A Guide to Boat Insurance Premiums Deductibles and Policy Limits


A boat insurance policy is there for you when something goes wrong. 

Premium, deductible, and limits are three words that are commonly used when getting a policy. Understanding these terms and how they work can help you determine the right amount of coverage for your boat, belongings, and more. 

Boat Insurance Premiums 

A premium is the price you pay for coverage. It is a calculation determined by the insurance company based on several factors, including:

  • The type of insurance coverage you’re purchasing
  • The amount of coverage needed
  • Policy limits
  • Deductible
  • Your boating experience
  • The type of boat
  • Where you store and use the boat
  • Any previous claims
  • Discounts Any additional discounts you may qualify for 

Because several factors determine your premium, there are also opportunities to customize the policy and lower costs.  

These items will be addressed when you apply for a boat insurance quote with SkiSafe. This is a free process that only takes a few minutes. It can help you navigate various insurance options and select the right plan for your needs. 

» MORE: How to Get a Free Boat Insurance Quote

Boat Insurance Deductibles  

Your policy deductible is the amount you agree to self-insure before your insurance kicks in and provides financial assistance for a covered loss to your boat or watercraft. It is typically a flat dollar amount, although it may also be presented as a percentage of the insured value. This will all be agreed upon at the time you purchase a policy. 

The policy deductible is an excellent way to customize your policy to reflect your risk inclination and budget. If you prefer to self-insure a lower amount, select a low deductible. However, this will likely raise the premium. Conversely, if you prefer to pay more out of pocket for a potential loss, choose a higher deductible. This will likely reduce your premium. 

Learn more about insurance premiums and deductibles with SkiSafe. 

Boat Insurance Limits 

A policy limit is the maximum amount an insurer may pay for a given type of covered loss. Once the limit is met, any additional exposure becomes the policyholder’s responsibility.   

In many cases you can choose a policy’s limit, while in certain situations you may need to meet minimum requirements set by your state or another party.  

While most states do not require you to carry boat insurance coverage, there are other legal requirements to consider. For example, if you take out a loan to purchase your boat, your bank or credit union will typically require a minimum amount of insurance. If you keep the boat at a marina or storage facility, insurance may probably be required as well.   

» MORE: Comprehensive Boat Insurance Coverage - What It Is and How to Get It

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