Texas Boat Insurance

Get a complete analysis of Texas boat insurance costs, coverages & companies.

Christine Lacagnina Written by Christine Lacagnina
Christine Lacagnina
Written by Christine Lacagnina

Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.

Towers along Corpus Christi , TX at sunrise with a reflecting cityscape painted at golden hour. Find Texas Boat Insurance.

Find the Best Boat Insurance Rates & Companies in Texas 

Whether you’re yachting with friends on Lake Travis or water-skiing with your family on Lake Austin, as a boat owner in Texas, you have plenty of places to enjoy your watercraft. It's important to be aware that boating accidents and other disasters can sometimes happen. Fortunately, you can ensure that a fun day on the water doesn’t end up causing you large financial losses by investing in an affordable boat insurance policy.

A Texas independent insurance agent can help you get equipped with the right boat insurance. They'll get you matched to all the coverage you need for your vessel. But first, here's a breakdown of Texas boat insurance requirements and more.

Best Boat Insurance Companies in Texas

You can find a solid boat insurance policy from many carriers in Texas. But when you're looking for the best coverage around, it can be helpful to know which carriers have an excellent reputation. Here are just a few of our top recommendations for the best boat insurance companies in Texas.

  1. Travelers: This insurance company sells boat insurance and many other kinds of personal and business insurance. Travelers has excellent AM Best and Better Business Bureau ratings and offers many boat insurance discounts.
  2. Foremost: This insurance company sells boat insurance and several other kinds of personal insurance products. Foremost has outstanding AM Best and Better Business Bureau ratings and provides 24/7 claims reporting.
  3. Progressive: This insurance company sells boat insurance and several other kinds of personal and business insurance. Progressive has an excellent financial strength rating from AM Best and provides year-round, 24/7/365 customer service.

A Texas independent insurance agent can compare boat insurance quotes from these top-rated carriers and others for you.

What Boat Insurance in Texas Can Cover

Boat insurance policies are built by choosing several types of coverage. In Texas, some of the most common types of boat insurance to consider are:

  • Boating liability insurance: This covers expenses related to third-party claims of bodily injury or personal property damage.
  • Medical payments insurance: This covers medical treatments for yourself or your passengers after a boating collision, regardless of fault.
  • Collision insurance: Pays for damage to your boat from a collision with another object, regardless of fault.
  • Fuel spill/wreckage cleanup insurance: This covers wreckage and pollutant clean-up expenses if you cause a collision on the water.
  • Equipment insurance: This covers expenses related to repairs or replacements for equipment or accessories not originally installed by the manufacturer, such as GPS units, boat hoists, and more, that get damaged, lost, stolen, or destroyed.
  • Personal effects insurance: This covers expenses related to repairs or replacements for personal items like scuba gear, fishing gear, and water skis, that get damaged, lost, stolen, or destroyed.
  • Comprehensive insurance: Pays for damage to your boat due to a non-collision event such as a flood or theft. 
  • Uninsured/underinsured boater insurance: This covers expenses related to property damage and medical treatments in case of a collision with a boater who doesn't carry adequate insurance to reimburse you.
  • Towing insurance: This covers towing expenses if your boat breaks down on the water due to mechanical failure, etc.

A Texas independent insurance agent can help you assemble a boat insurance policy that includes every coverage you need.

Is Boat Insurance Required in Texas?

Boat insurance isn't required by law in Texas. However, many boaters are still required to have coverage by any marinas where they choose to dock. Also, those who finance their boats are typically required by their lenders to have boat insurance.

Having boat insurance can end up saving you thousands of dollars, which makes it a smart decision for many. Without this coverage, you might have to pay to repair or replace your boat after an incident of theft or vandalism. Further, just one lawsuit against you could potentially lead to bankruptcy without boat insurance.

What Boat Insurance in Texas Will Not Cover

It's helpful to understand what your boat insurance won't cover. Here are some common coverage exclusions in Texas:

  • Boat trailer loss, damage, and destruction
  • Damage to the boat by marine life, insects, or mold
  • Intentional or malicious acts against third parties
  • Wear and tear of the boat
  • Animal damage to the boat and equipment
  • Losses due to faulty or defective machinery

Often, you can purchase an endorsement to cover damage, etc., caused by faulty or defective boat machinery. Otherwise, it's critical to be aware of what your specific boat insurance policy excludes. 

Average Cost of Boat Insurance in Texas

Texas has higher boat insurance rates than many other states. It costs an average of $527 per year to insure a boat in Texas. However, this cost can vary based on the following:

  • Where your watercraft is stored while not in use
  • Specifics of your watercraft, including its make and model
  • The engine size and length of your watercraft
  • Your prior claims
  • The types and amounts of coverage you select
  • Your location
  • Your personal boating history

Filing boat insurance claims often leads to an increase in your premium rates. You might also experience higher rates for boat insurance in locations with higher average rates of boat theft.


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What Boat Insurance Discounts Are Available in Texas?

Fortunately, Texas watercraft enthusiasts can save money on their coverage thanks to discounts. Many boat insurance discounts are available from most carriers. Here are a few of the most common:

  • Lay-up discounts: Using your boat only during the summer months might earn you a boat insurance discount.
  • Loyalty discounts: Continuing your coverage with the same boat insurance carrier for a specific number of years can earn you a discount after a while.
  • Bundling discounts: Bundling boat insurance with home insurance, auto insurance, or another type of coverage through the same carrier can earn you discounts on each policy.
  • Boater safety course discounts: Completing a state-approved boater safety course can earn you a boat insurance discount.
  • Security discounts: Protecting your watercraft against theft, vandalism, etc., with security devices can earn you a discount.
  • Affiliation discounts: Being affiliated with various groups and organizations can lead to boat insurance discounts.

A Texas independent insurance agent can apply any boat insurance discounts you've earned to your policy for you to reduce your premiums as much as possible.

Popular Questions about Texas Boat Insurance

Texas state law doesn't require boat insurance. But having boat insurance can help you avoid hefty out-of-pocket costs related to collisions, lawsuits, vandalism, and other disasters.

In Texas, boat insurance costs an average of $527 annually. Your rates may vary based on the type of boat you have and other factors, though.

Our finding was that Travelers is the best boat insurance company in Texas this year. Travelers offers competitive rates, numerous discount options, and quality boat insurance coverage.

If you cause an accident while towing your boat, your boat insurance policy can cover physical damage to third-party property as well as your own. Your policy can also reimburse the costs of medical treatments for anyone who got injured.

You don't need to have boat insurance in Texas by law. However, you might be required to have coverage if you dock your boat at most marinas. 

In Texas, boat insurance is customizable. You might choose to build a policy that covers collision damage, comprehensive damage (i.e., that caused by threats other than collision), liability, emergency towing, and more.

Texas independent insurance agents can help you find the boat insurance you need from a top-rated local carrier. Independent insurance agents work hard to find quality coverage at the most affordable rate. They'll shop and compare boat insurance quotes from a number of different carriers for you. And down the road, they can help you file boat insurance claims or update your coverage as needed. Your agent can help you find boat insurance in Austin or wherever you reside.

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