7 Best Boat Insurance Companies

Boat insurance helps cover repairs due to accidents, theft, fire, storms and other perils. It also offers liability protection in the event your watercraft injures someone or damages their property.

Even if you don’t use your boat regularly, insurance can provide peace of mind in case of unexpected events. To help you find the policy that best fits your lifestyle, check out Money’s guide to the best boat insurance companies of 2023.

Our Top Picks for Boat Insurance

• Progressive – Best for Policy Discounts
• BoatUs – Best for Membership Benefits
• Foremost – Best Insurance Packages
• State Farm – Best for Boat Rental Insurance
• Chubb – Best for Yacht Insurance
• Markel Insurance - Best for Commercial Boat Insurance
• National Boat Owners Association - Best Insurance Agency

Best Boat Insurance Reviews

Why we chose this company: Progressive offers an extensive list of discounts. You could lower your monthly premiums by paying your policy upfront, completing boat-safety courses and more.

Insurance companies generally offer discounts if you insure multiple boats or combine your boat insurance policy with homeowners or auto insurance. Progressive provides those and more for a total of more than 10 discount options that may help you lower your boat insurance cost. You can get discounts for being the boat's original owner, not having motor vehicle violations or accidents on your record for the last three years, making timely payments and more.

Progressive's policies include accident forgiveness, which keeps rates from increasing if your claims are for $500 or less. Moreover, boaters who've been Progressive customers for at least four years and remained accident-free for three are exempt from rate increases for any accident, regardless of the claim amount. For an additional cost, you may also include a "disappearing deductible" feature that reduces your deductible by 25% for every claim-free period — until it reaches zero.

Note that Progressive has more limitations than other companies with regard to the vessels it insures. Personal watercrafts, such as jet skis, worth over $27,000 are not covered. And in hurricane-prone states, insurance is not available for boats over 35 feet in length or valued at over $175,000.

Additional coverage options:

• Total-loss replacement
• On-water towing
• Fishing equipment
• Personal effects
• Mechanical breakdown
• Medical payments
• Trip interruption
• Uninsured/underinsured boater
• Comprehensive coverage

Progressive policy discounts:

• Multi-policy
• Responsible driver
• Original owner
• Transfer from another company
• Association member
• Multi-boat
• Advanced quote
• Pay in full
• Prompt payment
• Safety course
• Small accident forgiveness
• Large accident forgiveness
• Disappearing deductibles

Why we chose this company: BoatUS has several policy options and coverage add-ons, but it also has a membership program that features valuable discounts on boating stores, towing services and more.

BoatUS is one of the largest membership-based organizations for recreational boat owners. While a membership isn’t required to get a BoatUS insurance quote, buying one entitles you to benefits much like those offered by AAA or other auto clubs for your car. These include BoatUS safety courses (free to all, regardless of whether they have BoatUS insurance), the completion of which can earn you discounts on your boat insurance policy.

The Membership program offers discounts on charter cruises, towing, fuel, boat supplies and fishing stores, watercraft storage, repairs and other services. It also includes a towing assistance benefit, the details of which vary by membership plan.

The four membership plans cost between $25 and $179 per year. Each one includes 24/7 towing assistance, jump-starts, fuel delivery and soft grounding. The highest plan tier may cover the full cost of emergency tows and reimburse policyholders up to $3,000 for towing services provided by companies outside BoatUS' towing network.

BoatUS is owned by Geico and offers agreed value, actual cash value and liability coverage policies for most types of boats — though not replacement cost coverage, which many insurers offer. Also, note that since the company is a subsidiary of Geico, both offer the same policy. In fact, the Geico boat insurance quote process redirects you to the BoatUS website.

Coverage options:

• Dock contract liability
• Fishing guide
• Ice and freezing
• Lifetime repair guarantee
• Lower deductible for dinghies
• Lower deductible for electronic issues
• Mechanical breakdown
• Personal effects coverage
• Medical payments
• Unlimited towing
• Trailer coverage with roadside assistance

Policy discounts:

• Safety courses
• Multi-policy

Why we chose this company: Insurance companies usually offer a base policy that boaters can customize by adding optional coverage riders. While Foremost also offers optional riders, it stands out by selling over five insurance packages tailored to different boat types, ages and coverage levels. This can simplify the process of choosing the right policy features for your needs.

