Collision and comprehensive boat insurance are only required if the owner is financing the purchase. However, consumer advocates strongly recommend carrying this insurance to offset the financial risk if expensive damage ever occurs. As with any vehicle, the policy protects owners from having to pay a large amount out of pocket for fixing or replacing a boat.

Most states do not require liability insurance for marine vessels. Nevertheless, the coverage is advisable for financial protection.

Comprehensive Coverage

A comprehensive policy pays for damage caused by natural events like hail and lightning. Flooding inside a boat with living space has destructive effects on upholstery, appliances, and other features. As such, this insurance pays for repairs if a falling tree lands on the watercraft. It also covers repairs required because of vandalism. The replacement cost is paid if the vessel is destroyed or stolen and never recovered. 

Collision Coverage

With no collision insurance, owners pay for repair service out of pocket if a boater without liability coverage causes an accident. This insurance also is useful if the vessel ever crashes into a dock. If the policyholder is responsible for hitting another boat, it would pay for repairs to that owner's watercraft.

Liability Insurance

Liability insurance is required to pay for damage to the other person's boat. Without liability coverage, the individual who caused the accident risks being sued.

Types of Policies

The policies focus on various categories of marine vessels. Some are for watercraft with indoor living and sleeping space. These include houseboats, yachts, large sailboats, and pontoon boats with enclosed cabins. Alternatively, some are written according to size. Speedboats and powerboats can be very long, even though they do not include an enclosed space for sleeping.

Other factors connected with the premium include the motor's size and the kinds of waterways the owner travels on. The vessel's location when not in use also is considered.


Not all providers cover the pricier marine vessels. The number of options for boats costing over $1 million is limited compared to companies providing policies for those worth $50,000, for example. The owner will need to do some research or consult an independent agent offering quotes from multiple companies.

The consumer must select a deductible amount. People shopping for a policy might choose a higher deductible to keep their premiums low, but they must be sure they can afford that amount if anything happens.

Boat insurance provides peace of mind that expensive repair work will be covered, and the person can continue enjoying time spent on the water. For more information, contact a company that provides boat insurance.