Buying a boat is likely a dream come true for you, but you may not have anticipated the cost of getting what you’ve always wanted. The truth is that owning a boat involves numerous expenses beyond the initial purchase price.
Are you prepared to navigate the real cost of owning a boat? Fuel costs, registration fees, insurance, storage costs, safety equipment, maintenance costs, and more—this guide outlines all you need to know.
Breaking Down Boat Ownership Costs
Some of the various expenses associated with boat ownership include:
- Purchase price
- Registration and licensing
- Insurance costs
- Fuel and operational expenses
- Storage and mooring fees
- Safety equipment and accessories
- Routine boat maintenance and repair costs
These factors can play a significant role in determining whether owning a boat is a financially viable option for you.
Purchase Price
The initial purchase price is the most significant expense, and it varies greatly depending on factors such as size, type, and features.
For example, aluminum fishing boats may start at around $14,000, while pontoon boats may cost upwards of $20,000. Prices can increase significantly for larger, more specialized vessels, such as wake-and-ski boats or cabin cruisers.
In addition to the boat’s purchase price, don’t forget to factor in taxes, such as state sales tax and use tax.
Fortunately, you can get deductions on these taxes if you declare your boat as a business, a second home, a charter boat, or your mode of transportation. Doing so will require thorough documentation and various registrations, but the paperwork may be worth the effort, especially if it means bringing down overall expenses.
Registration and Licensing
You’ll need to register and license your vessel before you can set sail as a boat owner. Registration fees vary by state and may require boater education credentials.
For example, vessel registration fees in Texas range from $32 (less than 16 feet) to $150 (40 feet or more). Completion of a TPWD-certified boater education course is required for persons born on or after September 1, 1993, operating vessels with 15hp or higher.
In Florida, vessel registration ranges from $5.50 (less than 12 feet) to $189.75 (110 feet or longer). All operators born on or after January 1, 1988, must carry a Boating Safety Education ID to legally operate a boat with 10hp or above.
Boaters are often required to complete a safety course and obtain a Boater Safety Education Card. More than 30 states offer U.S. Coast Guard, National Association of State Boating Law Administrators (NASBLA), and state boating license agency-recognized courses for free. You can also take a paid course for as low as $39.95.
Insurance Factors
Securing boat insurance is a crucial step in becoming a responsible boat owner. These insurance costs will depend on boat size, type, location, and extent of coverage. However, premiums for boat insurance typically range from one to three percent of the boat’s value.
It’s important to shop around for insurance quotes and coverage options to get the best possible policy for your specific boat and usage.
Boat insurance protects your investment and provides much-needed peace of mind as you navigate the open waters.
Standard boat insurance policies cover the following:
Property damage
If your boat hits another person’s property, you are liable for the cost of repairing them. If uninsured, collision costs can reach tens of thousands of dollars depending on the damage caused. In 2022, the US Coast Guard reported more than 4,000 recreational boating accidents that resulted in over $60 million in property damage.
Personal injury
If proven at fault for the incident, boat owners are obliged to pay for another person’s injuries—not just the medical bills and lost income from the accident but also legal fees and settlements if the case is brought to court.
Physical damage
Your insurer will pay to repair your vessel in the event of a covered accident, theft, or extreme weather conditions. Without insurance, repairing simple cracks in fiberglass boats can go up to $1,000, and severe hull damage can cost up to $15,000.
Medical coverage
If you or your passengers are injured in a boating accident, your insurer will cover medical expenses, regardless of who was at fault.
Uninsured/underinsured coverage
If an uninsured vessel collides with yours, your insurer may still cover repair costs and medical bills.
The average cost of insurance is $300 to $500 per year or up to 1% to 5% of the boat’s value for larger vessels (like yachts).
Fuel and Operational Expenses
Operational expenses depend on the vessel’s fuel efficiency and the costs of specialized equipment.
Boat Fuel Efficiency
Fuel efficiency depends on boat size, engine type, and usage. In 2023, the average boat fuel price is $4 to $5 per gallon. With an average consumption of 10 to 15 gallons per hour at cruising speed, one hour on the water requires $40 to $75 of fuel. This number is much higher for bigger engines and heavier vessels.
Online boat fuel calculators will help you estimate your boat’s fuel consumption. By understanding fuel efficiency, you can better anticipate and budget for fuel costs.
Operational Costs
Operational expenses include maintenance, storage, and safety equipment. Maintenance costs cover the engine, hull, and propeller.
Storage costs, which we will discuss more in-depth in the next section, include marina, dry storage, and mooring fees.
Finally, typical expenses for safety equipment include life jackets, fire extinguishers, and flares.
Storage and Mooring Fees
Boat storage is an essential consideration during both peak boating season and the off-season. Costs for boat storage can include marina fees for docking and mooring, should you opt for wet boat storage. With dry boat storage options, you’ll need to account for the cost of storing your boat long-term (aka the entire winter season).
Understanding the various boat storage options and their associated costs will help you make an informed decision about where to keep your boat when not in use.
