Boat insurance in Michigan

Boats are everywhere in Michigan. In 2024, the U.S. Coast Guard put the count at 795,494 recreational boats registered in the state. During that same year, Michigan recorded 120 boating accidents, with 28 deaths, 63 people injured, and property damage totaling $1,570,450.

Your policy can cover repairs to your own boat plus damage you do to other people or their belongings. The second kind is known as liability coverage. It steps in when someone else is injured or their boat or dock suffers harm that you caused.

Michigan has no law forcing you to insure a vessel. The state law survey from the U.S. Coast Guard and NASBLA confirms Michigan boaters are not required to hold liability insurance.

That said, others can still demand it, as Progressive explains:

• Marinas may want proof of liability coverage before letting you keep a boat at their docks.
• Lenders may want physical damage cover while you still owe money on the boat. This pays for fixing or replacing the boat itself.

If a marina or lender is asking for proof of insurance, give us a call now and we'll work out a price range for your boat.

This state sits among the cheaper places for insuring a boat. Progressive groups Michigan with its lower-cost states; in that group, a yearly boat policy averaged $307 across 2024 to 2025.

Below are our estimates for boats kept in Michigan. Treat them as rough estimates rather than quotes.

• A jet ski valued at $14,000 might run about $140 to $370 a year.
• For a pontoon worth $25,000, expect somewhere around $250 to $590 a year.
• A bass or fishing boat valued at $40,000 could cost roughly $400 to $600 a year.
• A sailboat worth $45,000 might fall between $450 and $1,110 a year.
• A bowrider, ski, or wake boat valued at $50,000 could run about $500 to $750 a year.
• For a cruiser or yacht worth $150,000, the yearly cost might reach $1,500 to $3,000.

Your boat's type and value help narrow the estimate. Our three-step price range produces a range tailored to your boat. You can also see how we work it out.

The Michigan insurance regulator warns that certain policies restrict the waters where your boat may go. Anyone boating on the Great Lakes should make sure their policy actually covers those waters.

The regulator also points out that some policies insist on indoor storage over winter. Certain ones will not cover damage caused by freezing, ice, or animals like mice. A policy isn't much use if it won't cover the waters you boat on or how your boat is stored over winter, so call us and we'll check these terms with you.

• Boating certificate: Those born on or after July 1, 1996 must hold a boating safety certificate before operating a boat. Boater education is run by the Michigan DNR.
• Jet ski age: Riders must be at least 14, with limits. At 16, riders with a certificate can go out alone. If you were born on or before December 31, 1978, you don't need a certificate to ride a jet ski.
• Registration: Most boats must be registered through the Secretary of State, in three-year stretches. Registering a motorboat of 16 feet up to just below 21 feet for the first time runs $42. Exceptions include canoes and kayaks with no motor, as well as certain short boats powered only by oars or paddles.
• Title: Titles are required for boats 20 feet or longer, or with a permanently attached engine. The fee for a title is $5.
• Sales tax: Michigan charges 6% when a boat is titled or registered, unless you can show proof the tax was paid before.
• Alcohol: Operating a motorboat with a blood alcohol level of 0.08 or more is illegal, and anyone under 21 may have no alcohol in their body at all.