8 Best Boat Insurance Companies of 2023

If you’re a new boat owner, you’re in good company. According to the National Marine Manufacturers Association, demand for boats is booming. After a year of record sales in 2021—which followed the COVID-19 pandemic—boat sales hit their second highest ranked year in 2022, and are expected to remain constant in 2023.

The average retail price of a new aluminum boat package — including the trailer, engine and accessories — was $35,200 in 2021, but some boats can cost multiples of that figure. You need boat insurance to protect your investment and to ensure you have coverage if someone is injured on your boat.

To help you find the right policy, we researched leading insurers and identified the eight best boat insurance companies of 2023.

• Best Overall: Progressive
• Best for High-Value Yachts: AIG
• Best for Charters and Sport Fishing: Markel
• Best for Discounts: Allstate
• Best for Competitive Fishermen: State Farm
• Best for Personal Watercrafts: Chubb
• Best for Optional Benefits: BoatUS
• Best for Bundling: Geico

Our Top Picks for Boat Insurance

Why we chose it: Progressive is our choice as the best boat insurance company overall because of its standard comprehensive, collision and liability coverages, robust discounts and range of optional add-ons.

With Progressive’s standard boat insurance policies, you can get comprehensive and collision coverage, bodily injury and property liability insurance, fuel spill protection and even roadside assistance all in one policy. Progressive will even pay up to $1,000 for veterinary bills or death benefits if your pet is injured in a covered boating accident under the standard boat policy.

Progressive has a lengthy list of discounts that can make your premiums more affordable, including multi-policy, multi-boat and safety course completion discounts.

You can customize your policy with optional insurance riders to get additional protection. Optional coverages include protection for fishing equipment and carry-on items, mechanical breakdowns and total loss replacement.

Not everyone will be eligible for a policy from Progressive, though. To qualify, your boat must be under 50 feet in length and be valued under $500,000. In certain states that are prone to hurricanes, the restrictions are even tighter; in some places, the maximum length is 35 feet and the maximum value is $175,000.

Progressive’s policies are geared to boat owners who use their watercraft for personal use rather than to commercial operators. It also doesn’t offer protection or reimbursement for fishing tournament fees or cancellations.

Why we chose it: While most boat insurance companies have size and value restrictions on vessels, AIG doesn’t have those limits. It insures boats of all sizes, including million dollar super yachts over 600 feet – though you can get boat insurance from AIG only if you have a high net worth and insure other possessions through the company.

With some insurers, the maximum size for a boat is as low as 35 feet, and the maximum value cannot exceed $175,000. But with AIG, you can get coverage for yachts of any size or value.

Yacht coverage is available through AIG’s Private Client Group. Its plans include property damage and loss coverage, collision damage protection, and personal liability for bodily injuries. Its yacht insurance also covers you against environmental fines that may occur after accidental fuel spills.

Many companies have cruising area limits, but AIG can insure your boat to worldwide navigational limits, based on your specific cruising plans. Since large yachts usually need full crews to function, AIG’s policies also provide coverage for your crew, including protection and indemnity insurance for crew claims.

AIG’s yacht insurance isn’t available as a standalone option; the only way to get coverage is if you qualify for AIG’s Private Client Group, a segment of its business focused on high net-worth individuals. Its clients include nearly 40% of Forbes 400 Richest Americans, and the average policyholder has 3.5 policies with AIG and pays $18,000 in annual premiums.

Why we chose it: Most boat insurance companies cover recreational vessels for personal use, and not commercial boats. But with Markel, you can get coverage even if you offer charters, act as a guide or take paying sport fishing customers.

Markel offers insurance products for boats used for both recreational and commercial use. If you are a paid guide or offer charters, Markel’s policies can provide you with essential liability protection.

The company also offers insurance for high-performance boats and valuable yachts, and has optional protections like wreck removal, fishing equipment coverage, professional angler liability and tournament fee reimbursement coverage.

You must work with an agent to get a quote or detailed information about available policies, coverage limits and riders. However, agents aren’t available everywhere; you can work with an out-of-state agent to purchase coverage, but you won’t be able to meet with an agent in-person.

Why we chose it: Allstate offers extensive boat coverage, but it stands out from other companies because of the multiple discounts it offers. Taking advantage of those price breaks could allow you to get coverage for as little as $25 per month.

Allstate boasts that its boat insurance policies start at $25 per month, yet it still offers multiple discounts, including:

• Boat education discount for taking an approved boater safety source
• Easy Pay Plan discount for enrolling in automatic payments
• FullPay discount for paying your entire premium upfront
• Homeownership discount for individuals that own their homes
• Multi-policy discounts for combining boat insurance with Allstate auto or property insurance

Allstate also has optional additional coverages so you can customize your boat insurance to meet your needs. Available riders include emergency services coverage, personal effects coverage and boat trailer coverage.

