Yacht Insurance Q&A
How much does yacht insurance cost? How is third party only yacht insurance calculated? Is it a legal requirement to buy yacht insurance? Can I buy yacht insurance online? How can I get cheaper yacht insurance? Buying yacht insurance online… what you need to tell us. What yacht insurance options are available
How much does yacht insurance cost?
Here in the United Kingdom one year’s yacht insurance normally costs between £50 and £300, inclusive of tax. Such a large difference between lowest and highest costs points to the fact that there are some critical factors that ultimately determine your yacht insurance quotation. In fact there are three single most important factors that determine that cost, these are listed below;
- Third party Vs fully comprehensive
- Your vessel valuation
- Your cruising range
How is third party only yacht insurance calculated?
In order to calculate a third party only yacht insurance premium, most insurers will determine a rate which is determined by your chosen cruising range. At their discretion that rate can then be increased by factors such as; racing cover, risky mooring locations, a recent claims history or other specialist stated requirements. The final rate is then usually multiplied by a stated vessel value after which any no claims or increased excess discount are discounted. Finally any applicable UK tax is added, 10% at time of writing.
Is it a legal requirement to buy yacht insurance?
No, yacht insurance is not a legal requirement in the UK, however you may need at least third-party cover to access private boatyards and marinas both at home and in Europe. If in doubt, always check locally in advance. If you do risk it, buying yacht insurance online is usually quick and a third party policy can cost as little as £50 per year.
Can I buy yacht insurance online?
In most instances you can buy yacht insurance immediately. it is only under certain circumstances that might you not be able to, such as; vessel value higher than £500 000, recent claims that need to be reviewed, vessel age above 25 years without a recent survey, non-standard cruising ranges, commercial vessels, vessels undergoing major refit/ repair.
How can I get cheaper yacht insurance?
Remember this golden rule, more risk AND higher vessel value EQUALS a higher premium. Therefore first and foremost, make sure your vessel valuation is accurate and not exaggerated. Secondly, consider the key risk factors that are proven statistically (and thus are used across the boat insurance industry!) to increase the risk of claims. These are as follows; long distance cruising, yacht racing, open or swing moorings, older vessels. First and most important rule… enjoy your boating with peace of mind your insured, second rule… check private boat sales listings to ensure you give a sensible vessel valuation, third rule… address any of those items you can to reduce risk and thus your premium!
Buying yacht insurance online: What will you need to know?
To buy yacht insurance online the mandatory information you will be asked is; to identify your vessel make and model, the build year, vessel length, named legal owner(s), cruising range, mooring type/ location, no claims years / any recent claims and place of registration. Post-purchase evidence of no claims bonus will need submitting and newly insured older vessel (above 20-25 years) owners may well be asked to supply evidence of a recent boat survey.
What yacht insurance options are available?
Our policies all usually supply additional options. For a yacht these are third party or fully comprehensive, protected no claims, increased legal cover, spars/ sails/ rigging/ contents cover, racing cover and an increased policy excess (in return for a lower insurance quote)!