2016-11-16

We know that Aussies love spending time on the water. As a nation, we’re a big fan of jet skis in particular – so here’s what you need to know about insuring your favourite water ride.

Based on approximately 30,000 visitors to CANSTAR’s travel insurance comparison tables this year, the most popular specific inclusions that travellers want to be covered for include:

Riding a Jet ski / motorbike / scooter

Water sports

Terrorism

Snow sports

So you can get Travel Insurance to cover you riding a jet ski when you’re away from home…

But what about if you own a jet ski? Can you get insurance to cover it being stolen or damaged? Can you get insurance to cover injuries to yourself when riding your jet ski? Yes.

What is jet ski insurance?

Jet ski insurance is also known as PWC insurance (personal watercraft insurance), which is a type of boat insurance or marine insurance. Jet ski insurance is designed to cover your jet ski if it is damaged, destroyed, or stolen, and to protect you against liability claims if your jet ski causes damage to other people or their property.

There are three main types of marine insurance in general, which are similar to the types of car insurance:

Third Party Property Only: Covers damage to someone else or their property caused by your jet ski.

Third Party, Fire, & Theft: Covers damage to someone else or their property caused by your jet ski; damage to your jet ski caused by fire, theft, or earthquake.

Comprehensive: Covers damage to someone else or their property caused by your jet ski; damage to your jet ski caused by fire, theft, natural disasters, and accidents.

Comprehensive jet ski insurance should cover at least the following:

Accidental damage to your jet ski caused by fire, storm, flood, vandalism, or other accident

Theft or attempted theft of your jet ski

Accidental damage to your jet ski caused by collision with uninsured boat, jet ski, or aqua scooter (where the party at fault does not have insurance)

Injury to you or your passenger, caused by an accident with an uninsured boat, jet ski, or aqua scooter (includes medical payments)

Third party damage to other vessels (caused by your jet ski)

Specialised cover is available, so optional extras including the following can be added to your jet ski insurance policy with some insurers:



Liability cover if a third party or their property is damaged while you are water-skiing or doing other water sports using the jet ski

Contents insurance for the personal belongings stored inside a locked cabin in your jet ski (a.k.a. accessory insurance)

Total loss replacement – if your jet ski is damaged, it can replaced with a new one of similar quality

Emergency towing if you need it

24/7 assistance for jet ski trailer and jet ski towing

Wreckage removal costs after a collision or other accident

Lay-up – insurance premium is reduced if the jet ski is put into storage and left unused for a certain period of time

Environmental damage repair after a collision or other accident (e.g. oil leak mop up)

Trailer cover for your jet ski trailer

Exclusions that usually apply to jet ski insurance

If your jet ski is damaged or causes damage to other people or their property while attached to a trailer, it is excluded from jet ski insurance because it is on the road. This is a matter for your car insurance – and you should be covered if you have a Comprehensive car insurance policy.

Compare Car Insurance

Jet ski insurance can only cover you to ride within the allowable geographic areas in your state or territory. Each state and territory has heritage areas or other protected areas in which you cannot ride your jet ski. See your local marine department’s website for more information:

QLD: Maritime Safety Queensland

NSW: Roads & Maritime NSW

SA: gov.au

VIC: Maritime Safety Victoria

TAS: Marine and Safety Tasmania

WA: Department of Transport WA

NT: gov.au

Policies that cover theft of your jet ski will usually require that you store your jet ski securely (e.g. in a locked garage, shed, or boat shed, rather than moored at a marina) in order for you to remain covered.

Is jet ski insurance mandatory or optional?

Most states and territories in Australia require you to have liability insurance (Third Party Property Only policies) to cover your legal responsibility if your jet ski causes injury to another person or damages their property. Most states also require you to have a valid driver’s licence and be over the minimum age to drive a PWC. You must have a licenced person on board the jet ski and able to take control of the vehicle at all times.

As for damage to your jet ski, the rules are different in each state and territory regarding whether or not you must have a higher level of jet ski insurance:

QLD – not required (Maritime Safety Queensland)

NSW – not required (Roads & Maritime NSW)

SA – not required (gov.au)

VIC – liability insurance (Third Party Property Only) may be required for registration (Maritime Safety Victoria)

TAS – not required (Marine and Safety Tasmania)

WA – not required (Department of Transport WA)

NT – not required (gov.au)

However, you should note that jet skis must be registered as a PWC (personal watercraft) with your local department of transport. Depending on state and territory, you may need specialised licences to drive a jet ski – a personal watercraft licence, and a recreational or commercial marine driver licence.