Foremost has three main packages: Saver, Plus and Elite. Saver is an inexpensive insurance option that provides actual cash value settlements, which is the amount it would take to repair or replace your boat minus depreciation.

Plus provides total loss replacement settlement, which pays to repair your boat to its previous condition and with the same materials as before an accident, rather than a depreciated amount. The Elite is the most comprehensive choice, adding pollution (spill) liability, wreck removal, pet coverage, towing services and more.

There are also packages for pontoon boats, boats that are more than 25 years old, speedboats that reach speeds of 77 mph or greater, and personal watercraft such as jet skis. Every plan can be customized with additional coverage options, including medical payments, personal property, boat transport trailer coverage and more.

Coverage options:

• Personal Liability
• Uninsured Watercraft
• Medical Payments
• Towing and Roadside Assistance
• Trailer coverage
• Personal property
• Trip interruption

Policy discounts:

• Lay-up
• Policy paid in full
• Boat features protective devices (fire extinguishers, monitoring systems, etc.)
• Safety course
• Multi-unit
• Multi-policy
• Loss free renewal
• Prior insurance
• 55 years or older
• Affinity and alliance

Why we chose this company: Like many other insurers, State Farm covers expenses for damage your boat may cause to other people's property, such as another boat or a dock, as well as injuries sustained by others in accidents. It also offers an optional add-on liability protection for rented boats, a rarer feature of boat policies.

State Farm provides liability protection when you rent a boat during a vacation or while yours is being repaired. The company may also reimburse part of your rental costs if you rent a boat while yours is in the shop. And if you rent your boat, State Farm may also help pay for damages to your boat caused by the person who rented it.

Your base policy will include emergency service insurance, which pays for expenses you might incur if you need assistance with your boat, motor or trailer. This coverage is usually an optional rider and covers only vessel towing. State Farm policies also cover wreck removal, which reimburses you for the expense of raising, removing or destroying your boat's wreck when it's damaged due to a covered incident and you're legally required to remove it.

Coverage options:

• Fishing tournament fee reimbursement
• Incidental commercial fishing
• Uninsured/underinsured watercraft
• Bodily injury liability
• Property damage liability
• Collision
• Comprehensive
• Medical payments
• Emergency services,
• Wreck removal

Policy discounts:

• Safety course
• Lay-up discount if you don’t use the boat year-round
• Boating in fresh water instead of salt water

Why we chose this company: Insurance companies typically cover boats up to 50 feet in length and up to $500,000 in value. Chubb, on the other hand, has two yacht insurance plans tailored to vessels that are between 36 and 70 feet in length and valued at up to $3 million. Coverage is also available for captained vessels that are 70 feet or longer and valued at $3 million and up.

Chubb's two yacht insurance policies include standard coverage options such as agreed value coverage, emergency towing and assistance and liability protection. However, its Masterpiece® Watercraft Insurance goes further, covering the cost of hauling or docking the vessel due to an incoming storm, the marina where the yacht is stored and liability protection for the boat’s crew. It may also pay up to $25,000 to cover the cost of fines and penalties as a result of marine environmental damage and more.

Coverage is also available for captained vessels of 70 feet or longer and valued at $3 million and up. Yacht owners receive coverage of up to $10,000 to charter a boat if your own vessel can’t be repaired within 72 hours. There is similar coverage for renting a watercraft in the event your own is unavailable.

Coverage options:

• Agreed value coverage
• Liability protection
• Medial payments
• Uninsured boater
• Pollution/Fuel spills
• Hurricane haul-out
• Pet injury coverage
• Replacement-cost coverage for dinghy and tender
• Optional higher limits for emergency towing and assistance
• Marine Environmental Damage coverage
• Salvage costs and loss protection
• Temporary Substitute Watercraft coverage
• Optional higher limits for trailer coverage

Why we chose this company: Where most boat insurance companies cover boats and watercraft used recreationally, Markel's insurance policy covers vessels used for business purposes, including commercial fishing, boating classes, renting and chartering. Its marine insurance policy also covers liability for any damage the vessel causes to the rental facility where it's stored.

