Compare boat insurance

What are the different types of boat insurance?

Third party property

This base-level policy covers you if you damage someone else's boat (or other property) 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.

Comprehensive

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.

What does boat insurance cover you for?

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

Additional cover options

• 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.

How much does boat insurance cost?

The cost of boat insurance varies widely, mostly depending on the type and value of your boat, where you keep it, and how you use it. As a rough guide, a small runabout or tinnie is far cheaper to insure than a large cabin cruiser or yacht.

• Tinnies and small runabouts: the cheapest to insure.
• Trailer boats and cabin cruisers: mid-range, depending on value and engine.
• Yachts and larger vessels: the most expensive, especially if they need a survey.
• Jet skis / PWC: priced separately, often available on the same policies.

The main things that affect your premium are the boat's value, its age and type, where it's moored or stored, your boating and claims history and the level of cover you choose. The best way to find your actual price is to compare quotes from a few insurers.

Our expert says

"Before you take out boat insurance, assess your needs. Maybe your boat is just a cheap runabout and all you're worried about is cover if you accidentally damage someone else's craft. Conversely, if you've got an expensive new electric boat which would be costly to repair, comprehensive cover makes sense. And remember to keep up your boat maintenance, as your claim might be denied if you don't."

Angus Kidman

Editor-at-large

How to find cheap boat insurance

Boat insurance doesn't have to break the bank. A few ways to keep the cost down:

• Use lay-up cover. If you only use your boat part of the year, lay-up cover reduces your premium for the months it's in storage.
• Store it securely. Keeping your boat in a locked shed, secure marina or on a lockable trailer can lower your premium.
• Increase your excess. A higher excess usually means a lower premium, as long as you could afford it if you claimed.
• Build boating experience. Some insurers offer better rates to experienced skippers with a clean claims history.
• Only pay for what you need. Skip add-ons like racing or water-skiing cover if they don't apply to you.
• Compare before you buy. Prices vary a lot between insurers, so get at least 3 to 5 quotes.

FAQs

• How much does boat insurance cost?

  The cost of boat insurance depends mostly on the type and value of your boat, where you keep it and how you use it. A small tinnie or runabout is much cheaper to insure than a large cabin cruiser or yacht. Your premium is also affected by the boat's age, where it's moored or stored, your boating and claims history and your level of cover. The best way to find your actual price is to compare quotes from a few insurers.

• Is boat insurance compulsory in Australia?

  No, boat insurance isn't legally required in Australia the way CTP is for cars. However, state authorities recommend it, and some marinas and mooring providers require you to have at least third party liability cover before they'll let you berth there. Even where it's optional, insurance protects you from what can be very expensive repair or liability costs.

• Does boat insurance cover jet skis?

  Often, yes. Many insurers cover personal watercraft (PWC) like jet skis, either under a boat policy or a separate PWC policy. Cover and pricing differ from standard boats, so check the product disclosure statement (PDS) to confirm your craft is included and what's covered.

• Does boat insurance cover the trailer?

  Sometimes. Some policies include cover for the trailer your boat sits on, while others offer it as an optional extra or not at all. If you tow your boat regularly, check whether the trailer is covered and up to what value, as it's easy to assume it's included when it isn't.

• What isn't covered by boat insurance?

  Exclusions vary between insurers, but common ones include wear and tear, gradual deterioration, damage from poor maintenance or an unseaworthy vessel and using the boat outside its agreed cruising area. Racing and water-skiing liability are also usually excluded unless you add them. Always read the PDS so you know what's not covered before you buy.

• Do I need insurance to keep my boat at a marina?

  Often, yes. Many marinas and mooring providers require boat owners to hold at least third party liability cover as a condition of berthing there, to protect against damage to other vessels or marina property. Check with your specific marina, as requirements vary.

• Does boat insurance cover me anywhere in Australia?

  Most policies set a "cruising range" or geographic limit, the area within which you're covered. This might be a particular state's waters, a set distance offshore or Australian coastal waters generally. If you plan to travel interstate or venture further offshore, check your policy's cruising range so you're not caught out.

To make sure you get accurate and helpful information, this guide has been edited by Angus Kidman as part of our fact-checking process.

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

Co-written by

Ceyda Erem

Senior writer

Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

Ceyda's expertise

Ceyda has written 188 Finder guides across topics including:

• Insurance