Whether you have a fishing boat, a runabout or a yacht, boat insurance protects your vessel on water and dry land. It also shields your finances if you're held liable for an accident or fuel spill.
Only three states mandate boat insurance, but you may be required to obtain a policy by your marina or, if you have a boat loan, by your lender.
Best boat insurance
Best for affordability: Progressive
Who's this for? Progressive boat insurance policies start at just $100 a year, with discounts for paying in full, completing a safety course and being the vessel's original owner.
Standout options: Add-ons include jump starts, fuel delivery, unlimited tows and other boat-towing services from Sign & Glide.
Progressive Boat Insurance
Boats covered
Powerboats, fishing boats, pontoon boats, sailboats, jet skis and other personal watercraft
Policy highlights
Policies can be tailored to cover carry-on items, mechanical breakdowns, haul-outs, fuel spills and injuries to you and your passengers. Discounts available for bundling, completing safety course or being vessel's original owner.
Pros
- Rates as low as $100 a year
- Discount for bundling, being original owner
- Add-ons include coverage for fishing equipment, fuel spills and water sports injury.
Cons
- Many age, value and material restrictions
Best for personal watercraft: Foremost
Who's this for? Foremost offers coverage for personal watercraft, including jet skis, which not all companies cover.
Standout benefit: Towing services and waterside assistance are included with all plans.
Foremost Boat Insurance
Boats covered
Fishing/bass boats, high performance boats, runabouts, sailboats, vintage boats, cruisers, pontoons, speedboats, jet skis and other personal watercraft
Policy highlights
Foremost's Plus and Elite plans include replacement cost value coverage, diminishing deductible, pollution liability, hurricane haul-out, boat lift, trip interruption, pets, Bahamas and Mexico navigation
Pros
- Plans tailored to different watercraft types, ages and coverage levels
- Elite plan includes watersports liability and wreck removal
- Discounts for seniors, paying in full and more
Cons
- High volume of complaints with NAIC
- Takes up to three business days to get an online quote
Best for membership benefits: BoatUS
Who's this for? Membership in BoatUS (the Boat Owner's Association of the United States) isn't mandatory to get a policy, but it comes with perks like unlimited towing and access to transient slips.
Standout benefit: BoatUS offers both agreed hull value and actual cash value coverage, so you can find a policy that fits your budget.
BoatUS Boat Insurance
Boats covered
Most boat types, including powerboats, sailboats, cruisers, yachts, fishing boats, personal watercraft and pontoons
Policy highlights
Backed by Geico, BoatUS offers three coverage tiers: liability only, agreed hull value and actual cash value. Add-ons include unlimited towing, trailer coverage, ice and freezing coverage, a diminishing deductible and dock contract liability insurance.
Pros
- Extended coverage range for the Bahamas, Mexico, Alaska and the Caribbean
- Free boater safety and education courses can earn you discounts
- Policies are underwritten by Geico
Cons
- BoatUS membership is required for unlimited towing and other benefits
- Doesn't cover boats over 50 feet or worth over $2.5 million
- Policy options vary by state
Best for fishing boats: Markel
Who's this for? Markel's coverage is a strong option if you use your boats for fishing, with coverage for rods, reels and other fishing equipment and reimbursement of tournament entry fees if you have to cancel due to a covered event.
Standout benefits: Markel also offers commercial policies if you use your boat for charters or excursions.
Markel Boat Insurance
Boats covered
Sailboats, fishing boats, yachts, runabouts, pontoons, sport fishing boats, trawlers, house boats,
Policy highlights
Markel policies include wreckage removal, theft protection and emergency towing, with optional tournament fee reimbursement and trailer and boat lift coverage.
Pros
- Specialty plans for fishing, including tournament reimbursement and equipment coverage
- Coverage includes international operations in Bermuda, Dublin, and London.
- Covers commercial vessels
Cons
- Rates can be higher than average
- Does not offer bundling discount
Best for yachts and high-dollar vessels: Chubb
Who's this for? Chubb has been insuring yachts for over a century, with policies for pleasure crafts up to $3 million and for larger captained yachts valued at over $3 million. Masterpiece Watercraft plans cover the expense of hauling, fueling or docking your vessel if there's a storm approaching and pay out up to $25,000 for expenses incurred as a result of a Coast Guard search and rescue.
Standout benefit: With the Masterpiece Yacht Select plan, you get free boat show and demo coverage and can be reimbursed up to $10,000 if you need to charter a watercraft because your vessel is out of commission.
Chubb Boat Insurance
Boat types
Yachts and captained vessels
Policy highlights
Chubb's yacht insurance policies cover vessels between 36 and 70 feet and worth up to $3 million, with higher limits for captained vessels. The Masterpiece Watercraft plan covers liability protection for the crew and up to $25,000 for pollution liability.
