You only enjoy your boat when the weather is right. So, you should only have insurance coverage during those months, right? Wrong!

Most people cancel their boat insurance at the end of each summer to try and save money. However, it may end up costing Michigan boat owners more in the long run.

Before you cancel your boat coverage at the end of this season, read on to find out why you should have boat insurance year-round.

Michigan Boat Insurance Requirements

Owning a boat is very expensive. You have the fuel, the maintenance, the insurance, the storage, and everything else that’s involved in owning a boat. Chances are you also financed the boat instead of paying cash. As a result, most lenders require you to carry insurance year-round, as they’re also investors. Just as you want to make sure you’re protected while your boat is in use, lenders want to be protected when it’s not. Do you store your boat at a marina? They may also require you to have boat insurance.

Out of Water Risk

Events can easily occur out of the water as they do in. Boat insurance helps protect you from physical damages like vandalism, theft or accidents. It also protects you from natural elements like fire, floods, bad weather, and hurricanes. If you don’t have insurance coverage and one of these incidents happen to you, you’ll pay out-of-pocket. Having insurance helps ease the burden of this cost.


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Homeowner’s + Limited Boat Coverage

Your homeowner’s policy only covers damage to your boat if it is damaged on your property, despite the belief it’s automatically covered. Also, the policy coverage is much less than what you would have with a boat insurance policy.

What does boat insurance normally cover?

  • Collision Damage – In the event of a collision with your boat, boat insurance covers repair or replacement costs.
  • Property Damage Liability – If someone else’s boat, dock, or related property or structure is damaged from your boat, you’re covered by your policy.
  • Bodily Injury Liability – You’re covered if someone sues you for injuring another individual in a boat accident.
  • Comprehensive – Boat Insurance covers you if your boat is damaged, stolen, or vandalized somehow other than a collision.

Save Your Money!

You save money long-term by keeping your boat insurance all year round. Why? Many insurance companies reward you with a deductible reduction each year you’re claim-free.

If you cancel your policy at the end of each year, you’re forced to pay the full amount of your deductible if you have to make a claim.

Some insurance companies also give loyalty discounts if you maintain coverage and renew your annual policy with them.

Compare & Shop Around For Boat Insurance

It’s only the beginning of the summer season, but it’s not too early to think about your coverage in the off-season. Let Compass Insurance Agency compare boat insurance rates for you and help you find the best coverage at an affordable rate.

We’ll explain your policy, making sure you understand your coverage. Compass will also make sure you have the right insurance coverage in the off-season without overpaying.

Call 616-245-5555 or use the quote form below to speak to one of our local Michigan licensed agents and see what we can do for your boating needs.




Need more information? Find out the 4 summer questions only an insurance agency can answer!