Do You Need Boat Insurance?

If you’ve asked do I need boat insurance or is boat insurance required, the answer depends in part on where you live, whether your boat is financed and where it’s stored. Even when the law does not require it, coverage may still be worth considering because boating accidents, storm damage, theft and liability claims can be expensive. Amica’s boat insurance page explains available protections in more detail.

Quick takeaway: Boat insurance may not be required in every state, but lenders, marinas and real-world risks often make it worth considering. Coverage can help protect your boat, your passengers and your financial well-being after a covered loss.

When boat insurance may be required

Boat insurance is not universally required by law. Arkansas and Utah have boat insurance requirements for certain boats with engines of 50 horsepower or higher.

Still, even if your state does not require it, there are several situations where boat insurance may effectively be necessary or strongly worth considering:

• You financed the boat: Lenders often require coverage that offers protection for the boat itself, not just liability coverage.
• You keep the boat at a marina: Many marinas require proof of liability coverage before allowing docking or storage.

Even if you paid cash for the boat and keep it at home, coverage may still help protect against theft, storm damage, collision-related losses and liability if someone is injured or their property is damaged.

Here's when boat insurance may be required or strongly worth considering:

What does boat insurance cover?

If you’re asking what does boat insurance cover, the answer depends on the policy. A more basic policy may focus on liability, while broader protection may also include physical damage, medical payments and towing-related assistancew.

Liability coverage

Liability coverage helps if you’re responsible for others’ bodily injury or property damage in a boating accident. If you’re sued, it may also help with legal defense costs, subject to policy terms.

Physical damage coverage

Physical damage coverage helps if your boat is damaged in a collision or another covered loss, such as theft, vandalism, or weather-related losses. It may help pay to repair or replace components like the hull or motors.

Medical payments coverage

Medical payments coverage helps with medical expenses or funeral costs for you or others injured while on your boat as a result of a covered loss.

Towing and assistance

Towing and assistance coverage may help pay for on-water towing to the nearest safe port if your boat is disabled because of a collision, mechanical breakdown or another covered issue.

You may also want additional protection for personal property or equipment you keep on the boat. For larger vessels, fuel-spill liability protection may also be worth considering.

Some insurers offer endorsements for items like fishing equipment or other accessories that may not be fully addressed by a base policy.

Note: If you carry expensive gear, custom equipment or fishing accessories on board, ask whether those items are covered under your policy or need additional protection.

How the type of boat affects your policy and boat insurance cost

The type of boat you own, its size and how you use it can affect both the coverage you may want and your boat insurance cost.

• Boat type: Smaller or lower-power boats may cost less to insure than some high-performance vessels, though exceptions apply. Personal watercraft and faster boats may carry more accident-related risk.
• Boat size and horsepower: Larger boats and more powerful motors may increase premiums because repairs and claims can cost more.
• Safety features: Features like automatic fire extinguishers or other safety equipment may affect pricing and may qualify for discounts in some cases.

When buying coverage, you may also choose between actual cash value or replacement cost value. Actual cash value generally reflects depreciation, while replacement cost value is designed to replace the boat or covered components without subtracting for depreciation, subject to policy terms.

Do homeowners or auto policies cover boats?

Your homeowners insurance may cover smaller watercraft up to a limited amount. Homeowners insurance typically limits watercraft coverage to $1,500, so larger losses may not be fully covered under a homeowners policy.

Auto insurance typically does not cover your boat itself, even if you are towing it.

A separate boat insurance policy may provide broader protection for the boat, people on board and your liability exposure. It may also include protection for towing and certain equipment.

For related protection, you may also want to review home insurance, auto insurance and personal umbrella insurance.

How to choose the right boat insurance

As you compare options, think about the kinds of protection you need, how much risk you’re comfortable taking on yourself and how deductibles affect your premium. Broader coverage often costs more, while a higher deductible may lower your monthly payment but increase what you would pay after a claim.

Talking with an experienced insurance professional can help you compare coverage limits, available add-ons and policy exclusions so you can make a more informed decision.

Tips for saving on boat insurance

If you’re comparing boat insurance cost, these factors may help you manage what you pay:

• Complete a boating safety course: Some insurers offer discounts for completing an approved boating safety course.
• Update your safety features: Built-in fire extinguishers, diesel engines or other safety-related features may help you qualify for discounts.
• Sign up for automatic payments: Some companies offer a discount when you enroll in automatic payments.

Is boat insurance worth it?

Even if it is not legally required where you live, boat insurance can still be worth considering.

Storm damage, marina accidents, theft, injuries to passengers or damage to someone else’s property can all become expensive very quickly. Without coverage, you could end up paying those costs yourself.

Boat insurance offers a financial safety net when covered problems occur.