Boat Insurance Cost Calculator
Get a fast estimate of annual boat insurance cost for inboard, outboard, jet ski, or yacht.
Boat Insurance Coverages
A boat policy includes: (1) Liability (BI/PD): for injuries or property damage you cause. Marina rules usually require $300K+ minimum. (2) Physical damage: collision, sinking, storm, fire, theft. Coverage written as either Agreed Value (set amount, no depreciation) or Actual Cash Value (depreciated). Agreed Value strongly preferred. (3) Uninsured boater: like uninsured motorist for cars. (4) Medical Payments: first-dollar medical for passengers. (5) Personal effects: belongings on board (fishing gear, electronics, sound systems). (6) Towing: on-water tow coverage. Source: BoatUS Foundation, NAIC. Last updated: May 2026.
Agreed Value vs Actual Cash Value
This is the most important boat insurance decision. Agreed Value: at policy inception, you and insurer agree on hull value (e.g., $45,000). After total loss, payout is the agreed value with no depreciation. Costs ~15-25% more than ACV. Actual Cash Value: payout is current depreciated value at time of loss. A 10-year-old boat insured for $30K might pay only $18K after total loss. Always choose Agreed Value for boats over $15,000 in value.
Hurricane and Lay-Up Provisions
Coastal policies often include named-storm provisions: pre-storm haul-out preparation (the insured must move the boat to designated safe location). Failure to comply = denied claim if damage occurs during named storm. Lay-up clauses give discounts if you don't operate the boat in winter months (typically Nov-March in northern US, year-round south). Document any seasonal storage at marina insurance address.
USCG Course and Other Discounts
Most insurers offer 10-15% off for completion of US Coast Guard Auxiliary or US Power Squadron boating safety course. Other available discounts: (1) Multi-policy with auto/home (5-12%). (2) Marina security or shore power monitoring (5%). (3) Diesel engine (10%+ — lower fire risk). (4) GPS tracker / LoJack-equivalent (5-10%). Stack 3-4 of these to cut premium 30%.
Frequently Asked Questions
How much does boat insurance cost?
Typically 1-2% of boat value annually for inland lake use, 2-4% for coastal/ocean. Examples: $25K bowrider in Minnesota lake ~$300-$500/yr. $80K cruiser in Florida coastal ~$1,800-$3,200/yr. $400K yacht in Caribbean ~$8,000-$16,000/yr.
Is boat insurance required by law?
Only Arkansas and Utah require boat liability insurance by law. Most other states don't legally require it, BUT marinas require coverage as condition of slip rental, and lenders require physical damage coverage if you have a boat loan. Practically, almost everyone with a registered boat carries insurance.
Does my homeowners policy cover my boat?
Limited coverage only. Most homeowners policies cover boats under 25 horsepower and under $1,500 in value (small canoes, kayaks, dinghies). Anything bigger requires dedicated boat insurance. Don't assume homeowners coverage extends \u2014 it almost never does.
What is agreed value vs actual cash value?
Agreed Value: you and insurer pre-agree on hull value; total-loss payout matches that amount with no depreciation. Costs 15-25% more. Actual Cash Value: payout equals depreciated market value at time of loss. ACV pays significantly less on older boats. Choose Agreed Value for any boat over $15K in value.
Does boat insurance cover the trailer?
Generally yes if the trailer is listed on the policy and used to transport the insured boat. Trailer-only coverage (when not towing the boat) sometimes requires a separate endorsement. Check policy declarations carefully \u2014 trailer claims happen surprisingly often (parking lot dents, road debris).
Do I need boat insurance for a jet ski?
Yes. Jet ski insurance is typically separate from regular boat coverage due to different risk profile (higher injury claim frequency, theft risk). Marina/lake operators usually require proof of jet ski liability insurance ($100K-$300K minimum) before allowing operation.