How Much Does Boat Insurance Cost in 2025?

If enjoying yourself out on the water appeals to you, then you might find yourself in the market to buy a boat. You could purchase a boat for fishing, speed boating, sailing, or a pontoon to float around in casually. Just as you insure your car and your home, it's a good idea to get adequate insurance coverage for your boat.

As you research your options for boat insurance, you might have questions about the cost, what kind of coverage to get, and what insurance company carries the best policies for your dollar. An independent insurance agent can help answer your insurance questions and get you on the right track for savings on your boat policy. But first, here's a closer look at the average cost of boat insurance this year.

How Much Does Boat Insurance Cost?

The average annual cost of boat insurance is a few hundred dollars, though it can run over $1,000 per year, depending on the type of boat and your personal profile. There are many factors that can influence boat insurance costs, including the type of boat you insure, its length, and its expected use. Whether you have a speedboat, a small fishing boat, or a yacht can also make a big difference in what you pay.

So, how much is boat insurance? In general, boat insurance costs range from $200 to $500 per year, on average. Typically, you can estimate boat insurance rate calculations by figuring that your premiums will range from 1% to 5% of your boat's overall value. An independent insurance agent can help you find more exact quotes for boat insurance costs in your area.

What Does Boat Insurance Cover?

What your boat insurance covers depends on the type of policy you choose. Typically, you have a few major options for boat insurance.

Liability boat insurance: This covers expenses stemming from third-party bodily injury and property damage caused by you and your boat. Coverage can pay for lawsuit expenses, medical expenses, property repairs, and more.
Comprehensive boat insurance: This covers physical damage to your boat caused by many disasters, including vandalism, non-collision events, theft, environmental damage, and wreckage removal.
Physical damage coverage: This covers physical damage to your boat caused by many disasters, including collisions, fire, storms, sinking, vandalism, or theft.
Uninsured/underinsured boaters coverage: This covers the cost of accidents with other boaters who don't carry any or enough boat insurance of their own to reimburse you properly.
Personal effects coverage: This covers your personal items, gear, equipment, and more kept on your boat.
Towing assistance coverage: This covers the costs of professional towing services if your boat becomes disabled while on the water.

The kind of coverage you buy for your boat can greatly influence your premium costs. The more coverage you buy, the more you're likely to pay for your policy. However, the more coverage you have, the more reimbursement you may be able to receive in case of a disaster that damages or destroys your boat.

The Most and Least Expensive States for Boat Insurance in 2025

Boat insurance costs vary by location, but certain regions of the country typically pay more for coverage than others. States along the coast, those with higher property values, and those in the South tend to pay more for boat insurance than northern states, those with lower property values, and those further inland. Here are some of the most and least expensive states for boat insurance this year by coverage type.

States with the Cheapest Liability Boat Insurance

State	Average Annual Premium
South Dakota	$150 per year
North Dakota	$155 per year
Vermont	$160 per year
Wyoming	$165 per year
Idaho	$170 per year

States with the Most Expensive Liability Boat Insurance

State	Average Annual Premium
Florida	$450 per year
Texas	$440 per year
Louisiana	$430 per year
New York	$420 per year
California	$410 per year

States with the Cheapest Comprehensive Boat Insurance

State	Average Annual Premium
South Dakota	$200 per year
North Dakota	$210 per year
Vermont	$220 per year
Wyoming	$230 per year
Idaho	$240 per year

States with the Most Expensive Comprehensive Boat Insurance

State	Average Annual Premium
Florida	$900 per year
Texas	$850 per year
Louisiana	$820 per year
New York	$800 per year
California	$780 per year

What Factors Affect Your Boat Insurance Cost?

A number of factors, some in your control and some not, can have an impact on the cost of your boat insurance. If you sail on a lake that has a high rate of claims, the cost of your coverage will likely be higher than for a lake where there are far fewer claims.

Additional factors that affect your boat insurance rates include:

Type of boat
Value
Horsepower
Boat age & condition
Driver's age & experience
Usage frequency

Location
Driving record
Safety measures
Coverage options
Credit score

Type of Boat

The year, make, and model of the boat and motor, as well as whether you have an inboard or outboard motor, come into play when determining rates. The length and overall value of your boat also greatly influence your insurance costs.

Value of the Boat

The more valuable your boat is, the greater the risk it is to insure because it would cost more to repair or replace. As a result, you can expect to pay higher boat insurance premiums for a more valuable boat.

