6 Best Boat Insurance Companies of 2024 Compared

In many cases, boat insurance coverage isn’t legally required like auto or other types of insurance. But that doesn’t mean skipping out is a good idea. If you cause an accident or a problem with your boat causes it to leak oil or fuel, you could face huge bills that you struggle to pay.

Our team of financial experts reviewed and ranked the top boat insurance companies to help you find the one that’s right for you.

Best Boat Insurance Companies - Full Overview 

We examined some of the best boat insurance providers, looking at their key features and unique offerings to help find the one that’s best for you.

How to Choose the Best Boat Insurance Companies? 

Shopping for any type of insurance can be tricky. There are a lot of things to consider and you need to read the fine print carefully.

The top things to consider when selecting a boat insurance company include:

• Coverage Options: Look at the different types of coverage available. Some insurers offer more or different types of coverage. For example, one might only cover your boat while another covers the boat and property on the boat. Don’t forget to check for coverage for towing, wreckage removal, and liability.
• Policy Limits and Deductibles: Some insurers place limits on how much they’ll pay out if you file a claim. If your liability is larger than the limit, you could face out-of-pocket expenses, so make sure the limits aren’t very low. Also consider the deductible, which is how much you have to pay before the insurance kicks in. Low deductibles mean you pay less when filing a claim, but usually lead to higher premiums. A higher deductible will save you money on premiums, but you’ll have to pay more if something happens.
• Premium Costs: Of course, price is a key concern when buying insurance. Don’t just choose the cheapest policy available, but don’t overpay for no reason. Make sure to check with multiple insurers and see how things like the boat’s age, size, and type impact price.
• Financial Stability: Before buying a policy, make sure to check the insurer’s financial situation using an independent rating agency like A.M. Best Standard & Poor’s. The last thing you want is to file a claim only for the insurer to say they don’t have the cash to cover your costs.
• Customer Service and Claims Processing: Good customer service is key for any insurance company. Make sure the company has good ratings from other customers and has a reputation for responsiveness and quick claims processing.
• Discounts and Bundling Options: Many insurers offer multiple types of insurance, such as boat, auto, and home coverage. Bundling often leads to discounts and it’s just easier to get multiple policies in one place rather than working with different insurers. Also, look into the other discounts the insurers offer. You might save money by taking boating classes or having boat safety equipment on board.
• Geographical Coverage: Think about the places you tend to use your boat or plan to bring it in the future. Confirm that any insurer you’re considering offers coverage in those areas. For example, some insurers will cover the use of your boat in the Bahamas or the Caribbean, but not all insurers will.

What is Boat Insurance?

Boat insurance is a type of insurance policy that protects your boats and offers liability protection for you while you’re operating it.  The precise coverage will depend on the details of your policy.

For example, if your boat is parked in your driveway and gets damaged by a storm or stolen, your insurance will help pay for repairs or replacement. If you’re driving the boat and get into an accident or sink the boat, the insurance can help pay for any damages you’re liable for and the removal of the debris.

Is Boat Insurance a Good Idea? 

Boat insurance typically isn’t legally required in the same way that auto insurance is, however, it’s still a good idea to buy a policy.

• Protect your investment. Boats are expensive. If yours is damaged, stolen, or otherwise unusable, buying a new one could be hard. Insurance helps protect your investment and keep it operating.
• Limit liability. Driving a boat is fun but can be dangerous. An accident can mean serious injuries or even death. If you’re in an accident and get sued, insurance could save you from bankruptcy.
• Other benefits. Many policies offer additional perks, such as roadside assistance when you’re towing your boat or discounts on other boat-related services.

When to Get Boat Insurance?

If you own a boat, you should start thinking about getting boat insurance. Some common times to buy a policy include:

• When you buy a new boat. Getting a new boat is expensive, and getting insurance for it can protect your purchase.
• When it’s legally required. In most states, insurance is optional, but some, such as Utah, require it.
• When you get a loan to buy a boat. If you finance a boat purchase, the lender might require that you buy insurance. Even if they don’t insurance can help you afford to pay the loan off if your boat is damaged.

