The Best Boat Insurance For Australians

It might not be surprising that Australians are fond of taking boats out on the water, considering that 87% of the population resides within 50km of the coast. According to data from the Boating Industry Association for 2022/23, 2.5 million Australians possess a boat license, which equates to nearly 10% of the population.

Given that a boat represents a significant investment, it is advisable to safeguard it similarly to your car by acquiring the best boat insurance policy to suit your demand. Boat insurance can provide comparable benefits to car insurance, including coverage for damage to the boat itself and its contents and legal liability in case you cause damage to someone else’s property or if someone is injured or killed due to an accident, you are responsible for.

Moreover, boat insurance offers additional coverage specific to boats, such as compensation for environmental damage from oil, fuel, or waste leaks. Many policies also include sailboat racing and waterskiing coverage, usually available as optional extras for an additional premium.

Since policy features vary, it is crucial to compare them to determine the most suitable coverage at a reasonable price. You must first decide whether you require third-party only, third-party, fire and theft, or comprehensive coverage, which offers protection against a wide range of potential risks. We have extensively researched the latter to identify what we believe are the best comprehensive policies, including coverage for loss or damage to your boat due to storms, floods, fire, and theft.

Boat insurance covers safeguard individuals utilizing various vessels, such as motorboats, yachts, small crafts, or super yachts, as implied by its name. An insurance provider can provide specific details regarding the types of vessels covered under their policies. Similar to automobile insurance, there are several options available for boat cover:

Third-party only: This type of coverage protects against passenger or other third-party claims for injury, death, or property damage.
2. Third-party, fire, and theft: Besides the protection offered by a third-party-only policy, this coverage also includes theft of your boat and damage caused by fire.
3. Comprehensive: This type of coverage offers the broadest range of protection, encompassing unexpected emergencies such as theft, accidents, and natural disasters.

What is included in a boat insurance policy?

The benefits of boat insurance can vary depending on the policies. Nevertheless, most comprehensive policies typically provide coverage for the following:

Accidental loss and damage: This includes protection against theft, impact, sinking, fire, storms, malicious damage, and transit damage when your boat is transported on its trailer.
Emergency expenses: This covers the cost of emergency assistance, such as towing your boat to the nearest safe location or delivering fuel if your boat becomes stranded due to an unforeseen incident. It may also cover urgent repairs.
Personal effects/contents: This insures you against theft, loss, or damage to belongings owned by you and, depending on the insurer, your passengers. These belongings must be used or stored on your boat during the incident. Examples include clothing, fishing and diving equipment, and unfixed furniture. However, certain items like jewelry, money, and mobile phones may be excluded from this coverage. Additionally, there may be sub-limits on coverage for specific items.
Clean-up: This coverage pays for removing, containing, or clearing waste and pollution caused by your boat.
Salvage and removal: If your boat becomes stranded or damaged in a covered incident, this coverage pays for the cost of recovering your boat and moving it to a safe location.
Legal liability: This coverage protects you against injury to other people or damage to someone’s property while using your boat.
Funeral expenses: In the unfortunate event of the accidental death of an insured person while boating, this coverage provides a payout for funeral expenses.

Additionally, a policy may offer coverage for rescuing from a stranded boat. Insurance for sailboat racing and waterskiing may also be available as optional extras that can be added to your policy for an additional cost.

What Boat Insurance Does Not Cover

The following are common exclusions found in boat insurance policies:

Normal wear and tear
2. Gradual deterioration
3. Rot
4. Corrosion
5. Weathering
6. Damage caused by vermin, insects, marine life, and other animals
7. Mechanical breakdown
8. Electrical breakdown
9. Structural breakdown
10. Overheating or galvanic action
11. Ice or freezing
12. Mold or mildew
13. Marring, scratching, or denting
14. Blistering or delamination
15. Incomplete, improper, or faulty repair, maintenance, or renovation
16. Intentional acts, such as deliberate boat damage.

Boat Insurance Coverage Options

Boat insurance offers various coverage types to assist in different situations, similar to car insurance.

Property Coverage for Boats

Boat property coverage safeguards against theft and damage from an accident or sinking, whether the boat is on land or water.

You can choose between actual cash, agreed value or replacement cost coverage if your boat is totaled or stolen. The coverage choice impacts your expenses and determines the amount the insurance company will pay when you file a claim later.

Liability Insurance for Boats

In the event your boat causes damage to someone else’s property, like another boat, or causes injury during an accident, your liability insurance covers their damages. It can also address issues caused by your watercraft to others, such as a significant wake. Liability insurance also covers your legal expenses if you face a lawsuit related to a covered problem, such as a boating accident.

Medical Payments Coverage

Medical payments coverage covers your medical bills if you or your passengers sustain injuries in a boating accident.