If you’re looking to save on boat storage, consider a peer-to-peer storage marketplace.
Marina Fees
Marina fees can range from a few hundred dollars to $10,000 annually, depending on boat size and location. They typically consist of a monthly or annual fee, electric hookup, fresh water for cleaning, and miscellaneous expenses.
Research marina options in your area and compare their costs and amenities. This way, you can ensure your boat is safely stored and manage your overall boat ownership expenses.
Dry Storage Options
Dry storage will keep your boat’s hull in a cleaner condition than if it were left in the water. Boats are placed on a rack until you’re ready to use them again.
The costs associated with dry storage options can range from $20 to $200 per foot per season, depending on the facility and boat size.
When considering boat storage options, you can check out big-box storage facilities or Neighbor, a peer-to-peer marketplace that offers boat slips or garage rentals through private hosts.
Safety Equipment and Accessories
With lives on the line, you won’t want to skimp on boating safety gear like life jackets, flotation devices, and fire extinguishers. If the worst happens and your boat capsizes, you’ll be glad you splurged on the $49 life jacket. A well-stocked boat will enhance your boating experience and keep you and your passengers safe.
Required Safety Gear
The U.S. Coast Guard and state regulations mandate that boats carry the following as minimum requirements for safety:
● Coast Guard-approved Personal Flotation Devices – starting at $15 for children, up to $150 for adults
● Throwable cushions – $15 to $30
● Fire extinguishers[A19] – $50 to $250
● Visual distress signal – $100 to $200
● Sound-producing device – $20 to $300
● Backfire flame arrestor – $100 to $300
Regularly inspect all safety gear and replace items that are damaged or outdated. Investing in quality safety equipment is vital to responsible boat ownership.
Optional Accessories
Fishing rods ($40 to $500), reels ($20 to $900), lures ($1 to $50), wakeboards ($300 to $400), water skis ($100 to $200), tow ropes ($20 to $80), GPS devices ($500 to $2,000), and sonar readings ($100 to $2,000) will enhance your overall boat experience.
You can spend hours fishing, enjoying water sports, and navigating local waters with ease.
Routine Maintenance and Repairs
Owning a boat also entails routine maintenance and repairs, which will help keep the vessel in top condition.
Annual Maintenance Tasks
Annual maintenance tasks help ensure longevity and maintain optimal performance. These include hull painting, deck cleaning, and sail replacements. As a general guideline, the cost of annual maintenance tasks should not exceed 10% of the boat’s purchase price.
By staying on top of these annual maintenance tasks, you can prevent more extensive and costly repairs in the future.
Repair Costs
Unexpected repair costs can vary widely depending on the nature of the issue and whether replacement parts are needed:
● Engine damage – up to $20,000
● Cable repair – up to $1,000
● Boat floor repair (fiberglass) – up to $15,000
Professional services also incur additional fees (project management an average of 6%, material markups around 10%, etc.) and labor costs (minimum $100 per hour).[A22]
Financing Options for Boat Ownership
Explore financing options to help make boat ownership more affordable. Dealer financing or bank loans can lighten the load. Your credit rating and boat type will affect the available options and payment plans.[A23]
You can choose one of the following:[A24]
● Dealer financing
● Bank loan
● Marine lender
Alternatives to Boat Ownership
If the costs of boat ownership seem overwhelming, you can still enjoy the boating lifestyle without the full financial commitment. These alternatives include boat clubs, rentals, and shared ownership programs.
Clubs like Freedom Boat Club, Nautical Boat Club, and Carefree Boat Club provide members access to a fleet of boats for a monthly fee ($200 to $700) and a one-time enrollment fee ($1,000 to $10,000).
Shared ownership programs like SeaNet and Monocle Yachts Worldwide enable multiple individuals to divide the cost of a boat and all related expenses (from 5% to 50%).[A25]
In Summary
Now that you know all about the costs of owning a boat, you can make the best decision for your wallet. You also have a springboard for further research: registration requirements in your area, insurance plans, and storage options.
If you decide to purchase a boat, you will need to know where to keep it when not in use. You can opt for boat slips in your area or browse Neighbor and other storage platforms. Ensure the safety of your investment in a secure location.
Frequently Asked Questions
How much does it cost to own a boat per year?
Owning a boat typically costs between $2,000 and $8,000 per year, with recreational boats usually falling within the range of $5,000 to $8,000. This includes the cost of maintenance, fuel, and insurance.
In addition to the financial costs, there are also time commitments associated with the care and maintenance of a boat.
Is owning a boat high maintenance?
Owning and maintaining a boat requires considerable time, money, and effort. It is up to you to decide if the investment is worth it in the long run.
How much does a boat cost?
Depending on the model, a new boat can cost $15,000 to over $100,000. Aside from the initial purchase price, it is essential to consider other expenses, such as fuel, maintenance, insurance, storage, etc.
How can I estimate my boat’s fuel efficiency?
Use online boat fuel calculators that take into account the size and engine type to provide an accurate estimate.
