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I think that you "can" overpower a boat. The question is if you "should."

I was going to buy a 20 Outrage with a 250 e-tec. I called my insurance agent and he said there would be no issue in insuring it, even thought it exceeded the value listed on the capacity plate.

I don't think that the weight on the transom would be any issue. I have about 800 pounds on my 22 (twin 115's). I once heard that overpowering could put too much stress on the transom when you are moving.

In the grand scheme though -- 10 hp over probably means nothing.