Horsepower of the Boat

Often, boats with higher horsepower engines will have higher insurance premiums assigned to them. The faster the boat can go, the greater the risk of it getting involved in a collision, so the riskier it is to insure. An independent insurance agent can help you find boat insurance quotes depending on whether your boat has an inboard or outboard motor.

Age and Condition of the Boat

Older boats tend to be cheaper to insure because they cost less to replace after an accident. Boats in better condition tend to be cheaper to insure as well, thanks to their updated safety features. An independent insurance agent can help you find exact boat insurance quotes based on the age and condition of your boat.

Age and Experience of Boat Drivers

The age and experience level of a boater can impact boat insurance rates. Adding your teenage son as a driver on your policy may increase your rates. Boaters who are a bit older and more experienced, on the other hand, can often be granted lower rates on coverage because they're seen as less of a risk. However, gender also affects boating rates, regardless of age.

Boat Usage Frequency

The more often you use your boat, the greater the risk it has of getting into a collision. If you only take your boat on occasional fishing trips, your rates will typically be lower than if you tow water skiers, wakeboarders, or parasailers. Weekend-only boaters typically enjoy much cheaper boat insurance rates than frequent boaters. Simply put, if your boat is docked or not on the water at all, it's less likely to get damaged.

Location of the Boat

This is to determine if you will be using the boat in areas where there are natural hazards like hurricanes. Areas like oceans, squalls, etc., are prone to boating incidents because of hurricanes and other threats. So, boaters who frequently use their vessels on oceans, the Great Lakes, or coasts, rather than on inland rivers or smaller lakes, are more likely to be seen as riskier to insure and thus can expect higher insurance premiums.

Driving Record

Good automobile drivers tend to be good boat drivers. So, like with car insurance, the cleaner your record, the less you can expect to pay for your boat insurance. You're likely to have to pay more for your coverage if you’ve filed claims in the past.

Safety Measures

Taking formal safety training and getting boater certifications can help lower the cost of boat insurance. Having safety equipment on your boat can also help lower your rates. If you've passed a state-approved certified safety course, for example, or have your boat equipped with Coast Guard-approved fire extinguishers on board, you'll likely pay less for boat insurance.

Insurance Coverage Options

Like any type of policy, the specific boat insurance coverages you pick will influence your overall costs. If you need coverage for your fishing equipment, trailer, personal belongings, or any other boat accessories, you'll pay more than you would for just a liability policy. If you want to pay lower premiums every month, choose a policy with a higher deductible amount. An independent insurance agent can help you do this.

Your Credit Score

Believe it or not, insurance companies have found that a person with a lower credit score is statistically more prone to boating accidents. If your credit score is low, you may be charged more for your boat insurance than someone with a higher credit rating.

Boaters with a consistently excellent credit history will likely pay less for boat insurance. However, keep in mind that credit is not a factor that's allowed to influence insurance rates in every state.

The Cost of Boating Accidents

Take a look at some statistics from this year about boating accidents:

More than 5,000 boating accidents happen every year in the U.S.
Boating accidents cost the U.S. $62.5 million annually.
The most common type of boating accident is a collision between two or more vessels.
Perhaps contrary to popular belief, most boating accidents happen in calm waters.
About 77% of fatal boating accidents were caused by a lack of boating safety education among the operators.
The leading contributory factor for fatal boating accidents in the U.S. is alcohol.

Knowing just how common and costly boating accidents are in the U.S. can inspire you to search for the right boat insurance policy. An independent insurance agent in your area can help you find the best policy for you at the lowest possible rate.

Understanding the Cost of Boat Insurance

Having boat insurance is essential to protect you against potential lawsuit costs in case of a collision or other accident and to help you financially recover from damage to your own boat, theft of your property, and other incidents. Working together with an independent insurance agent is the best way to have coverage details outlined and explained in a way that makes sense. Independent insurance agents can help you find the best blend of coverage and cost for boat insurance, along with any discounts you may qualify for.

An Independent Insurance Agent Can Help You Find Affordable Boat Insurance

Independent insurance agents simplify the process by shopping and comparing boat insurance quotes for you. These agents also have access to multiple boat insurance companies, ultimately finding you the best boat insurance coverage, accessibility, and competitive pricing while working for you. And down the road, your agent will still be there to help you file claims or update your policy when necessary.