How to Know How Much Boat Insurance to Buy

Though the law doesn't require boat insurance, it's a good idea to protect your investment. To determine how much insurance you need, you should examine the boat and your ability to absorb unexpected costs.

Instructions

1. Decide what type of insurance you want. As with car insurance, full coverage boat insurance covers nearly everything, including loss due to theft, fire and other specified reasons. Consider the value of your boat, the risks you take, the location where you do most of your boating, how much insurance you can afford, how much cost you can cover should you need repairs and the possibility that you could be sued should others suffer as a result of a boating accident. Full coverage may be required if you are still financing your boat. If you can absorb any financial loss or simply want to keep your insurance costs low, liability insurance will cover costs of damages to other people or property but won't cover your own losses.

2. Consider buying towing insurance along with your general policy. Towing insurance can provide discounted or free towing should your boat become stranded offshore. Some policies will only cover towing charges for emergencies, not if you simply run out of gas or have a dead battery. Read this section of your policy closely.

3. Find out if your marina requires you to have boat insurance. Some marinas will mandate a minimum amount of insurance for its members. Most marinas want at least $300,000 in coverage.