Everything You Need to Know About

Watercraft Insurance

What is Watercraft Insurance?

Watercraft insurance, also known as boat and personal watercraft insurance, is an insurance policy that provides coverage for boats and personal watercraft and often includes towing and wreckage removal, as well as fuel spill indemnification. This type of insurance may be purchased for sailboats, houseboats, and pontoon boats, as well as other watercraft up to a certain size and value. While not legally required in all states, watercraft Insurance is still an important investment for any boat or personal watercraft owner.

Why do you need watercraft insurance?

Watercraft insurance covers most watercraft with motors, including fishing boats, sailboats, pontoon boats, paddle boats, leisure crafts, and yachts. Most states do not legally mandate that watercraft must be insured. To find out, go online to check your state’s watercraft titling and registration requirements.

But even if your state doesn’t require insurance, your bank won’t give you a boat loan without it, and most marinas also require you to have watercraft insurance before they rent you a slip or mooring.

What types of Watercraft insurance are available?

There are two main types of Watercraft insurance:

Some Watercraft insurers also offer additional coverage options, such as medical payments, towing and labor, and uninsured Watercraft protection.

What factors affect Watercraft insurance rates?

The type of Watercraft you own will largely determine your premium. Larger and faster boats cost more to insure than smaller vessels because they’re considered higher risk. The age and value of your Watercraft will also be taken into account. Newer and more expensive boats will be charged higher rates than older, cheaper models.
Your Watercraft’s usage is another important factor insurers consider when calculating premiums. If you only use your boat for occasional pleasure cruises, you’ll likely pay less than someone who charters their vessel out for fishing or Water sports.
Where you live can also affect your Watercraft insurance rates. If you live in an area with a high number of Watercraft thefts or where Water levels fluctuate frequently, you may pay more for coverage.
Your Watercraft insurance history is another important factor insurers will consider when setting rates. If you have a history of accidents or claims, you may be charged higher premiums.