How Much is Boat Insurance in Michigan?

While exploring boat insurance in Michigan, the first concern that comes to mind is the cost. Generally, the average cost of boat insurance ranges from $75 to $300 per year for smaller vessels, mainly depending on the boat’s size and horsepower.  

However, it can cost you more to insure larger boats such as cabin cruisers, sailboats, speed boats, and yachts, which can typically range from $300 to $500 per year.  Whether you’re using the boat for recreation or commercial purposes here in Michigan, it is essential to know boat insurance premiums for specific types of boats.  

So, to help you effectively plan out a boat insurance budget, this article covers the average cost of insurance by boat type, factors that influence boat insurance premiums, the state’s insurance requirements, and practical tips to help you save.    

Average Cost of Boat Insurance by Type of Boat

Typically, the cost of boat insurance can significantly vary based on the type of boat. In most cases, the common industry practice is to estimate the boat insurance premium by multiplying its current market value or purchasing price. 

The exact percentage depends on factors like size, engine power, age, and overall condition, but generally it’s 1.5% for small vessels. Usually, it’s 3% and above for speed boats or larger boats with a powerful engine capacity, as it can be more costly to repair and replace.  

So, depending on the type of water vessel you own or would like to rent, here’s an approximate breakdown of average annual premiums for the most common boat types in Michigan. 

If you’re looking for a reliable insurance agency offering affordable boat insurance with a wide range of coverage options in Michigan, you should explore our insurance solutions. Apart from Michigan, we also have coverage options in Arizona, Colorado, Florida, Georgia, Nevada, and Texas.

Fishing Boat

The average cost of insuring a fishing boat can range from $200 to $500 per year, mainly depending on the boat’s size, engine capacity, and the waterbody it’s used on, whether on inland lakes, rivers, or the Great Lakes.  

Here in Michigan, boats like bass boats, pontoon boats, canoes, kayaks, jon boats, aluminum fishing boats, and ski boats are commonly used for fishing.  

By the rule of thumb, you evaluate your boat’s insurance rate by multiplying your boat’s current market value by 1.5% to get an approximate estimate of your fishing boat insurance premium.  

Jet Ski 

Jet skis come in different qualities and engine capacities. So, if you’re willing to get boat insurance, particularly to cover a jet ski, it can cost you $100 to $500 or more per year. As jet skis are typically mini two-seater speed boats, your insurer may also evaluate your boating and insurance claims history to determine your premiums.  

Moreover, your jet ski insurance rate significantly depends on your choice of coverage. If you only opt for the liability boat insurance coverage, then your boat insurance premium might only cost about $100 per year.

However, if you add policies like collision, comprehensive, and wreckage removal insurance, among others, it may cost you up to $500 per year or more.

Pontoon Boat 

Pontoon boats are usually mid-sized boats with the capacity to carry around 8 people. They’re commonly used for recreational activities on inland lakes such as Torch Lake, Lake Charlevoix, Grand Traverse Bay, Walloon Lake, Lake Michigan, and interconnected waterways.  

On average, you can get the basic liability coverage for pontoon boats at a premium of $100 or less per year, whereas if you opt for multiple coverages or full insurance coverage, you can expect an average boat insurance rate of $300 to $600 or more per year.  

Even though pontoon boats are widely used for casual recreation, your insurer may evaluate your boating records, insurance claims history, and overall experience to determine your exact premiums.  

Cabin Cruiser

Cabin cruisers are expensive water vessels with significantly varying price levels based on their size, quality, and current condition. Based on standard market rates, the price of cabin cruisers can vary from $50,000 to $700,000, with high-end models reaching up to $1 million.  

Again, by the rule of thumb, the more expensive a boat is, the higher it will cost to repair or replace in the event of an accident or theft. Consequently, insurance premiums for larger boats like cabin cruisers generally fall between $600 and $1,000 or more per year, depending on factors such as coverage level, location, and boat condition.

Sailboat

Sailboats come in different shapes, sizes, and types, so their price significantly varies, and this has a proportional impact on their insurance rates in Michigan. If you explore the sailboat market, you will find small sailboats like dinghies and even large ones like schooners or ketches. 

While small sailboats like dinghies are around $4000 to $15,000, the price of large sailboats like schooners can range from $20,000 to $2.6 million and above. So, that’s why the insurance rate of sailboats is generally estimated by multiplying 1.5% by the sailboat’s market value.  

