How much does boat insurance cost in New Zealand?

Good, comprehensive cover and fair premiums – we all want the same thing from our boat insurance. The trouble is, it can be hard to figure out how much boat insurance should cost and how insurers set premiums. This simple guide makes it easy.

The average cost of boat insurance

Insuring a boat is a lot cheaper than insuring a car in most cases (around half). Here are a few rough examples:

• A trailer boat worth $50,000 might cost around $500–$600 a year to insure
• A trailer boat worth $100,000 might cost around $800 to $900 a year
• A $500,000 launch may cost around $2,800 to $3,000 per year

The average figures above should be taken with a grain of sea salt because marine insurance is tailored to each boat and owner. In the words of Aaron Mortimer, Mariner MD:

“We don’t have a set regime. Every boat is insured on an individual basis, according to our assessment. This allows us to tailor our policies to provide boaties with the most suitable cover for their needs and their unique vessels.”

What affects the cost of boat insurance?

Before an insurer looks at the boat, they’ll consider its owner. Premiums may be affected by the owner’s previous claims history, boating experience, and whether the owner has any criminal convictions.

Then they’ll look at the type of boat they’re insuring. All insurers will consider the boat’s condition, age, construction type, and how difficult it may be to repair. Size matters too – usually the bigger the boat, the higher the premiums. How much you paid for the boat will also give the insurer an idea of its value, and premiums are usually higher for more valuable vessels.

While there are many common factors, insurers may approach each type of vessel slightly differently:

Jetskis

The most important factor with jetskis is the value of the jetski itself. The insurer may also look at the owner’s experience owning and operating jetskis and trailer boats. How it’s stored also matters – whether unsecured outside, or safely in a locked garage on a trailer.

Trailer boats

Trailer boats and yachts are insured much the same as jetskis – the main thing is the value of the vessel itself. That said, as the value of the boat increases, there may be more of a focus on the owner’s boating qualifications and level of experience. The way the vessel is stored will also be considered.

Aaron adds that qualifications are great, but they aren’t a must-have:

“A lot of Kiwi boaters don’t have qualifications, but most do have years or decades of experience on the water. When you insure with Mariner you’ll get a chance to tell us about that – and that can affect premiums.”

Moored or berthed yachts

One of the most important factors when insuring a yacht is whether or not you race the vessel and whether you’re racing offshore. Premiums may differ for formal or informal racing, and specific insurance is required for crewed offshore racing yachts. Where the yacht is kept is also very important – marinas are generally considered less risky than swing moorings, and boats stored at some moorings vulnerable to storms may not be insurable.

Launches

These vessels are often high value so your insurer will generally find out a bit more about you before insuring. They may consider your qualifications, boating history, and find out a bit more about what you plan to do with your launch.

Standard cover usually extends 200 nautical miles from the coast of both the North and South Islands – specialist insurance may be required for boating further offshore.

Mariner tip: You can’t change your boat easily, but it is easy to be a responsible boat owner. If you’re experienced, don’t have a long claims history, and store your vessel correctly and safely, you could pay lower premiums.

The bottom line on boat insurance costs

What you pay for boat insurance comes down to your boat, how you use it, and how well you look after it. A well-stored trailer boat with a clean claims history will usually cost less to insure than a similar vessel left exposed to the weather. An experienced skipper with the right cover in place tends to pay less than someone just starting out too. The best way to get an accurate picture for your own boat is to talk to the team at Mariner who understand New Zealand conditions and can tailor a policy to how you actually use the water.