How Much Will Boat Insurance Cost Me in Australia

Whether you use your boat for business or personal recreation, it’s a considerable investment that needs to be insured against damage, Boat Insurance Cost Me in Australia. Typically, boat insurance can range from a couple of hundred to over a thousand dollars a year, depending on the size and value of your boat, as well as a number of other factors.

You will also come into the equation. Much like car average cost of boat insurance in uk, your age, credit score and boating history will also be considered. Unless you are in the market for a very expensive boat, you can usually expect boat insurance to range from $300 to $500. This is something you should consider before buying a boat, especially if you’ll be applying for boat finance and will have to manage those payments too.

If you’re looking to insure a recreational vessel, you’re probably wondering how much boat insurance is likely to set you back. Today, we’ll be sharing what is considered when pricing a Boat Insurance Cost Me in Australia, so you have a better understanding of what you’re likely to pay.

Boat insurance protects you financially if your boat is involved in an accident where property gets damaged or someone gets hurt. On average, boat insurance costs $200 to $500 a year—or around 1–5% of your boat’s value if you have a big, powerful or expensive boat.

Do I Really Need Boat Insurance?

That depends on your boat. A standard homeowners insurance policy will generally cover small, inexpensive watercraft like:

• Kayaks
• Canoes
• Jon boats
• Paddle boats
• Boats with low-powered engines (usually less than 25 horsepower or less than 25 mph maximum speeds)

You can also add a liability rider to your homeowners Boat Insurance Cost Me in Australia property damage or injuries if you get in an accident with another boater.

But homeowners policies won’t cover big, powerful boats. You’ll need boat insurance for:

• Charter Boats – Since your boat is your business, you may also need commercial insurance.
• Fishing Boats – including bass boats, fancy offshore rigs and everything in between
• Houseboats – Just like insuring a regular house, you need to insure your home on the water too.
• Personal Watercraft – Watercraft like jet skis are super fun, but they’re also risky—hence the insurance.
• Pontoons – Pontoons are where the party’s at! So make sure your boat and your passengers are protected.
• Sailboats – Activities like long distance travel, racing or historical reenactments require special coverage. Think of sailboats as the classic cars of the sea.
• Speedboats – Fast boats are at higher risk for accidents—which makes insurance a must.
• Yachts – Luxury vessels need insurance because they’re more valuable and travel farther than most other boats.

All these boats need insurance even if it isn’t required by state law. Why? Because if you’re uninsured, a boating accident can ruin your future—in more ways than one.

How Much Is Boat Insurance?

The average cost of boat insurance is $200 to $500 a year—although for a really big or expensive boat (like a yacht or sailboat), insurance can cost around 1–5% of the boat’s value. For example, you may pay about $2,500 a year to insure a $100,000 yacht.

But just like other insurance rates vary, boat insurance costs change depending on you and your boat.

What Factors Affect Boat Insurance Costs?

Many of the factors that affect car insurance rates also affect Boat Insurance Cost Me in Australia—but there are also some unique things to consider for watercraft.

Type of Boat

The more valuable a boat is, the more expensive it is to insure. For example, yacht insurance almost always costs more than pontoon insurance because yachts are more expensive.

Motor

High-powered watercraft are riskier, so insurance companies look at the type of motor (inboard or outboard, amount of horsepower and so on). Slow and steady usually wins the race to get low insurance rates!

Condition

To be considered in good condition, your boat must meet the U.S. Coast Guard safety standards from the time when it was built. Otherwise, you’ll pay higher premiums because of your boat’s outdated safety features.

Age

Your boat’s age matters—and so does yours.

Older boats are generally cheaper to insure, especially if they’ve only had one owner. You’ll probably also get better rates if you’re between 25 and 60 years old, because that’s when insurers think you’re the most responsible.

Uses

Fishing and floating are lower risk than towing water skis or wakeboards. If you use your boat for “risky” activities, your insurance company will charge you higher premiums to make up for the accident they expect you to have.

Frequency

Boating accidents almost always happen on the water (duh). So if you occasionally take your boat out, you’ll pay less than if you boat every weekend. That’s also why people who live up north typically pay less for boat insurance—the shorter boating season means less time for accidents.

Location

Speaking of where you live, you’ll pay higher premiums for boating in an area with hurricanes (on the ocean), squalls (in the Great Lakes) or other hazards. And you’ll pay less if you live in a state with no coastline. That’s because lakes and rivers are typically safer than the ocean.

Driving Record

You’ll likely get low rates if you’ve got a good driving record (aka no accidents, injuries or recent insurance claims in a boat or car). But your inexperienced teen or your reckless cousin who’s totaled three cars? Not so much.

What Boat Insurance Doesn’t Cover

One thing Boat Insurance Cost Me in Australia, home and auto insurance all have in common: They don’t cover every situation. Here’s what boat insurance doesn’t cover.

Normal Wear and Tear

Boats get old and wear out just like any other machine. So your insurer won’t pay for cosmetic or mechanical issues that come from normal use.

Faulty Machinery

While your insurance policy might cover a mechanical breakdown if it’s out of the ordinary, it won’t cover manufacturer defects or things that broke because you used them wrong or didn’t take care of them. (So you may want to clean out that clogged water pump now.)

Animal Damage

Animals can be a big boating hazard—literally. If a run-in with a dolphin, manatee or other marine animal damages your boat, your insurance policy most likely won’t cover it.

(By the way, it pays to know what animals live in your boating area so you don’t harm them, your boat or the environment.)

Infestations

Another animal that’s not covered? Mussels! These little guys can do major damage. But the insurance company won’t pay for it—or damage from insects, mold or other infestations. It’s smart to check your boat and remove any unwanted passengers.

Improper Storage and Transportation

Your boat falls off the trailer because you didn’t tie it down? Your “winter storage” is in the yard? Your insurance company will chalk those damages up to your careless behavior and make you pay the bill.

Accidents Beyond Your Navigational Limits

Your navigational limit is where you and the insurance company agree you can boat. Your insurance policy only covers you in that area. Sail outside of it, and you’re on your own.

Whether you use your boat for business or personal recreation, it’s a considerable investment that needs to be insured against damage, Boat Insurance Cost Me in Australia. Typically, boat insurance can range from a couple of hundred to over a thousand dollars a year, depending on the size and value of your boat, as well…