How much does boat insurance cost in Australia?

There isn't one reliable Australian price that tells you what boat insurance should cost.

A small trailer boat used close to shore can have very different insurance needs from a yacht kept on a mooring or a boat used for offshore cruising.

Insurers also price risks differently.

That makes broad averages less useful than comparing quotes using the details of your own boat.

What affects the cost of boat insurance?

Insurers can look at several things when working out the premium.

1. The type and value of your boat

A boat worth $20,000 presents a different potential cost to an insurer from one worth $300,000.

The type of craft can matter too.

This might include:

• motor boats
• sailing boats and yachts
• jet skis and PWC
• houseboats
• custom-built boats

The amount you insure the boat for can also affect the quote.

Depending on the policy, this may be an agreed value or a market value basis.

Our guide to agreed value vs market value for boat insurance explains the difference.

2. The age and construction

Insurers may ask when the boat was built and what it is made from.

A newer fibreglass runabout can be assessed differently from an older timber yacht or custom-built boat.

Age does not create one universal rule across the market.

Some insurers have specific limits. Others may ask for more information, photographs, a survey or a valuation.

If your boat is older, timber or heavily modified, our guide to boat insurance for older, timber or modified boats explains what providers may ask for.

3. Where the boat is kept

Insurers may ask where the boat is normally stored or moored.

That could include:

• at home on a trailer
• in a marina berth
• on a swing mooring
• in dry storage
• at a boat storage facility

The location and storage method can affect the risks an insurer is taking on.

Give the insurer the actual storage details rather than assuming one option will always be cheaper.

4. How you use the boat

A boat used for normal recreational trips can be different from one used for racing, liveaboard use or charter.

Tell the insurer how the boat is actually used.

Uses that can affect the quote or the cover available include:

• offshore cruising
• yacht racing
• living aboard
• charter or hire
• other commercial use

Some of these uses can also affect which providers will offer cover at all.

5. How far offshore you travel

Boat policies can have geographic or navigational limits.

The wider the cruising area, the more individual the underwriting can become.

A boat used around local waterways is different from a yacht travelling hundreds of nautical miles offshore or leaving Australia.

Read our guide to offshore cruising and boat insurance if you plan to travel further from the coast.

6. The cover and excess you choose

Your premium can change depending on what the policy covers and the excess you select.

A higher excess can sometimes reduce the premium, but you will need to pay more yourself if you make a claim.

Don't choose an excess just because it makes the quote look cheaper.

Make sure it is an amount you could comfortably pay.

7. Your claims history

Previous insurance claims can affect what you are quoted.

Insurers may also ask about your previous insurance history and other details about the owner or operators.

Give accurate information so the quote is based on the right risk.

Is boat insurance priced as a percentage of the boat's value?

There is no reliable market-wide percentage you can use to work out what boat insurance should cost.

You may see rules of thumb online that suggest boat insurance costs a set percentage of the boat's value.

The public insurer information we reviewed does not support one percentage that applies across Australia.

Current insurer documents show that pricing can consider a much wider range of factors, including the boat, its construction, storage, use, insured value, cover, excess and claims history.

A $100,000 boat can therefore receive a very different premium from another $100,000 boat.

Can you reduce the cost of boat insurance?

There may be ways to reduce the premium without simply cutting important cover.

It can be worth:

• comparing more than one provider
• checking the insured value
• reviewing the excess
• checking whether you still need optional cover
• making sure your storage details are up to date
• checking whether a lay-up option suits the way you use the boat
• reviewing the policy each year rather than automatically renewing

Some insurers offer lay-up arrangements for boats that are not used for part of the year.

These can restrict when or how the boat can be used, so treat them as a change in cover rather than a free discount.

Compare quotes on the same basis

Price alone does not tell you which quote offers more cover.

Before comparing two premiums, check:

• the insured value
• agreed value or market value
• the excess
• geographic limits
• racing cover if needed
• trailer and tender cover
• equipment and accessories
• salvage or emergency costs
• important exclusions
• optional benefits

A policy that costs less may also cover less.

What information should you have ready?

It helps to know:

• make and model
• year of manufacture
• approximate value
• hull construction
• engine details
• storage or mooring
• how the boat is used
• offshore cruising plans
• important modifications
• recent claims history

You may not need every detail at the start, but getting the basics right makes it easier to compare providers.

So, how much will your boat insurance cost?

It depends on your boat and how you use it.

There is no reliable Australian average that will tell every boat owner what they should expect to pay.

The most useful comparison is between quotes based on the same boat, insured value, excess and level of cover.