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Navigating boat insurance:
costs, cover & handy tips

A person stands on a boat, enjoying festive activities as smoke rises from a barbecue grill on the deck.

Smart ways to save on boat insurance

Disclaimer: This article is intended as a general guide to boat insurance and cost-saving tips. The information provided is not specific to Haven Knox-Johnston policies, and some suggestions may not apply to our cover or underwriting criteria. Always check the terms of your own policy and speak directly with your insurer or broker before making any decisions about your insurance.

Boat insurance isn’t a legal requirement in the UK but that doesn’t mean you should go without. As a boat owner, you’re liable for any damage you cause to other boats or waterway infrastructure. In fact, if you plan to cruise inland waterways or moor at marinas—whether coastal or inland—you’ll typically need at least third-party cover.

A comprehensive boat insurance policy offers peace of mind, covering you against accidental damage, theft and liability claims. Boat insurance is often thought of as an expensive nuisance but staying covered doesn’t have to be too costly. From completing recognised boat safety courses to tailoring your policy to suit your usage, there are ways to make sure your premium is fair and affordable.

Insurance companies base their prices on their perceived risk of you and your boat, based on historical claims performance. Honesty is critical, the information you provide to your insurer – from your boating experience to your boat’s specifications and usage – must be accurate. Failure to provide accurate information could result in a claim being denied when you need it most.

The following tips can help you show insurers you’re a lower-risk customer, which may lead to lower premiums.

1. Complete a boating course
Insurers often offer discounts on boat insurance if you, as the skipper, have completed an accredited course such as those offered by the RYA. This demonstrates to the insurance company that you are a competent skipper and therefore lower risk of causing an accident or damage.

2. Store your boat in a secure location
Another way you can reduce the risk of theft or damage is by storing your boat in a secure location. This could mean paying slightly extra for a more protected berth or a marina with CCTV and security. Keeping your boat in a secure mooring, either in the water or on the hard in a secure yard, reduces the chance of theft, vandalism, and weather-related damage. Insurers often reward this with reduced premiums.

3. Limit navigation area
Different policies cover different cruising areas, with offshore and international sailing often more expensive. Make sure you sure you are only paying for cover to the level you will require to reduce costs. You can often increase your cover if you change your plans.

A yacht and a sailboat navigate the ocean near a small island adorned with palm trees, their journeys protected by Marine Trade Insurance. The sky is partly cloudy with birds soaring overhead.

4. Multi boat discount
If you have two or more boats some insurers will offer a discount if you insure multiple boats with them.

5. Maintain a no-claims record
Insurers often reward claim-free history with discounts that grow over time. Avoiding small claims can sometimes save more in the long run. For example, it might be worth paying out of pocket for a small repair as it will enable you to keep your claim free discounts.

6. Join a recognised boating organisation
Membership of groups like the Cruising Association, or a yacht club can sometimes unlock exclusive insurance deals or group discounts.

7. Don’t over insure
Make sure that the value that your boat is insured for reflects the true cost of having to replace it. Over valuing your boat or your equipment onboard, can result in higher premiums

8. Choose the right type of cover
If your boat is older or of lower value, third-party only insurance might be a more cost-effective option than fully comprehensive cover. This means any damage you do to another party is covered but damage to your boat will come out of your own pocket. It is important to understand the limitations of a third-party policy, and to not expect it to offer the same protections as a fully comprehensive policy. It’s also important to make sure that a third-party policy will still meet your needs in terms of wreck recovery, should your boat sink. Wreck recovery can often be an optional extra with a third party policy, or not sufficient in value to actually cover the full costs of a recovery.

Two canal boats collide during festive activities, with one bow smashing into the other and causing visible damage.

Three money bags with pound sterling (£) symbols, perfect for festive activities and celebrations.

9. Agreed vs market value
When choosing your policy, you may have a choice between agreed value and market value – this is the amount of money you’ll receive in a total loss. Agreed value is a fixed value set when the policy is taken out compared to market value which is based on the current market value of your boat, which may be less than expected. Agreed offers more security of the payout amount. Switching to market value may decrease your insurance premiums but potentially leave you with less in the case of a total loss. As your boat ages its current market value decreases, by insuring your boat to its realistic market value rather than an inflated amount can reduce premiums. Search for the same boat as yours in a similar age/condition currently for sale and base your market value off that.

10. Increase your voluntary excess
Some insurance providers will allow you to choose the level of voluntary excess you wish to pay. This is the amount you pay towards any claim before they cover the rest. By choosing a higher excess you are implying to the insurers that you are confident you won’t be in an accident, as you will have to foot a bigger bill, and therefore the risk to them is less. Just ensure the excess remains affordable in the event of a claim.

11. Install approved safety and security equipment
Aside from the risk of an accident, complete cover also insures against theft and fire damage. By installing approved anti-theft alarms, GPS tracking, automatic fire suppression systems, or upgraded bilge pumps you lower theft and damage risks, which may reduce your premiums as a result. Always weigh off the cost of the equipment you are installing against the savings as well as the value of your boat to ensure it is the right decision.

12. Insure your boat for seasonal use only
If you only use your boat in summer months, ask your insurer about laying-up or suspended cover options during the off-season for a lower annual cost.

Black and white illustration of a canal boat at night, starry sky above, with festive activities and a person sitting nearby.

Cartoon penguin holding a wrench stands next to a toolbox.

13. Keep your boating CV up to date
By documenting your boating experience, qualifications, and maintenance record this shows responsibility and lowers your perceived risk to insurers. The more experience you have as a sailor the lower your premium is likely to be, insurers expect you to have better boat handling skills, keep up to date with maintenance of a boat and make knowledgeable, safe decisions. This all affects their perceived risk of you and your boat.

14. Actively manage your policy
There may be opportunities throughout the year to reduce your cover, for example if you no longer use your boat for a high-risk activity such as racing. Making these changes to your insurance is likely to reduce your premiums for the remainder of the year. On the other hand, if you change the way you use your boat, such as starting to race, or install new expensive equipment, ensure you update your policy to reflect these changes, otherwise, you may not be covered to claim for it if something goes wrong.

Boat insurance is an essential part of boating life, which could, one day, save you thousands. With a few smart decisions such as adjusting your policy to match how and where you use your boat, storing it securely, or taking a recognised boating course, you may be able to bring the cost down without cutting corners. Every boat and sailor is different, so it’s worth reviewing your cover regularly to make sure you’re not overpaying as well as keeping your insurer updated with any changes.

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+44 (0)1732 223 650

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Haven Knox-Johnston is a trading name of Howden UK Brokers Limited, which is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London, EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes.

Navigating boat insurance:costs, cover & handy tips