Though there are currently no federal or state laws requiring boat insurance in the United States, most boat owners would agree that insurance is a fact of boating life. Boats being used as collateral on loans usually have insurance which names the bank as the loss payee in the case of damage or destruction. Also, both new and used boats are required to be covered by insurance in most marinas in which the boats are kept.

Just as life and home owners insurance purchases require some research on the policy owner's part, so does the purchase of boat insurance. Perhaps the first and foremost question is asked is "How much will boat insurance cost?" If the owner of the boat is not careful in reading the fine print and assessing his insurance needs, any low premiums will be quickly forgotten if he is faced with significant insurance gaps in the event of boat damage. Know your agent and his familiarity with marine insurance.

There are several points that can help a boat owner save money on marine insurance.

Successful completion of a boating safety education course through the US Coast Guard or the Power Squadron will be recognized by most companies for a discount.

Navigational territory will be a factor in insurance costs. If your boat's use is limited to inland bodies of waters, the cost will be lower. Coastal areas will be higher due to the threats of hurricanes and tropical storms.

Clean driving records are a proven indicator of a person's ability to operate vehicles. Insurance companies do checks in this area.

Deductibles that are raised mean that the boat owner shares in the risk of loss with the insurance company. This, in turn, lowers the cost of the premiums.

Liability limits typically translate to higher premiums for higher amounts of coverage.

Within a boat insurance policy, there are many types of coverage such as hull, liability, medical, environmental, personal effects, and even towing coverage. None of these should be overlooked. Many websites offer direct quotes on boat insurance, but a boat owner should talk one on one with the selected agent, asking any pertinent questions.
Evaluate all aspects of the policy before purchasing it. Just as in other insurance arenas, a boat insurance policy needs to have the fine print read. But never consider boating without insurance! Keep your boating and your peace of mind on smooth waters by purchasing boat insurance.