Uninsured Watercraft Coverage

If an uninsured boater collides with your boat, uninsured watercraft coverage handles your medical expenses.

Boat Insurance Add-Ons

As a boat owner, you might need to acquire additional insurance for items like:

– Boat trailers
– Towing
– Special equipment, such as fishing gear
– Boating accessories like radar
– Dock contract liability
– Fishing guide coverage
– Ice and freezing coverage
– Mechanical breakdown
– Personal property
It’s also crucial to explore coverage for fuel spills or wreckage removal in case of a water accident.

What other factors should I consider when evaluating different boat insurance plans?

In addition to the types of cover provided by a policy, it is important to determine the distance you can travel from the coast with your boat. Typically, you can sail up to 200 nautical miles away from Australia’s coastline without affecting your policy. Some insurers may allow for a greater distance. It is also advisable to check if you can select the repairer in case of damage or if the insurer will choose for you.

Certain policies may offer a lay-up discount, which is often an additional option. This discount allows you to specify certain months of the year when your boat will not be in use, resulting in a lower premium during those times. It is worth considering this discount along with the policy premium. Additionally, you should consider the excess amount you must pay for each claim. This amount is typically deducted automatically from the claim. When purchasing your policy, you may choose to adjust the excess amount. While reducing the excess may increase your premium, paying a higher excess could lower your premium to a more desirable level.

What is the difference between Agreed Value and Market Value?

Most insurance companies provide policies based on either agreed or market value. Nevertheless, a few insurers might give you the choice between insuring at the agreed value or market value, depending on your personal preference, although this is uncommon.

Under an agreed value policy, the value is established through a boat valuation that you organize before the commencement of the policy. This valuation is usually conducted by a certified boat dealer or broker specializing in your boat type.

With a market value policy, your boat’s value will be determined when making a claim, typically utilizing valuations from dealers or repairers or information from industry publications.

Is it possible for me to Terminate my Policy?

Carefully review the Product Disclosure Statement (PDS) of a policy before deciding whether to purchase it. This document should be accessible on the insurer’s official website. It will outline what is covered and what is not, as these terms can vary between policies.

Insurers commonly provide a 21-day cooling-off period, allowing you to cancel the policy and receive a refund if you change your mind and have not made a claim. Some policies may have a shorter cooling-off period of 20 or even 14 days. To find out the exact duration of this period, refer to your policy PDS.

What is the Process for Comparing Boat Insurance Policies?

It is advisable to compare boat insurance policies quickly by obtaining quotes from various insurers’ websites. Shopping around increases the likelihood of finding a suitable policy at the most competitive price.

As well as considering the cost of the policy, you can evaluate factors like the extent of coverage provided, different cover levels, and the excess amount applicable to each claim you file.

First, you must input details into the insurer’s online quoting tool. This information should include details about the type of boat requiring coverage, its usage, speed, engine type, storage location when not used, and more. Additionally, insurers will inquire about your personal details, such as age and boating experience.

How to Find the Best Boat Insurance

When comparing boat insurance prices, it is important to note that different insurance companies offer varying rates. To secure the best price for boat insurance, it is recommended to obtain quotes from multiple insurance providers. While some companies offer free online quotes on their websites, others may require you to contact them directly or reach out to an independent insurance agent.

In addition to comparing prices, it is advisable to inquire about potential discounts that may be available, such as:

Multi-policy discount: Save money by bundling multiple policies, like boat and car insurance, with the same insurer.
2. Boat safety discount: Qualify for a discount by completing an approved boater safety course.
3. Diesel-powered boat discount: Diesel boats are often considered safer than gasoline-powered boats, resulting in potential savings.
4. Boat safety features discount: If your boat has safety features like fire suppression systems and Coast Guard-approved fire extinguishers, you may be eligible for a discount.
5. Payment discounts: Consider options like paying your annual premium in full, opting for paperless billing, or enrolling in auto-pay to potentially save money.
6. Claims-free discount: Some insurance companies offer discounts to policyholders who have not filed any claims in the previous two years.

The Best Boat Insurance For Australians

Top Choice: Nautilus Marine Boat Insurance

This policy provides extensive coverage, extending up to 250 nautical miles from the Australian coastline for your boat. Unlike typical boat insurance plans, you can choose between insuring your boat at market or agreed value.

This policy includes $5,000 for emergency and funeral expenses, $20,000 for personal effects, $500,000 for marine damage, and $50,000 for related fines and penalties. You also have the freedom to select a repairer for your boat in case of damage rather than having the insurer decide. Moreover, you can decide on the excess amount for accepted claims, impacting the policy premium to your advantage. This policy stands out as it automatically covers sailboat racing, with a limit of up to 100 nautical miles. Additional coverage can be purchased for longer races. Please note that while legal liability cover is included, the limit is unspecified.

