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 watercraft 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 on-water 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 coverage and why it's necessary.
Key Takeaways - Boat Towing Insurance
Boat towing coverage can reimburse you for the cost of professional towing services if your boat breaks down on the water or is involved in a collision.
Your auto insurance policy may provide limited coverage for your boat while it's being transported on the road.
The average cost of boat towing coverage ranges from $30-$175 per year, depending on your location and coverage level.
The average cost of a single on-water tow ranges from $250-$500 without insurance.
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.
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 vs. on-water boat towing.
- 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, such as a boat insurance towing endorsement.
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.
It's important to understand your on-water towing coverage limits. Many carriers offer coverage for unlimited tows with no deductible, such as Progressive's Sign and Glide coverage. However, boaters who arrange towing services without using the carrier's dispatch center can be reimbursed for up to $250 per hour or $3,000 per disablement.
Keep in mind that the towing service meter starts as soon as the tow operator is dispatched, not when they arrive at your location. 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.
How Much Does Boat Towing Insurance Cost in 2026?
The average cost of boat towing insurance ranges from $30-$175 per year. The cost of your specific coverage depends on your location and the amount of coverage you choose. The cost of Progressive's Sign and Glide coverage is $30 per year in most states, or $50 per year in Florida. BoatUS and TowBoatUS endorsements cost as little as $3 per month.
The average boat towing cost without insurance ranges from $250-$500 per hour for a single on-water tow. You can ask a local independent insurance agent about how to add towing coverage to your boat insurance policy. They can help you get set up with all the boat towing add-on coverage you need.
Is Boat Towing Insurance Required?
Three states, Arkansas, Hawaii, and Utah, require boat insurance by law. However, it's wise to have boat towing coverage regardless of where you live. Many marinas and lenders also require you to have a base watercraft policy, so towing endorsements are highly recommended for any financed or docked vessels.
Additionally, 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 Boat Towing Insurance?
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 on-water boat towing services costing an average of $250-$500 per hour for a single tow, you could take a big financial hit that could dampen your fun on the water. Even a modest incident can easily exceed $1,000 if you lack the proper coverage.
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. Additionally, battery failures are another of the most common reasons boaters need towing services.
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 auto 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.
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. These are much more expensive than regular towing services and can cost upwards of tens of thousands of dollars.
While towing services are offered for low-risk situations such as breakdowns or soft undergroundings, salvage operations are often required for higher-risk scenarios. These often include sinkings, hard groundings, and collision damage.
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.
Boat Towing Insurance vs. Membership Services
Another option is to consider signing up for a marine membership, rather than adding towing coverage to your boat insurance policy. You might want to look into a BoatUS vs. a Sea Tow boat towing membership. BoatUS and TowBoatUS offer memberships for as little as $3 per month and cover more than 300 ports and 600 vessels.
A Sea Tow Gold Card membership offers 24/7 priority towing services nationwide. It covers unlimited towing with no distance or dollar restrictions. Tows of up to 25 miles to repair facilities from your home port are also covered. Offshore coverage is included, as well.
What to Do When You Need a Tow on the Water
If you find yourself in need of a towing service while on the water, follow these steps:
- Anchor your boat to prevent drifting.
- Ensure all passengers have life jackets.
- Call your insurer's dispatch or use the app before arranging your own tow. Self-arranged tows are often reimbursed at limited rates compared to your policy's coverage for your insurer's dispatch.
- Provide your GPS coordinates to dispatch.
- Stay with your vessel until the tow arrives unless it's unsafe to do so.
If you need to file a claim after your boat is towed, your independent insurance agent can help you.
FAQs About Boat Towing Insurance
How much does boat towing insurance cost per year?
The cost ranges from $30-$175 per year depending on location and coverage level. Progressive Sign and Glide's coverage averages $30 per year in most states, but $50 per year in Florida. BoatUS TowBoatUS endorsements are available for as little as $3/month. Without coverage, a single on-water tow costs an average of $250-$500 per hour.
Does boat insurance automatically include towing coverage?
To an extent. Most standard boat policies include only limited towing reimbursement, which is often capped at $500-$1,000 per year. Dedicated towing coverage or a marine assistance endorsement provides unlimited service coverage. Confirm your towing coverage details with your independent insurance agent.
What is the difference between on-water and on-road boat towing coverage?
On-water towing covers professional services when your boat is disabled on the water, such as due to engine failure, fuel depletion, or soft ungrounding. On-road towing covers incidents while your boat is being transporting in a trailer. Check whether your auto policy's roadside assistance coverage extends to your boat trailer.
Is a boat towing membership better than adding coverage to my policy?
It depends on how many boats you own and where you boat. A per-boat policy endorsement, which costs as little as $3 per month, suits most single-boat owners. A BoatUS or Sea Tow annual membership may be more cost-effective for multi-boat households or frequent coastal boaters. Both provide 24/7 dispatch services. An independent insurance agent can help you compare these options.
Does boat towing insurance cover salvage?
Towing and salvage are typically separate coverages. Standard towing handles low-risk situations. Salvage covers higher-risk incidents such as sinkings, hard groundings, and major collisions, and is usually covered under hull or comprehensive coverage, or a dedicated salvage provision. Verify with your independent insurance agent that salvage is covered up to the full insured value with no additional deductible.
What happens if I arrange my own tow without calling my insurer first?
Most policies reimburse you for self-arranged tows at limited rates, typically up to $250 per hour or up to $3,000 per disablement. Always call your insurer's dispatch center or use their app first to avoid unexpected out-of-pocket costs.
Can my car insurance cover my boat while I'm towing it on the road?
Likely, yes. Auto liability typically extends to third-party damage caused by your boat while it's being transported on the road. However, physical damage to the boat or trailer itself usually requires a separate watercraft policy with towing coverage. Ask your independent insurance agent about potential on-road coverage gaps.
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.
They'll compare on-water vs. on-road towing coverage limits, salvage provisions, and Trailer Assist add-on options. And down the road, your agent can help you file boat insurance claims and update your coverage as necessary.
Sources
https://www.autoinsurance.org/does-auto-insurance-cover-towing-a-boat/
https://www.roamly.com/learning-center/emergency-towing-and-salvage-coverage
https://www.boatus.com/products-and-services/boat-insurance/boat-towing-coverage
https://seatow.com/membership/gold-card/
https://www.progressive.com/boat/coverages/on-water-towing/