How Much Does Boat Insurance Cost?

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When you purchase a boat, insuring the vessel is essential. With boat insurance, you get financial protection against costs related to repairs after accidents, vessel theft and replacement, and more. Plus, boat insurance is required in some areas. For example, Arkansas and Utah made boat insurance mandatory, and many marinas in other states require it for vessels stored in their slips.

However, even when boat insurance isn’t mandatory in a particular area, it’s still wise to have the protection. As a result, many people wonder, “How much does boat insurance cost?” If you’re asking that question, here’s what you need to know.

What Is the Average Cost of a Boat Insurance Premium?

On average, boat insurance premiums run between $200 and $500 per year, though some owners may see prices above or below that range. The reason insurance premiums vary is that each boat is unique. Boats come in a range of sizes, have different values, and include distinctive features, which can alter the cost of a policy. Location also plays a role, as pricing varies depending on the state (and even city) where the boat is used and stored.

Additionally, details about the owner are factors. Past accident histories, driver ages, credit scores, and other points are often considered by insurers. As a result, two boat owners with the same watercraft in the same city may pay different rates.

In many cases, boat owners can pay the full annual price up front and may receive discounts for doing so. However, making payments biannually or monthly is often an option, depending on how the policy is billed.

How Much Will Add-Ons Increase the Cost?

Boat insurance add-ons – which are also called riders or endorsements – are optional supplemental coverages for specific items or situations. For instance, high-value equipment beyond what’s covered in the base policy may require a rider in order to be covered. Similarly, salvage coverage, towing, and certain other services may require add-ons if you want to include them in your coverage.

The exact prices for add-ons vary depending on the rider you want and details about your boat. For example, on-water towing riders may run around $30 to $50 per year, depending on your insurer. High-value equipment-coverage costs are based on the value of the item in question.

When you get quotes for boat insurance and the add-ons you’d like included, you can find out how they affect the base premium before committing. Additionally, you can get quotes for riders after securing a policy, allowing you to supplement your coverage at potentially any time.

Can You Negotiate a Boat Insurance Premium?

Generally, negotiating a boat insurance premium isn’t an option. However, you can adjust details in your policy to potentially lower the price. For example, if you transition to a higher deductible, your premium price is typically lower. As a result, if you have enough savings to cover the deductible, this is a viable option.

Adding certain safety equipment to your boat may also lead to lower premiums. Taking a boating course is another option, as well as adjusting coverage limits for medical payments or liability. In some cases, boat insurers offer multi-policy discounts, so you can potentially get a better rate if that company also covers your car, home, or business, too.