Discounted premiums are for the first time being launched by a major insurer for boats powered by electric motors.

Discounted premiums are for the first time being launched by a major insurer for boats powered by electric motors. US-based Travelers insurance says electric boats require less maintenance and break down less often than typical petrol or diesel powered boats.

The company says the discounts on premiums for electric boats will be up to 10 per cent. “With the rising cost of marine fuel and a growing focus on the environment there is no doubt that boaters will consider this option,” said a spokesman.

Travelers defines an electric boat as a vessel 100 per cent powered by a propeller driven, electric in-board source where utility power is stored on board.