What Does Third-Party Boat Insurance Cover in the UK

If you are looking at boat insurance, then you’ve likely come across third-party liability insurance. Even though boat insurance is not a legal requirement in the UK, it is highly recommended, – as many marinas will not accept your boat without at least some form of cover.

At the absolute least, third-party liability insurance is a wise idea. With more and more insurance claims being made every day, it is always best to ensure that your vessel is protected.

What is third-party liability insurance, and how does it work?

Third-party liability insurance covers you if there is any damage caused to other boats. This type of boat insurance policy should also cover you if the damage caused any physical harm. It will cover the boat owner, crew, and even guests. In total, it will cover:

• Injuries to the third party
• Damages to them and/or their vessel
• Death to the third party

So, what doesn’t third party insurance cover, and what affects the cost of the insurance?

What Is Excluded from Third Party Boat Insurance?

Even though third-party cover does protect a great deal, naturally, there are certain things that are excluded from the insurance, and that will render the damage uncovered.

For example, even though the policy covers damage to a third party, that only means accidental damage. If it is proven that the cause of the problem was due to malicious damage, then the claims will not be valid or authorised.

Similarly, if it is proven that the damage was caused by wilful misconduct, then the insurance will not cover the damage costs.

Unlike other boat insurance policies (such as fully comprehensive), third-party insurance will not cover fire or theft. In order to have those covered, you will need to pay for an additional premium.

Given that fires and theft are more common in cars (and so are generally covered in car insurance), many boat owners do not see the point in having fire and theft covered on their boats, especially as they are not required in most marinas. The choice is yours, of course.

What Factors Affect the Cost of Third-Party Boat Insurance?

From the get-go, it is essential to understand that in order to find the best deals for third party insurance, you will need to compare boat insurance from company to company.

However, there are a few common points for most companies that will affect the cost of your insurance, such as:

Your on-board equipment

Having reliable, present safety equipment on your boat can significantly help you reduce the cost of your boat insurance. Things such as GPS, depth finders, radar, etc, will help to better protect yourself and others aboard your ship, as well as protecting those around you, which will in turn help to reduce the cost of your insurance.

Same-company deals

Sometimes, companies will offer a discount for clients who already have insurance policies with them, be they for cars or other vehicles, homes, etc. Therefore, it could be worth looking at your existing insurance company and enquiring about a discount for your third-party insurance policy.

No prior boat insurance claims

As is the case with car insurance, your rates will go up if you have a history of claims. If your boat insurance policies have not been previously claimed upon, then the chances are that your third-party boat insurance will be cheaper than it would be if you had.

Your age

Again, the same goes for certain car insurance companies, as your age can significantly impact your insurance policy rate. Generally speaking, the older you are, the more mature the company is likely to consider you to be. Therefore, they consider you to be more responsible and will, in turn, reduce your boat insurance costs.

Boating experience

Whether you have a licence or have previously owned a similarly sized or even bigger boat will help determine your boat insurance cost. Suppose you have no experience navigating a vessel or have never even owned one (or at least one of the same size or bigger than the one that you are insuring now), then the insurance company will likely give you a higher cost for your boat insurance.

Summary

Given that there is no compulsory insurance for a boat owner in the UK right now, it can be easy to assume that it’s not necessary. However, the benefits that come with ensuring that you and your vessel are covered are essential.

Many marinas and rivers in the UK are tightly regulated and insist that boat owners have at least third-party insurance. Therefore, it is wise to have at least this kind of boat insurance or yacht insurance, and at best, a fully comprehensive policy to cover even the most expensive parts of your vessel