Boat Insurance Guide: Cost, Coverage and Policies

When you own a boat, the responsibility that comes with ownership extends beyond being able to drive it on the lake whenever you like. You’ll have to take care of routine maintenance, such as oil changes and filter updates. Also, there are many other details to consider when owning a boat. For example, do you know about boat insurance? If you’ve been reading this blog up until now, you know that owning a boat has plenty of responsibilities along with all that fun and relaxation.

Keeping your vessel safe is one of the most important things you can do as a boater. To help you understand everything there is to know about boat insurance coverage, we’ve put together this comprehensive guide on everything from cost to policies.

What is Boat Insurance?

Boat insurance is a type of coverage that protects a boat owner by paying for any damages to the vessel, loss or damage to the vessel’s equipment, or medical expenses due to bodily injury caused by the vessel.

Boat insurance is similar to homeowners insurance, in that it protects the value of your assets in the event of a covered loss. Boat insurance policies vary by company and coverages selected by the policyholder.

Boat insurance may include coverage for the boat, equipment, liability and repair/replacement. There are two types of boat insurance policies: comprehensive and collision.

Why is Boat Insurance Important?

Boat insurance is important for a few reasons. If your boat is damaged, stolen, or sinks, your insurance policy can help you replace it. If someone is injured on your boat, medical bills can quickly add up, and your insurance may be able to help you cover those costs.

If someone sues you, your insurance can help defend you in court. On top of all these things, insurance is legally required in Florida.

Boat Insurance Florida

Florida is known for many things, but high-quality health care is not one of them. If you need medical attention on a boat, and you don’t have health insurance, the bill will probably be sent to the boat owner. If you are the owner, it will go on your boat insurance.

Keep in mind that every boat owner’s insurance policy is different. Some companies will cover medical bills for injured people on your boat, while others won’t. If you have boat insurance, you may have coverage for things like loss of use (the extra cost of renting a boat while yours is being repaired), loss of hire (the cost of repairing your boat) and damage to your boat.

Cheapest Boat Insurance

We put a lot of time and effort into finding the cheapest boat insurance out there. When we searched for the cheapest boat insurance providers, BoatUS led the way with a rate of $819 per year. USAA came in second with a rate of $935. The third cheapest boat insurance provider was Mercury, with a rate of $1,068. QuotesHub came in fourth with a rate of $1,109, and Allstate came in fifth with a rate of $1,123.

Boat Insurance Coverage

Boat insurance coverage typically includes hull coverage, which covers the cost of repairing or replacing your boat, and liability coverage, which covers the cost of defending yourself against lawsuits.

You’ll also want to make sure you’re getting coverage for your Personal Watercraft (PWC) and trailer. Your hull coverage will depend on the type of boat you’re insuring. For example, a pontoon boat will cost less to repair than a speedboat. Liability coverage will vary depending on where you live, but it’s important to have enough coverage to protect you from costly lawsuits.

Types of Boat Insurance Policies

There are many different boat insurance policies available on the market today. These policies vary in cost, coverage and the type of boat they are covering. Here are a few of the most common types:

  1. Bodily injury and property damage liability coverage. This coverage is required in most states and pays for any bodily injury or damage to another person’s property that is caused by your boat. This can include medical bills, court costs and any repairs needed to fix the damage.
  2. Medical payments coverage. This coverage is required in most states and pays medical bills incurred by people who are injured while on your boat. This coverage is often purchased with liability coverage.
  3. Collision coverage. This coverage pays for damage to your boat in the event that another boat or object hits it.
  4. Comprehensive coverage. This coverage pays for damage to your boat caused by anything other than another boat or object. This includes floods, natural disasters and theft.

How Much Does Boat Insurance Cost?

The cost of insurance will depend on your boat and where you live. If you live in a high-risk area, your rates may be higher than someone who lives in a low-risk area. Additionally, the type of boat you are insuring, the coverage amount you select and your record will all affect the cost of your policy. We found that the average annual boat insurance cost is $926.

While this is a decent amount, it doesn’t take into account that some policies can last up to 5 years. Therefore, the total cost of insurance will be higher if you opt for a longer policy term.

Is There Anything That’s Not Covered by Boat Insurance?

There is various coverage that might not be covered by boat insurance. You may want to consider purchasing supplemental insurance to cover items that are not included with your boat insurance policy. Here are some examples:

  • Medical payments coverage. Most boat insurance policies cover medical payments up to $1 million. However, medical bills can quickly add up, especially if someone is seriously injured.
  • Loss of use. Most boat insurance policies will cover the loss of use of your boat as well as the cost of renting a boat while yours is being repaired.
  • Loss of hire. This coverage pays for the cost of repairing your boat after it’s been damaged.

Tips to Save on Boat Insurance

Like most things in life, you can save money on your boat insurance by taking steps to lower your risk. First, make sure your boat is properly maintained and that you’re properly insured. You should also consider raising your deductible, since this will lower the cost of your insurance policy. Lastly, you can save money on your boat insurance policy by increasing your boat’s hull coverage.

Final Words: Is Boat Insurance Worth It?

If you own a boat, boat insurance is a necessity. While it’s important to shop around for the best rates, don’t skimp on insurance coverage just to save a few bucks.

You never know when disaster will strike, and when it does, you’ll be glad you have a policy to fall back on. With the information we’ve provided in this guide, you now have a better understanding of what boat insurance is and what it can do for you.