Keep in mind that Allstate received more complaints from customers than is typical for a company of its size. And it has limited information about its policies, coverage limits and exclusions online; you have to work with an agent to get details about available policies.

Why we chose it: If you’re a competitive fisherman who participates in tournaments, State Farm’s policies can ensure your competition plans don’t go awry. It has riders that allow you to rent a boat because your own is being repaired, and will even reimburse you for fishing tournament entry fees if you’re unable to participate due to a covered loss.

If you regularly compete in freshwater or saltwater fishing tournaments, you know how costly they can be. Fees can range from $25 for smaller competitions to thousands of dollars for well-known tournaments. If your boat is damaged ahead of a tournament, you could miss out — and lose the entry fee.

With State Farm, competitive fishermen can take advantage of boat rental reimbursement to rent a boat to use for the tournament when their vessel is out of service due to a covered loss. And, you can get rental liability coverage to protect you while you’re driving the rental boat. Or, if you can’t participate because your boat isn’t usable after a covered incident, you can use fishing tournament reimbursement to get reimbursed for non-refundable entry fees.

You cannot get a quote online; you must contact a State Farm agent. State Farm has limited information about its policies online, so you’ll have to work with an agent to find out about available coverage limits, deductibles and exclusions. State Farm also doesn’t have any information about discounts on its site, so you’ll have to talk to an agent to see if you’re eligible for multi-policy discounts or other discounts.

Why we chose it: Chubb’s Masterpiece Recreational Marine Insurance policies are designed for smaller vessels and personal watercraft like waverunners and Jet Skis. Its boat insurance coverage includes search and rescue protection, trailer coverage and temporary substitute watercraft insurance.

While Chubb offers insurance options for yachts and superyachts, its policies for watercraft and smaller boats stand out for the robust level of protection they provide.

The Masterpiece Recreational Marine Insurance policy benefits include automatic 30-day coverage for new watercraft, emergency towing and service protection, and the ability to choose between agreed value and actual cash value for total losses. And, it has precautionary measure protection, so you can get reimbursed for moving your boat out of the way of a storm or other disaster.

You can adjust your policy with additional coverage or riders, including pet injury and fishing equipment coverage.

According to the company, 98% of policyholders will receive a response within six hours of submitting a claim, which makes for a fast response time.

Boats over 27 feet in length and at least 25 years of age must have a survey performed before the policy can go into effect. And to get a quote or to find out information about available coverage in your area, you must contact an agent.

Why we chose it: BoatUS is a membership organization that provides its members with benefits like robust insurance policies, towing services, boat financing and storm tracking.

The Boat Owners Association of the United States (BoatUS) was founded in 1966. As a membership organization, it offers products and services specifically designed for recreational boat owners.

While membership isn’t required to purchase boat insurance, it could be a worthwhile decision. Membership to BoatUS entitles you to extra benefits and savings, such as unlimited towing and boat financing options.

Its boat insurance policies can be based on agreed-upon-value or actual cash value, and BoatUs offers optional riders for electronics, mechanical breakdowns, trailer coverage and more.

The policies are underwritten by Geico, and you can qualify for discounts by bundling boat insurance with Geico homeowners or auto insurance policies.

Not all boats will qualify for coverage. Geico will not issue policies for boats over 70 feet in length, boats valued over $2.5 million, houseboats without motors, floating homes or watercraft previously deemed a constructive total loss.

If you want membership benefits — which include unlimited road and water towing protection — you need to join BoatUS and become an unlimited or unlimited gold member. Membership fees range from $99 to $175 based on the level of membership you want.

Why we chose it: Geico works in association with BoatUSA to provide pleasure craft owners with a wide range of coverage. Customizable policies are available with liability limits of $100,000, $300,00, $500,000, and, in some cases, up to $1,000,00. Policies also include coverage for damage to your boat, whether caused by a collision, theft or storms. Boat owners can elect one or both types of coverage. Boat owners also have the option of purchasing towing coverage and riders for coverage when cruising in Mexican waters.

While Geico doesn’t offer true replacement value coverage, it does offer something called Agreed Hull Value coverage, which pays to replace your boat up to its agreed hull value. With Agreed Hull Value coverage, you can raise your coverage limits higher than what is afforded by Actual Cash Value. Actual cash value coverage only pays what your boat is worth in the open market, which may be far less than it costs to buy a new, comparable boat in today’s market. Boats begin to lose value the moment you’ve launched them.

You may have the opportunity to secure a discount on your boat policy premiums by completing a boating safety course, having multiple boat policies through BoatUS, or by bundling your boat policy with a GEICO car insurance policy.

Other companies we considered

Although the following company did not make our Best Boat Insurance list, we considered it as well, and believe consumers could benefit from having access to the information provided below.

Foremost

Foremost provides boat and personal watercraft owners with insurance options that feature comprehensive coverage for a wide variety of vessels. Their packages include the Saver, Plus, and Elite options.

