Are You Legally Required to Have Boat Insurance in Colorado?

Unlike auto insurance, boat insurance is not legally required in Colorado.

However, if you have a loan on your boat, your lender will likely require you to have insurance. Even if you don't have a loan, it's still a good idea to insure your boat. That way, if something happens to it, you won't be left footing the bill.

Most boat insurance policies cover:

• Damage to your boat, motor, and trailer
• Theft of your boat or boat equipment
• Liability for damage you cause to other boats or people

Some policies will also cover the contents of your boat, such as fishing gear or personal belongings. You can also purchase medical payments coverage, which will pay for the medical bills of anyone injured in an accident on your boat.

Types of Boat Insurance in Colorado

There are two types of boat insurance in Colorado: all-risk and named-peril.

All-risk policies cover everything except the specific perils listed in the policy. Named-peril policies, on the other hand, only cover the perils that are specifically listed.

Both types of policies have their pros and cons. All-risk policies are more comprehensive but tend to be more expensive. Named-peril policies are less expensive, but they also provide less coverage.

Before you purchase a policy, compare the coverage options to find the one that's right for you.

How Much Does Boat Insurance In Colorado Cost?

The cost of boat insurance in Colorado depends on several factors, including the type and size of your boat, your insurance history, and the amount of coverage you need. 

The average boat insurance cost in Colorado is $200-$500 per year. However, bigger and more expensive boats like sailboats and yachts can cost between 1-5% of their value per year. A $700,000 yacht could cost as much as $35,000 per year to insure.

To get the best rate on your boat insurance, compare quotes from multiple insurers. Be sure to ask about discounts, such as the safe boater discount or the multi-policy discount for insuring your boat and home with the same company.

How to Choose the Right Boat Insurance Policy for Your Needs 

When it comes to insuring your boat, there is no one-size-fits-all policy. The type and amount of coverage you need will depend on several factors, including the type of boat you own, how often you use it, and where you keep it docked.

The Type of Boat You Own

Insurers typically classify boats into one of three categories: pleasure, commercial, or racing. Pleasure boats are the most common and include ski boats, pontoon boats, and sailboats. Commercial boats are used for business purposes, such as charter fishing or tour boats while racing boats are used exclusively for competitions. A more comprehensive policy is typically needed for commercial and racing boats. If you own a pleasure boat, a basic policy will likely suffice.

The Value of Your Boat

Insurance companies will use the purchase price of your boat as a starting point for calculating premiums, but they will also factor in the age and condition of the boat. Older boats will generally be cheaper to insure than newer ones.

How Often You Use Your Boat

If you only take your boat out a few times a year, you may be able to get by with a less comprehensive policy. However, if you use your boat regularly, you will need a more coverage policy.

Where You Keep Your Boat Docked

If you keep your boat at a private dock, you will likely pay less for insurance than if you keep it at a public marina. This is because there is less risk of theft or vandalism at a private dock.

Choosing The Best Boat Insurance Company In Colorado

Several considerations should go into choosing the best boat insurance company in Colorado. These include:

The Company's Financial Stability

It's important to choose a financially stable insurance company. Such a company will be able to pay out claims in a timely manner if you ever need to file one. You can check an insurer's financial stability by looking at their rating from organizations like A.M. Best or Standard & Poor's.

The Company's Claims Process

When shopping for boat insurance, be sure to ask about the company's claims process. This includes how they handle claims and the average payout time. You should also find out if you need to go through a boat surveyor when filing a claim. Research online to see what other customers say about the company's claims process.

The Company's Discounts

Many boat insurance companies offer discounts, so be sure to ask about them when you are getting a quote. Some common discounts include the safe boater discount, the multi-policy discount, and the loyalty discount.

The Company's Customer Service

It's important to choose an insurance company with good customer service. This way, you can be sure you will be taken care of if you ever need to file a claim or have any other questions about your policy.

The Process of Filling a Boat Insurance Claim in Colorado

When you file a boat insurance claim in Colorado, you will need to provide the following information:

• Your name, contact information, and policy number
• The other party's name, contact information, and insurance policy number (if applicable)
• A police report (if applicable)
• Photos or videos of the accident or damage
• Any witness contact information



Your insurance company will then investigate the claim and determine if you are eligible for a payout. The average time for a boat insurance claim to be processed is 30 days.

What to Do if Your Claim Is Denied

You have the right to appeal the decision if your claim is denied. You should first contact your insurance company and ask for a written explanation of why your claim was denied. You can then file an appeal with the insurance company. If you are still not satisfied with the outcome, you can file a complaint with the Colorado Division of Insurance.

Boat Insurance Discounts in Colorado

A few boat insurance discounts are available in Colorado, including the safe boater discount and the multi-policy discount.

The safe boater discount is available to drivers who have completed an approved boating safety course. The course must be taken every three years to maintain the discount.

The multi-policy discount is available to drivers who have more than one policy with the same insurance company. This could include a boat insurance policy and an auto insurance policy.

How to Get the Best Deal on Boat Insurance in Colorado

The best way to get the best deal on boat insurance in Colorado is to compare quotes from multiple companies. You can do this by using an online quote tool. Be sure to enter the same information for each company so you can get an accurate comparison.

To negotiate better rates, you can try the following tips:

• Bundle your boat insurance with another policy, such as auto insurance
• Increase your deductible
• Pay your premium in full
• Shop around for discounts
• Keep your boat in a garage or storage unit when not in use

Remember, the cheapest boat insurance policy is not always the best. Read the policy carefully before buying so you know what is and is not covered.

We hope this information helps you find the best boat insurance in Colorado!