In addition to the comprehensive coverage, this insurer offers third-party-only, extended blue water yacht racing and blue water cruising policies.

Advantages

Discount for lay-up period offered
The 21-day period for cooling off
Coverage provided at market value or agreed value

Disadvantages

No assistance for rescue
No coverage for salvage
Repairs are covered only at market value, limited to ‘reasonable’ costs.

Second best: GIO Boat Insurance

Boat insurance commonly covers up to 200 nautical miles off Australia’s shores, with salvage and removal cover up to $10 million, a relatively high amount compared to other insurers. Additionally, it provides $250,000 for pollution damage removal or containment, along with legal costs, and $5,000 for emergency repair, contents, and fatal injury. Unlike some policies, it includes rescue coverage up to $5,000. However, the drawback is that the boat can only be insured at an agreed value. Optional extras like lay-up discounts, sailboat racing, and watersports cover can be added. In the event of a successful claim, you can choose the repairer and select the excess amount when taking out the policy. Opting for a lower excess amount usually results in a higher premium, and vice versa. This insurer also offers third-party boat insurance as an alternative to comprehensive cover.

Advantages:
– Offers a substantial $10 million legal liability coverage.
– Provides a 21-day cooling-off period for customers to reconsider their insurance purchase.
– Rescue cover is included in the policy.

Disadvantages:
– Ensures items at an agreed value, limiting flexibility in coverage options.

Third place: RACV Boat Insurance

This insurance policy covers emergency expenses up to $5,000 and damages up to the agreed value as long as your boat remains within 200 nautical miles of Australia’s coastline. It includes rescue coverage up to $5,000 and salvage costs deemed ‘reasonable.’ Additionally, $250,000 is allocated for clean-up expenses to address debris and liquid resulting from an insured event. Funeral expenses are covered up to $10,000, with legal liability cover set at $10 million. The content cover is available as an optional extra. Sailboat racing and watersports insurance can be added for an additional premium. You can choose your repairer and determine the excess amount for each claim. Please note that this insurer exclusively offers this comprehensive boat insurance policy.

Advantages:

– $10 million in legal liability coverage
– 21-day cooling-off period
– $250,000 for clean-up costs

Disadvantages:

– Insurance at agreed value exclusively
– Only covers ‘reasonable’ salvage costs
– Contents cover is not automatically provided.

4th place: Suncorp Boat Insurance

Suncorp’s boat insurance provides a range of appealing features. These include $10 million in salvage and removal, equal legal liability cover, $250,000 for pollution by oil, fuel, or waste, and $5,000 each for emergency expenses, the boat’s contents, and fatal injury.

The policy is valid up to 200 nautical miles from Australia’s shores, ensuring your boat at an agreed value and paying out up to this value for rescue operations. Only the insurer can select a repairer for damage. However, when you first purchase the policy, you can choose the excess amount for accepted claims. Opting for a higher excess can reduce your premium, while a lower excess will increase it.

Additional coverage for sailboat racing and water skiing is available at an extra cost. This insurer also offers third-party coverage as an alternative to comprehensive coverage.

Advantages:

– $10 million legal liability
– 21-day cooling-off period
– Rescue cover included

Disadvantages:

– Insures at an agreed value only
– No choice of repairer.

5th place: NRMA Boat Insurance

This policy will cover your boat up to 200 nautical miles from Australia’s coastline, covering ‘reasonable’ repair costs up to an agreed value only. However, it allows you to choose a repairer if you wish and offers several excess options when taking out the policy. Paying a higher excess on accepted claims can lower the policy premium and vice versa.

The policy also includes salvage cover, though no specific limit is available, and $10 million in legal liability cover, including $250,000 for clean-up costs. It also offers $10,000 for funeral costs, up to $800 for emergency repairs, and an additional $1,000 to cover emergency transport and accommodation. There’s $1,000 to cover the boat’s contents, which is relatively low compared to other insurers, but there is the option to increase this amount to $1,500 by paying an additional premium.

This policy does not cover rescue, but sailboat racing and water skiing insurance are available at an additional cost. This insurer also provides third-party insurance as an alternative to its comprehensive offering.

Advantages:

$10 million legal liability
21-day cooling period
$250,000 clean-up costs

Disadvantages:

Insures at an agreed value only
$800 only for emergency repairs
No rescue cover

How Much Does Boat Insurance Cost?

According to Trusted Choice, an industry group for independent insurance agents, boat insurance typically costs between $200 and $500 annually.

Conclusion

Boat insurance protects one of your most expensive possessions and gives you peace of mind when out on the water. When selecting a policy, don’t forget to compare all the fine print and see which companies offer the best discounts and other perks to help you get the most bang for your buck.