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Reviewed by Matthew Ashton
Thinking of purchasing a boat? We can see why. Whether you’re sticking to UK waters or planning to venture further afield, owning your own boat offers an unrivalled sense of freedom and flexibility.
But many first-time boat owners fail to account for costs beyond the initial purchase price – and the last thing you want is to sink money into something you can’t afford to properly enjoy.
In this guide, we cover key considerations you might need to know before purchasing a boat for the first time.
Types of boats and their long-term costs
There are different types of boats for different needs and price points. For example, while sailboats generally have lower fuel costs (since they rely on wind power), they do require regular sail maintenance and rigging inspections, which can be both costly and time-consuming.
Motorboats tend to consume more fuel and typically need more frequent engine servicing, making them more expensive to run over time.
Casual boaters might consider day cruisers, which tend to be much more affordable to own and operate, especially if you aren’t planning on doing multi-day trips.
At the more luxury end of the spectrum, a yacht (usually over thirty feet) offers exceptional performance and high-end finishes, but these come with significant ongoing costs.
Think of a boat’s price tag as symbolic
It’s said that you should budget for 20% of a boat’s purchase price for its annual maintenance costs. While the surge of demand for vessels after Covid-19 may have inflated this figure, one thing is for certain: the upfront cost is just a small part of the finance picture.
When you’re thinking about whether or not you can afford to purchase a boat, treat the purchase price as a symbolic figure: the more expensive the price tag, the more proportionately expensive the ongoing costs will be.
That’s because higher-priced boats often come with luxury features that may require specialised maintenance, professional servicing, and even higher insurance premiums. For example, luxury vessels may come with climate-controlled storage and crew support, which obviously adds greatly to the price tag.
On the flipside, while cheaper boats are more affordable upfront, they can lead to higher costs in the long-term if they’re older or made with less durable materials – as they may need to be repaired more frequently.
Key Takeaways
- Sailboats – lower fuel costs but require regular sail and rigging maintenance
- Motorboats – higher fuel consumption and frequent engine servicing.
- Day cruisers- affordable option for casual boaters not planning overnight trips.
- Yachts – luxurious but come with substantial outgoing costs.
- Budget around 20% of the boat’s purchase price annually for maintenance.
- Luxury boats often incur higher costs due to specialised features and services.
- Cheaper boats may lead to higher long-term costs if they’re older or less durable.
How much does it cost to maintain a boat?
The more expensive the boat, the more expensive the maintenance costs generally tend to be. This could be due to larger sizes, more complex systems, higher-quality materials etc.
Typical expenses include:
- Hull cleaning and painting – boats need regular cleaning to prevent the build-up of barnacles and algae, plus antifouling repainting.
- Engine servicing – this includes oil changes, filter replacements and inspections.
- Electrical system checks – regular maintenance of onboard electrical systems, like batteries, wiring and lights.
- Sail and rigging (for sailboats) – inspection/repair of sails, ropes, winches and masts.
- Winterisation – this refers to preparing the boat for off-season storage, which includes draining systems and protecting the engine.
- Replacing worn parts – just like in a car, some elements of a boat will need periodic replacement – e.g., propellers, anodes, belts, and hoses.
- Cleaning and detailing – polishing, interior and exterior cleaning, and upholstery care, to keep your boat looking its best.
- Trailer maintenance (if applicable) – this includes tyre checks, brake servicing, and rust prevention.
- Professional inspections – annual/seasonal checks by technicians to make sure your boat is safe and seaworthy.
How the material of your boat impacts cost
The material your boat is made of can heavily influence the ongoing cost of owning a boat.
Fibreglass
Wood
Aluminium
Steel
How engine types and usage affect boat fuel expenses
Fuel is another element of owning a boat that has a significant impact on ongoing costs. Here’s what you need to know:
- Fuel type. While diesel engines are generally more fuel-efficient and last longer than petrol, diesel can be more expensive to source (depending on location).
- Boat type. Sailboats tend to use minimal fuel – and rely mostly on wind power – while motorboats and yachts can use a lot of fuel.
- Engine type. Generally speaking, larger or more high-performance engines consume more fuel, which will obviously cost more in the long-term.
- Usage frequency. It follows that the more often you use your boat, the more fuel you’ll need (particularly the case with motorboats and cruisers).
Key Takeaways
- Fibreglass – low-cost, durable, corrosion-resistant.
- Wood – high maintenance, prone to rot.
- Aluminium – lightweight, dents easily, specialist repairs.
- Steel – strong but rust-prone and costly to maintain.
- Fuel type – diesel is efficient but pricier.
- Boat type – sailboats use less fuel than motorboats.
- Engine size – bigger engines = more fuel.
- Usage – frequent use increases fuel costs.
How much does it cost to dock and moor a boat?
Where you keep your boat can significantly impacts ongoing boat fees. Harbour fees refer to the charges you incur from docking your boat in a marina or harbour. The fee you pay will usually be based on the length of your boat (in metres) and may be significantly pricier in tourist-heavy locations. You may also find that some marinas charge extra for amenities like electricity, water, and security, which can really add up over time.
