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Boating is best when it’s safe and prepared. The U.S. Coast Guard’s latest Recreational Boating Statistics (most recent data released in 2025 for the prior year) continue to show operator inattention and inexperience among the leading factors in accidents, with alcohol remaining a leading known factor in fatal incidents. Solid boat insurance complements safe operation by addressing liability, cleanup, towing, and repairs when things go wrong.
Below, we review notable boat insurers and what they tend to do well, plus what to compare first in 2025: agreed value vs. actual cash value (ACV) hull settlement, on‑water towing networks, hurricane/named‑storm haul‑out reimbursements, fishing gear/personal effects coverage, and navigation flexibility. We also flag availability and distribution differences (agent‑only vs. online), coastal eligibility nuances, and how to verify financial strength using AM Best, Moody’s, and S&P Global Ratings.
The 6 Best Boat Insurance Companies
- State Farm: Best local agent guidance and claims support (availability varies by state and coastal exposure)
- American Family: Best for anglers who want easy add‑ons for gear and trailering
- Farmers: Best package deals with tiered options that can include named‑storm preparedness benefits
- Progressive: Best for online convenience and optional mechanical breakdown (Propulsion Plus)
- Markel: Best for anglers and tournament coverage with agreed value options
- Nationwide: Best for bundling home/auto with mainstream marine coverages
State Farm
Best for Customer Service
State Farm is a large, agent‑driven personal‑lines carrier known for in‑person service. Independent credit rating agencies focus on claims‑paying ability rather than customer reviews: Better Business Bureau profiles provide consumer context, while insurer strength is best verified directly with AM Best, Moody’s, and S&P Global Ratings. AM Best’s Financial Strength Rating (FSR) addresses an insurer’s ability to meet ongoing obligations; Moody’s and S&P issue Insurer Financial Strength ratings and attach outlooks (Positive/Stable/Negative) that indicate potential direction over the intermediate term.
State Farm’s boat insurance typically includes liability, physical damage (collision and comprehensive), medical payments, and uninsured/underinsured boater. Across the market, many policies also address fuel‑spill liability and wreck removal and offer on‑water towing options and personal effects coverage for fishing gear and electronics—compare these details closely with any quote. If you boat in coastal areas, ask about named‑storm deductibles and hurricane haul‑out reimbursements, which have become more common industry‑wide in recent years (Travelers; Chubb).
✓ Best For: those who value excellent customer service from local agents
✗ Not For: high‑risk coastal exposures that may require specialty marine markets
- AM Best: Check current Financial Strength Rating and outlook directly at AM Best (FSR opinions address claims‑paying ability)
- J.D. Power: No dedicated boat insurer study; use broader property claims studies only as general context
- Standard & Poor: Verify current Insurer Financial Strength rating and any CreditWatch at S&P
- Moody’s: Verify Insurance Financial Strength rating and outlook/review status at Moody’s
- BBB Rating: See the current BBB profile linked above
Further Reading:
American Family
Best for Fishing Boats
AmFam offers coverage for common recreational boats, including fishing craft. When comparing policies, look for the ability to choose agreed value (for better total‑loss protection against depreciation) or ACV, confirm liability limits, and add coverage for personal effects like rods, tackle, and electronics (many specialty carriers such as Markel and SkiSafe highlight these options). For liability, many boaters target $300,000–$1,000,000+ depending on assets and boating waters; also verify that fuel‑spill liability and wreck removal are included, and that on‑water towing is available or can be added (BoatUS/GEICO Marine integrates towing membership programs).
Trailering and roadside assistance, coverage for trailers and dinghies, and lay‑up or winterization provisions are common market options—compare these during quoting (SkiSafe; Markel). Availability and limits vary by state and vessel.
✓ Best For: small and mid‑sized fishing boats needing gear coverage and trailering add‑ons
✗ Not For: larger yachts or extended navigation needs that may fit better with specialty yacht programs
- AM Best: Confirm current rating at AM Best; FSR opinions address claims‑paying ability
- J.D. Power: No boat‑specific study; use general property studies only as context
- Standard & Poor: Verify IFS rating/outlook at S&P
- Moody’s: Verify IFS rating/outlook at Moody’s
- BBB Rating: See current BBB profile if available
Further Reading:
Farmers
Best for Package Deals
Farmers markets tiered boat packages (e.g., Saver/Plus/Elite) designed to match budget and usage. Across the market in 2025, valuable differentiators include agreed value vs. ACV settlement, hurricane/named‑storm haul‑out reimbursements in coastal states, and on‑water towing and assistance programs—features commonly highlighted by specialty and full‑service carriers such as BoatUS/GEICO Marine, Travelers, and Chubb. If you need broader navigation (e.g., certain coastal or near‑offshore areas), confirm the policy’s navigation territory and any seasonal lay‑up requirements at quoting.
Discounts and eligibility increasingly reflect verified safety training and risk controls. Insurers emphasize documented boater education (supported by USCG data on outcomes) and, in some geographies, may consider storage security and theft‑prevention measures (USCG; Emerging trends: AM Best market segment reports).
✓ Best For: buyers who want simple, tiered packages with optional storm‑readiness and towing features
✗ Not For: high‑value yachts requiring bespoke navigation and higher limits from specialty yacht programs
- AM Best: Verify current FSR and outlook at AM Best
- J.D. Power: No marine‑specific study; use general property claims studies cautiously
- Standard & Poor: Verify IFS/outlook at S&P
- Moody’s: Verify IFS/outlook at Moody’s
- BBB Rating: See current BBB profile
Further Reading:
Progressive
Best for Small Boats
Progressive is a leading personal boat insurer by policies in force, with broad online quote/bind for runabouts, pontoons, PWCs, many sailboats, and cruisers. Core coverages include liability, physical damage, medical payments, and uninsured/underinsured boater; policies typically address fuel‑spill liability and wreckage removal, and offer towing/assistance options (Progressive Boat Insurance).