Pros
- High coverage and vessel size limits
- Captained vessels can be insured for more than $3 million
- Yacht owners are reimbursed up to $10,000 to charter a vessel if your boat is being repaired
Cons
- Aimed at luxury watercraft, with higher rates to match
What does boat insurance cover?
Boat insurance covers physical damage to your vessel after a covered event, and provides liability protection for injuries or damages caused by your boat. You can also add coverage for towing, boat trailers and personal effects.
Some policies have distance limits, and your provider won't pay out if you take your vessel outside of that radius. There may also be limits on locations or types of weather covered by your policy, and using your boat for commercial purposes is usually excluded from coverage.
CNBC Select has chosen the best boat insurance companies in a variety of categories. (See our methodology for more information on how we made this list.)
How much is boat insurance?
A comprehensive policy that covers more than liability will typically run between 1% and 5% of the boat's insured value. Numerous other factors can influence the cost of premiums, including:
- The type and age of the boat
- The value of the boat
- What the boat is used for
- Engine type
- Your age and boating experience
- Your credit history and claim history
- Where you live
- What kind of coverage is selected
Many providers offer discounts to boaters who have completed an approved boating safety course.
Do you need insurance on a boat?
Only Arkansas, Utah and Hawaii mandate any sort of coverage.
Though other states don't require a policy, the marina where you dock may demand some level of liability coverage. If you have a boat loan, your lender may also require coverage.
What boat insurance covers
The main benefits of boat insurance are that it covers physical damage to your vessel and provides liability protection for injuries or damages. Here's how that breaks down.
Property coverage
This benefit pays to repair or replace your boat's structure, motor, anchor and other attached items after a fire, collision, theft, vandalism or other covered event, whether on land or water.
Boaters can typically choose a policy with actual cash value coverage, agreed hull value or replacement cost value.
Liability coverage
If your boat damages another person's vessel or personal property, this benefit helps cover the cost of repairs. It also covers medical expenses if someone is hurt by your boat and reimburses legal fees if you are sued.
Typically, liability coverage pays for wreckage removal and fuel spill cleanup, and most policies cover medical expenses if a passenger is injured waterskiing, tubing or engaging in other watersports.
Medical payments
This pays for medical expenses if you or a passenger are injured in a covered event, regardless of who is held liable. In some states, medical payments coverage doesn't kick in until after you've reached your health insurance coverage limits.
Fuel spill liability
Fuel spill liability pays for physical damage, clean-up costs, environmental loss and legal fees if your vessel leaks or spills fuel into the water. It can also reimburse income loss suffered by an impacted business. The limit on fuel spill liability under the Oil Pollution Act of 1990 is currently $1,076,000, although some insurers have lower coverage caps.
Boat insurance FAQs
Does boat insurance cover damage from hurricanes?
Boat insurance can cover damage sustained from severe weather, such as hurricanes, but it's not always included by default — it may be an optional add-on to your policy. Some insurers will also help cover the cost of moving your vessel out of danger during a hurricane advisory.
Do I need insurance to rent a boat?
While it's usually not legally required, boat rental insurance is a good idea because it protects you from liability for damages to other watercraft or boaters and pays for repairs to your vessel. It may be required by the boat rental company, which may offer a policy, but Progressive also sells boat rental insurance.
Does boat insurance cover jet skis?
Is boat insurance worth it?
Boat insurance is a worthwhile investment to protect you from liability for damages or injuries to others. It can also reimburse you if your vessel sinks, capsizes, is stolen, collides with another vessel or is damaged in a storm. If you have a smaller vessel, like a canoe or kayak, it may be covered by your homeowners policy.
What do I need to get boat insurance?
To get a quote, you'll need to know the boat's type, model year, length, hull configuration and horsepower. You'll also have to decide what coverage limits and deductible you want.
Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every boat insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
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Our methodology
CNBC Select analyzed more than 20 insurance companies that offer boat insurance policies. Factors in our selections include:
Coverage: Providers with a wider range of coverage options and fewer exclusions were given greater weight.
Cost: We reviewed providers' premiums and whether they offered multiple discounts to save boaters money.
Availability: We weighted providers more heavily if they had greater nationwide availability and covered a wider range of watercraft types.
Industry standing: We considered how long a provider had been in business and its market share, as well as financial strength ratings from A.M. Best
Online experience: We weighed providers more heavily if they offered online rate quotes and allowed you to buy a policy and file claims on their website or mobile app.
Customer service: When possible, we incorporated customer satisfaction ratings from J.D. Power and the Better Business Bureau, as well as the volume of complaints cited by the National Association of Insurance Commissioners.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on that criteria, our picks for best boat insurance are:
- Best for affordability: Progressive
- Best for personal watercraft: Foremost
- Best for membership benefits: BoatUS
- Best for fishing boats: Markel
- Best for yachts and high-dollar vessels: Chubb
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