Markel covers several types of boats, whether they be yachts you charter for sightseeing or boats you own and operate. It also offers various boat insurance options, including coverage for damaged equipment and liability coverage for property damages, bodily injury, pollution (including fuel spills) and the crew.

Markel's policies for boats meant for personal use start at as little as $100 per year.

The company is also among the few boat insurers that reduce your deductible for each year you're claim free. The deductible drops by 25% each claim-free year until it reaches zero.

Coverage options:

• Business interruption
• Boat towing
• Boat lifts
• Fishing equipment
• Tournament fee reimbursement
• Premises liability
• Slip and mooring liability
• Emergency expense reimbursement

Policy discounts:

• Diesel engine
• Primary operator age 40 and over
• Insuring more than one boat
• Boating experience of five years or more

Why we chose this company: If you’re unsure as to the boat insurer that’s best for you, you may want to go for a boat insurance agency. The National Boat Owners Association (NBOA) connects you with insurers offering coverage for all types of boats and watercraft, including speed boats, sailboats, fishing boats, catamarans, yachts and jet skis.

The insurance companies NBOA partners with offer a wide range of coverage options such as liability protection with limits ranging from $100,000 to over $1,000,000, towing services and personal property reimbursement. Some insurers also offer total loss replacement coverage which replaces your boat with a new one of the same or similar make and model in the event of a total loss.

While you don't need a membership to purchase insurance, you'll need one to receive benefits such as emergency dispatch services, towing coverage, marine financing and industry discounts. NBOA offers two membership plans, costing $35 or $75 per year.

Other companies we considered

Allstate

Allstate offers policies starting at $25 per month and several discounts, including one for being a homeowner, even if the house is insured with a different company.

Why it didn’t make the cut: Allstate has a higher ratio of complaints with the National Association of Insurance Commissioners (NAIC) than our other picks.

Nationwide

Nationwide offers six insurance packages that are ideal for fishing trips. The company also includes roadside assistance at no additional cost if you purchase boat trailer insurance as well.

Why it didn’t make the cut: The company scored below average on several J.D. Power customer satisfaction studies compared to our main picks.

United Services Automobile Association (USAA)

USAA consistently scores high on J.D. Power's customer satisfaction studies. The company also covers many types of watercraft, including yachts and boats valued at over $150,000.

Why it didn’t make the cut: Its plans are only available to military families.

American Family

American Family offers physical damage, liability, medical payments, fuel cleanup, emergency service and equipment coverage for a wide variety of vessels, including personal watercraft, houseboats, sailboats, bass and fishing boats, yachts and speed and power boats. It also sells policies for kayaks, canoes, dinghies, row boats and stand-up paddleboards.

Why it didn't make the cut: The company only operates in 19 states.

United States Power Squadrons (USPS)

The United States Power Squadron (USPS) is a non-profit boating organization that provides maritime safety classes. Members get discounts on BoatUS insurance policies, but membership requires an additional cost of $109 for individuals and $150 for families.

Why it didn’t make the cut: USPS is not an insurance provider.

Boat Insurance Guide

Boat insurance works similarly to car insurance in that it provides financial protection against damages to your property (in this case, a vessel) and that of others. It also covers medical expenses you or your passengers incur and other liability claims.

Unlike with cars, most states don’t require that boats be insured — although some marinas may ask for insurance to rent a dock. If you're financing a vessel, lenders may also demand you carry insurance. However, even if these requirements don’t apply to you, insuring your boat may be a good idea.

What does boat insurance covers?

Policies vary between insurers but coverage typically includes property damage and liability coverage. Let's go over them in detail.

