What are the Risks of Not Having Boat Insurance?

Owning a boat is an exciting, rewarding experience. However, just like any investment, it comes with responsibility. It’s up to you to be protected while you’re out on the water.

Fortunately, boat insurance can help you do just that. Although boat insurance is not mandated in many circumstances, forgoing it is risky. Below, we’ll explore the major risks of not having boat insurance and how to avoid them.

What are the Financial Risks of Being Uninsured?

You may be financially liable for damage caused to other people and their property in the event of an accident. The financial risks of an uninsured boat include: 

  • Liability for Accidents & Injuries: If you cause a boating accident and don’t have boat insurance, you’ll be personally liable for injuries and property damage to other parties and their boat. Medical bills, repairs, and potential legal fees can quickly add up and take a toll on your finances.
  • High Out-of-Pocket Repair Costs: Without a boat insurance policy, you’ll have to cover all repairs on your own.
  • Theft or Total Loss: If your uninsured boat unexpectedly gets stolen or destroyed, you’ll have to replace or repair it.

Read Next: How Much Does Boat Insurance Cost?

Legal and Regulatory Risks to Being Uninsured

Whether or not boat insurance is mandatory depends on factors like your state, marina, and whether you have a boat loan. Becoming familiar with the legal criteria for your unique situation is essential. 

  • State & Marina Requirements: Some states require boat insurance for specific vessels or activities. Also, many marinas ask for proof of coverage so that you can dock or store your boat in their facilities. 
  • Loan & Lender Requirements: If you’ve financed your boat, your lender may mandate an insurance policy.
Risks-No-Boat-Insurance

How Boat Insurance Protects You on the Water

Boat insurance adds an essential layer of protection, helping you feel more confident and prepared every time you head out on the water.

  • Collision with Another Boat: If your boat collides with another vessel and you’re at fault, you’ll be personally responsible for the damages. Boat insurance can also come in handy if your boat gets hit by an uninsured boat.
  • Environmental Damage Liability: As a boat owner, you’re liable for clean-up and other expenses from fuel or oil pollution or contamination caused by your vessel. With no boat insurance, you’ll have to cover them out-of-pocket.
  • Emergency Towing Costs: Things may not go as planned, and you might find yourself stranded in the water after an accident or breakdown. Unless you have specialized towing coverage like Sign & Glide®, you’d have to foot the bill for towing.

How to Avoid These Risks

These tips can help you reduce the risks of boating so you can protect your boat and finances. 

  • Understanding Affordable Insurance Options: Boat insurance is affordable. While your premiums will depend on your location, the type of vessel you have, and the policy you choose, you may save money with basic coverage and discounts.
  • Customizing a Policy for Your Needs: The ideal boat insurance plan should provide the coverage you need at a price you can afford. As you consider your options, consider your budget, boat value, and risk tolerance.
  • Taking Action Before an Accident Happens: Since an accident or another unforeseen event, such as a fire, theft, or severe weather, can happen when you least expect it, year-round coverage is worthwhile. Otherwise, you may be forced to pay out-of-pocket damages because your policy has expired.

Once you invest in boat insurance, you and your crew can relax and make the most of your time on the water. Having a policy can protect your finances and ensure you’re prepared for any incident that might come your way. Get a quote today to explore your options and begin enjoying the carefree boating experience you deserve.

This article and video are sponsored by Progressive Insurance®

progressive bundle and save