Boat & Yacht Insurance
Coverage & Limits

What are boat policy deductibles? How do they work?

A deductible is the amount of money you must pay out of your own pocket before your boat insurance policy kicks in.

Here’s one example of how deductibles work: Let’s say your boat collides with a submerged rock, you have a policy limit of up to $10,000 and your deductible is $1,000. If the cost to repair your boat is $500, you will pay the entire $500 since it is less than your deductible. If the cost to repair your boat is $8,000, you will pay your deductible of $1,000 and your insurer will pay the remaining $7,000.

To keep monthly premiums low, boat owners and operators can opt for higher deductibles. But if you can’t pay your deductible or accident-related expenses above and beyond your policy limits, you may find yourself in financial crisis. Choose wisely. Consider your risk tolerance and financial circumstances when deciding the level of protection that’s right for you and your family – then work with one of our agents to create a policy that balances your individual needs with a premium and deductible you can afford.