Michigan boaters face unique insurance challenges — short season, big water, deer hits in storage areas, theft risk, and trailer-related issues. Here are 10 practical tips for Michigan watercraft owners.
1. Don't Rely on Your Homeowners Policy
Most Michigan home policies cover only boats under 25HP and worth under $1,500. Anything more — even a basic pontoon — needs its own policy.
2. Insure Your Trailer Separately
Your boat policy typically doesn't include your trailer at full value. Schedule the trailer (boat trailers can be $2K-$8K+).
3. Get Agreed Value, Not Actual Cash Value
Agreed value means your insurer pays the agreed amount in a total loss. ACV deducts depreciation — which can leave you short by thousands.
4. Verify Great Lakes Coverage
Some inland-only policies exclude Lake Michigan, Lake Huron, etc. If you boat the big lakes, verify navigation is included.
5. Take a Boating Safety Course
Michigan requires it for younger boaters anyway. Most carriers give 5-10% off for completion. Online courses count.
6. Lay-Up Coverage Saves Real Money
Michigan boats are stored 6+ months/year. Lay-up coverage drops your premium during stored months but keeps comp coverage active (theft, fire, weather damage in storage).
7. Schedule Your Electronics
Sonar, GPS, trolling motors, stereo systems — these have low base limits. Schedule expensive items individually.
8. Add Towing and Assistance
On-water towing without coverage can cost $400-$1,000 per incident. Adding coverage is typically $30-$50/year.
9. Verify Pollution / Fuel Spill Coverage
Michigan DEQ and federal EPA can issue significant fines for fuel spills. Make sure pollution liability is included.
10. Increase Liability — Especially with Passengers
Standard liability limits ($100K-$300K) can be exhausted by a single serious injury. Boats often carry multiple passengers; injury claims add up fast. Consider $500K-$1M, or add umbrella coverage.
Bonus: Theft Prevention
Michigan boat theft is concentrated in spring/fall transitions when boats are easily accessible. Lock the trailer hitch, use a wheel lock, store inside when possible — and document your boat with photos.
Bonus: Personal Watercraft (Jet Skis)
PWCs need their own coverage — they're not adequately covered under most boat policies. Coverage is inexpensive ($200-$400/year typically) but the liability exposure on busy lakes is significant.
Bonus: Trailer Inspection Matters
If your trailer fails in transit and damages another vehicle, your tow vehicle's auto policy is the primary coverage — but the trailer is what caused the problem. Make sure trailer brakes, lights, and bearings are maintained.
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Knight Family Agency works with Foremost (Farmers) and other carriers to find the right boat/PWC coverage for Michigan owners. Fill out our quote form and we'll send a custom quote.
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