Why does third party boat insurance not include fire and theft?

It's fairly obvious to think that, like car insurance, there are three levels of boat insurance:

• Third party only
• Third party fire and theft
• Fully comprehensive

But with boat insurance there tend to be only two main types - third party only and fully comprehensive. It's important that customers are very clear that third party insurance is ONLY third party, there's no fire or theft element.

So why isn't there a TPF&T option?

Looking at insurance

The reasons are to do with the nature of boats and boating, as much as the insurance business.The majority of claims for boats are for third party damage, fire or theft, so there's little mileage in offering a middle layer of cover, because there would be virtually no price difference between that and a comprehensive policy.

There are also economies of scale at work - there are far more cars on the road than boats on the water. As the market is smaller, the cost of subdividing insurance into more layers wouldn't be reflected in significantly higher returns. So the boat insurance market is simpler.

That actually makes it easier to compare policies, so it's no bad thing for customers.

So what are the two cover levels?

The cheapest boat insurance cover is third party only, which is increasingly being demanded by boating organisations. Fully comprehensive insurance adds cover for your boat and (to some extent) your possessions.

Third party

Third party insurance covers you for damage to someone else's property, or causing them injury or death. It's more important these days because people are more likely to sue when an accident happens - a few years ago an apology would have been enough.

As far as inland boats are concerned, it's virtually impossible to use a boat on a regulated inland waterway in the UK without insurance, because it's a pre-requisite for registration. Many marinas, particularly abroad, will also insist on insurance before taking responsibility for your boat, sometimes more than third party.

But, as we said earlier, the important point is that it is ONLY third party - there's no fire or theft element.

Fully comp

The comprehensive option will cover fire and theft as well as third party. It will include other cover options like personal effects, but these tend to vary from insurer to insurer. So make sure when you're comparing your quotes that you check the details and make sure you're comparing like with like.

It's worth noting that you might not see the term 'comprehensive' used with boat insurance, because different insurance companies use their own names for the different cover levels. Essentially it will be a more inclusive package with third party, fire, theft and possessions cover.

There will probably also be options for extras like water-skiing, or towing water toys such as ride-on inflatable bananas.

Make sure you know what you're getting

With a site like Compare Boat Insurance you can instantly compare quotes from all the major UK boat insurers. Many other sites offer comparison but they aren't instant, they'll just pass your details to other brokers and insurers who'll then pester you over the next week or so, asking the same questions over and over again.

Here you'll get a list of the best quotes straight away so that you can check policy details and be sure that it's what you want before arranging your cover.

Instant comparison, instant cover - that's what Compare Boat Insurance is all about.

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