The idea of insurance is something that anyone who owns a car is probably familiar with due to the mandatory nature of car insurance. In the same way that car insurance is compulsory, boat insurance is also compulsory for anyone who buys a boat. It is a legal requirement put in place to protect other people using the waterways from any damage or injury caused by your boat. On a more comprehensive scale, boat insurance also protects you from the financial liability resulting from the damage or injury to a third party by your boat and covers the cost of repairs or replacement in a case where a third party malicious or accidentally causes damage or loss of your boat.
The implication of an insurance policy is that the insurance company will be responsible for paying the cost of any liability that you incur as stipulated in the policy. In exchange for them bearing the risk, you will have to pay premiums. There are generally limits on how much cost the insurance company can carry, and several factors influence the kind of premium you will get.
Your boat insurance can cover the following;
- The cost of replacing in case of theft and total destruction by another means or repair in case of damage to your boat.
- The cost of financial liability incurred due to using your boat to injure a third party or damage their property can be damages awarded by the court of law for that purpose.
- The cost of a lawsuit if charged to court by the third party
- The medical cost-covering treating injuries, rehabilitation, paying lost wages in some cases and covering funeral expenses.
When all these costs are considered, it becomes clear why insurance can be expensive sometimes. Generally, insurance is made compulsory by the law in different states and territories in Australia, and you will have to check to see what your state or territory requires. However, the insurance made compulsory law may not be comprehensive enough, which is why you have to go for a more comprehensive one. In fact, your personal conditions can go a long way in determining the kind of insurance you get. For example, if you are using the boat regularly, your insurance will be different from that of a person who only uses the boat during the summer. Also, if you use the boat for commercial purposes, the insurance you will get will be different from that of a person who uses their boat or yacht for simply leisure.
This is perhaps why insurance coverages are individually priced, allowing you to get one that will provide sufficient coverage for you. We can assist you in getting boat insurance which will ensure you have full protection for any damage or loss of your boat as well as any liability caused by your boat to a third party property or person. We can handle every stage involved in getting the insurance, from finding the right finance company to finalising the deal for you.
This information is only available as a general guide on the government policies. It is derived from the official Australian government sources. We do not bear any responsibility for the commentary and analysis of this public domain information nor any liability for how the facts are interpreted. It is recommended that you speak with an accountant or financial advisor to get precise information and advice on your situation.
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