Boat Insurance 101: What You Need to Know Before You Buy

Boat Insurance 101: What You Need to Know Before You Buy
Marine insurance

Thinking about insurance for your watercraft?


A boat is a significant investment and can be even more expensive than a home or car. Not to mention the risks and costs of being on the water. This is why it is important to make sure you have adequate cover.

A reliable boat insurance policy should cover your boat on and off the water. Therefore, it is important to have the right coverage.

As boat enthusiasts are people after our own hearts, we created this guide to help boat owners learn more about boat insurance and choose the best policy.


What is Boat Insurance?


As you may have guessed, boat insurance covers damage to your vessel. Different types of boat insurance have different features. Some even cover damage your boat causes to other people’s property. It’s important to have protection in case you come across any of the 1 million registered boats in Australia.


Do You Need Boat Insurance?


This is a great question. A boat owner should consider getting boat insurance. Even if you do not plan to take your boat on the water for any reason, it should be insured against accidental damage, fire, theft, and natural disasters.


What Does Boat Insurance Cover Me For?


The type of boat coverage you have will affect what you are covered for. In a nutshell, these are their details:


Comprehensive Boat Insurance


This policy provides boat insurance that covers damage to your vessel as well as damage done by others. Comprehensive boat insurance covers you for a variety of events, such as fire, theft, and storms. It usually covers the boat regardless of whether it is on water or land.

Some policies provide a New for Old Replacement benefit (for boats under a certain age), and often there are benefits for towing costs following an accident or rescue services.

For those months that you don’t use your watercraft, your premium may be reduced by having layup coverage. Lay-Up covers your boat at your storage address on-land for insured for fire and theft. This means you won’t have to pay for coverage you don’t need when the watercraft isn’t in use.


Liability Insurance for Boats


Your liability insurance covers the damage to other property including other boats or injuries causes to others through the use of your boat.. If you are sued for something under your cover, like a boating accident, liability insurance will also cover your legal fees.


Medical Payments Coverage


Medical payment coverage covers you if you are hurt in a boating accident.




If your boat causes damage as a result of pollution such as suddenly releasing fuel or lubricants, you could held responsible for some heavy clean up costs. A comprehensive insurance policy should cover you in this event.


Check what’s automatically included and what you might need to specify


May policies will throw in automatic insurance cover for your sporting equipment and personal effects up to a certain individual value or overall value. This is great and adds a great deal of value to your policy. Check these amounts and consider whether you need to increase these amounts to cover you more expensive items and whether the insurer you are considering agrees to include them.

The amount you receive for a boat insurance claim will depend on several factors, including your deductibles and limits. Also, it depends on whether your policy is an agreed value or market value policy.


What Does Boat Insurance Not Cover?


Exclusions will be included in all boat insurance policies. These are some of the most common exclusions:

  • Wear and tear
  • Faulty boat design
  • Manufacturer defects
  • Corrosion
  • Mould damage
  • Bug destruction
  • Aquatic life and creatures can cause damage


How Much Does Boat Insurance Cost?


The cost of boat insurance can vary. The premium that you pay for your policy will depend on several factors. Here are some of the most common:

  • Type of boat that you need covered
  • The age and condition of your boat
  • Dimensions of your boat
  • Value of your boat
  • The location where the boat will be used
  • You can choose the coverage level and deductible you want


Shopping Tips


When searching for boat insurance, the most important thing to remember is that it’s a specialty coverage.

  • Make sure to do your research so you can find the right policy for you. There are many options, but you will find one that is tailored to your needs and that suits the needs of your vessel.
  • Ask questions! And ask lots of questions! It is important to know what you are getting into when you purchase an insurance policy.
  • You should be familiar with your policy and its contents. Also, ensure that you have researched the history of the insurance company you choose to provide the coverage you need.


Coast Insurance is Here to Help


Contact one of our specialist pleasure craft insurers for an obligation free quote today. head here.

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