The cost of mooring your boat will depend upon whether you choose a permanent, seasonal, or temporary spot. While permanent moorings in popular areas tend to be the most expensive, they offer convenience and security that gives many owners peace of mind. On the other hand, seasonal moorings are more affordable but overall less secure, while temporary moorings are suitable for short stays but can be unpredictable when it comes to availability and price (due to fluctuating demand).
Protecting your boat with the right insurance
Like any big investment – or, indeed, anything that’s important to us – insurance to protect your boat should be seen as non-negotiable.
More expensive or high-performance boats will likely cost more to insure, but your experience, safety record, and boat security features (e.g., alarms or GPS) can significantly lower premiums. Additionally, your boat’s risk – and therefore the premium you pay – will vary depending on the type and value of your vessel, plus its usage and location.
It’s important to bear in mind that while the right insurance can seem expensive, remember that it’s expensive for a reason – it helps keep you and your boat protected on and off the water, providing a peace of mind that’s arguably priceless.
Speak to a member of the team at Stanhope Cooper to find out more.
From an insurer’s point of view, we’re not just looking at the boat itself, but how it’s cared for and operated. Responsible ownership, good maintenance, and sensible use all help build a stronger risk profile
Andy Crick, Underwriter and Executive Director at Pantaenius UK Ltd
Q&A with our friends at Pantaenius UK
What factors affect boat insurance premiums?
Boat insurance premiums are calculated based on the level of risk your policy represents to the insurer. To keep things fair, insurers consider a wide range of factors to make sure the cost of your premium accurately reflects the likelihood and potential cost of a claim.
Type, size, and value of the boat – More expensive or higher-performance boats generally cost more to insure because repairs and replacements are pricier.
Age and condition of the boat – Older vessels or those in poorer condition may pose a higher chance of needing to claim.
Owner or skipper experience – Insurers value experience and recognised qualifications, as these show a strong level of competence and responsibility at sea. Demonstrating this experience can help support your overall risk profile when applying for cover.
How the boat is used – Regular long-distance cruising, racing, or commercial use can raise premiums compared to casual or local leisure use.
Location and mooring – Where your boat is kept and used makes a big difference. Boats kept in secure marinas often cost less to insure than those moored on tidal estuaries or stored in more exposed areas.
Accessibility for repairs – If your boat sails in remote areas, insurers may factor in the higher cost of transporting parts or arranging specialist repairs.
Security measures – Installing features like GPS trackers, alarms, and immobilisers shows you are proactive about protecting your boat. While every boat is assessed individually, strong security is always viewed positively by insurers.
Claims history – As a general rule a clean claims record signals lower risk, helping to keep premiums down.
Do you have any tips for keeping boat insurance premiums low?
While many factors that influence premiums are outside of your control, there are several practical steps you can take to present yourself and your boat as a lower insurance risk. Responsible ownership, regular upkeep, and good safety practices all contribute to a stronger risk profile, which insurers could view positively when assessing cover and terms.
Here are a few ways to help keep costs manageable:
Keep up with maintenance – Regular servicing, cleaning, and inspections help prevent issues before they turn into larger problems. Keeping maintenance records also demonstrates that your boat is well cared for.
Store your boat safely – Using a secure marina, dry stack, or well-protected mooring can reduce exposure to weather damage or theft.
Install safety and security equipment – Alarms, GPS trackers, and immobilisers show you take security seriously. While they don’t automatically lower premiums, they can help strengthen your overall insurance profile.
Undertake training or certification – Completing recognised boating courses (such as RYA/MCA qualifications) is a clear sign of competence and can support your application for cover.
Plan your trips carefully – Boating in familiar coastal waters can reduce risk and help keep premiums lower, whereas travelling further afield increases potential exposure and, in turn, the cost of cover, especially if repair facilities or support are limited.
Review your cover regularly – Insurance needs can change over time, so it’s important to review your policy annually to make sure you still have the right level of protection. Also, don’t forget to inform your insurer of any changes to your boat or planned cruising area.
About Pantaenius UK Ltd
Pantaenius UK, part of the Pantaenius Group, has been providing insurance solutions for 35 years and has offices in Plymouth and Southampton. More than 100,000 boat owners put their trust in Pantaenius. Policyholders benefit from All Risks hull cover with an agreed fixed value, many claims excess free, £5 million liability cover, and a 24/7 emergency claims line. Offering a range of insurance products to suit both power and sail, Pantaenius provides tailored cover for boats for all sizes.
Pantaenius UK Limited is authorised and regulated by the Financial Conduct Authority (Authorised No.308688)
Written by William Cooper
I started insurance broking in 2009. I followed my great-grandfather, grandfather, and father into the world of insurance. In 2019, I decided I wanted to do things differently. I formed Stanhope in 2019 with Matthew Ashton and Rachel Living. We want to shake up the industry! Let's make insurance cool and useful for our customers. Let's improve the customer journey and get them to trust us as their insurance company. Let's pay claims quickly; let's be excellent and honest in all that we do!