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A boat or “marine” policy has different benefits compared to home or auto insurance. One of the benefits of a standalone marine policy is that it protects your home and auto rates should someone should ever make a claim. So if something happens to your boat, your home policy and rate are not affected.

For our Michigan and Florida boaters, boat insurance is mandatory if you get a bank loan to purchase your boat. The bank requires that their collateral be covered in case of a loss. Otherwise, boat insurance is not required in Michigan or Florida. However, we highly recommend purchasing boat insurance for seasoned boat owners and new boaters alike! Here’s why:

The first is financial security. If there is damage, theft, or loss to your boat or trailer, you’re usually responsible for paying the deductible and insurance will cover the rest if you have the proper insurance. The second is liability. Accidents happen and you want to make sure you’re covered in case someone gets hurt.

If you don’t have boat insurance, any repair or damage sustained to your boat or bodily injuries resulting from a boat accident will have to be paid for out of pocket. Not having coverage on a boat will also expose the financial risk of the asset and open owners up to liability exposure on a claim.

Boat insurance coverages are very affordable and are often less expensive than homeowner or auto insurance. Pricing is going to change based on the value of the boat and by state, but here are some factors that can determine the cost of insurance:

Prior ownership and experience
Type of boat
Navigational area
Boat value
Another benefit of marine insurance is that it often offers coverages that a homeowner’s policy may not. This includes offers such as an agreed value coverage or in some cases total loss replacement. Additionally, marine insurance will often offer personal effects coverage on-water towing, pollutions spill liability, and salvage.

Overall, boat insurance coverages are based on a variety of different factors, so make sure to speak to your sales or finance consultant at your local Action Water Sports for more information.