If enjoying yourself out on the water appeals to you, you might find yourself in the market for a boat. You could purchase a boat for fishing, speed boating, sailing, or a pontoon to float around in casually. Just as you insure your car and your home, it's a good idea to get adequate insurance coverage for your boat.
As you research your options for boat insurance, you might have questions about the cost, what kind of coverage to get, and which insurance company carries the best policies for your money. An independent insurance agent can help answer your insurance questions and get you on the right track for savings on your boat policy. But first, here's a closer look at the average cost of boat insurance this year.
Key Takeaways - How Much Does Boat Insurance Cost in 2026?
Boat insurance costs range from $267 to $839 per year depending on your location and the type of vessel you insure.
Larger, faster, and more valuable vessels typically have more expensive boat insurance rates, on average.
South Dakota has the cheapest average comprehensive boat insurance rates, while Florida has the most expensive rates.
Boat insurance is only required by law in Hawaii, Utah, and Arkansas, but is strongly recommended everywhere else.
Working with a local independent insurance agent is strongly recommended, as they can shop and compare boat insurance quotes and coverage options from multiple carriers near you to find the best deal.
How Much Does Boat Insurance Cost on Average?
The average boat insurance cost ranges from $267 to $839 per year, depending on the type of boat, your location, and your personal profile. As such, the average boat insurance monthly cost breaks down to about $22-$70. There are many factors that can influence boat insurance costs, including the type of boat you insure, its length, and its expected use. Whether you have a speedboat, a small fishing boat, or a yacht can also make a big difference in what you pay.
So, how much does marine insurance cost? Typically, you can estimate boat insurance rate calculations by figuring that your premiums will range from 1% to 5% of your boat's overall value. A small $20,000 fishing boat costs about $300 per year or $25 per month to insure. An independent insurance agent can help you find more exact quotes for boat insurance costs in your area.
What Does Boat Insurance Cover?
What your boat insurance covers depends on the type of policy you choose. Typically, you have a few major options for types of boat insurance:
- Liability boat insurance: This covers expenses stemming from third-party bodily injury and property damage caused by you and your boat. Coverage can pay for lawsuit expenses, medical expenses, property repairs, and more.
- Comprehensive boat insurance: This covers physical damage to your boat caused by many disasters, including vandalism, non-collision events, theft, environmental damage, and wreckage removal.
- Physical damage coverage: This covers physical damage to your boat caused by many disasters, including collisions, fire, storms, sinking, vandalism, or theft.
- Uninsured/underinsured boaters coverage: This covers the cost of accidents with other boaters who don't carry any or enough boat insurance of their own to reimburse you properly.
- Personal effects coverage: This covers your personal items, gear, equipment, and more kept on your boat.
- Towing assistance coverage: This covers the costs of professional towing services if your boat becomes disabled while on the water.
The kind of coverage you buy for your boat can greatly influence your premium costs. The more coverage you buy, the more you're likely to pay for your policy. However, the more coverage you have, the more reimbursement you may be able to receive in case of a disaster that damages or destroys your boat.
Boat insurance has a couple of common exclusions to be aware of, such as racing or commercial use of your vessel. Boat insurance also typically won't cover damage due to normal wear and tear of your vessel. A local independent insurance agent can help you review your specific policy's exclusions.
Boat Insurance Cost by Boat Type
The average boat insurance premium depends largely on the type of vessel you own and its value. For example, pontoon boat insurance costs an average of $400-$900 per year, while fishing boat insurance rates average $300-$600 per year. The table below compares average rates for boat insurance by boat type.
| Boat Type | Value | Average Annual Cost of Coverage |
|---|---|---|
| Small Fishing Boat | $10K–$30K | $300–$600 |
| Pontoon Boat | $20K–$50K | $400–$900 |
| Bowrider | $30K | $600–$1,200 |
| Deck Boat / Sailboat | $30K–$850K | $600–$2,000 |
| Cabin Cruiser | $60K–$300K | $500–$4,000 |
| Luxury Yacht | $500K–$10M+ | $5,000–$25,000+ |
| Personal Watercraft | $5K–$20K | $300–$800 |
The Most and Least Expensive States for Boat Insurance in 2026
Boat insurance costs vary by location, but certain regions of the country typically pay more for coverage than others. States along the coast, those with higher property values, and those in the South tend to pay more for boat insurance than northern states, those with lower property values, and those further inland. Here are some of the cheapest and most expensive states for boat insurance this year by coverage type.
States with the cheapest liability boat insurance
| State | Average Annual Premium |
|---|---|
| South Dakota | $150 per year |
| North Dakota | $155 per year |
| Vermont | $160 per year |
| Wyoming | $165 per year |
| Idaho | $170 per year |
States with the most expensive liability boat insurance
| State | Average Annual Premium |
|---|---|
| Florida | $450 per year |
| Texas | $440 per year |
| Louisiana | $430 per year |
| New York | $420 per year |
| California | $410 per year |
States with the cheapest comprehensive boat insurance
| State | Average Annual Premium |
|---|---|
| South Dakota | $200 per year |
| North Dakota | $210 per year |
| Vermont | $220 per year |
| Wyoming | $230 per year |
| Idaho | $240 per year |
States with the most expensive comprehensive boat insurance
| State | Average Annual Premium |
|---|---|
| Florida | $900 per year |
| Texas | $850 per year |
| Louisiana | $820 per year |
| New York | $800 per year |
| California | $780 per year |
A local independent insurance agent can also help you compare the average boat insurance cost by state.
