There’s nothing like cruising on one of Canada’s stunning lakes on a summer day—until you recall how much you are paying on boat insurance.
Don’t let high premiums sink your summer fun though. Whether you are a first-time boat owner or a seasoned sailor, this guide will help you navigate the chartered waters of boat insurance and lower the costs like an anchor.
Is Boat Insurance Mandatory In Canada?
The short answer—no, you’re not legally required to have boat insurance in Canada. However, there are exceptions to the rule. You may require boat insurance to secure financing or when docking at a marina (e.g. if your boat has a motor over 10 horsepower, some insurers and marinas might insist on having insurance coverage).
While in general, Canada does not federally mandate boat insurance, there can be some provincial nuances across the Great White North. For instance, Ontario and British Columbia marinas often require liability coverage. To be safe, always double-check with your local regulations and marina rules.
That said, while boat insurance is not mandatory, some insurance coverage is wise—as accidents on water can be costly.
What Does Boat Insurance Cover?
Boat insurance coverage typically includes:
- Liability coverage: This protects you if you’re responsible for injury or damage to third-parties (e.g., hitting another boat).
- Physical damage: Repairs for collisions, storms, or vandalism to your own boat.
- Theft or vandalism: Replacement if your boat or gear is stolen. This can include but is not limited to the actual boat, motors, equipment and trailers.
- Medical payments: Covers injuries to you or passengers.
Optional add-ons include wreck removal, towing, or pollution cleanup. It’s best practice to tailor your policy to your boating habits—like adding coverage for fishing gear if you’re an angler.
Type Of Boats You Can Insure
You can gain coverage on a wide variety of boats including:
- Sport boats
- Sail boats
- Cruisers
- Jetboats
- Pontoon boats
- Fishing boats
- Kayaks
- Canoes
- Rowboats
How Much Does Boat Insurance Cost?
Boat insurance can vary in cost heavily depending on several factors such as the boat model and condition, coverage amount, and your deductible.
Other factors which may impact boat insurance premiums include:
- Horsepower: Higher horsepower is perceived as higher risk which can lead to higher premiums.
- Storage: Storing your boat ashore in winter may lower rates.
- Safety features: GPS, fire extinguishers, alarms and other safety features can earn discounts.
- Claims history: A clean record keeps costs down.
According to Surex, the general rule of thumb for calculating your boat insurance premiums is by multiplying 1.5% of your boat value annually. For example, if you have a boat worth $30,000, it would cost around $450 a year.
Where Can You Buy Boat Insurance?
Finding the right boat insurance in Canada is like picking the perfect anchor—it needs to be reliable, suited to your vessel, and worth the investment. Here’s a deeper dive into your options:
Major Insurance Providers
Companies like TD Insurance, Allstate Canada, and Desjardins offer recreational vehicle insurance packages that include boats. These providers are a great starting point if you value brand recognition and bundled policies (e.g., combining home, auto, and boat insurance). For example, TD Insurance allows you to customize coverage based on your boat’s use, whether it’s seasonal or year-round.
If you financed your boat through a bank like RBC or Scotiabank, ask about bundling insurance with your loan. Many financial institutions offer discounted rates for customers who combine financing and coverage. Credit unions, like Coast Capital or Vancity, may also provide competitive member-only deals.
Specialized Marine Insurers
Niche providers like Portside Insurance focus exclusively on boats, yachts, and watercraft. They’re ideal for owners of high-value vessels, liveaboards, or unique boats (e.g., sailboats, houseboats) since they understand marine risks better. These insurers often offer tailored perks, such as coverage for fishing equipment, salvage costs, or international waters.
Insurance Brokers
Brokers like Surex or PolicyAdvisor act as middlemen, comparing quotes from multiple insurers to find you the best deal. They’re especially helpful if you’re unsure where to start or have a complicated policy (e.g., historic boats). While brokers may charge a fee, they save you time and often uncover hidden discounts.
Pro Tip: Always ask insurers about Canadian-specific perks, like coverage for ice damage or winter storage liabilities—these are unique to our climate!
Tips To Save Money On Boat Insurance
The cost of owning a boat can add up quickly, so it’s important to save where you can. One way to save money is by lowering your boat insurance costs. Here are a few to on how to get a lower premium:
Tip 1: Improve Your Credit Score
A higher credit score signals reliability and safety to insurers, which can drive better rates for you. Loans Canada offers tools to track your credit score, and also offers a comprehensive guide to improving your credit score—a win for your wallet!
Broadly speaking, paying bills on time, lowering overall debt and extending your credit history all contribute to a healthier credit score.
Tip 2: Compare Lenders and Insurance Providers
Don’t settle for the first quote! Use online tools or brokers to compare providers like TD, Allstate, or CAA. You can also use your quote to negotiate better deals with your preferred provider.
Tip 3: Bundle Insurance with Financing
The more services you have with a single provider, the more you can benefit from bundle savings. Similar to when you bundle your home and car insurance, most insurance providers offer discounts and deals to those who bundle their boat loan and insurance needs.
Tip 4: Upgrade Your Boat Safety
Insurers like Allstate often discount policies for boats with safety certifications or advanced navigation systems.
Moreover, keeping a well-maintained boat is key to making fewer claims. The fewer claims you have, the more likely you’ll qualify for lower premiums. Winterize engines, check hulls for damage, and keep safety gear updated. Insurers love proactive owners!
How To Keep Your Boat Safe?
Keeping your boat safe isn’t just about avoiding disasters—it’s a surefire way to keep insurance premiums low. Insurers reward responsible owners with discounts, so here’s how to stay ahead:
Upgrade Your Safety Gear
As mentioned, boat safety is a common factor that can influence your boat insurance premiums. You can ensure your boat is safe by having Transport Canada-approved essentials:
- Life jackets for every passenger
- Fire extinguishers (check expiry dates!)
- Flares, whistles, and a waterproof flashlight
- A VHF radio or GPS-enabled emergency beacon
You can go a step further and take a boat safety course. Completing a course from the Canadian Power and Sail Squadrons (CPS-ECP) not only makes you a safer captain but can also snag you a discount on premiums. Plus, you’ll learn critical skills like reading nautical charts and handling emergencies.
Install Anti-Theft Devices
GPS trackers, kill switches, and hull identification number (HIN) engraving deter theft. CAA members, for instance, can access discounts for anti-theft tech through partner insurers.
Store Smart, Sail Smarter
- Winter Storage: Store your boat ashore in a secure, insured facility during off-seasons. This reduces risks like ice damage or theft.
- Summer Storage: Use marinas with 24/7 security cameras or gated access. Some insurers, like Portside, offer lower rates for boats stored in “low-risk” locations.
- Trailer Storage: If you trailer your boat, lock it to a fixed object and remove the engine’s battery to deter thieves.
Document Maintenance Religiously
Keep a log of all repairs, engine tune-ups, and hull inspections. Proving you’ve replaced worn-out parts (e.g., bilge pumps, fuel lines) shows insurers you’re proactive. Send these records to your provider—some may adjust your rates accordingly.
Limit Your Risk Profile
- Avoid Alcohol: Even a single drink increases accident risks (and potential liability claims). Designate a sober skipper!
- Check Weather Forecasts: Avoid sailing in storms or high winds. Claims for weather damage can hike your premiums.
- Set Usage Limits: If you only boat on weekends, ask insurers about “pleasure use” policies, which are cheaper than year-round coverage.
Bottom Line
Boat insurance doesn’t have to capsize your budget. By comparing quotes, bundling policies, and prioritizing safety, you can enjoy smooth sailing without financial stress.