Stand‑out option: Propulsion Plus mechanical breakdown coverage for lower units/drive systems on many newer motors, which can help with out‑of‑warranty propulsion failures (Propulsion Plus). As with all carriers, coastal eligibility varies; confirm named‑storm deductibles and any hurricane‑haul‑out benefits where applicable.
✓ Best For: online convenience, broad availability, and adding mechanical breakdown protection
✗ Not For: bespoke yacht terms or extended blue‑water navigation
- AM Best: Verify current FSR and outlook at AM Best
- J.D. Power: No boat‑specific study; use property claims satisfaction only as broad context
- Standard & Poor: Verify IFS/outlook at S&P
- Moody’s: Verify IFS/outlook at Moody’s
- BBB Rating: See current BBB profile
Further Reading:
Markel
Older Boaters
Pros
Cons
Fewer discounts
Limited customer tools
Markel Marine is a specialty carrier with marine expertise. It offers agreed value options, liability, medical payments, uninsured boater, emergency towing/assistance, and niche protections for anglers, including fishing equipment and tournament fee reimbursement on certain programs (Markel boat insurance). These features appeal to anglers and enthusiasts who want marine‑savvy coverage and flexible deductibles.
✓ Best For: anglers, tournament boaters, and owners seeking agreed value and equipment coverage
✗ Not For: owners focused solely on the lowest premium over specialized benefits
- AM Best: Confirm FSR and outlook at AM Best
- Standard & Poor: Verify IFS/outlook at S&P
- Moody’s: Verify IFS/outlook at Moody’s
- BBB Rating: See current BBB profile
Nationwide
Bundling
Nationwide is attractive for customers bundling home/auto with a mainstream marine policy. When quoting, compare liability limits (many owners target $300,000–$1,000,000+), confirm inclusion of fuel‑spill liability and wreck removal, and add on‑water towing where needed—these features are common market‑wide and highlighted by carriers like Progressive and BoatUS/GEICO Marine. Availability and certain features vary by state; coastal geographies may see separate named‑storm deductibles and eligibility screens (industry trend: AM Best marine segment reports).
✓ Best For: customers looking to bundle with a single carrier
✗ Not For: extended navigation or high‑value yachts better suited to dedicated yacht programs (e.g., Travelers Yacht, Chubb)
- AM Best: Verify current FSR and outlook at AM Best
- Standard & Poor: Verify IFS/outlook at S&P
- Moody’s: Verify IFS/outlook at Moody’s
- BBB Rating: See current BBB profile
How to Choose a Boat Insurance Provider
- Get a better rate with membership: boating organizations such as Boat U.S. or NBOA can connect you to marine‑savvy policies and on‑water towing. BoatUS/GEICO Marine integrates agreed value options, towing membership, fuel‑spill/wreck removal, and hurricane haul‑out reimbursements on eligible policies. Insurers also commonly give credits for documented safety training; USCG data links instruction to better outcomes, and several states now require boater education for most operators (see New York’s Brianna’s Law and California’s Boater Card).
- Get quotes from several providers. Distribution differs in 2025: some carriers are agent‑only (e.g., Travelers, Chubb), while others quote online (Progressive, SkiSafe, BoatUS/GEICO Marine). Coastal eligibility and named‑storm deductibles vary; confirm details, storm plans, and any lay‑up requirements before you bind (trend context: AM Best marine reports).
- Choose between actual and an agreed-value policy. Agreed value pays the insured amount without depreciation on total losses; ACV deducts depreciation. Agreed value is available from specialty carriers and some standard carriers (BoatUS/GEICO Marine; SkiSafe; Markel; Travelers; Chubb).
- Know what boat insurance doesn’t cover. Wear and tear, gradual deterioration, and corrosion are typically excluded; separate named‑storm/wind deductibles may apply in coastal states. Salvage/wreck removal can be sub‑limited unless specifically included; verify towing limits and provider network. The Insurance Information Institute and carrier pages (Progressive; BoatUS) outline these differences.
How We Chose the Best Boat Insurance Companies
- Strong financial outlook. We relied on independent rating agencies that assess claims‑paying ability: AM Best issues Financial Strength Ratings (A++ to D); Moody’s and S&P Global Ratings publish Insurer Financial Strength ratings with outlooks that signal potential direction. Always verify the latest rating, outlook, and any watch/review status at the agency source before you bind (AM Best lookup; S&P ratings list).
- Direct or clearly disclosed underwriting. We favored carriers that service and handle claims on their own policies or clearly disclose the underwriting company (for example, USAA provides access to Progressive’s boat program for members). Clear accountability helps avoid surprises at claim time.
- Availability and access. We prioritized national or near‑national options and flagged how you buy: some are agent‑only (Travelers, Chubb), others quote online (Progressive, BoatUS/GEICO Marine, SkiSafe). Coastal eligibility constraints, named‑storm deductibles, and hurricane plan requirements have become more common in exposed areas (AM Best marine reports).
- Agreed‑value availability and coverage breadth. Agreed value is widely available among specialty carriers and some standard carriers, and it matters for controlling depreciation on total losses (BoatUS; SkiSafe; Markel; Travelers; Chubb). We also looked for towing options, fuel‑spill/wreck removal, hurricane haul‑out reimbursements, and niche coverages (e.g., fishing gear, tournament fees).
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