When towing a water-skiier behind your jet ski, the jet ski driver must be licenced, and there must be an observer aged over 12 on board the jet ski to watch out for the skier’s safety at all times.

All passengers and drivers of the jet ski must wear a personal flotation device (a lifejacket). The other safety equipment that you are required to wear or keep on board your jet ski depends on whether you are riding in smooth waters (e.g. lakes or dams), partially smooth waters (e.g. rivers and creeks), or beyond partially smooth waters (e.g. the surf).



If you buy your jet ski using a personal loan or other financing, your lender will probably require you to buy Comprehensive jet ski insurance.

Compare Personal Loans for Jet Skis

What does jet ski insurance cost?

The cost of jet ski insurance varies between providers, but InsuranceCompared.com.au says cover ranges from $300-$500/year for a basic policy up to $1,000 or more for a Comprehensive policy.

Your premiums will depend on whether you choose basic or comprehensive coverage, and the market value of your jet ski or how much you want to be covered for. The cost also depends on risk factors such as:

Year, make, and model of your jet ski

Horsepower, engine type, and maximum operating speed

How you use your jet ski (private, commercial, racing, or business)

Any modifications added or removed on your jet ski

Where you store it (in a shed, covered boathouse, or moored)

Boater safety courses you have completed

Whether your jet ski is equipped with a GPS microdot, a security alarm, or other security features

Your driving record – good or bad – in both a car and on a boat

Whether jet ski is used in salt water (more wear and tear) or fresh water only (discounts available)

Who offers jet ski insurance in Australia?

Canstar doesn’t yet research and rate jet ski insurance in Australia. However, the following companies are known to offer jet ski insurance as of November 2016:

Affinity Insurance Services

Allianz Australia (through Club Marine)

Aussie Boat Loans

SPT Insurance Brokers (a.k.a. Austbrokers)

Bluewell Insurance Brokers

Boat Insurance Quotes

BSJ Insurance Group

CGU Insurance

Club Marine Insurance

DGA Insurance Brokers

Elders Insurance

HBF

Intas Group

Kawasaki Genuine Insurance

Marine Boat Insurance

Nautilus Marine Insurance Agency

QBE

Rivers Insurance Group

Roderick Insurance Brokers

com.au

Territory Insurance Office (NT)

Trident Marine Insurance

Youi

Zurich Financial Services Australia

How to compare jet ski insurance



The main factors to consider when comparing jet insurance policies include:

Coverage level

As explained above, the right policy for you will depend on whether you need Third Party Property Only; Third Party, Fire, & Theft; or Comprehensive cover. And the level of coverage will differ between providers – so not all Comprehensive policies are the same. You’ll have to read the product disclosure statement (PDS) for a policy to work out whether it provides the right level of coverage for your needs.

Agreed value vs market value

You will need to decide whether to insure your jet ski at an agreed value (how much you and the insurer agree it is worth), or at its current market value (which will decrease over time with depreciation). There is almost always a time limit for how long you can claim the full market value of your jet ski, after which an agreed value will be specified.

Exclusions

Make sure that the policy doesn’t have any exclusions that would affect your usual use of the jet ski. If you are into jet ski racing, you will need a policy that specifically includes racing activities, as most policies usually exclude racing from coverage. Check it out now, not at claim time.

Premium prices

How much you pay for jet ski insurance premiums depends on your year, make, and model of jet ski; the engine size; what you use it for (private, commercial, racing, or business); and where you store it. See above (“What does jet ski insurance cost?”) for more detail.

How to buy jet ski insurance

If you have boat insurance already, you can add your jet ski to that policy as a PWC for an additional cost. Or you can buy a separate jet ski insurance policy directly from a provider for your jet ski.

If you want to buy a jet ski, you can save up the cash over time or you can use a personal loan. Three brands of jet ski common in Australia are the Kawasaki Jet Ski, Sea-Doo, and Yamaha WaveRunner.

Compare Savings Accounts for Savings Goals

Compare Personal Loans for Jet Skis

The post What Is Jet Ski Insurance? appeared first on Canstar.

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