Slammed by Insurance premiums! What happened?

Captain Larry-DH · May 2, 2018

Get other quotes.

kloudie1 · May 2, 2018

We on the Gulf coast have had a lot of changes in the insurance market since Hurricane Katrina.. Some companies quit insuring bigger boats at all.. It pays to shop around..

Will Gilmore · May 2, 2018

DayDream2 said:
Do I have any recourse?

I believe they are negotiable if threatened with loss of business and a lower comparison quote. Consider the possibility of down grading to liability only. What does your marina require? Do you do your own work? There is some coverage overlap for things like personal injury with other policies.

Insurance companies charge what the market will bear. What I hate about them is how they manipulate governments and industries into requiring coverage so they can charge what they want. I don't think any industry makes use of actuarial mathematics as well as the insurance industry.

- Will (Dragonfly)

Gunni · May 2, 2018

Get a broker.

Will Gilmore · May 2, 2018

kloudie1 said:
We on the Gulf coast have had a lot of changes in the insurance market since Hurricane Katrina.. Some companies quit insuring bigger boats at all.. It pays to shop around..

My father once called to get insurance on his 44' cruiser/racer. Hurricane Hugo was working its way up the East coast at the time.
The conversation on the phone went something like this,
My father, "I'm calling to get my new boat insured."
Insurance Co., "sure Mr Gilmore, we can help you with that. We just need to know a little about your boat. What kind is it?"
My father, "It's a 1989 J-44. It has... I bought it, with an appraisal, for..."
The insurance Co., "OK, Mr Gilmore. It looks like we have everything we need. I have just the policy for you."
My father, "There is one more item I need to mention. Zafu is in a marina in North Carolina right now."
The insurance Co., 'silence'
My father, "I take it that is a problem? "
The insurance Co., "I'm afraid so, Mr Gilmore. But, we would be happy to insure your new boat as soon as the hurricane has past. "

Zafu survived with no damage.

- Will (Dragonfly)

Gunni · May 2, 2018

After Sandy the entire boat insurance market took a hit and we all paid for it. But $500 / year for boat insurance is way below market unless you plan on replacing your boat with your savings. I've shopped insurance on the east coast 12 ways to sunday and $1000 is about right for solid liability / comprehensive loss insurance on a boat of that size. More the further south you go.

splax · May 2, 2018

I found that changing my policy from a stated value to market value decreased the premium significantly.

kloudie1 · May 2, 2018

And then when my buddy told the agent that the engine was an Atomic 4, the agent said that he was pretty sure the company would not insure nuclear drive devices....

Don S/V ILLusion · May 2, 2018

DayDream2 said:
I have a 2000 Hunter 420 insured through BoatUS- I believe Geico is behind it.
We have the boat in the water from May through end of October each year.
In the last four years our premiums have doubled, from under $500 to just under $1000. We've had no claims. What's going on?
Do I have any recourse?

$500 seems extremely low for a 2000 H420.

As for what drives premium increases, obviously history is one factor but interestingly, those of us living in Florida have not seen any significant change in our premiums in the last two years so although hurricanes are the usual reason given, that doesn't seem true here, either for boat or home insurance.

As to your "recourse" the telephone is your friend...

Gunni · May 2, 2018

kloudie1 said:
And then when my buddy told the agent that the engine was an Atomic 4, the agent said that he was pretty sure the company would not insure nuclear drive devices....

That is funny. A sure sign that you are speaking to a landlubber insurance agent!

Benny17441 · May 2, 2018

splax said:
I found that changing my policy from a stated value to market value decreased the premium significantly.

Remember, you get what you pay for. They can play with market value but stated value is fixed. The decreased premium will largely reflect their anticipated reduction in claim payment.

jwing · May 2, 2018

DayDream2 said:
Was surprised by how inexpensive it was, at first. There is an insurance trick of quoting low to get you in, and raising steadily after. I appreciate everyone's input.

Over the last 10 years, my homeowner's insurance has gone up nearly $400 PER MONTH.

karellen · May 2, 2018

We had Geico through BoatUS from 2016-2017. When our first renewal came, the rates went from about $300 to $700. I switched to an independent agent and am now paying $365. West coast Hunter 356.

Newport Bob · May 2, 2018

All this is interesting but without value of boat, deductible, liability amount, includes dinghy/outboard?, any months out of water storage required, cruising area covered, have home owners and cars with company, etc. comparison is impossible.
As an approximation I agree with Gunni

karellen · May 2, 2018

You're absolutely right, Bob. I just wanted to point out that my premiums doubled with BoatUS/Geico as well and that I've heard of it happening with other sailors as well.

Newport Bob · May 2, 2018

karellen said:
You're absolutely right, Bob. I just wanted to point out that my premiums doubled with BoatUS/Geico as well and that I've heard of it happening with other sailors as well.

No problem!! Useful information.

mlaver · May 2, 2018

BoatUS has a vanishing deductible if you’ve had the policy a long time with no claims. I believe the deductible dropped 1% each year you were claim-free. When the rates jumped last year I was pretty irate. I called Geico/BoatUS and griped, and they told me if I let my deductible rise from my current 0% to 3% IF I HAD A CLAIM then my rates would get back in line. Note my deductible is still 0 - the increase only goes into effect after a claim. This was a better solution for me than messing with liability or boat value.