Boat Insurance In Tennessee: What You Need To Know

Boat insurance is not a legal requirement in Tennessee, but it is still a good idea to have it. Boat insurance policies can cover collision damages, property damage liability, bodily injury liability, and protection against theft and vandalism. Many marinas and yacht clubs require proof of insurance before allowing boats to dock or moor, and lenders often require insurance for financed vessels.

Boat insurance in Tennessee is not mandatory

While Tennessee does not require boat insurance, it is still a good idea to purchase a policy. Boat insurance can provide coverage for a range of incidents, including collision damages, property damage liability, bodily injury liability, and protection against theft and vandalism.

Although not mandatory, boat insurance is highly recommended for all boat owners in Tennessee. Accidents can happen on the water, and having insurance can protect you from significant financial losses. It provides peace of mind, ensuring you are protected from liability and medical incidents.

While not mandated by state law, there are certain situations where you may be required to have boat insurance in Tennessee. For example, if you dock your boat at a marina, as many marinas and yacht clubs require proof of insurance. Additionally, if you finance your boat, lenders will typically require insurance coverage for the duration of the loan.

Boat insurance is highly customizable, and you can select the coverage options that best suit your needs. Common types of coverage in Tennessee include towing insurance, boating liability insurance, collision insurance, comprehensive insurance, fuel spill/wreckage cleanup insurance, personal effects insurance, equipment insurance, medical payments insurance, and uninsured/underinsured boater insurance.

The cost of boat insurance in Tennessee depends on various factors, including the type and size of your boat, where you live and store it, and how often you use it. On average, boat insurance in the state costs around $344 per year, but this can vary depending on your specific circumstances.

To reduce the cost of boat insurance in Tennessee, look out for available discounts. These can include security discounts for theft or vandalism protection, affiliation discounts with certain groups, loyalty discounts for staying with the same insurer, boater safety course discounts, lay-up discounts for seasonal use, and bundling discounts with other policies like home or auto insurance.

Marinas and yacht clubs may require insurance

If you're planning to dock your boat at a marina or yacht club, it's important to know that these establishments may have specific insurance requirements for their customers. While Tennessee law does not mandate boat insurance, many marinas and yacht clubs do. This is to ensure that their customers are protected in the event of accidents, damage, or liability claims.

Marina contracts often include clauses that require boat owners to carry a certain level of insurance. This can include a marine-insurance liability policy and hull insurance. These requirements are usually included in the contract's fine print, so it's crucial to read the contract carefully before signing. By having insurance, you can be covered for any damage or injuries that may occur while your boat is docked at the marina.

Additionally, marinas and yacht clubs may also require you to have your boat state-registered. They may also have specific rules and regulations that you must follow, such as requiring your boat to leave its slip at certain intervals. It's important to understand these requirements to avoid any issues or penalties.

Insurance requirements can vary from one marina to another, so it's essential to review their contracts carefully. If you have any questions or concerns, it's recommended to consult with your insurance company. They can help you understand the specific coverage you need and ensure that you're adequately protected while your boat is docked.

By obtaining the necessary insurance coverage, you can have peace of mind knowing that you're complying with the marina's or yacht club's requirements. This can also provide financial protection in the event of unforeseen circumstances involving your boat.

Lenders usually require insurance for financed boats

While Tennessee does not require boat insurance, lenders usually require insurance for financed boats. This is because the boat serves as collateral for the loan. The insurance policy will need to cover the full value of the boat, and the lender may set minimum requirements for specific types of coverage. The lender will also need to be listed as a lienholder on the policy so that they will be included as a co-payee on any compensation in the event of a loss payment.

Boat insurance is similar to auto and homeowners insurance. You can choose between the actual cash value or replacement cost in the event of a total loss. You will be covered if someone is injured on your boat. Similar to an auto insurance policy, you can also purchase comprehensive and collision coverage (commonly called "hull insurance"), along with coverage for bodily injury and property damage. Additionally, many boat policies provide coverage for salvage costs, fuel-spill cleanup, and damage from water sports.

There are also add-on coverage options for your boat policy, including:

• Roadside assistance and on-water towing
• Coverage for fishing equipment or carry-on personal property
• Mechanical breakdown coverage
• Ice and freezing damage coverage
• Hurricane haul-out coverage
• Trailer trip interruption

You can get discounts on your premiums for:

• Signing up for multiple policies through a single insurer
• Taking a boating safety course
• Receiving a boater education card or license
• Limiting your boating to a specific geographic area
• Having a good driving record

Some insurers even offer diminishing deductibles for each year in which you do not file a claim.

Insurance covers liability, theft, collisions, and more

While boat insurance is not a legal requirement in Tennessee, it is still a good idea to get one. Boat insurance policies can cover a wide range of incidents and damages.

Liability coverage will pay for damages or injuries you cause to others while boating. This includes damage to docks, pilings, and other boats, as well as injuries to your passengers and other boaters. Liability coverage also includes fuel spill remediation and wreckage removal if your boat sinks. Personal liability coverage provides coverage to other boaters and boat owners in the event you are at fault for an accident on the water.

Collision coverage pays for damage to your boat if you collide with another watercraft or object, even if it's submerged. You're also covered if your boat capsizes. Comprehensive coverage protects your watercraft from damage caused by events outside of your control, including theft, vandalism, explosions, fire, falling trees and objects, hurricanes, lightning, and other weather-related issues.

Uninsured/underinsured boater coverage pays for your and your passengers' injuries if you're hit by a boater with no insurance or insufficient coverage. Medical payments coverage pays for the medical bills for you and your passengers if you're in an accident, regardless of who is at fault.

Boat insurance can also cover the cost of emergency assistance, such as towing, labour, and delivery of gas, oil, or a loaned battery if your watercraft is disabled on the water. Additionally, some boat insurance companies offer coverage for personal property, such as clothing, cell phones, and sporting equipment, as well as fishing and carry-on equipment.

Average annual cost of boat insurance in Tennessee is $344

The average annual cost of boat insurance in Tennessee is $344. This is a relatively low cost for boat insurance, with the average across the United States being a few hundred dollars, and sometimes exceeding $1,000 per year. The cost of boat insurance depends on the type of boat, its length, and its expected use. Boat insurance is not mandatory in Tennessee, but it is still a good idea to purchase insurance.

Boat insurance can cover collision damages, property damage liability, bodily injury liability, and protection against theft and vandalism. It is important to shop around for the best boat insurance rates and to consider factors that can lower the price, such as being a safe boater and having homeowner's insurance.

In Tennessee, Tate Insurance Group offers boat insurance with comprehensive protection that covers you, your passengers, your watercraft, and your boating equipment. Their policies include agreed value coverage, personal liability coverage, medical payments coverage, physical damage coverage, and uninsured/underinsured watercraft bodily injury coverage. They also offer additional coverage for fuel spill liability and wreckage removal, personal effects, and unattached equipment.

Frequently asked questions