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How can I tell a good boat insurance policy from a cheap one?
Short answer
You cannot tell a good boat insurance policy by its price. You tell it by seven points in the wording: settlement value, cruising limits, third party limit, skipper error, winter lay-up, exclusions and how a claim is handled.
Anyone searching for good boat insurance soon lands on comparison sites and league tables. Most of them sort by premium, because a premium is easy to compare. What a policy is worth on the day something goes wrong is not in the price column, though, but in the policy wording. That is why no single policy suits every boat: a dinghy sailor on a reservoir needs something different from a family taking a yacht across the Channel and on towards the Mediterranean.
Seven points separate a good policy from a cheap one. One, the settlement: does the wording pay an agreed value after a total loss, or only market value, which falls every year? Two, the cruising limits, which must match where you really sail. Three, the third party limit, since the marina contract usually sets a minimum and injury claims grow quickly. Four, how the wording treats a skipper's mistake or a moment of carelessness. Five, cover while the boat is laid up ashore or afloat; with our season policy there is none from 1 November to 31 March. Six, the list of exclusions. Seven, claims handling, and who actually helps you when it counts.
Put two quotes side by side and look for the seven points in both wordings, not in the brochure. Ask when a point is missing, because what is not written down is, in case of doubt, not insured. Notice how quickly and how completely each quote arrives: a broker or underwriting agency that takes care over the quote tends to take the same care over a claim. If the wording uses terms you do not recognise, ask for the clause and an explanation in writing. Only once the cover is comparable is it worth looking at the premium.
Worth remembering
Price
can be compared in seconds
Seven points
decide what is paid after a claim
Compare the cover, then the premium.
Questions
What owners ask us about this
Is there a single good boat policy for every boat?
No. Boat, waters and use differ too much. Compare quotes against the seven points rather than a league table, and read the wording for each one.
Is the cheapest boat insurance a good choice?
Rarely on its own. A low premium often comes from market value instead of agreed value, narrow cruising limits or a strict line on skipper error. You notice that only after a claim.
What should I check on a comparison site?
Comparison sites mostly show the price and a few headline features. Check the wording itself as well, especially settlement value, cruising limits, skipper error and exclusions.
Related
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