Boat Insurance Companies

So how much does boat insurance cost?  One thing is for sure: a lot less than a new boat or the cost of an accident, repair, or liability. 

When people purchase new vehicles, something they all likely consider when making their selections is how much it will cost them to insure. Some people might realize that when purchasing a new boat, in many places, they must have boat insurance to be able to operate their boat out on a lake or in the ocean. Even in places where it is not required that boat owners have a boater insurance policy, it is, of course, always a wise idea to insure expensive property, especially when it is not being kept on the owner’s home property where they can keep an eye on it and protect if from damage, extreme weather conditions, vandalism, or theft. It is also important to remember that when it is a busy day out on the water, such as on a holiday weekend, there may be plenty of other boats and people around which will mean more risk of accidents and mishaps which is another reason why all boat owners should consider getting boat insurance.

Once a boat owner has decided to acquire boat insurance, they will most likely begin to research things like how much it costs to insure their particular make and model of boat, what kinds of things the insurance company will take into consideration when offering them a policy, and what kind of coverage is available in the way of boat insurance. The best way to understand these things right from the start, is to take whatever information that one would expect a company to ask them about regarding giving them a quote to insure a common road vehicle, and applying those same factors to boats and boating.

Things like the age of the boat, the condition of the boat, and who will be driving or operating the boat will all most likely contribute to the cost of boat insurance for an individual. Boat insurance prices might also be affected by the state or area the owner resides in and where they will be operating their boat.  Insuring a boat in Southern states is often slightly more than in the North.  This is due to the threat of hurricanes in the South as well as the fact that boats are used for longer seasons if not year round.

Some different kinds of boat insurance include hull and equipment coverage, on the water towing, fuel spill liability, medical payments in case of accidental injury, and insurance to cover any accidents with other boaters who don’t have their own insurance coverage. There are also boat insurance policies which cover the boat’s trailer. Prices will vary, but should not cost much more than the expense of a common car or truck policy.

As a rule of thumb, boat insurance is typically around 1.5% of the insured value of the boat.  If you have a ski boat, runabout, or center console insured for $8,000, your premium would be $8,000 x .015= $120.  So for a typical policy covering an $8,000 boat, you can expect to pay $120 per year.  This figure would usually include collision, theft, liability, uninsured boater coverage and replacement of the vessel itself.  Of course coverage will vary depending on the boat insurance company.  You can often get boat insurance for less if you go for a more “bare bones” policy and if you want extra coverage for electronics, fishing gear, and personal items, the premium would be slightly higher.