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Old 11-07-2019, 06:56 PM   #1
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Insurance Sticker Shock

The last boat I insured was a Lagoon 410 catamaran based in Maryland. Insured value was $210,000. Cost was $1950 a year. Now shopping for a trawler with a valuation of $50,000 based in South Carolina. Got a quote for $1495 a year!

That's with decades of boating, a 100 ton captain's license and never a claim. Are you guys seeing numbers like this??
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Old 11-07-2019, 07:13 PM   #2
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That's cheap and I have maxed credentials.

My $50,000 lives board trawler is $2000.
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Old 11-07-2019, 08:15 PM   #3
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Send a check before they realize they made a mistake.
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Old 11-07-2019, 08:52 PM   #4
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Move further north or to the west coast and watch the price drop.
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Old 11-07-2019, 09:03 PM   #5
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150k cost me 1,200. NY.
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Old 11-07-2019, 09:59 PM   #6
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Originally Posted by Sidclark View Post
The last boat I insured was a Lagoon 410 catamaran based in Maryland. Insured value was $210,000. Cost was $1950 a year. Now shopping for a trawler with a valuation of $50,000 based in South Carolina. Got a quote for $1495 a year!

That's with decades of boating, a 100 ton captain's license and never a claim. Are you guys seeing numbers like this??
Your last boat was in MD, weíll outside the traditional hurricane zone. The new boat is well into the CAT zone, and the premium reflects the state of the market. The companies offering coverage in CAT zones is shrinking, and those who are playing are pricing the risk per the exposures.
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Old 11-16-2019, 03:20 PM   #7
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Ok, so the latest quote I received sounds much better. The first quote was at $1495 from Geico. This quote is from Gallagher Charter Lakes. It's at $1000 dollars even. There are a couple of differences in the quotes. Here they are...

Geico...Can be in Florida during hurricane season (no plans to do that)
Gallgher..Bahamas is included in the coverage, but have to be above Florida/Georgia line during hurricane season.

Geico... $3000 towing
Gallagher...$1000 towing

Geico.... $3000 personal effects
Gallagher... $2500 personal effects

Both are at 2% deductible... $300000 liability...$3000000 uninsured boater...
$10000 medical...dinghy $1500

From what I can find on then net it seems folks are happy with Gallagher and 500 bucks is a pretty big difference...
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Old 11-16-2019, 03:28 PM   #8
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Your last boat was in MD, weíll outside the traditional hurricane zone. The new boat is well into the CAT zone, and the premium reflects the state of the market. The companies offering coverage in CAT zones is shrinking, and those who are playing are pricing the risk per the exposures.

Hopefully a quick question.


When you see quotes that are half/ or double depending what you get first...


I know some of the coverages might be a little different...but if just about the same.... should one trust the lowball quotes? You hear horror stories sometimes but if you checkout the company and they seem OK....how come the vast price differences?
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Old 11-16-2019, 04:02 PM   #9
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$300,000 is not nearly enough liability. “Personal effects” 3,000? Really? Spend the money on liability and hull coverage.

All rates are up about 20% in BC now and I can’t even get any unless I do an out of water survey despite no claims. They won’t even wait until my spring haul-out.
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Old 11-16-2019, 04:22 PM   #10
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Hopefully a quick question.


When you see quotes that are half/ or double depending what you get first...


I know some of the coverages might be a little different...but if just about the same.... should one trust the lowball quotes? You hear horror stories sometimes but if you checkout the company and they seem OK....how come the vast price differences?

That was my thought also, so did a little digging on the net and was surprised to find that folks were pleased with the customer service and claim response.
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Old 11-16-2019, 04:47 PM   #11
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raise the 300K to at least 500K


In fact put it under a umbrella for 2Mill on all your assets
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Old 11-16-2019, 05:32 PM   #12
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Now we get into the fine print. Do both plans include consequential damages? Are both plans agreed upon value? Peter is much better at this than I am, often the price difference is in the details, but not always.
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Old 11-16-2019, 05:43 PM   #13
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Originally Posted by psneeld View Post
Hopefully a quick question.


When you see quotes that are half/ or double depending what you get first...


