Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Mar 20, 2022

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How much do the average boat insurance rates cost? What exactly is the purpose of boat insurance anyway?

Boat owners aren’t necessarily taking their boats out every day and boats aren’t running into each other all the time, so it would be all right to save the money and not purchase a boat insurance policy, right?.

Boat owners who are thinking along those lines may want to reconsider these important things.

We all know it’s important to shop around and get a cheap auto insurance quotes comparison when we are looking for auto insurance and the same principle applies when searching for the best boat insurance. Enter your zip code now to compare boat insurance quotes!

What’s the cost of boat insurance?

The average cost that people pay for their boat insurance coverage is $300 to $500 per year, but it’s not always that simple. Several factors can come into play that will make any given person’s boat insurance more expensive than the next.

When people decide to add their boats to their auto insurance policies, they encounter the $300 to $500 rates listed above. These prices appear to be reasonable for a boating policy, but the coverage may be less than satisfactory.

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What are the limitations of adding a boat to an auto insurance policy?

The limitations need to be noted before anyone decides that adding their boats to their auto insurance policies is something they want to do. First, the boat they want to add will have to be, at the most, 26 feet. Second, the boat owner’s personal belongings that are stored on the boat will not be covered under this policy.

Taking this option makes boat insurance affordable, but a separate boat policy offers the boat owner more coverage.

What does boat insurance cover?

Boat insurance covers the losses that can be incurred when a boat is damaged or completely destroyed. If the boat is used to transport products, these items may be covered under a boat insurance policy. In some policies, if the products have been damaged in the process of being taken from the boat to its destination, the policy extends to cover the damages.

The policy may also cover the area where the boat is docked. If the departure terminal is damaged in any way by the boat, the boat insurance policy can cover these repairs.

What are the determinants of boat insurance costs?

It’s easy enough to find used boats for sale, but when it comes to determining the cost of your boat insurance rates it can be a little more difficult of an endeavor. Determinants that will increase the price of boat insurance:

• Purchasing a separate boat policy rather than adding the boat to an existing auto insurance policy.

• Choosing an all risk policy.

• Accepting the agreed upon value of the boat which is the full amount that will be needed to purchase another boat in the event it is lost.

• Being male even if they have good driving records.

• Being anyone under the age of 25.

• Owning a boat that has the capacity to go over 50 miles per hour.

• Using the boat to transport people.

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How to Bring the Cost of Boat Insurance Down

Boat insurance isn’t always required in every state. Some boats that may require it are those that are financed, but if a boat owner isn’t required by their states to purchase it and they don’t want to spend the money on it, they may be free to take their boats on the water and risk the elements. Check with your boat dealer or boat insurance agent or broker to see what is required of your boat.

It would be great to go without boat insurance if nothing ever goes wrong, but boat owners can’t count on that. They can, however, compare quotes from insurance companies that sell boat insurance. This free service will show people who would like to purchase a comprehensive policy how low the rates can be for their boat insurance.

What’s the minimum liability coverage for boats?

In the event that there is an accident, the boat owner’s liability coverage pays for repairs on the other party’s boat and the medical costs of anyone hurt in the accident. The most common policies have a range of coverage from $100,000 to $300,000, but boat owners may, of course, purchase much more coverage if they choose.

Coverage for the Policyholder’s Boat

Boat insurance can also take care of any loss to the policyholder’s boat. This type of insurance is like the optional coverage on automobiles, and it will repair or replace the boat after it experiences an accident.

Actual Cash Value

Boat owners can choose to be reimbursed for the Actual Cash Value (ACV) of the boat. The ACV will be whatever the fair market value of the boat is at the time that the accident occurs. As the boat depreciates, the amount of the ACV goes down, and this amount of money may not be enough to completely replace the boat with a similar one.

Hull Value

The Hull Value (HV) may be a better deal even if it is more expensive. If the boat is ever a total loss, the insurance company will pay the boat owner the amount of money it will take to replace the boat with something just like it. The equipment on the boat is also included in this insurance coverage.

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What are the dangers of not purchasing boat insurance?

It’s not as common for boats to run into each other as often as cars do, but accidents do happen when boats are taken out on the water. Individual guests can also have accidents when they are taken on people’s boats for rides. It’s these times that boat owners need a boat insurance policy.

Boat owners need to remember that the same thing can happen if they cause a boating accident that injures people and damages property as can happen if they were to cause a car collision. The injured can sue them for their medical costs. Anyone who had their property damaged can do the same thing; the at fault boat owners will be held liable for all damages they cause, so purchasing at least a liability policy will protect them from having to face these lawsuits and paying damages with their personal assets.

Boat insurance can be found for all types of boats. Boats that are primarily used by fishermen and the largest yachts are all candidates for a boat insurance policy. Finding the right policy is easy because the comparison website finds boat insurance companies that sell the coverage each client needs. The boat owners can then inquire about the coverage they need for the price they think is right. The convenience of the comparison website makes it unnecessary to go out on the water unprotected.