As of 2025, Illinois does not legally require boat insurance. However, if you dock at a marina or finance your boat, insurance may be required by private entities.
🔹 Marina Rules: Many Illinois marinas require proof of liability insurance.
🔹 Lenders: If you finance your boat, banks will require full coverage.
🔹 Personal Liability: If you cause an accident, you’ll be fully responsible for all damages & medical bills.
Types of Boat Insurance Coverage in Illinois
🚤 Recommended Coverages:
- Liability Coverage – Covers bodily injury & property damage if you’re at fault.
- Comprehensive Coverage – Covers theft, fire, storm damage, & vandalism.
- Collision Coverage – Pays for damage to your boat in an accident.
- Medical Payments – Covers medical expenses for passengers.
- Towing & Emergency Assistance – Covers breakdowns & fuel delivery.
How Much Does Boat Insurance Cost in Illinois?
💰 Average Annual Premiums:
- Liability-only policy: $100 – $200 per year
- Full coverage policy: $300 – $700 per year
- Luxury yachts: $1,000+ per year
🚤 Factors Affecting Your Cost:
✔️ Boat Type & Value
✔️ Boating Experience
✔️ Claims History
✔️ Storage Location
🔗 Compare Illinois boat insurance quotes: Progressive, Geico, State Farm.
Illinois Boating Laws & Safety Rules
Registration Requirements
- All motorized boats & sailboats over 12 feet must be registered with Illinois DNR.
- Registration is renewed every 3 years.
Boating License Requirements
- Born after Jan 1, 1998? You must complete a boating safety course.
- Take a state-approved safety course at Illinois DNR.
Safety Equipment Checklist
✅ Life Jackets – One per person, US Coast Guard-approved.
✅ Fire Extinguisher – Required for enclosed fuel compartments.
✅ Visual Distress Signals – Required on federal waters.
✅ Sound Devices – Whistles or horns required for signaling.
Drinking & Boating Laws
• Illinois BAC limit: 0.08% (same as DUI laws).
• Penalties: Fines up to $2,500, boating license suspension, jail time.
How to Lower Your Boat Insurance Costs
✔️ Take a Safety Course – Get 5-10% off your premium! (Take a course)
✔️ Bundle Insurance – Combine boat, auto, & home for 10-15% discounts.
✔️ Choose a Higher Deductible – Raising your deductible lowers monthly costs.
✔️ Install Safety Equipment – Fire extinguishers, GPS, & anti-theft devices = lower rates.
🔗 Check out: Boat Maintenance Tips to Keep Your Insurance Low
FAQs (Frequently Asked Questions)
No, Illinois does not require boat insurance by law. However, marinas & lenders may require it.
Limited coverage – Home insurance may cover small boats (canoes/kayaks) but not motorized boats. A separate boat policy is recommended.
You pay for ALL damages & medical bills. If you’re at fault, lawsuits & financial liability could be devastating.
Yes! Comprehensive coverage protects against hurricanes, floods, & storm damage.
Yes! Lay-up policies allow full coverage in summer & reduced winter coverage to save money.
Call your insurance provider ASAP after an accident. Provide photos, witness statements, & police reports.
🔗 Learn more: Step-by-Step Guide: Filing a Boat Insurance Claim
Should You Get Boat Insurance in Illinois?
Even though Illinois does not require boat insurance, it’s strongly recommended for:
✅ Protecting Your Investment – Covers accidents, theft, & repairs.
✅ Liability Coverage – Pays for damages if you cause an accident.
✅ Passenger Safety – Covers medical bills for injuries.
✅ Peace of Mind – Avoid financial risks while boating.
Compare Illinois boat insurance quotes today to find the best coverage at the lowest price!
Kayla Cavanaugh, founder of SaveYourBoat.com, is an experienced insurance agent with over 10 years in boat and yacht insurance. She is dedicated to educating boat owners on safety and insurance essentials. Through her blog, Kayla provides expert advice to help protect vessels and ensure worry-free adventures on the water.