I know some of the coverages might be a little different...but if just about the same.... should one trust the lowball quotes? You hear horror stories sometimes but if you checkout the company and they seem OK....how come the vast price differences?
Great question.

Itís all about the coverages and deductibles. Ignore the $$$ and look at the specifics of the policy language and coverages. Only then should you consider the premium.

I donít state this to push higher dollar premiums, but to take the focus off the cost. We all need to be dollar conscious, but in the end insurance (like fuel) is a relatively low cost factor in the overall scope of what we do.

And- I take internet reviews with a grain of salt. We have all heard the horror stories of ď_____ insurance company screwing meĒ- but how much of that horror story is real, and how much is perception or attitude?
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Old 11-16-2019, 07:35 PM   #14
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Don’t forget fuel spill or environmental damage, whatever it’s called. My Geico policy had about $850,000 in coverage for that alone. Liability was $1 million, hull value $250,000 on a 1980 58’ Hatteras. Premium hovered at just under $5,000/year for several years. Miami, FL year round.
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Old 11-16-2019, 08:00 PM   #15
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Originally Posted by Sidclark View Post
Ok, so the latest quote I received sounds much better. The first quote was at $1495 from Geico. This quote is from Gallagher Charter Lakes. It's at $1000 dollars even. There are a couple of differences in the quotes. Here they are...

Geico...Can be in Florida during hurricane season (no plans to do that)
Gallgher..Bahamas is included in the coverage, but have to be above Florida/Georgia line during hurricane season.

Geico... $3000 towing
Gallagher...$1000 towing

Geico.... $3000 personal effects
Gallagher... $2500 personal effects

Both are at 2% deductible... $300000 liability...$3000000 uninsured boater...
$10000 medical...dinghy $1500

From what I can find on then net it seems folks are happy with Gallagher and 500 bucks is a pretty big difference...
Simple question. Have you read both policies completely so you could compare every detail of the policies?

If so, then fine. If not, then you have no way of comparing them or knowing what is a good deal. And, yes, you can get a copy of a policy to read before purchasing.
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Old 11-17-2019, 11:05 AM   #16
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So much good advice here:
  • Don't shop on price alone or even first.
  • READ and understand the policy, not just the quote. The policy language typically isn't supplied with the quote - ask for it.
  • Don't shop on price alone or even first.
  • READ and understand the policy, not just the quote. The policy language typically isn't supplied with the quote - ask for it.
(Yes, those repeats are intentional.)

I'd add: Research the strength of the company. AM Best is a good source for this.

Note that Gallagher isn't an insurer - they're a broker. If you have a claim you'd be dealing with the insurer not Gallagher.
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Old 11-17-2019, 11:28 AM   #17
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So much good advice here:
  • Don't shop on price alone or even first.
  • READ and understand the policy, not just the quote. The policy language typically isn't supplied with the quote - ask for it.
  • Don't shop on price alone or even first.
  • READ and understand the policy, not just the quote. The policy language typically isn't supplied with the quote - ask for it.
(Yes, those repeats are intentional.)

I'd add: Research the strength of the company. AM Best is a good source for this.

Note that Gallagher isn't an insurer - they're a broker. If you have a claim you'd be dealing with the insurer not Gallagher.
Another excellent point to consider (bolded above); as a brokerage, we represent well over a dozen insuring companies across a broad spectrum (marine pleasure, marine commercial/charter, personal lines, high net worth, and more). As a marine specialist, I know the differences that each policy offers and use that knowledge to match clients to the policy that best meets their needs. Further, I can explain (in laymanís terms) the differences so the client understands what they are receiving.

This is critical- especially during a claim. Even though the broKer is somewhat out of the claims loop by design, he/she is able to advocate on the insureds behalf and sometimes move the claim along.
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Old 11-17-2019, 11:46 AM   #18
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Didn't mean to diminish your role Peter - just meant to make it clear that the contract/policy is with the insurer, not the broker. I believe good brokers bring real value in specialty markets.

Comparing Geico to Gallagher is apples and oranges.
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Old 11-17-2019, 11:55 AM   #19
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No worries

You made a great point!
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Old 11-18-2019, 09:13 AM   #20
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I've got a couple more quotes coming in, and yes, great advice to get a copy of the policies before purchase!
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