat insurance.

Best Boat Insurance Companies

When it comes to boat insurance, several reputable companies offer tailored coverage for your vessel. Here are some standout options:

  • Allstate: Allstate stands as a national insurance provider that offers boat insurance. A notable advantage is the opportunity to bundle your boat insurance with your homeowner’s policy, potentially earning you a 20 percent discount.
  • American Family Insurance: Despite being smaller in scale, American Family Insurance doesn’t apply depreciation deductions to their coverage.
  • Geico: Partnering with BoatU.S., the country’s largest recreational boat owners’ organization, Geico provides customizable insurance plans. From fuel spill liability to new boat replacement, their options cater to various needs. Additionally, they offer boat-towing services through TowBoatU.S.
  • Progressive: As a major insurer, Progressive offers specialized boat insurance starting at just $100 annually. What’s more, they waive the requirements for a marine survey or a navigation plan, simplifying the process for boat owners.

Best Boat Insurance Explained

Boat Insurance Coverage

When selecting boat insurance, it’s crucial to understand the different coverage options:

  • All Risk Coverage: This comprehensive coverage includes most losses, except those explicitly excluded in the policy.
  • Named Perils Policy: Unlike all-risk coverage, this policy only covers specifically listed perils.
  • Agreed Cash Value Coverage: This coverage type is based on a predetermined value agreed upon when purchasing the policy. It offers more protection against depreciation.
  • Actual Cash Value Coverage: This type evaluates your boat’s value at the time of loss and tends to be more budget-friendly, though it provides less coverage.

Standard coverage options typically include damage from collisions, fires, weather, theft, and vandalism, along with bodily injury liability, medical payments, property damage liability, and guest passenger liability. Premium coverage upgrades encompass salvage, mechanical breakdown, and additional equipment coverage.

Who Needs Boat Insurance?

While some homeowners’ insurance policies might extend limited coverage to boats, it’s usually insufficient. Boat insurance becomes crucial for those with yachts, jet boats, personal watercraft, sailboats, or watercraft exceeding 25 m.p.h. Standard homeowners’ insurance often won’t provide the necessary liability coverage.

Choosing the Right Boat Insurance Company

When considering boat insurance, you’ll find two main categories: traditional national insurance companies and specialized marine insurers. While marine-focused companies offer tailored options, national insurers often allow policy bundling for cost savings.

How to Save on Boat Insurance

Saving on boat insurance requires strategic steps:

  • Take a boating safety class to qualify for potential discounts.
  • Add safety features to your boat to reduce costs.
  • Opt for coverage that precisely matches your boat and needs.
  • Leverage your boating license and protective structures for discounts.
  • Your driving record might influence insurance costs.
  • Explore bundling options from larger insurers.


finding the best boat insurance involves comparing reputable companies, understanding coverage options, and taking advantage of potential savings. Your watercraft deserves comprehensive protection that fits your needs and budget.