For example, if your sailboat is worth $20,000, then you can expect to pay an average annual premium of $300 for full coverage. If it’s $50,000, then your insurance rate can hit $750 per year or more.    

Speed Boat 

Speed boats are expensive, and that’s why it’s essential to invest in adequate coverage to keep your boat financially protected. Entry-level basic speed boats typically range from $50,000 to $100,000, while higher-end models can exceed $300,000, with some luxury versions reaching up to $1 million. 

Generally, speed boat insurance rates are estimated at around 2% of the boat’s market value annually, reflecting their higher risk profile and cost of repairs compared to sailboats. 

So, if your speed boat is worth $50,000, you can expect to pay approximately $1,000 per year for full coverage. For a $300,000 speed boat, the insurance premium could be about $6,000 annually or more, depending on factors like usage, location, and coverage options.

Yacht 

Yachts in general are considered expensive luxury boats that are specifically designed for a sophisticated recreational boating experience. While affordable entry-level options are available at around $4,050, mid-range yachts can cost over $125,000, and high-end/luxury yachts are priced at almost $7 million.  

According to the insurance market trends in Michigan, the average cost of insuring a $100,000 yacht can cost $2,500 per year, while a $2 million yacht can incur insurance premiums of $30,000 per year or more.    

Boat Insurance Premiums: Comparison Table 

The comparison table below shows the average cost of boat insurance in Michigan as of August 2025.

Factors that Affect the Cost of Boat Insurance in Michigan

Understanding what drives boat insurance rates in Michigan can help you choose the right coverage while staying within budget. Here are the key factors that can influence your premiums in Michigan as follows.   

Boat Type and Horsepower

When it comes to determining boat insurance rates, the most crucial factor depends on the type of boat that you’re insuring and its engine capacity. Smaller, non-motorized boats like canoes and kayaks are typically much cheaper to insure than motorized watercraft such as jet skis, pontoons, speedboats, and yachts. In general, the more powerful the engine, the higher the potential risk, leading to higher premiums.  

Boating Records and Experience

Boating experience is another essential factor that’s closely evaluated to determine insurance premiums. A history of accidents or legal violations signals a higher risk to insurers, which can drive up your rates. Similarly, limited boating experience, especially if your age is between 16 and 20 years old, some insurers may charge higher premiums, as younger or less experienced boaters are statistically more likely to be involved in accidents. 

Boat’s Age

Typically, newer boats are more expensive to insure, mainly because they are more expensive to repair and replace. Older boats have cheaper repair and replacement costs due to the gradual degradation and depreciation over time. 

However, this factor is quite different for luxury boats, especially if they are securely stored and well-maintained. In fact, it’s possible to preserve the value of classic luxury boats due to their rarity and collectability, which can keep insurance costs high despite their age.   

Location 

Michigan is a prominent location for boating as it contains several inland lakes that have a calm and gentle water flow, which is ideal for safe cruising. This is the reason Michigan is also known as the Great Lakes State. However, it also has coastal areas and access to the sea and the vast ocean.  

The water tides and weather conditions are quite unpredictable beyond coastal lines, which makes it riskier to cruise in the sea. So, locations that are closer to inland lakes generally have a lower boat insurance rate compared to areas located near the coastal region.    

Insurance Claims History

The more frequently you claim your boat insurance, the higher it’s likely to be in the following years. Typically, insurers determine boat insurance rates by evaluating the insurance claim history.  

If you’ve claimed your boat insurance in the past 3 years, there’s a high chance that your boat insurance rate will go up. Your rates may rise even more if a claim involves unsafe boating practices and you are found at fault, since this increases the likelihood of future losses in the eyes of the insurer.   

Coverage Options 

The cost of your boat insurance premiums typically depends on the choice of coverage. The more coverage you purchase and the higher the limit, the more you need to pay on insurance premiums.  

Boat liability insurance coverage is only mandatory in Arkansas, Hawaii, and Utah; apart from these three states, boat insurance is an optional policy in every other state. So, that’s why it’s crucial to carefully understand which coverage options you need.  

If you need help from an insurance expert to figure out the best coverage options within your budget, you can fill out the contact form, and one of our agents will help you choose the right coverage within an affordable budget.   

Deductibles Opted

The boat insurance deductible is an amount that you can opt to pay out-of-pocket initially after an insurance claim. Typically, policyholders opt for deductibles to reduce insurance premiums. 