Property damage coverage

Property damage coverage insures your vessel against damages or loss caused by collisions with other boats or objects (such as a dock or buoy), theft, sinking, fire, storms and other risks. The property covered may include the hull, motor, fittings, furnishings and other equipment. This coverage is also known as comprehensive and collision coverage.

Liability coverage

Bodily injury liability helps pay legal expenses and settlements if you're found at fault for someone's injuries during a crash, for example. Property damage liability, on the other hand, covers damages to others' property, such as a boat or dock you collide with.

What boat insurance doesn’t cover

Unless your policy states otherwise, boat insurance generally won't cover:

• Wear and tear
• Deterioration
• Marring
• Denting
• Damage from animals
• Manufacturing defects
• Corrosion
• Mold
• Servicing and maintenance
• Renovations
• Freezing

Other exclusions may include accidents that take place while boating outside your policy’s navigation limits or during a lay-up period.

Optional boat insurance coverage

Boat insurance companies may offer add-ons to augment their base policy's coverage. Here are some of the most common.

Medical payments

Medical payments coverage pays for the treatment of injuries, like medications or X-rays, you or passengers sustain in a covered accident.

Roadside assistance

Roadside assistance covers part or the total cost of towing your boat trailer if it breaks down. Some plans also cover labor for on-site vehicle repair.

Wreckage removal

Wreck or wreckage removal helps cover the cost of removing your boat or any debris from the water after an accident or if your boat sinks.

Mechanical breakdowns

Mechanical breakdown coverage pays to repair or replace an outboard motor, unless the issue is due to general wear and tear.

Watersport injuries or damages

Watersport coverage pays for injuries directly related to water sports, like tubing, wake surfing, or water skiing.

Fuel spill cleanups

If your boat spills fuel or oil due to an accident or leaking tank, this coverage can help pay cleanup or legal costs.

Personal property

Also known as personal effects insurance, this coverage pays for the replacement cost of fishing equipment, scuba gear, clothing, electronics and more.

Uninsured/Underinsured boater

As the name suggests, this option covers injuries caused by a collision with a boater that doesn't have insurance or has insufficient coverage.

On-water towing

This add-on pays for towing if your boat leaves you stranded. It may also cover jump starts, soft un-groundings and fuel delivery. Depending on your plan, you may have to pay a deductible per towing service.

Ice and freezing damage

Ice and freezing damage coverage pays for damages to your boat’s engine or body caused by improper winterization. It may cover your boat while docked outside or if the storing facility's heating system fails.

Hurricane haul-out

This endorsement reimburses the cost of moving your boat out of the water before a hurricane or other named storm is headed for your area.

Extending your navigation

Boat insurance typically only pays for losses and injuries that happen within designated geographical limits. You'll have to purchase additional coverage to extend these navigational limits to other areas — like Alaska, the Bahamas, Mexico or the Caribbean.

Types of boats covered

The types of watercraft covered vary across insurance companies but may include:

• Bass/fishing boats
• Pontoon boats
• Sailboats
• Cruisers
• Dinghies
• Bowriders
• Power/speed boats
• Jet boats
• Yachts
• Personal watercraft (PWC) such as jet-skis

Some insurers may also cover non-motorized watercraft such as kayaks, canoes or stand-up paddleboards.

Agreed value vs. actual cash value policies

Companies offer one of two types of reimbursement: agreed value or actual cash value. The type of policy you opt for will determine your coverage limits and premium.

Agreed value coverage

This pays the amount you and the insurer agree on when you purchased the policy. It doesn’t take into account the value of your boat at the time a claim is submitted. It provides the most protection since it pays to replace or repair your watercraft without deductions for depreciation.

Actual cash value coverage

This option takes into account the market value, age and condition of the watercraft at the time of the accident. The insurer pays for repair or replacement costs after accounting for depreciation. Premiums on actual cash value policies are more affordable, but these provide less coverage in the event of total loss.

Some companies also offer replacement cost coverage. This type of coverage reimburses the full amount needed to repair your boat after an accident. In the event of total loss, the insurer pays to replace your watercraft with the same or a similar model.