ACV vs. Agreed Value: How Your Boat Is Valued at Claim Time
An agreed hull value (AHV) boat insurance policy pays for the full insured amount of your boat when you file a claim, without factoring in depreciation. An actual cash value (ACV) boat insurance policy factors in depreciation at the time of a loss, meaning your boat insurance payout may be significantly less for older vessels. AHV coverage is often recommended for new or high-value boats.
Agreed value policies cost an average of 10%-20% more than ACV policies, but are strongly recommended for boats valued over $30,000. However, consider that raising your policy's deductible from $500 to $1,000 can help reduce your premium by 10%-20%. Keep in mind, though, that you'll have to pay that much more out of your own pocket if you file a claim.
What Factors Affect Your Boat Insurance Cost?
A number of factors, some in your control and some not, can have an impact on the cost of your boat insurance. If you sail on a lake that has a high rate of claims, the cost of your coverage will likely be higher than for a lake where there are far fewer claims. There are many boat insurance premium rating factors to be aware of, including the type of boat you own, its value, horsepower, and more.
Additional factors that affect your boat insurance rates include:
- Type of boat
- Value
- Horsepower
- Boat age & condition
- Driver's age & experience
- Usage frequency
- Location
- Driving record
- Safety measures
- Coverage options
- Credit score
Type of boat
The year, make, and model of the boat and motor, as well as whether you have an inboard or outboard motor, come into play when determining rates. The length and overall value of your boat also greatly influence your insurance costs. It may be helpful to learn more about vessel-specific coverage options.
Value of the boat
The more valuable your boat is, the greater the risk it is to insure because it would cost more to repair or replace. As a result, you can expect to pay higher boat insurance premiums for a more valuable boat.
Horsepower of the boat
Often, boats with higher horsepower engines will have higher insurance premiums assigned to them. The faster the boat can go, the greater the risk of it getting involved in a collision, so the riskier it is to insure. An independent insurance agent can help you find boat insurance quotes depending on whether your boat has an inboard or outboard motor.
Age and condition of the boat
Older boats tend to be cheaper to insure because they cost less to replace after an accident. Boats in better condition tend to be cheaper to insure as well, thanks to their updated safety features. An independent insurance agent can help you find exact boat insurance quotes based on the age and condition of your boat.
Age and experience of boat drivers
A boater's age and experience level can affect boat insurance rates. Adding your teenage son as a driver on your policy may increase your rates, similar to adding a teen driver to a car insurance policy. First-time boat owners also tend to pay 10%-20% more, on average, than more experienced captains.
Boaters who are a bit older and more experienced, on the other hand, can often be granted lower rates on coverage because they're seen as less of a risk. However, gender also affects boating rates, regardless of age.
Boat usage frequency
The more often you use your boat, the greater the risk it has of getting into a collision. If you only take your boat on occasional fishing trips, your rates will typically be lower than if you tow water skiers, wakeboarders, or parasailers. Weekend-only boaters typically enjoy much cheaper boat insurance rates than frequent boaters. Simply put, if your boat is docked or not on the water at all, it's less likely to get damaged.
It's also important to classify exactly how your boat is used when signing up for coverage. For example, using your boat for charters would void a recreational boat insurance policy. You'd need a commercial boat insurance policy for any vessel use that generates a profit.
Location of the boat
This is to determine if you will be using the boat in areas where there are natural hazards like hurricanes. Areas like oceans, squalls, etc., are prone to boating incidents because of hurricanes and other threats. So, boaters who frequently use their vessels on oceans, the Great Lakes, or coasts, rather than on inland rivers or smaller lakes, are more likely to be seen as riskier to insure and thus can expect higher insurance premiums.
The same amount of boat insurance coverage for a $50,000 boat may cost an average of $700-$900 per year in Minnesota, but $1,200-$1,500 per year in Florida due to hurricane exposure.
Driving record
Good automobile drivers tend to be good boat drivers. So, like with car insurance, the cleaner your record, the less you can expect to pay for your boat insurance. You're likely to have to pay more for your coverage if you’ve filed claims in the past.
Safety measures
Taking formal safety training and getting boater certifications can help lower the cost of boat insurance. Having safety equipment on your boat can also help lower your rates. If you've passed a National Association of State Boating Law Administrators-approved certified safety course, for example, or have your boat equipped with U.S. Coast Guard-approved fire extinguishers on board, you'll likely pay less for boat insurance.
Boat insurance savings average 5%-15% for both of these strategies, while a GPS tracking and fire suppression system can earn you an additional discount of 3%-10%.
Insurance coverage options
Like any type of policy, the specific boat insurance coverages you pick will influence your overall costs. If you need coverage for your fishing equipment, trailer, personal belongings, or any other boat accessories, you'll pay more than you would for just a liability policy.
