Owning a boat in Ontario opens the door to some of the best lakes and waterways in the country. But whether you have a fishing boat, pontoon, sailboat, or personal watercraft, insurance is something you can’t ignore.
Boat insurance isn’t legally required in Ontario, but that doesn’t mean you should skip it. If your boat gets damaged, stolen, or causes damage to someone else’s property, you could be stuck with a hefty bill. Plus, most marinas require proof of insurance before they’ll let you dock.
So, how much does boat insurance cost in Ontario? The short answer: it depends. The long answer involves understanding the factors that affect your premium, the types of coverage available, and what you can do to keep your costs down.
Let’s break it down.
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Average Cost of Boat Insurance in Ontario

For most recreational boat owners in Ontario, insurance costs can range from $300 to $1,000 per year.
Here’s a rough idea of what you might expect based on boat type and value:

• Small fishing boats or basic watercraft: $300–$500/year
• Mid-sized power boats or sailboats: $500–$800/year
• Luxury boats or yachts: $1,000+/year

These are just ballpark numbers. Your final premium could be higher or lower depending on several key factors.
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What Affects Boat Insurance Rates?

Boat insurance rates in Ontario aren’t one-size-fits-all. Several details about your boat, how you use it, and your personal history play a role in shaping your premium. Here’s a breakdown of the main factors insurers look at.

1. Type of Boat

Insurers look at the size, horsepower, and use of your boat. A high-speed motorboat costs more to insure than a slower pontoon or sailboat. Personal watercraft like Jet Skis often carry higher liability risks and can push up premiums.

2. Value of the Boat

The more your boat is worth, the more it will cost to insure. If you bought your boat new, expect to pay more than someone with a 10-year-old used model.

3. Where You Use It

Boat insurance in Ontario typically covers use within Canadian waters. If you plan to use your boat in the U.S. or saltwater areas, you need to let your insurer know—this could increase your rate.

4. Storage and Security

How and where you store your boat matters. Boats kept in a locked garage or marina with security are less risky than those left in a driveway or unsecured dock. Theft prevention devices can also lower your premium.

5. Driving Record

Yes, your driving record can affect your boat insurance. A clean driving history—on both land and water—can help you secure lower rates. Some insurers may also look at boating experience and certifications.

6. Claims History

If you’ve made past claims for boat damage or liability, your rates may go up. A clean claims record shows you’re a low-risk client.
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What Does Boat Insurance Cover?

Not all boat insurance policies are the same, but here’s what most standard policies include:

Liability Coverage

This protects you if your boat causes damage to another person’s property or injures someone. Most insurers recommend at least $1 million in liability coverage, though many offer up to $2 million or more.

Physical Damage Coverage

This covers damage to your boat from events like fire, theft, vandalism, sinking, or collision. You can choose between:

• Agreed value: You and the insurer agree on a value upfront. If there’s a total loss, that’s what you’re paid.
• Actual cash value: Depreciation is factored in, so payouts are lower, but premiums are cheaper.

Comprehensive Coverage

This includes non-collision events like storms, fire, or theft. It may also include trailer coverage if the trailer is listed.

Personal Effects and Equipment

Covers items like fishing gear, life jackets, GPS devices, and other personal items onboard—often up to a set limit.

Emergency Towing and Assistance

This helps cover costs if your boat breaks down and needs towing back to shore or basic roadside help for your trailer.

Optional Add-ons

Depending on how you use your boat, you might need more than just the basics. Popular add-ons include:

• Increased liability limits
• Coverage for watersports
• Coverage for rented or borrowed boats
• Extended navigation (e.g., U.S. or Caribbean use)
• Mechanical breakdown protection

Always read the fine print and understand what’s included—and what’s not.
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Do You Need Insurance for a Small Boat?

Technically, no. In Ontario, boat insurance isn’t legally required like car insurance. But if you’re financing your boat, your lender will likely require coverage.
And if you’re storing your boat at a marina, they’ll almost always ask for proof of liability insurance before granting access. Even small boats can cause expensive damage or injuries—liability insurance is a smart move no matter the boat size.

How to Lower Your Boat Insurance Costs

You don’t have to overpay for coverage. Here are practical ways to bring your premium down:

Bundle Your Policies

If you already have home or auto insurance, ask about bundling your boat insurance with the same provider. Multi-policy discounts can be significant.

Take a Boating Course

Many insurers offer discounts if you complete an accredited boating safety course. It shows you’re a responsible operator and less likely to make risky moves.

Choose a Higher Deductible

Opting for a higher deductible can lower your premium. Just make sure it’s an amount you’re comfortable paying out-of-pocket in case of a claim.

Limit Coverage to Boating Season

If you only use your boat in the summer, some insurers offer seasonal policies. Others may let you pause certain coverage during the off-season.

Install Safety Features

GPS tracking, alarms, and anti-theft devices can all help reduce your risk—and your rates.

Get the Right Coverage with Marathon Insurance

At Marathon Insurance, we understand that every boat—and every boater—is different. Whether you’re cruising on Lake Ontario or fishing in a quiet bay, we help you find the right coverage at the right price.
We work with top insurers to compare quotes and match your needs. Our team keeps it simple and transparent so you can enjoy your time on the water without second-guessing your protection.

Stay Covered, Stay Safe

Boat insurance in Ontario isn’t just about ticking a box. It’s about protecting your investment, your safety, and your peace of mind. While average premiums range from $300 to $1,000 per year, your exact rate will depend on your boat, usage, location, and more.
Talk to an experienced broker, compare your options, and don’t settle for guesswork. With the right coverage, you can focus on what matters—getting out on the water and making the most of Ontario’s boating season.
Need a quote or have questions? Contact or visit Marathon Insurance to get started today.