Is my watercraft covered by my homeowners or umbrella insurance?

Homeowners insurance may cover your boat — as long as the watercraft meets the insurer’s size and speed restrictions.

Most policies cover small boats under 26 feet in length that have engines of 25 horsepower or less. However, note that coverage limits for physical damage are usually low — typically no more than $1,000 or $1,500 per item — so you may need to purchase an add-on or “endorsement” to insure your watercraft to its full value. Also, coverage for medical payments, other personal property or liability may be excluded.

Umbrella insurance may also cover your watercraft. However, the underlying policy covering your boat must first meet the liability requirements of your umbrella policy. For instance, an umbrella policy won’t cover legal fees and damages if it requires a minimum liability coverage of $500,000 and your boat or homeowners insurance caps at $300,000.

How much does boat insurance cost?

Your premium will depend on factors such as:

• Navigation area: boating inland (lakes or rivers), coastal regions or traveling to the Bahamas, Mexico and the Caribbean (sometimes also Alaska).

• Boat type: the model, year, size and speed of your watercraft.

• Your boating record: prior boating violations, accidents, claims or boating safety courses.

To insure a used boat, underwriters may require a marine survey to determine the vessel's overall value and condition. The surveyor inspects the boat for any underlying issues with its structure, machinery and onboard equipment.

Some insurers offer policies for as low as $25 per month or less but these usually only offer basic liability protection. Advertised prices go up as you add more coverage options to your plan.

How much boat insurance do I need?

The amount of insurance you need depends on the value of your vessel. For example, if you have a $40,000 boat, you’ll want at least $40,000 worth of coverage. It also depends on where you dock, moor or store your boat. Some marinas require at least $300,000 in liability protection but it can be as much as $1,000,000.

How to save on boat insurance

A policy that offers cash value coverage will be the cheapest option, since your insurance company can factor in depreciation when paying for damages. Choosing a lower liability limit and a higher deductible are other ways to lower your monthly premium. Just keep in mind that these choices could lead you to pay more out of pocket for damages, injuries or legal fees after an accident.

Insurers also offer policy discounts that can help you save money on your premium. These commonly include:

• Insuring more than one boat under the same policy
• Bundling your boat, homeowners and car insurance policies
• Paying your insurance in full
• Taking safety courses
• Having claim-free periods
• Having no boating accidents on record
• Owning a diesel-powered boat
• Not using your boat during during certain months (lay-up)
• Installing safety devices such as fire extinguishers or a fume detector

Common reasons for boat insurance claims to be denied

Boat insurance only covers events that are explicitly stated on the policy declaration. However, a claim may be denied even if your policy covers the event. That can happen if:

• You were operating a boat under the influence of alcohol or drugs
• You didn't give the watercraft proper maintenance
• The damages or injuries exceed your policy limits
• You made mistakes when filing the claim
• You failed to safeguard your boat before a storm
• You use your boat for commercial purposes (this usually requires marine insurance tailored for businesses)

How We Chose the Best Boat Insurance

Here's what we looked for when choosing the best boat insurance companies:

Coverage options and discounts
We looked for companies that offered a comprehensive selection of insurance packages, coverage add-ons and policy discounts.

Customer satisfaction
As we researched companies, we focused on those that receive mostly positive feedback on online review sites such as the Better Business Bureau (BBB) and customer satisfaction studies by J.D. Power.

Financial strength
We considered the financial strength of each company by looking up their rating from A.M. Best, a credit rating agency that focuses on assessing the creditworthiness of insurance companies. All our picks scored between A and A++.

Complaint index
We evaluated every insurer’s complaint trend report from the National Association of Insurance Commissioners (NAIC).

Summary of Money’s Best Boat Insurance of 2023

• Progressive – Best for Policy Discounts
• BoatUs – Best for Membership Benefits
• Foremost – Best Insurance Packages
• State Farm – Best for Boat Rental Insurance
• Chubb – Best for Yacht Insurance
• Markel Insurance - Best for Commercial Boat Insurance
• National Boat Owners Association - Best Insurance Agency