For example, if you have liability coverage of $10,000, collision coverage of $50,000, and comprehensive coverage of $50,000. Now, if you have agreed to a deductible of $5,000 with your insurer, then you need to pay $5,000 first for any repair or replacement cost.  

After you pay the deductible amount, your insurer will cover the rest from your boat insurance policy up to the coverage limit. The advantage of getting deductibles is that it lowers your boat insurance rate, but at the same time, it can increase the risk of out-of-pocket expenses. So, choose your deductibles wisely.

Safety Measures 

Insurers reward boat owners who actively reduce risk. Steps like keeping your boat well-maintained, storing it in a secure location, and completing a boating safety course demonstrate responsibility and lower the likelihood of accidents. 

When paired with a clean boating record, these measures can qualify you for lower premiums, discounts, and even bundle offers with other insurance policies.   

Is Boat Insurance Required in Michigan? 

No, boat insurance isn’t legally required in Michigan; however, some marinas may ask for proof of boat insurance for renting a boat. Regardless, it’s essential to have boat insurance in Michigan to ensure adequate financial protection.   

Based on various reports, it was found that Michigan is the 7th most dangerous state for boat insurance, especially because it’s susceptible to severe weather conditions. Plus, water tides are often unpredictable, so accidents can occur at any time.  

Another reason is that Michigan isn’t immune to crime or theft. So, even if it’s safely docked or stored securely, there’s always a risk of it getting stolen or vandalized.    

Typically, these reasons make it essential to stay covered under a reliable boat insurance policy, whether you rent or own a boat in Michigan. In a nutshell, if you want effective financial protection, then you have to have boat insurance.    

Tips to Save on Boat Insurance in Michigan 

Here are some expert tips from insurance agents with over 33 years of experience on how you can save on boat insurance in Michigan.  

So, if you’re trying to find ways to lower your boat insurance rate, and get access to discounts, and other premium saving offers, you should follow these proven tips to secure the best coverage at the most affordable rate.    

• Complete a certified boating safety course. 
• Bundle boat insurance with your renters or auto insurance policy. 
• Choose a higher deductible to reduce monthly premiums. 
• Install approved safety and anti-theft devices.  Maintain a clean boating record with no claims. 
• Avoid making claims that you can easily pay out of pocket. 
• Limit coverage to the months you use your boat. 
• Shop around and compare quotes annually. 
• Store your boat in a secure, covered location.

Final Remarks: Is Boat Insurance Cheap or Expensive? 

Whether boat insurance is cheap or expensive depends on the boat’s current market value, size, and horsepower. Apart from that, your boating records, insurance claims history, location, and choice of coverage are additional factors that can significantly influence your boat insurance rate in Michigan.  

So, depending on these factors, your insurer will determine the cost of your boat insurance policy. It can either be as cheap as $75 per year, or as expensive as $3,000 or more per year.  

Well, that’s the extent of the cheapest and the most expensive coverage option, but on average, boat insurance rates vary from $75/year to $300/year for small boats, and $300 to $500 per year for large vessels here in Michigan.  

The only way to know your actual boat insurance rate is to consult with a boat insurance agent. If you’re looking for one, you can use our online portal to find an agent nearby and get a free quote along with the right advice to get affordable boat insurance coverage within your budget.

Frequently Asked Questions (FAQ) 

How much does boat insurance cost in Michigan? 

On average, the cost of boat insurance for small boats ranges from $75 to $300 per year, while large boats come at a premium of $300 to $500 per year in Michigan. However, boat insurance rates can significantly vary depending on its current market value, engine power, and age. So, by the rule of thumb, insurers multiply the boat’s current market value by 1.5% to estimate the insurance premium.  

Is boat insurance mandatory in Michigan? 

Boat insurance isn’t legally mandatory in Michigan, but it is essential to have adequate boat insurance coverage to protect yourself from accidents and unprecedented financial damage. Moreover, if you want to rent a boat, most marinas will ask for proof of insurance. So, even though boat insurance isn’t a legal requirement, it is vital to protect your finances.  

What factors affect my boat insurance premium in Michigan? 

Factors include the boat’s size, age, engine power, usage, storage location, and your boating safety record. Weather risks and theft rates in your area can also influence costs. 

Can I get discounts on boat insurance in Michigan? 

Yes. Discounts may be available for taking boating safety courses, installing anti-theft devices, bundling with other policies, or maintaining a clean boating record.