Best Boat Insurance Companies: Coverage and Reviews (2022)

The average cost of boat insurance is between $200 and $500 per year. However, boat insurance premiums vary widely depending on several variables. Your policy cost could easily fall outside this range.

Marine Insurance Cost Factors

The reason the cost of boat insurance varies so much is that there are usually many variables that factor into these costs. Not all insurers consider the same factors or weigh these factors in the same way. This is why you will get different quotes from different suppliers for the same boat.

Hedging the agreed value versus the actual surrender value

Your policy can assess the cost of replacing your boat in a total loss in two main ways: the agreed value or the actual cash value. Some insurers only offer one or the other and some offer both.

An agreed value policy covers an amount you set with your provider at the start of your policy. This amount remains the same for the duration of your policy, regardless of the age of your boat or market conditions.

A true cash value policy, on the other hand, pays a total loss based on the value of the boat at the time of the accident. This amount includes depreciation and also takes into account market factors.

Agreed value policies, as you might expect, tend to be more expensive.

Boat condition

Boats in worse condition are more likely to sustain further damage and therefore may be considered riskier to insure. Some insurers require a complete inspection of your boat before agreeing to cover it. If your boat is in poor condition, you may have to pay more for coverage.

nautical power

Speed ​​is one of the most important risk factors for boating accidents. Many insurers charge higher rates for motorboats with high horsepower engines.

cruising area

Some service providers ask you to declare a cruising area when you request a quote. This is the area where you intend to use your boat.

The larger your boating area, the more likely you will have to pay for coverage. Insurers may also charge more if your stated travel area includes high-risk locations.

Deductible amount

You will usually have the ability to set deductibles on your policy. These amounts could be as little as zero dollars or could be in the thousands.

While a low deductible means you won’t have to pay as much for repairs or replacement, it also means you’ll pay a higher premium.


Most boat insurance companies offer discounts that can lower the cost of coverage. Many of these discounts are similar to those you would find with a car insurance companysuch as multi-policy discounts to combine your boat policy with your home insurance.

Some insurers also offer discounts unique to the boating world, such as having a diesel engine rather than a gasoline engine. Another common boating insurance discount is that granted for the installation of a fire extinguishing system on board.

Storage location

Your boat is always at risk when in storage, so where you store it can play a role in the cost of your bounties. Boats stored in areas with higher risk factors, such as those prone to tornadoes, floods, hurricanes and other natural disasters, may attract higher premiums.

Type and amount of coverage

Of course, the types of coverage and limits you choose are a major component of your boat insurance policy premiums. The cheapest boat insurance policies are usually liability coverage only, but you can choose to cover much more.

Kristan F. Talley