(800) 253-1482Boat Insurance in Tennessee
Summary: Owning a boat is all about adventure—fishing, water sports, and creating unforgettable memories on Tennessee’s lakes. But with that fun comes responsibility, like keeping your boat safe and protecting yourself from unexpected costs. While boat insurance isn’t required by law, many marinas and lenders do require it. Plus, it can save you from major financial setbacks. Whether you’re new to boating or a seasoned pro, understanding your coverage options helps you stay protected on the water, in storage, and on the road—without breaking the bank. Estimated Read Time: 9 mins
Owning a boat is an adventure filled with fishing, water activities, and unforgettable family moments. But along with the fun comes responsibility—keeping your boat in good shape, ensuring safety, and protecting your finances. Boat insurance in Tennessee plays a key role in making sure your time on the water doesn’t turn into a costly setback. It doesn’t matter if you’re new to boating or an experienced captain, learn how you can better protect yourself for less while out on the water, in storage, on the road, and more.
Do You Have to Have Boat Insurance in Tennessee?
Boat insurance isn’t legally required in Tennessee, but that doesn’t mean you won’t need it. Many marinas ask for proof of coverage before allowing you to dock, and if you finance or lease your boat, your lender will likely require insurance.
Even if no one’s forcing you to get it, having coverage is a smart move—it protects your investment from damage, helps with medical expenses, and covers liability if you’re responsible for an accident.
Furthermore, to legally operate a boat in Tennessee, you’ll need a Certificate of Number (registration card) and validation decals.
If you were born after January 1, 1989, you’ll also have to pass the TWRA Boating Safety Exam, and every boat must have a U.S. Coast Guard-approved life jacket for each person on board.
How Boat Insurance Protects You in Tennessee
Boat insurance helps protect you if your boat is damaged, lost, or destroyed. Your policy can cover things like damage to your boat, as well as property damage your boat might cause.
It can also cover injuries if you're at fault and offer protection against vandalism, theft, or damage unrelated to a collision.
Some policies also cover extras like your trailer, and fishing gear, or provide help on the water if you need it.
When you file a claim, it's important to understand how you'll be compensated, as there are two main types of coverage:
- The first is actual cash value (ACV), which factors in depreciation and gives you less money for older boats.
- The second is the agreed amount value, where you and your insurer agree on a value, and that’s what you’ll get for repairs.
Your choice of coverage affects how much boat insurance in Tennessee costs and the amount you get back after being reimbursed for a loss.
Types of Watercraft Protected
One of the best things about boat insurance is just how many different types of watercraft you can protect with your coverage.
For example, fishing boats on Center Hill Lake are often used in all kinds of conditions, and insurance can help protect against damage from collisions or bad weather.
Houseboats on Dale Hollow Lake are large and can be costly, but having the right coverage can offer peace of mind for any accidental damage or theft.
Yachts on South Holston Lake, which are typically luxurious and expensive, benefit from the right policies with personalized coverage that can even include personal watercraft.
Sailboats, which can be vulnerable to weather-related damage, are also covered under comprehensive coverage.
Bass boats are common for recreational fishing, and insurance can help cover everything from collision damage to theft of equipment.
Speedboats or motorboats often face risks from high speeds and water hazards, so liability coverage and damage protection is crucial.
Cabin cruiser boats, used for longer trips or as floating homes, also need insurance for their complex systems and structures.
Even smaller crafts like kayaks and canoes can be protected with affordable insurance, covering any damage or loss while you're out on the water.
For those with jet skis or similar vessels, while boat insurance won’t cover you in most cases, personal watercraft coverage is still available.
Not every policy meets every vessel's needs, but boat insurance's versatility means you can personalize your coverage and protect your assets no matter what.
How to Save on Boat Insurance in Tennessee
Boat insurance helps protect you in the event of an accident, and you can often save money on your policy, however, how you go about it is the key for maximizing your savings:
- Many insurers offer discounts for safe boating practices.
- Homeowners may also qualify for discounts or alternative coverages that save money on premiums.
- Having multiple boats on one policy can produce cheaper premiums as can bundling.
- Furthermore, paying for your coverage in full often provides savings.
Keep in mind while bundling can be a way to lower costs, it’s not always the best option. Separate boat insurance policies might offer better coverage at a lower price.
It's always a good idea to shop around to ensure you're getting the best value for your needs.
If you have a boat trailer, be sure to review your policies, as not all auto or homeowners insurance covers trailers, and your coverage may vary depending on where the incident happens.
Checking your policies ensures you're fully protected. Comparing carriers ensures you’re protected for the lowest possible cost.
Tennessee Boat Insurance Coverages
Tennessee offers year-round outdoor fun, from bird watching on Reelfoot Lake to camping at Natchez Trace State Park.
Whether with family or relaxing on the water, the Volunteer State is a great place to boat offering endless adventures.
As more residents become boat owners, it’s important to be prepared for the possibility of boating accidents.
Here’s how boat owners can protect themselves from potential losses involving their watercraft:
Property Coverage
Boat owners have two main types of property coverage options. A property liability policy covers damages to another boater’s watercraft if you're at fault in an accident.
