How much does Boat Insurance Cost?

Your Questions Answered!

Hey there! If you’ve landed here, you’re probably wondering, “How much is boat insurance going to cost me?” Let me get straight to the point—boat insurance generally runs around 1% of your boat’s hull value per year. So, if your boat is worth $100,000, you’re looking at about $1,000 a year for coverage.

That said, rates can really vary depending on your specific situation. In northern states, I’ve seen rates as low as 0.3% of the hull value, while in Florida, where there’s a higher risk of storms and other factors, rates can be as high as 4-5% sometimes. But starting with 1% is a good rule of thumb to get an idea of what you might pay. Now, let’s break down what else can impact your rate.

What Impacts the Cost of Boat Insurance?

There are two big things to consider when calculating your boat insurance: Your boat and You as the owner.

1. Your Boat

• Where You Keep Your Boat: This might surprise you, but where you store and use your boat can make a big difference. If you’re in Florida, with higher storm risks, your premium could be higher than if your boat sits on a lake in Ohio.
• Type of Boat: The kind of boat you own matters. A fishing boat will be cheaper to insure than a high-performance speed boat. The more specialized or high-speed the boat, the more you’ll pay.
• Top Speed: If your boat can fly across the water at high speeds, expect a higher premium. Speed adds risk, and insurers take that into account.
• Number of Engines: Got a boat with three or four engines? You’ll likely pay more. The more engines, the higher the cost, especially on those big center console boats.
• Age of Your Boat: Older boats can be more expensive to insure because they often require more maintenance and come with a higher risk of sinking. This added risk means higher premiums. If your boat is 15 years old or older, you may also need to provide a survey to prove it’s still seaworthy.
• How You Use Your Boat: Pleasure weekend use? Occasional charters? Full-time charters? Your usage makes a big difference. The more your boat is in use—especially for business—the higher your premiums. Most policies will cover U.S. navigation up to a certain mileage offshore, but if you plan to head to the Bahamas, expect to pay more for the added risk.

2. You as the Owner

Now, let’s talk about how you come into play when it comes to pricing.

• Credit-Based Insurance Score: Not all carriers will run your credit, but the majority do. Don’t worry, though—it’s a soft hit, so it won’t impact your credit score. A better score can still mean lower premiums.
• Claims History: Insurance companies typically look back over the last 3-5 years of your claims history. If you’ve had prior claims, especially more recent ones, it could push your rate higher.
• Your Age and Experience: Experienced boaters tend to see lower rates. If you’ve been boating for a while, that could work in your favor. But if you’re making a big jump in boat size (say, more than 10-15 feet larger than what you’ve owned previously), expect to pay more since insurers see this as a learning curve and a higher risk.
• Motor Vehicle Report: Believe it or not, your driving history can impact your boat insurance. If you’ve had prior speeding tickets or other driving violations, that can lead to a higher premium.
• Boat Safety Training: Taking a boater safety course could save you some money, though the discount typically only lasts about three years after you complete the course.

Ways to Save on Boat Insurance

While some factors are out of your control, there are several ways to help lower your premiums:

• Install a GPS Tracking Device: Adding a GPS tracker to your boat could earn you a discount. It lowers the risk of theft, and insurers love that.
• Take a Boater Training Class: While the discount from a safety course usually only lasts for about three years, it’s still a good way to knock some money off your rate in the short term.
• Winterize and Haul Out Your Boat: If you’re in an area that experiences harsh winters, getting your boat out of the water and winterizing it is a smart move. It reduces the risk of damage and could bring your rate down.
• Work with a Marine Insurance Broker (Like Me!): One of the easiest ways to save is by working with a marine insurance broker. We work with multiple carriers, and I can tell you from experience, different insurers are better for different types of boats. For instance, one company might be great for wake boats, while another will offer better rates for performance boats or fishing boats. We’ll find the right carrier that fits your boat and your budget.

Why Work with On The Water Marine Insurance?

Here’s the deal—when you work with me, you only need to shop for boat insurance once. I’ll do the legwork, shopping with multiple carriers to find the best coverage and price for you. Plus, you get to work with someone who knows marine insurance inside and out. That means you can spend less time worrying about insurance and more time out on the water.

If you’ve got any questions or want to explore options for your boat, feel free to give me a call at (513) 653-3800. I’m here to help!

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