Compare boat insurance
Compare the features of 20+ boat insurance policies to see which one will keep you afloat.
Key takeaways
- You can get boat insurance for all sorts of watercraft including yachts, sail boats and houseboats.
- Boat insurance is not a compulsory legal requirement but state governments recommend that you get it.
- Only comprehensive boat insurance will cover damage to your own boat.
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.
Why don't boats have CTP?
There is no compulsory third party insurance for boats like there is for cars. When you're on the road with your boat, you're covered by the CTP of the car that's towing the boat. However, once your boat is detached from the car, you won't be covered at all. That's why it's sensible to take out some form of insurance to protect you.[/important_text]
What does boat insurance cover you for?
Here are a few situations you may be covered for, depending on your level of insurance:
| Scenario | Comprehensive | Third party fire and theft | Third party property |
|---|---|---|---|
| You crash your boat into someone's dock and now you need to cover the costs of the repair to the dock. | ✅ | ✅ | ✅ |
| Someone steals your boat. | ✅ | ✅ | ❌ |
| You crash into something at sea and your boat is destroyed. | ✅ | ❌ | ❌ |
"I was looking for insurance for my Top Hat 25. It's an older yacht so I didn't want an insurance provider that required a survey. I landed on Top Sail Insurance. Not only did they not require a survey but they offered a great rate. It was perfect for my needs. "
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.
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."
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