Boat property coverage protects your own watercraft from damage, whether it's on land or water, and may also include theft protection.
Depending on your policy, you’ll need to decide between ACV or the agreed amount value method.
Bodily Injury Coverage
Even when all of the safety precautions are taken, accidents can happen and when you’re responsible for injuring another party, having the right coverage is essential. Bodily injury coverage protects your personal finances by stepping up and covering expensive healthcare costs for others when you’re liable.
Comprehensive Coverage
Hail, wildfires, severe storms, and more are all ready to damage your watercraft, but similar to your car insurance policy, comprehensive coverage is available so that you don’t sink when unexpected repairs are needed.
Collision Coverage
When you’re out on the water, you can’t always be sure of what lies beneath the surface. From fallen trees to sunken docks and more, collision coverage helps you cover damage to your vessel if it comes in contact with another object. Keep in mind this does not include another person’s boat.
<h3>Uninsured Watercraft Coverage</h3>
Not everyone has boat insurance and when another party causes damage to your watercraft or injuries, getting the compensation you deserve can be a frustrating process. Uninsured watercraft coverage is a safety net that will help you restore the losses in these scenarios.
Medical Payments Coverage
Healthcare costs continue to rise at an alarming rate and if you often have passengers, the risk of injury to one of them is an important consideration. Medical payments coverage covers their doctor bills should an accident occur.
Additional Coverages
The vessel you captain, where you embark, and the activities you enjoy on the water are just a few of the factors that play into the risks boaters face.
Fortunately, boat insurance provides various coverage options to keep you protected while on the water no matter what.
For instance, small accident forgiveness ensures your premium won’t increase if a claim is only a few hundred dollars, providing responsible boaters with an affordable safety net.
Even better, large accident forgiveness means if you haven’t filed a claim in three out of the last four years, accidents won’t affect your renewal.
Other key coverages include fuel spill and wreckage removal coverage, which covers the costs if you have a spill or your boat sinks.
Additionally, your policy ensures no depreciation on repairs, meaning your boat will be restored to its pre-accident condition or better.
Towing assistance can be a lifesaver if your boat breaks down on the water, offering services like jump-starts, fuel delivery, and more when you need them the most.
Mechanical breakdown coverage steps in if your motor fails, covering repair costs for the lower unit of an outboard motor or both units of an inboard/outboard motor.
Watersport coverage is great if you’re hosting guests for activities like water skiing or tubing, covering medical expenses if anyone gets injured. Keep in mind this is often required to stay protected when engaging in high-risk activities.
Finally, if your fishing or other personal equipment is lost or stolen, your policy can help replace it, though limits will apply.
The best insurance policy for you will depend on your unique boating needs. It’s important to speak with your agent to ensure you receive the coverage that best suits your lifestyle.
Do You Need Insurance on a Boat Trailer in Tennessee?
While boat trailer insurance isn't legally required, going without it could leave you covering costs if an accident damages your trailer.
Adding the trailer to your boat insurance policy can help protect it, even when your boat isn't on it.
Your car insurance typically won’t cover damage to the trailer itself, but it may cover injuries or damage you cause while towing it.
If your trailer is stolen from your home, homeowners insurance might offer limited coverage.
When deciding whether to insure your trailer, think about its value, age, and whether you can afford to replace it.
Home Insurance and Boating
Having separate boat insurance is important because your homeowners insurance policy may not offer sufficient coverage for your watercraft.
While it might protect your boat when parked on your property, it typically won't cover damages or liability when you're on the road or in the water, including accidents or sunken boats.
By purchasing dedicated boat insurance, you can ensure you get the specific coverage you need, protecting you from unexpected costs while enjoying your time on the water.
Top Boating Communities in Tennessee
Tennessee offers top-notch boating communities with unique features for water enthusiasts.
- Tellico Village, on Tellico Lake, blends scenic views with activities like championship golf and a Yacht and Country Club, perfect for water and golf lovers.
- Rarity Bay, set on a picturesque Lake Tellico peninsula, caters to those seeking luxury with an 18-hole golf course, an equestrian center, and private boat docks, offering a haven for outdoor activities.
- WindRiver, a gated community on Tellico Lake, offers luxury homes, a golf course, and scenic walking trails, perfect for boating and outdoor lovers.
- Fairfield Glade, on the Cumberland Plateau, features five golf courses, 11 lakes for boating and fishing, and a range of recreational amenities.
These top Tennessee boating communities cater to every boating enthusiast, offering ideal places to call home.
How Much Is Boat Insurance in Tennessee?
While boat insurance in the Show Me State typically costs around $350 per year, the amount you pay will vary due to several factors.
This includes the type of watercraft you own, whether it’s a pontoon boat, PWC, or powerboat, is going to influence your premium.
Experienced boaters often pay lower rates compared to those who are newer to boating.
Additionally, your claims history can impact your rate—having previous claims, even if not your fault, may raise costs.
Finally, the size of your boat’s engine also matters, with larger engines usually resulting in higher premiums.
Boat insurance in Missouri is an important protection but you shouldn’t overpay for coverage. Covering your risks is important but always compare policies and carriers to avoid paying too much for protection.
