Cheap insurance for boats depends on what’s involved. So a boat owner needs to collect good research to pick the right coverage. Cheap insurance just based on dollars alone can be a big mistake, especially when the boat is sunk and the insurance provider disappears.

Before you can find cheap boat insurance, you need to know what your state’s requirements are. Most states require operators of sailboats, fishing boats, and motorized watercraft to have at least personal injury liability insurance coverage. In addition, if you keep your boat outside of your home, you will need to have property damage converge as well. Small rowboats, kayaks and canoes are normally not required to have boat insurance.

Buying boat insurance may seem like a process fairly similar to buying auto insurance. However, there are nuances with regards to the specific coverage that a boat owner needs to pay attention to versus glossing over. Most will follow the easy path of just contacting their car insurance provider to see if a boat policy or related cheap insurance is available as well. While it’s easy to work with one insurer in such regards, it’s not always the best approach, financially or in terms of coverage protection. Here are six tips:

Cash Value Approach

A boat owner should already know ahead of time if he or she wants to use an “agreed upon amount” policy or an actual cash value coverage plan. With the actual cash value approach, the boat owner is covered for the worth of vessel including depreciation. So if the boat gets sunk and was bought for $30,000, the owner may only realize $15,000 due to that being the cash value of the used boat. Long story short, the boat owner likely won’t be able to replace his damaged boat outright. An agreed upon amount policy takes a different approach that arbitrarily sets a value on a covered boat that the insurance provider will pay if the boat is lost or damaged. This value is worked out by agreement and then becomes the binding replacement value of the boat. Depending how much premium is charged for the policy, the term tends to be far closer to the value of the boat for full replacement with a higher monthly premium.


A boat owner should also have a good idea what needs to be covered. Coverage comes in different insurance policy forms: physical damage, personal effects, boat liability to others, medical liability, spillage, towing, uninsured boat impacts or damage, salvage and more. A number of boat policies take a comprehensive approach, covering all of the above, but agreements can be tailored as desired with different mixes.

Insuring More Than One Boat

If you have more than one boat in your household, you can save money by putting all of your boats under one policy. If your car insurance company also insures boats, you can save even more money by putting your boats under the same policy as your car.

Registering Multiple Operators under One Policy

If you want to register more than one operator under your policy, you may want to make sure that these operators are mature and experienced when it comes to operating a boat. This is because inexperienced drivers or young drivers tend to make your insurance rates higher. You can save money with this by getting all operators to take boating classes. This shows the operator’s ability to drive. Since the risk of an accident is lessened, your rates will then be lower.

Choosing Deductibles

It is important that you be extremely careful when you are choosing your deductibles. For each boat that you put on your insurance, you should choose a high enough deductible that keeps your insurance premium low. However, you do not want to have a deductible that is too high which could end up causing you to pay for most of the damages in the case of an accident.

Shop Around

Most importantly and like with any type of insurance, you should do your research, so you can find the best deals. Compare all of the offers from different insurance companies. Take note of how the quotes change when you add other boats to your policy how the quotes change when you change your deductible.  If you still have questions, give us a call here at Cheap Insurance where there is always be a friendly voice on the other end of the line to help you out.