Foremost insures bass boats, fishing boats, performance boats, runabouts, sailboats, classics, cruisers and pontoons. Foremost boat insurance packages cover a wide array of situations and needs, including:

• Watercraft Physical Damage: Covers direct, sudden, and accidental damage to insured boats or watercraft.
• Trailer Coverage: Covers trailers that transport boats or watercraft.
• Personal Liability: Covers bodily injuries and property damages for which the insured is legally liable.
• Personal Property: Covers apparel, sports and fishing equipment, and other personal property the insured or their guests might have on board the boat or watercraft.
• Towing and Roadside Assistance: This covers the costs of emergency repairs, towing to the nearest repair place, or delivery of gas, oil, or batteries if either the insured boat or trailer becomes disabled.

Foremost offers its customers three types of discounts. The first is their paid-in-full discount, which applies to customers who pay the full amount of their first policy term in full and up-front. They also have a multi-policy discount, which applies to the insured when they store their water crafts out of the water for at least 3 months out of the year. Lastly, the company offers a safety course discount, which applies to insured customers who completed boat safety courses or have marine licenses.

Customers can search for insurance agents near them on the company website by selecting the type of insurance they desire and entering their location information, or call the Foremost Service Center to talk to an agent. Additionally, in just four easy steps and within a period of 2-3 business days, customers can get a free online estimate for their boat insurance. If customers wish to file a claim, insurance adjusters are available 24/7 to manage boat and watercraft claims.

Boat Insurance Guide

What boat insurance covers

Boat insurance coverage typically covers physical damage to the boat resulting from collisions or theft. Most boat owners also elect to get liability coverage to protect against injuries or property damage that may occur during accidents.

Standard Boat Insurance Coverage	Optional Coverage and Add-ons
Bodily injury liability Property damage liability Collision insurance Comprehensive insurance Medical payments Uninsured watercraft coverage	Additional equipment on or for your boat Emergency services Protect your business

Types of boats covered

Boat insurance policies cover all kinds of vessels, including:

• Pontoon boats
• Bass and fishing boats
• Powerboats
• Sailboats
• Yachts
• Personal Watercrafts (PWC), such as WaveRunners and Jet Skis

Some insurance companies have size and value restrictions.

What is the average cost of boat insurance?

Boat insurance rates can vary a great deal based on where you live and the type of boat you own. The general guideline is that you should expect to pay 1.5% to 2.0% of the boat’s value in annual premiums. For example, if your boat is valued at $35,000, you should expect to pay between $525 and $700 per year for boat insurance.

Your actual boat insurance costs are dependent on several variables, including:

• Your location
• Type and size of boat
• Age of the vessel
• Current value of the boat
• Cruising area
• Intended use of the boat
• Coverage options and add-ons you select
• Deductible

Common reasons for boat insurance claims to be denied

While boat insurance can provide essential protection, there is the potential of your claims being denied. The most common reasons for claim denials are:

• Damages were preventable: In your boat insurance policy, the insurer will outline the steps you are required to take to prevent damage or theft from occurring. If you skip those steps, your claims will be denied. For example, failing to winterize your engine properly or not removing your boat from the water ahead of a named storm will cause the insurance company to deny your claim.
• Lack of documentation: When it comes to filing a claim, good records are critical. Without evidence of the claimed damages or losses, the insurer will deny your claim. For example, keep an inventory of fishing equipment and accessories you store on your boat along with a file with receipts.
• Inadequate coverage: Many people don’t realize their policies don’t cover certain events. For example, your policy may not cover fuel spills or damages from a hurricane, leaving you to cover the entire cost yourself. Review your policy documents thoroughly to ensure you have the coverage you need.
• Going outside a cruising area: Most policies have cruising area restrictions. For example, your policy may have your navigation area listed and the insurance company can deny your claim since it’s outside of the coverage area.
• Policy lapses: If you pay your premiums late or fail to renew your policy, your coverage will lapse and you won’t have coverage for any damages or injuries that occur.

How We Chose the Best Boat Insurance

To choose the best boat insurance providers of 2023, we looked at policies from over 20 different leading insurers. We researched available policies, optional riders, coverage limits, exclusions, cruising areas, insurer financial stability ratings and customer service reviews.

Summary of the Best Boat Insurance

Whether you own a superyacht or a more modest bass boat, your vessel is a substantial investment. To protect your watercraft — and your peace of mind — boat insurance is essential. Coverages, exclusions and premiums vary by company, so it’s a good idea to request quotes from multiple boat insurance companies.

Here’s a recap of our picks for the best boat-insurance companies:

• Best Overall: Progressive
• Best for High-Value Yachts: AIG
• Best for Charters and Sport Fishing: Markel
• Best for Discounts: Allstate
• Best for Competitive Fishermen: State Farm
• Best for Personal Watercraft: Chubb
• Best for Optional Benefits: BoatUS
• Best for Bundling: Geico