5 Answers to Frequently Asked Boat Insurance Questions


The summer is upon us and if you’re like many people, you’ve recently taken the plunge and purchased a new boat! While you’re certainly ready to take your vessel out to the water and enjoy it for its intended purpose, obtaining boat insurance is the first step in doing things the right way. Boat insurance FAQs are below, providing you a heads up of the most important information needed to acquire the right coverage and stay safe while you, as well as those that you love, are enjoying the water fun.

What is Boat Insurance?

Boat insurance is similar in nature to car insurance. The coverage protects you financially should your boat sustain damage related to an accident. This includes lone accidents as well as those with other boaters. “Boat accidents occur more frequently than many realize, making the coverage extremely valuable in nature,” said Anchor Marine Underwriters Incorporated.

Am I Required to Carry Boat Insurance?

The answer varies, dependent upon the state in which you reside. Some states, such as Washington state, do make it mandatory to obtain liability boat coverage, while others do not have any laws in place. Failure to carry the state-required coverage could result in fines and suspension of your boating license in states where coverage is mandatory, so it is imperative to learn the requirements in your state.

What kind of Damage is Covered with Boat Insurance?

The covered damage that your insurance plan will cover varies from one policy to the next. It is a good idea to talk to a boat insurance agent concerning the various types of policies and what they will cover. Collision, property damage policies, bodily injury liability coverage, and comprehensive are a few of the policy choices available to you. Each of these policies offers different coverage types.

Are Blown Engines Covered under Boat Insurance Policies?

Some insurance companies and policies cover the costs of blown engines that result during an accident. If you are interested in such coverage, it is important to look for a policy indicating this benefit or to talk to an insurance agent to ensure that it is covered in the policy that you select.

How do I Obtain Boat Insurance?

Once you’ve found a company to insure your boat with, the next step is to decide the right policy for your needs. Next, determine a comfortable deductible amount. Remember, the more weight you put on your own shoulders with a higher deductible, the lower your costs to insure. You’ll need to pay for your policy, with options to do so by the month, every three months, semi-annual, or annually. You’ll receive a copy of your policy, stating what is and what is not covered. Read this policy carefully before signing, as it is a binding agreement and errors could cause great mishap in your life.

How much Insurance & what Policy do I Need?

There are multiple factors that influence the appropriate amount of coverage for your boat. This includes the size and value of your boat. For most individuals, a ‘full coverage’ comprehensive policy is best, since this type of policy provides protection regardless of the type of accident. Once again, talk to an insurance agent concerning the amount of coverage that is best suited to cover your needs.

What is the Cost of Boat Insurance?

Numerous factors influence the cost of boat insurance, including:

– Type of vessel being insured

– Size of the vessel

– Amount and type of coverage requested

– City/state that you reside

– Where the boat is being used

– Company that you’re insuring with

Most insurance companies offer boat insurance. It is in your best interest to request personalized estimates and compare rates with three to four companies to get the best rate for the coverage that your need. There is no cost to complete this process, but many advantages offered to those who take the time to research.