How to Get a Boat Insurance 

The easiest way to get boat insurance is to work with an insurance agent or to get a quote online. Insurance agents offer personalized service and may help guide you to the right types of coverage, but online quotes are easy to get on your own.

How to get a boat insurance quote

To get a boat insurance quote, follow these steps:

• Choose an insurer and visit their website
• Start the online quote process
• Provide information about your identity and where you live
• Provide details about your watercraft, including:
  • Types of boats
  • Length
  • Builder
  • Model year
  • Hull material
  • Engine type
  • Whether you want to insure a trailer
  • Where you store the boat
  • Where you use it
  • How long you’ve owned boats
• Choose policy and coverage add-ons
• Select policy limits, deductibles, and other details
• Receive your quote

Types of Boat Insurance

Boat insurance encompasses many different types of coverage. Different policies include different types of coverage, so it’s important to understand what applies to your boat insurance policy.

Different types of insurance include:

• Liability coverage. This protects you if you cause an accident and have to cover expenses related to that accident.
• Property damage. If you damage someone’s property with your boat, such as by crashing into a dock and damaging it or bumping into someone else’s boat, this covers the cost of repairs.
• Bodily injury. Another type of liability coverage, this pays for medical bills and other expenses related to injuries you cause.
• Collision. This covers repair or replacement costs for your own boat after an accident.
• Comprehensive. Comprehensive coverage protects your boat from things that happen to it outside of operation. For example, theft, vandalism, and weather damage are all covered by this coverage.
• Uninsured/underinsured boater. If you get into an accident with another boater and they’re found liable but don’t have sufficient insurance, this coverage steps in to help cover your costs.
• Towing. This pays for towing your boat across the water if it breaks down.

What Does Boat Insurance Cover

What your boat insurance policy covers will largely depend on the details of the policy you buy. Some boat insurance policies include coverages that others don’t.

Most boat insurance companies will cover things like damage caused to the boat during normal operation, as well as liability that you face during accidents or from damaging someone else’s property.

What Boat Insurance Doesn’t Cover

Many boat insurance policies have exclusions, meaning damage or other problems that they won’t cover. Before you buy a policy, you need to understand what is excluded.

Common exclusions include:

• Normal wear and tear from operation
• Improper storage and transportation
• Animal, insect, or mold damage
• Damage from marine life
• Boating accessories
• Faulty machinery
• Use in competitions
• Use outside of specified geographic regions

What Type of Boat Insurance Do I Need?

Deciding on the type of boat insurance that you need can be tricky. 

A good baseline is to purchase a policy that includes liability coverage and collision coverage. This will keep you protected if you cause an accident or if something happens to your boat while you’re operating it. Comprehensive coverage can add more protection against other perils, like weather damage.

You also need to decide between an agreed value and an actual cash value policy.

An agreed-value policy tends to be more expensive but will pay you a benefit based on the value of the boat at the time you signed the policy. Actual cash value policies are cheaper but will pay you less as the boat ages and depreciates in value.

What To Look for When Shopping for the Best Boat Insurance?

When shopping for the best boat insurance, the first thing to do is figure out what type of coverage you want to include in your policy. Then, you can rule out insurers that don’t offer those coverages.

That should leave you with a smaller list of insurers. You can then start comparing them more in-depth. First, make sure that the insurer you choose is financially stable and likely to pay out when you make a boat insurance claim. Then, consider factors such as the ease of getting a quote and customer service.

Of course, don’t forget to compare the available discounts and prices. If you can get equivalent policies from two boat insurance providers, but one is much cheaper, go for the better deal.

Final Word

Boats are a lot of fun, but they can also be incredibly expensive to own, operate, and maintain. Boat insurance is an inexpensive way to protect your investment and to make sure you can enjoy your watercraft for years to come.

When buying insurance, don’t just choose the first policy you find. Take the time to shop around, customize the coverages that you want or need, and look for the best deal. Putting in a bit of effort can help you save a lot of money in the long run.