Is Your Manitoba Boat Protected with Agreed or Cash Value?

Is Your Manitoba Boat Protected with Agreed Value or Actual Cash Value?

September 2, 2025

Should you choose agreed value or actual cash value to protect your Manitoba boat in case of a total loss when you’re buying boat insurance? Did you know? The age of your boat is a factor and can help determine whether you choose agreed value or actual cash value coverage.

You’ll need to understand the difference between agreed value and actual cash value and decide what coverage works best for you as a Manitoba boat owner.

What is agreed value when it comes to Manitoba boat insurance?

If you choose an agreed value policy, your Manitoba boat insurance provider agrees to honour the value of the boat at the time the boat policy was written. For example, you buy a new boat for $50,000 and you insure it for that value. That is the amount you will receive if you have a total loss.

Note that: Agreed value coverage is generally more expensive than actual cash value (ACV) coverage.

How does my Manitoba boat’s age figure in agreed value coverage?

There is usually a time limit for agreed value coverage. Agreed value boat insurance coverage typically ends when your Manitoba boat reaches 15-25 years old, but this can vary depending on the insurer and the specific boat. Check the specifics of your Manitoba boat insurance policy.

Find out whether your agreed value policy will remain as agreed value as your Manitoba boat ages or whether it will convert to actual cash value when your boat reaches a certain age.

What is actual cash value (ACV)?

Actual cash coverage covers you for the value of your Manitoba boat at the time of loss, less depreciation. An actual cash value policy provides less coverage than an agreed value policy, but generally at a lower cost.

How does my Manitoba boat’s age figure in actual cash value coverage?

Note that depreciation, damage, and wear and tear are factored into the actual cash value you will receive. As boats age, insurers are less likely to offer agreed value policies due to difficulty setting a fixed value, so ACV is sometimes the only option for boats 15 years or older.

Boat insurers in Manitoba may require a professional survey or inspection for boats older than 15 years to confirm their condition.

Comparing agreed value versus actual cash value in Manitoba boat insurance coverage

Pros of agreed value coverage for your boat

An agreed value policy gives you peace of mind because the limit that is on your boat insurance policy is the amount that you are insured for after a total loss.
Normally the value that is agreed upon will be the purchase price of your boat.
Parts are replaced with new-for-old without considering depreciation. That means the only amount you pay is your deductible.
An agreed value policy for your boat is more expensive than an actual cash value policy
An agreed value policy may have a specific age limit for your boat.
This kind of coverage isn’t usually available for sport and high-performance boats.
Actual cash value coverage is less expensive than agreed value coverage
As your boat ages, your marine insurance provider may insist on an actual cash value policy but it will cost less.
An actual cash value policy only pays up to the value of the boat at the time the boat was a total loss, factoring in depreciation, wear and tear, and current market conditions.
Actual cash value coverage may not offer sufficient coverage if your personal belongings are stolen or damaged on your boat.

Cons of agreed value coverage

An agreed value policy for your boat is more expensive than an actual cash value policy
An agreed value policy may have a specific age limit for your boat.
This kind of coverage isn’t usually available for sport and high-performance boats.

Pros of actual cash value for your boat

Actual cash value coverage is less expensive than agreed value coverage
As your boat ages, your marine insurance provider may insist on an actual cash value policy but it will cost less.

Cons of actual cash value

Note that older boats typically qualify only for actual cash value (ACV) policies when there’s a total loss. Agreed value coverage is usually for newer or very well-maintained boats in the case of a total loss.

What other factors influence the choice between actual cash value and agreed value for your Manitoba boat?

Age and value of your Manitoba boat

Older boats typically qualify only for ACV policies. Boat insurance providers can find it difficult to set a fixed value for older boats. As a result, ACV becomes the default for boats once they are 15 to 25 years old.

ACV policies pay out based on current market value, factoring in depreciation due to age, wear, and demand.

Agreed value policies pay a predetermined amount regardless of depreciation, which is attractive if you want predictable coverage or own a boat that does not depreciate in line with comparable models.

Marine survey

To get agreed value coverage, especially for older or high-value boats in Manitoba, insurers typically require a current marine survey to document the vessel’s condition and justify the agreed amount.

Upgrades and customization

If your Manitoba boat has significant upgrades or custom features, agreed value policies can better protect these improvements if documented and included in the insured value. ACV policies may not include the full worth of customizations unless specifically added and supported by valuation.

Risk tolerance

Choose ACV if you are comfortable with lower payouts and want to keep your boat insurance cost lower.

Choose agreed value for greater peace of mind in the event of a major loss.

Did you know? An all-risk boat policy provides comprehensive coverage for a wide range of potential losses, except those specifically excluded in the policy. Ask your Wyatt Dowling boat insurance expert about an all-risk boat policy.

In conclusion

The age of your Manitoba boat is a determining factor when choosing between agreed cash value (ACV) and agreed value in your boat insurance. Do your research to find your comfort limit when protecting your boat in the event of a total loss.

5 FAQs

How much does boat insurance cost in Manitoba?

Premiums for boat insurance vary based on the age, type, size, value, and condition of your boat. Your boating experience, claims history, and coverage that you want are also factors. Discounts may be available for boating safety courses.

Should I spend a lot of money on insuring an old boat?

Boats older than 15 years have significantly lower market values due to depreciation. With an Actual Cash Value (ACV) policy, your insurance payout in the event of a total loss will be capped at your boat’s current value, which is often quite modest for older vessels. But ACV coverage does cost less than agree value coverage.

If I have an old boat, should I even bother getting Manitoba boat insurance?

Even if your old boat has little market value, boat liability insurance can protect you financially if you accidentally injure someone, cause property damage, or create environmental hazards on the water. In many cases, Manitoba marinas or local regulations require a minimum level of liability coverage to dock, launch, or store your boat. Fire or theft can still cause unexpected expenses or inconveniences even if the boat is old. Insurance minimizes the risk of sudden large out-of-pocket expenses. Even for an old boat, it can provide peace of mind.

Why do old boats have value?

Generally, boats 25 years or older that have historical significance, rarity, craftsmanship, especially mahogany wooden boats, or distinctive features tend to retain or increase in value, especially when they are restored properly.

What makes classic wooden boats more valuable than fiberglass boats?

Classic wooden boats usually have more value than fiberglass ones primarily due to their aesthetic appeal, craftsmanship, rarity, and historical significance. A properly maintained wooden boat can last 60 to 100 years or more and retain its beauty and structural integrity, which contributes to its collectible status.