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Summer arrives fast in Northern Michigan, and nowhere does it arrive more spectacularly than on Grand Traverse Bay. With the National Cherry Festival's 100th anniversary celebration kicking off July 4th, the bay is going to be as busy as it's been in generations — sailboats, pontoons, fishing rigs, personal watercraft, and everything in between sharing one of the most beautiful stretches of freshwater in the country.
It's also one of the most common times of year we hear from local boaters who assumed they were covered — and discovered they weren't.
Here's the thing most Michigan drivers don't know: your auto insurance doesn't cover your boat.
Michigan's No-Fault auto insurance law, which is among the most comprehensive in the country for vehicle accidents, does not extend to watercraft. Your car, your truck, even your camper — your auto policy touches all of that. But the moment your boat leaves the trailer and hits the water, you're in different territory entirely. If you're in an accident on the bay, collide with another vessel, or someone is injured aboard your boat, your auto policy won't respond.
For many families, a boat is one of the most significant assets they own — and one of the most uninsured.
What boat insurance actually covers
A dedicated watercraft or boat insurance policy is built for the specific risks you face on the water. Depending on the policy and the type of watercraft, coverage can include:
- Liability — if someone is injured on your boat or you cause damage to another vessel or dock, liability coverage responds. This is the piece most people overlook until they need it.
- Physical damage (hull coverage) — covers your boat itself against collision, fire, theft, vandalism, and weather damage.
- Medical payments — covers medical expenses for you and your passengers after an on-water accident, regardless of fault.
- Uninsured/underinsured watercraft — Michigan waters are full of vessels that carry little or no insurance. This coverage protects you if one of them hits yours.
- Towing and assistance — if you're stranded on the water, this covers the cost of getting back to the dock.
Coverage availability and terms vary based on the type of watercraft, how it's used, where it's operated, and other factors — your dedicated TOMI agent can walk through what applies to your situation.
What about a homeowners policy?
Some homeowners policies include limited liability for small, low-horsepower watercraft — typically under 25 horsepower. But most of the boats we see on Grand Traverse Bay, Burt Lake, Mullett Lake, Black Lake, and Lake Huron far exceed that threshold. Even where a homeowners policy offers some coverage, it typically caps out well below the exposure a serious on-water accident can create.
If you're not certain what your homeowners policy covers, it's worth a conversation before you're at the boat launch on the Fourth of July.
Northern Michigan's waters deserve Northern Michigan's attention
The Great Lakes have recorded 23 drowning fatalities so far this season. The combination of cold water temperatures, unpredictable weather, and heavy holiday traffic on the bay makes this one of the highest-risk periods of the summer for recreational boating. That's not a reason to stay off the water — it's a reason to be prepared.
At TOMI, we've been helping Northern Michigan families protect what matters most since 1974. Our team has offices in Traverse City, Petoskey, Gaylord, Alpena, Hillman, Oscoda, Iron River, and Mio — so when you have a question or need to make a claim, you're talking to a neighbor, not a call center.
Whether you're launching a pontoon for the Cherry Festival fireworks cruise, fishing the Straits, or spending the summer on Higgins Lake, we'd be glad to take a look at your current coverage and make sure nothing falls through the gaps.
Give us a call at 800-686-8664 or stop by your nearest TOMI office. Boat insurance is typically very affordable — the harder part is remembering to get it before you need it.
Coverage is subject to underwriting approval, policy terms, and conditions. Contact a TOMI agent for information specific to your watercraft and situation.