Insurance Question--Postscript

[Gary Wyngarden]

Following my posting from last week on my insurance company's proposed increase in hull deductible from 1% to 2% (which further doubled to 4% for areas outside my navigation limits, e.g. West Coast Vancouver Island and SE Alaska)and also an 11% increase in premium, I had my broker shop around a bit.The net result was another "A" rated company who quoted a 1% hull deductible, with navigation limits that included the West Coast of Vancouver Island, the West Coast of the Queen Charlottes, and Southeast Alaska through Glacier Bay (all of which are important to me). Their premium is about 5% higher than I'm currently paying but 6% less than the proposed increase and with significantly better coverage.Pays to shop around.Thanks to all for your input.Gary WyngardenS/V Wanderlust h37.5

 

[2 Hulls Dave]

I hate insurance companies

Gary - ask your new insurance company about this:When I was shopping for insurance I noticed that all of them had an exclusion for coverage for loss or damage due to "insects, vermin, animals, or marine life" or similar wording.Me: Does "marine life" include whales or other large critters? If I have a collision with a whale does this mean I'm not covered?Insurance geek: A whale is "marine life", isn't it?Me: OK! So, because it doesn't exclude "plant life" I'm covered if I hit a log, right?Insurance geek: Correct - even though it's dead.Me: Oh good, so if it's a dead whale, I'd be covered.Insurance geek: <click>I hate insurance companies.DaveS/V Pas de DeuxCatana 471-44

 

[Seattle Scott]

Gary, survey required

with new carrier? My rates didn't go up, but Zurich wants an out of water survey before year 6 of coverage.

 

[Peggie Hall HeadMistress]

Gary, unless you're accident prone...

You're better off with a 2% or even higher deductable...'cuz the higher the deductable, the lower the premium...enough that in a couple of years, you'd have saved enough in premiums to cover the extra 1%. 'Cuz the more of the risk you assume, the less insurance costs. Insurance should only cover what you absolutely could not afford to pay yourself. Paying for any more than that is just paying in advance for coverage you may never need...and most people don't realize how much extra that costs in premiums. So carry the highest deductable amount you could manage to come up with IF you ever have to. Example: on an $80k boat, a 1% deductable would cost you up to $800 IF you ever have a claim. A 2% deductable would mean that you'd have to pay for any damage up to $1600 out of your own pocket. That could mean as little as $200 more for $1,000 in damage....worst case, you'd be out $1600 instead of $800. If you can't afford another $800 IF you had a major claim, you can't afford to own the boat. Ask your insurance agent what the difference in premium would be and multiply that difference by the number of months it's been since you've had a claim (if ever). The total amount you've just been donating to insurance companies for the lowest deductable will surprise you.Fwiw, I've always carried the highest deductables available on all my insurance...that's saved me a LOT more in premiums over the years than I've had to pay for any claims.

 

[Fred Ficarra]

Yep, just by disaster coverage. And

that means MAJOR.

 

[Gary Wyngarden]

Thanks again,

Thanks again for the input. I'll be sure to read the fine print in the policy before inking the deal. I wouldn't want to be without coverage for logs and whales.I'm philosophically in agreement with high deductible insurance. That's what I do on my health insurance for example. I've never had a claim on my boat insurance policy and hope not to. But the next two years are going to find me logging thousands of miles in some gnarly areas like the West Coast of Vancouver Island, the Queen Charlotte Islands, and Southeast Alaska so I'm going to stick with the 1% deductible for at least the next two years.I'm off to the Seattle Boat Show!Gary WyngardenS/V Wanderlust h37.5