What needs to be included in performance boat insurance?

Performance boats are defined by their performance, engines, speed and design – often reaching speeds of at least 65mph these vessels require adequate insurance coverage. The speed and thrill of the ride found with no other craft means that performance boat insurance is often much more expensive than cover for other vessels.  The thrill and adrenaline rush that users get from a speed or motor boat is fantastic, so don’t let it be compromised by finding out you are unable to claim in the event of an accident.

As well as being much riskier for the insurance company, performance boats are usually much more expensive to buy that other types of vessel due to their nature. This also has a significant impact on the cost of annual premiums, but due to the risks involved with riding a speed boat, owners should never neglect obtaining a full performance boat insurance policy.

There are several things that speed boat owners will want to ensure are included into their policy so here is a quick explanation of what they are and why you will need them.

Property damage

If your vessel is damaged in an accident with another sailor or out at sea then you will need the insurer to pay out for any repairs required. The amount that the insurer will compensate you will depend upon the specific policy terms and whether you have a market value or agreed value policy.

Uninsured boater

Should you become involved in an incident with another vessel where the driver is uninsured, you and your passengers will be protected. This is particularly important because it is not a legal requirement for sailor to be insured, therefore increasing the number of people without adequate cover.

Towing & Assistance

As you would require with a car, towing and assistance means that your performance boat insurance will provide cover when you need your vessel towed after an accident.

Personal property

You are bound to have all sorts of personal belongings on board your boat, but what happens if your boat sinks? Without personal property coverage you would be unable to claim for these, leaving you at a loss.

There are all sorts of other things that could be included into performance boat insurance so make sure you consider every angle before purchasing a policy.

Pleasure boat insurance can come in many different forms, ranging from full comprehensive policies down to third party liability only, but there are also two types of settlement. When boat owners are searching for suitable pleasure boat insurance, they need to read the policy terms very carefully to ensure that they are covered for everything they expected.

Comprehensive insurance provides cover against almost every risk associated with being a pleasure boat owner, from repairs and replacement to receiving a pay-out to cover the loss of personal belongings. This is the highest level of insurance and offers the most protection, but it is also the most expensive.

Third party liability insurance is a similar to what you would get on a car, it only provides cover if you are to blame for injury or damage to another person or their property. Third party insurance is the absolute minimum level of cover that any sailor should consider as otherwise you are personally liable for any legal fees and compensation – and these could potentially add up to thousands of pounds!

As well as there being two types of pleasure boat insurance, there are two types of settlement depending on the policy you have chosen: agreed value and market value. The difference between the two is very significant and the price of the annual premium will reflect this. An agreed value policy means that the insurer and policyholder have agreed a value of the vessel no matter what the current market price, whereas a market value policy takes the amount that the craft will now sell for.

The type of insurance that is suitable for you will depend on the pleasure boat that you have; if you have a much older but not a collectable boat you might find that third party market value insurance is enough for you, as otherwise you would be paying more for the insurance than the boat is worth.

However, if you have a new craft or expensive boat, you will want to ensure that everything is fully covered. This includes the engine and machinery, removal of wreckage, towing costs, personal injury and much more.

Classic boat insurance is a specific type of insurance policy suitable for those owners and collectors of older or antique boats. Classic boats are usually the term used to refer to wooden hull boats which are more than 25 years old, and have perhaps been restored. There are also some powerboats and sailboats, and even some with fibreglass or concrete hulls.

When searching for classic boat insurance there are some things that you will have to consider

Agreed value
This is the maximum value of the boat agreed between the policyholder and the insurer in the event that ¬the vessel needs to be replaced.

Wreck removal
If an incident occurs and your vessel sinks out at sea your insurer will pay to have the boat recovered.

Personal belongings
Your boat is bound to have to personal belongings on it such as water skis, life jackets, clothing, and other equipment. Should anything happen to your vessel the value of your personal belongings will be covered.

Pollution liability
If you spill oil or gas in the waters the clean-up could cost thousands of pounds which you would be personally responsible for unless you have adequate insurance cover.

Storm protection
Acts of god and other weather problems can cause severe damage to your boat which will not be covered by most insurance policies. If you are looking specifically for storm protection make sure check the policy exclusions in advance.

Restoration coverage
Classic boats often need repairing and restoring and this can be a huge expense, especially if you are using a professional facility. Some classic boat insurance policies will provide cover for this but you will need to re-evaluate the risk as the project continues.

These are just a few examples of what could be included into a classic boat insurance policy, there are many more so you need to carefully consider what you require from your insurance. Not all policies will be the same, some will include many more features than others.

When searching for classic boat insurance see if you are eligible for any discounts such as no claims bonus, or multiple vessel discounts as these will help you reduce your annual premium. Insurers often provide the opportunity to pay with a flexible plan allowing you to better manage your budget.

As a boat owner you always want to ensure that you are protected against the risks associated with taking a boat on the water, storing it, mooring it and travelling with it. At any point an accident could happen, you and another party could become injured, and both of your boats could be damaged. This is where boat insurance comes into action as it prevents you having to pay the full costs of repair, replacement or legalities.

There are different levels of boat insurance cover, similar to that of a car, third party or comprehensive, there is also a middle-ground called third party, fire and theft. Fully comprehensive cover protects the policy holder against almost every risk, and pays out for most things aside from its standard exclusion list.

Third party boat insurance on the other hand is only designed to protect the other party involved in an incident. This cover kicks in when you have caused an accident, injury or damage to someone else or their property. Should an incident occur and you are not protected you could end up paying all the costs – including legal fees!

It is not a legal requirement to have any form of boat insurance, however if you are leaving your vessel at a marina, harbour or other mooring area you will often be required to at least have third party boat insurance in place. In addition if you ever have to obtain an inland waterways licence you need to provide proof of your third party boat insurance.

Even this basic level of cover can differ greatly between providers and policies so it is important that you look at the policy wording and terms of each one. Whilst third party boat insurance is often all that is required in most situations, not investing into comprehensive cover could leave you struggling should you vessel require significant repairs or replacement.

Third party boat insurance is usually only a viable option for sailors with a low value boat as you don’t want to be paying too much for insurance premiums if the vessel is only worth a small amount.