Ownership8 min read

Boat Insurance: What You Need and What It Costs

Boat insurance protects your investment and shields you from liability. Here's what you need to know to buy the right policy.

Agreed value vs. actual cash value

Agreed value: you and the insurer agree on the boat's value upfront. If it's a total loss, you get that amount. This is what you want.

Actual cash value (ACV): the insurer pays the depreciated value at the time of loss. You'll get less than you think. Avoid ACV policies on boats over $25,000.

What to cover

Hull coverage: damage to your boat from collision, grounding, fire, theft, storms, and sinking.

Liability: damage you cause to other boats, docks, or people. Minimum $300,000, but $500,000-$1,000,000 is recommended.

Uninsured boater: covers you if hit by someone without insurance.

Medical payments: covers injuries to you and your passengers regardless of fault.

Personal property: covers gear, electronics, fishing equipment aboard.

Towing and salvage: covers the cost of towing a disabled boat and salvage operations.

How to reduce your premium

Take a USCG Auxiliary or Power Squadron boating safety course (5-10% discount). Choose a higher deductible. Install safety equipment (fire suppression, GPS tracking). Bundle with your home/auto carrier. Maintain a clean claims history. Keep your boat maintained and survey-ready.

Track your insurance details, claims, and renewal dates with Informed Boating.

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