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YOUR GUIDE TO BOAT INSURANCE

In partnership with Club Marine.

Buying a boat is the beginning of an exciting adventure, whether you’re new to boating, upgrading to a larger vessel or fulfilling a lifelong dream of owning a yacht and exploring Australia’s coastline.

But what should you consider when arranging insurance? How do insurance providers assess your boat, what affects the cost, and how do you choose the right cover?

We’ve partnered with Club Marine, Australia’s largest boat insurance provider, to help answer the questions boat owners ask most about boat insurance.

DO I NEED BOAT INSURANCE?

While boat insurance isn’t compulsory in every Australian state, boat owners typically choose to take out insurance to protect against risks associated with boat ownership and use. If you have a marine loan, your lender may require insurance as a condition of finance. Many marinas and mooring facilities may also require proof of insurance, particularly third-party liability cover, before allowing you to berth.

Even without these requirements, the financial risks of owning and operating a boat, from accidental damage and theft to liability for injury or damage to others, can be significant. Insurance helps cover these costs, so an unexpected event doesn’t become a major financial setback.

WHAT DOES BOAT INSURANCE COVER?

Depending on the policy, boat insurance can cover specified risks such as accidental damage, theft and liability. Cover may also extend to the engine, trailer, equipment and personal effects, subject to the policy’s terms, limits and exclusions.

Some policies may also include:

Towing and salvage: costs associated with towing your disabled vessel to the nearest safe port or salvaging it after an incident.
Personal effects and fishing equipment: cover for items on board such as clothing, electronics and fishing gear, up to specified limits.
Emergency assistance: access to 24-hour claims support and emergency coordination when you need help on the water.

DOES MY HOME INSURANCE COVER MY BOAT?

A common misconception. Whether a boat is covered under a home and contents insurance policy will depend on the terms of the specific policy. Some home insurance policies may provide limited cover for certain types of smaller watercraft in particular circumstances, such as when stored at home, while others may not provide cover on-water use, liability, or larger vessels. A dedicated boat insurance policy is designed to cover the specific risks associated with owning and operating a vessel.

HOW DO INSURANCE PROVIDERS ASSESS MY BOAT FOR INSURANCE?

When you’re looking to insure a boat, insurance providers generally assess two key factors: you as the boat owner and the boat itself.

Your boating experience, the vessel’s age and condition, where it’s stored or moored and how you intend to use it can all influence the availability and terms of cover.

Every insurance provider has its own underwriting criteria, so requirements and outcomes can vary.

DOES MY BOATING EXPERIENCE AFFECT INSURANCE?

Yes. Insurance providers may consider your boating history, the types of boats you’ve owned or operated and any relevant licenses or qualifications.

If your insurer determines that you lack the required experience before they can offer cover. Ask them:

What skills do you need for the boat you are insuring?
Can they recommend anyone to help you learn the skills to handle your boat?
Can they increase the excess until you gain the necessary experience?

DOES THE AGE OR CONDITION OF MY BOAT MATTER?

It can. Older boats may require additional information about their condition, maintenance or seaworthiness before an insurer can offer cover.

Consider arranging an independent out of water survey when buying a boat, particularly an older vessel. A qualified marine surveyor or shipwright can assess its condition and identify potential maintenance issues. Insurance providers may also request survey or inspection reports depending on the boat and their requirements.

Keep records of servicing, repairs and replacement parts, as these may be useful when arranging insurance.

DOES WHERE I KEEP MY BOAT AFFECT INSURANCE?

Yes. Insurance providers may consider whether your boat is stored at home, kept on a trailer, berthed at a marina or left on a swing mooring. The location’s exposure to severe weather, security and applicable mooring requirements may also be relevant.

If your boat is on a swing mooring, check whether your insurer requires regular servicing by a qualified mooring contractor and keep any relevant service records.

For sailing boats, the condition of the mast and rigging may also be assessed, with inspections or reports required in some circumstances.

WHAT AFFECTS THE COST OF BOAT INSURANCE?

The cost of boat insurance can depend on several factors, including:

The type, age and value of your boat

Engine details and insured equipment

Your boating experience and claims history

Where the boat is kept and how it is used

The cover, excess and options you choose

Agreed value or market value can also affect your cover. Agreed value is an amount agreed between you and your insurer when arranging or renewing your policy. Market value is based on what your boat is worth at the time of a loss, as assessed under the policy. Insurance policies can differ in terms of cover, exclusions, limits, excesses and claims support. When comparing policies, these features may be relevant factors to consider alongside price.

HOW CAN I SAVE ON BOAT INSURANCE?

There are a number of factors that may affect the cost of boat insurance. Depending on the insurer and policy, you may be able to reduce your premium by:

Adjust your excess: opting for a higher excess can reduce your premium but make sure you can afford the excess if you need to claim.

Add lay up to your policy: if your trailerable boat or jet ski isn’t in use for part of the year, adding a lay up period to your policy may help reduce your premium.

Purchase online: by purchasing or renewing your insurance online, you may receive a discount.

Review your policy annually: make sure your sum insured, equipment list and usage details are up to date to avoid paying for cover you don’t need.

For more ways to save on boat insurance, visit clubmarine.com.au/tipstosave.

WHAT INFORMATION DO I NEED TO GET A BOAT INSURANCE QUOTE?

Obtaining a boat insurance quote may be easier if you have certain information available. This may include:

Your boat details: Make, model, year, hull type, length and vessel identification details.
Value: The amount you’re seeking to insure the boat for, including relevant equipment and accessories.
Engine details: Engine make, model, year and power.
Ownership and experience: Your boating history and any relevant licenses or qualifications.
Storage and mooring details: Where the boat is kept and how it is secured.
Maintenance records: Service history, survey reports and details of significant repairs.
Intended use: How and where you plan to use the boat.

BIA acknowledges Club Marine as a supporter of Discover Boating Australia

Club Marine Insurance is underwritten by Allianz Australia Insurance Limited (Allianz) ABN 15 000 122 850 AFSL No. 234708, GPO Box 9870, Melbourne 3000. Club Marine Limited (Club Marine) ABN 12 007 588 347 AFSL No. 236916 issues this insurance and handles and settles claims as agent for the insurer Allianz Australia Insurance Limited. Club Marine does not provide advice based on any consideration of your objectives, financial situation or needs. Before making a decision, please consider Club Marine’s Product Disclosure Statement (PDS) and full terms and conditions. The PDS, Target Market Determination and full terms and conditions are available at clubmarine.com.au.