Are you considering taking to the waves or upgrading your current boat? Besides the costs of the actual boat and running it, one of the biggest things you will have to consider is the cost of boat insurance.
Whether you have a rowing boat or a yacht, every boat owner needs to ensure that they have the cover that they need to protect themselves, their crew, their ship, and other traffic!
In this guide, we’ll break down how much boat insurance costs in the UK, what affects the price, and real-world examples so you know what to expect before getting a quote.
How Much Does Boat Insurance Cost on Average?
In some ways, boat insurance is like any other kind of insurance in that the price depends on the size of the boat, its age, where it is (where it is moored, to be exact), and on you, the owner.
Do you have any experience owning and driving a boat? What are your previous boat insurance claims, if you have any? Are you a licensed driver?
The price of boat insurance also very much depends on the kind of boat insurance policy that you are looking for.
Given that boat insurance is not a legal requirement in the UK, there are some boat owners who assume that it isn’t necessary.
However, it is essential to note that certain marinas will not allow you to moor your boat without insurance and that in order to use your boat on the British waterways, you will need coverage of some form or other.
Now, while third-party cover is excellent, it will not cover everything, which is why having fully comprehensive boat insurance is always the wisest idea.
Now, we can practically hear you thinking that something like a fully comprehensive cover will cost a fortune! Thankfully, it doesn’t have to – keep reading, and we’ll show you why.
Are Boats Expensive to Insure?
On the whole, no – but that all depends on a few basics. Generally speaking, smaller boats such as dinghies can cost anything from around £100 a year to insure, whereas bigger boats such as yachts or speed boats can cost a lot more.
However, there are ways that you can reduce the cost of your boat insurance. For example:
Get your licence: While having a boat licence isn’t always necessary, it helps to reduce the cost of insurance policies. Put yourself in the shoes of the insurance companies – if they have to insure a boat owner who has no experience sailing or driving a boat, then they are statistically more likely to have a boating accident with it. Therefore, by providing the necessary proof that you do indeed have experience commanding a boat of that size and that you have been qualified to do so, your boat insurance quotes will be significantly lower.
Get safety equipment: One way of lowering your rates is by proving that you are at a lower risk. Preparing your vessel for any eventuality, be it for fires, equipment failures, lifejackets, lifeboats, etc., your insurance policy is bound to be cheaper.
Consider using the same company as the one you use for your home and auto insurance: You may find that the insurance company that you already use for your car insurance, homeowners insurance or others can offer you good insurance cover for your boat at a lower rate. However, the coverage may be limited so you will likely receive better coverage from a specialist boat insurer.
Compare boat insurers: The best way of ensuring that you are getting the best policy possible is by comparing as many marine insurance companies as possible.
What Are You Paying for When You Insure a Boat?
Of course, what you will be paying for exactly with your boat insurance depends on the policy basics. However, here are a few things that you should expect to see if you get boat insurance:
Third-party cover: The first thing that you should really look at is third-party insurance – as discussed. In many cases, boat owners choose to only have this as it covers something that none of us can control – third parties on the water. Third-party liability insurance covers you, your crew, and the guests on your boat should any injuries, damages or even death be caused by a third party.
Fully comprehensive boat insurance: As the name suggests, fully comprehensive boat insurance covers most things, including things that we simply cannot control, such as theft, vandalism, third-party fire, property damage, sinking, and even weather-related damage.
Medical expenses: Some insurance policies do indeed include cover for medical bills induced from accidents caused onboard that could hurt you, your crew, or your guests.
Example Costs of Boat Insurance
As mentioned, defining exactly how much you will have to pay for boat insurance will vary depending on a few factors.
However, there are, of course, certain averages that can help you to better understand how much you are potentially looking at when it comes to insuring your vessel.
Below are average UK boat insurance costs based on fully comprehensive policies (prices may vary depending on the insurer, boat type, and owner profile):
Yachts: Fully comprehensive insurance averages £380+ per year.
Catamarans: Around £480+ per year.
Speedboats: Approximately £340 per year.
Houseboats: Houseboats tend to cost less to insure, roughly £260 per year.
Registered Address 5 Market Yard Mew, 194-204 Bermondsey Street, London SE1 3TQ. Authorised and regulated by the Financial Conduct Authority. Registered in England. No. 3484670. Velos Insurance Services Ltd is a member of BIBA (British Insurance Brokers Association)
