Does Boat Insurance Cover Towing?

Many boaters and watercraft enthusiasts enjoy getting out on the water during the warmer months. When engine trouble threatens to dampen their fun, boat towing insurance can help them get back on the water as quickly as possible. It's critical to ensure your boat insurance policy includes towing coverage and understand how it works in case your vessel is disabled out on the water.

Fortunately, a local independent insurance agent can help you get set up with all the boat towing insurance you need. They'll make sure your boat insurance policy includes each type of coverage necessary. But first, here's a closer look at boat towing insurance and why it's necessary.

What Is Boat Towing Insurance?

Boat towing coverage is an add-on policy to your boat insurance that covers various scenarios when your watercraft needs to be transported. There are two types of boat towing insurance:

• On-road towing: This covers the costs of towing, up to your policy limit, if you have a problem while trailering your boat on the road and need it towed. On-road towing is sometimes covered in a standard car insurance policy in the roadside assistance portion, but double-check your policy to make sure coverage extends to your watercraft. If your auto insurance doesn’t cover boat towing and you’re involved in an accident while your boat is hitched up, hiring another company to move your vessel could be expensive.
• On-water towing: This covers the costs of towing, up to your policy limit, if you have a problem on the water and need your boat towed to shore. On-water towing covers the hauling of your boat to a service area if it is stuck or stalled, runs out of gas, or is in an accident. Because on-water towing professionals risk their boats and lives to bring you safely to shore, the price you'll pay is likely going to be high. An uninsured boat towing incident can cost hundreds of dollars or more. If your boat is disabled due to an accident, the tow can be far pricier. By contrast, boat-towing insurance is typically very affordable.

An independent insurance agent can help you get set up with all the necessary boat towing coverage. Be sure to review your policy's exclusions with your agent to determine if you need additional coverage.

How Does Boat Towing Insurance Work?

Boat towing insurance covers the cost of a professional towboat service to retrieve your vessel and bring it back to shore. Depending on the insurance company, you can typically buy basic coverage or increase your coverage for greater distances. If you have an incident on the water, such as running out of fuel, a mechanical malfunction, or a collision, boat towing insurance can pay for the cost of professional towing services. 

Keep in mind that the towing service meter starts as soon as the tow operator is dispatched. So, if you are a short distance offshore, a basic amount of insurance should fully cover the service. However, if you tend to go further out, you may want additional coverage to ensure your coverage can reimburse you for the full cost of a longer tow.

Your coverage may also cover professional services such as a refill of gas if you run out while on the water or a jumpstart if your battery dies, which can save you some towing costs. The specific services covered by your policy can vary. Check with an agent to find out what types of coverage are available.

Is Boat Towing Insurance Required?

Two states, Arkansas and Utah, require boat insurance by law. However, it's wise to have boat towing coverage regardless of where you live. This coverage can protect you from having to pay hefty out-of-pocket costs in case of a disaster like a collision while out on the water. 

Here are just a few examples of why having boat towing coverage is critical:

• While driving a truck that's towing your boat, an on-road wreck with another vehicle could destroy your trailer.
• Your boat could become disabled on the water due to mechanical or electrical failure or running out of fuel.
• You could have a collision with another vessel while out on the water and need your boat towed to shore.

Boat towing insurance is necessary in many different scenarios, but you may also be required to have a standard watercraft insurance policy if you finance your vessel or dock it at a marina. In these instances, it can be a good idea to add towing coverage to your policy. Without coverage, you could face expensive losses if an incident occurs and you need professional help or are sued for damage to someone else's property.

Does Boat Insurance Cover Damage While Towing?

If your boat insurance policy includes collision coverage and comprehensive coverage, it likely covers physical damage to your watercraft while towing. Collision insurance can also reimburse you for property damage done to third parties if your boat collides with another object, such as a dock or another boat. 

Comprehensive coverage, also called marine hull insurance, can reimburse you for physical damage to your boat's trailer, motor, and boating equipment. It can also cover physical damage to the watercraft itself. To ensure your boat is covered against physical damage while towing, check that your boat insurance policy includes both comprehensive and collision coverage.

Both comprehensive and collision insurance make up the physical damage coverage section of your watercraft policy. These coverages can also reimburse you if your boat sinks. Make sure to review your boat insurance policy with your independent insurance agent to be certain it includes wreckage removal and clean-up costs if your boat sinks.

Why Do I Need Towing Insurance?

You may be a safe boater without past incidents on the water.  Maybe you've even taken a Coast Guard-approved boating safety course. However, many others on the water aren’t as safe as you. 

Boats don’t always run perfectly, either. They run out of gas, they have mechanical problems, or the engine can break down. You could find yourself navigating unfamiliar waters where you’re not aware of the locations of rocks and sandbars.

The primary reason to consider additional coverage, such as towing insurance, is that it’s never safe to be stranded in the middle of a waterway with a disabled boat. With professional boat towing services potentially exceeding $1,000, you could take a big financial hit that could dampen your fun on the water.

Does Car Insurance Cover Boat Towing?

If you're towing your boat behind your car while driving on the road, your auto insurance may provide some coverage for incidents that can occur. Typically, the liability insurance portion of your car insurance will cover you against damage or bodily injury to third parties caused by your boat while you're towing it. 

However, your car insurance most likely won't cover physical damage to the boat or boat trailer from the incident. That's why you'd need a separate watercraft insurance policy with boat towing coverage for full protection.

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What's the Difference Between Towing and Salvage Services?

If your battery dies, you run out of gas, or your motor fails while on the water, you may need a tow. But if your boat is involved in an accident and has extensive damage that makes it unsuitable for sailing, you will likely need professional salvage services. 

Damaged boats are more fragile and prone to sinking, so salvage is a more involved towing process that ensures your boat is handled carefully and can get to shore without sinking, capsizing, or suffering further damage. Because salvage is a special towing service, prices on a salvage operation can be quite high, so it's wise to check for a salvage provision in your boat towing coverage together with your independent insurance agent.

An Independent Insurance Agent Can Help You Find Boat Towing Insurance Quotes

Independent insurance agents have access to multiple boat insurance companies in your area, so they know which ones offer the best boat towing and salvage coverage. Your agent can shop and compare quotes and policy options for you to find affordable rates and quality protection. And down the road, your agent can help you file boat insurance claims and update your coverage as necessary.