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Compare boat insurance

Compare boat insurance from popular providers. Find the best policy for your needs.

Youi Comprehensive

  • Accidental damage
  • Cover for storms, floods and theft
  • Up to $1,000 of cover for items
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Terms and conditions apply.

What you need to know

  • You can get boat insurance for all sorts of watercrafts including yachts, sail boats and houseboats.
  • Boat insurance is not a legal requirement but state governments recommend that you get it.
  • Only comprehensive boat insurance will cover damage to your own boat.
Name Product Accidental damage Fire & Theft Emergency Expenses Contents cover
Youi Comprehensive
Club Marine Boat Insurance
Club Marine Boat Insurance
Reasonable cost
$1,500 up to $10,000
CGU Boat Insurance
CGU Boat Insurance
Reasonable cost

What are the different types of boat insurance?


Third party property

This base-level policy covers you if you damage someone else's property, including other boats and comes with liability cover (if someone sues you). It doesn't cover damage to your own boat.


Third party fire and theft

This covers your boat against fire and theft plus damage to other people's property and liability – but storms, floods and hail are not included.

Sailing boat


This is the only type of insurance to cover damage to your own boat as well as others, plus lots of other risks including storms, floods and hail damage.

Third party insurance isn't compulsory for boats but it's recommended that you get some form of cover. If you don't take out insurance when you register the boat, you won't be covered for liability.

What does boat insurance cover you for?

Here are a few situations you may be covered for, depending on your level of insurance:

ScenarioComprehensiveThird party fire and theftThird party property
You crash your boat into someone's dock and now you need to cover the costs of the repair to the dock as well as repairs to your own boat.
Someone broke their leg on your boat. Your insurance could pay damages for the injury.
Someone steals your boat.
A flood overtakes your boat.
You're towing your boat and you damage it in a crash.

What additional cover options do you have?

In addition to basic cover, insurers offer a collection of other benefits that may be useful to you as a boat owner. Here are the most common:

  • Contents cover. Your typical cover doesn't protect your personal belongings. For an extra premium, you can get cover for personal items like clothing, fishing equipment, diving equipment, water sports equipment and electronics.
  • Lay-up cover. If you store your boat during certain seasons, you may be able to save on premiums while it's stored. With lay-up cover, you basically have 2 policies in 1: 1 for the timeframe you're using the boat and 1 for the timeframe you're storing it. You'll be charged a little more upfront, but you'll save on your premiums in the long run.
  • Racing cover (sailboats only). Basic boat insurance doesn't cover you when you're racing. The sailboat racing option expands your cover to protect you when you're racing in an organised event.
  • Water skiing liability. A basic boat insurance policy won't cover you if you're towing a water skier and that's what caused the damage or injury. With the water skier's liability option, you're covered for injuries to the water skier and for any damage caused to others as a result of this activity.

What types of boats can you get covered?

There are a lot of different types of boats and they all have different insurance options. Here are a few of the most common:

  • Yachts. These high-value boats get a lot of use and usually have a lot of luxuries on board. They'll often require a customised boat insurance policy. It's possible that some very high-value yachts are too expensive for normal insurers to cover.
  • Powerboats. This is a broad category that includes many motorised boats such as cruisers, runabouts and even some smaller yachts. Most boating enthusiasts will have a boat that falls into this category and will have plenty of boat insurance options.
  • Sailboats. This is the only type insurers will offer racing insurance for, usually as an add-on.
  • Personal watercraft (PWC). This category includes jetskis, aqua bikes and other small motorised vessels.
  • House boats. You may need to find a dedicated marine insurance company to find a policy shaped specifically to your needs.

What should you look out for when choosing your policy?

Number 1

Is your boat in insurable condition?

Most policies will require that you pay for a marine survey to show that the boat is seaworthy and in good working order. This includes keeping your boat and moorings in good working order.

Number 2

What value do you want insured?

You sometimes have 2 choices for insuring your watercraft: agreed value or market value. Market value means the reasonable and expected cost of replacing the boat at the time of the incident. This is what's most commonly offered. Agreed value refers to the price of your boat that has been agreed between you and your insurer (and is sometimes more appropriate for expensive boats).

Number 3

How far can you take your boat from land?

Most policies have a geographical limit (how far you can take your vessel from land) of 200 nautical miles from Australia's shores. You're covered if you stay within that range, but not if you sail beyond it.

Number 4

Will you be towing your boat?

If your boat is damaged while being transported on a trailer, some boat insurance policies may not cover you – but car insurance probably will, at least for liability. If you're not sure, ask the insurer directly.

Before you take out boat insurance, ask yourself what you really need. Maybe your boat isn't worth a whole lot and all you want is a policy that covers you in case you damage someone else's boat. Otherwise, it's probably worth getting comprehensive cover. Regardless of what you get, make sure you follow the correct safety and maintenance rules. If you don't, there's a risk that any claims you make will be denied.

How much does boat insurance cost?

The cost of boat insurance will vary from person to person and boat to boat. When calculating your premiums, insurers will take the following into consideration:

  • The type of boat you have
  • What materials your boat is made of
  • Where you store/dock the boat
  • Your boat's hull length
  • How much you want to insure the boat for
  • Your boat's maximum speed
  • What cover options you want to add
  • Whether or not the boat is paid off

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