Boat trailer coverage is not typically included in every boat insurance policy, and adding it may cost an extra $50-$150 per year. If you want to pay lower premiums every month, choose a policy with a higher deductible amount. An independent insurance agent can help you do this.
Your credit score
Believe it or not, insurance companies have found that a person with a lower credit score is statistically more prone to boating accidents. If your credit score is low, you may be charged more for your boat insurance than someone with a higher credit rating.
Boaters with a consistently excellent credit history will likely pay less for boat insurance. However, just as with car insurance, credit is not allowed to influence boat insurance rates in every state.
The Cost of Boating Accidents
Take a look at some boating accident statistics from 2024:
- A reported 3,887 boating accidents occurred in the U.S. in the span of one year.
- These boating accidents cost the U.S. about $88 million in property damage.
- The most common type of boating accident is a collision between two or more vessels.
- Perhaps contrary to popular belief, most boating accidents happen in calm waters.
- About 70% of fatal boating accidents were caused by a lack of boating safety training among the operators.
- The leading contributory factor for fatal boating accidents in the U.S. is alcohol.
Knowing just how common and costly boating accidents are in the U.S. can inspire you to search for the right boat insurance policy. An independent insurance agent in your area can help you find the best policy for you at the lowest possible rate.
Understanding the Cost of Boat Insurance
Having boat insurance is essential to protect you against potential lawsuit costs in the event of a collision or other accident, and to help you recover financially from damage to your boat, theft of your property, and other incidents. To save money on your boat policy, complete an approved boating safety course for savings averaging 5%-15%. You can also bundle your boat insurance with another policy, such as home insurance or auto insurance, with the same insurer, to save an average of 5-25%.
Further, raising your deductible by $500 can help you reduce your premium rate by 10%-20%. If you store your boat during the off-season, you may also qualify for a seasonal lay-up endorsement, which can help reduce your premiums. Restrictions and eligibility vary by carrier, however, and typically your boat must be stored for several months at a time.
Working together with an independent insurance agent is the best way to have coverage details outlined and explained in a way that makes sense. Independent insurance agents can help you find the best blend of coverage and cost for boat insurance, along with any discounts you may qualify for. They can also provide you with even more tips about how to save on boat insurance.
FAQs About Boat Insurance Cost
How much does boat insurance cost per month?
Most boat owners pay $22-$70 per month, or $267 to $839 per year. A $20,000 fishing boat typically averages $25-$35 per month, while a $50,000 pontoon averages $55-$75 per month. Annual rates generally range from $200 to $500 for recreational boats.
Is boat insurance required by law?
Only three states require boat insurance: Hawaii, Utah, and Arkansas. However, lenders require coverage on financed boats, and marinas often require proof of liability insurance. Most boaters opt to buy coverage regardless of state mandates.
What is the cheapest type of boat to insure?
Small aluminum fishing boats and older inland sailboats have the lowest premiums, which often range from $200-$400 per year. Lower horsepower, inland-only navigation, and lower overall boat value all reduce coverage costs.
Does boat insurance cover theft?
Yes, most comprehensive and physical damage policies cover theft of the boat itself. To protect your gear and equipment stored onboard, you typically need a personal effects coverage add-on.
How can I lower my boat insurance premium?
Complete a NASBLA-approved boating safety course (5-15% off), bundle with home or auto insurance (5-10% off), raise your deductible, store the boat in covered indoor storage, and maintain a claims-free record.
What does boat insurance not cover?
Standard boat policies typically exclude racing, commercial use (such as fishing charters), normal wear and tear, engine breakdown from mechanical failure, and damage from marine life. Review a policy's specific exclusions with an independent insurance agent before purchasing.
Does my homeowners insurance cover my boat?
Standard homeowners policies typically provide limited coverage for small boats, usually under 25 horsepower or less than $1,000-$1,500 in value. Larger boats or vessels used regularly on open water require a boat insurance policy.
What's the difference between ACV and agreed value boat insurance?
ACV (actual cash value) pays the depreciated market value at the time of loss. Agreed value pays the full amount you and your insurer agreed on at policy inception, with no depreciation deducted. Agreed value costs 10%-20% more but is strongly recommended for boats valued over $30,000.
An Independent Insurance Agent Can Help You Find Affordable Boat Insurance
Independent insurance agents simplify the process by shopping and comparing boat insurance quotes for you. These agents also have access to multiple boat insurance companies, ultimately finding you the best boat insurance coverage, accessibility, and competitive pricing while working for you. And down the road, your agent will still be there to help you file claims or update your policy when necessary.
Sources
https://www.supermoney.com/cost-of-boat-insurance-by-state
https://caseyinsurancecompanies.com/blog/marine-insurance-cost-by-boat-type/
https://www.progressive.com/answers/average-boat-insurance-cost/
https://quicknav.com/boating-accident-statistics/
https://betterboat.com/blogs/boating/average-boat-insurance
https://www.discoverboating.com/ownership/insurance
https://www.ramseysolutions.com/insurance/boat-insurance-cost-guide