Why TowboatUS membership if insurance covers tows?

Unless I am missing something here, but many insurance plans have towing coverage (I know mine does). If you have this coverage, why would anyone need a TowboatUS membership if you have little to no deductable for the towing? Even if you have to call them and pay the extra charges, it's covered by your insurance. I wonder how many people pay for a membership not knowing it's already covered by their insurance?

As has been mentioned in other recent towing threads, it's good to have options, and the expense of towing insurance is minimal compared to what one would pay without it. The towing coverage included with hull insurance usually has caveats or limitations that are sometimes less than the unlimited plans one can obtain directly from the providers. Each captain should read the plans, understand the coverage provided, and decide for themselves if additional or optional coverage is desired.

One reason to have a towing membership is that if you file a couple of towing claims with your insurance company they may cancel you. If you get an insurance cancellation then it will be more difficult and expensive to get insurance with another insurance company. If you have multiple towing claims with a towing membership the worst that will happen is they cancel your membership. No ramifications on your boat insurance policy. Besides it is cheap and if the towing company gets your call and you are not a member at the same time a member calls, who do you think they will respond to?

jhance said:

Unless I am missing something here, but many insurance plans have towing coverage (I know mine does). If you have this coverage, why would anyone need a TowboatUS membership if you have little to no deductable for the towing? Even if you have to call them and pay the extra charges, it's covered by your insurance. I wonder how many people pay for a membership not knowing it's already covered by their insurance?

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TowBoatUS isn't everywhere.

-Chris

I have both because I don’t like surprises.

Another benefit is you don't have to pay the towing company full price on the spot and then file a claim. Plus they provide other services like jump start and fuel.

Geico (who is writing for BoatUS today) has an interesting endorsement available.

They call it "TowBoatU.S.® TOWING COVERAGE". It is targeted to replace typical towing coverage and the towing coverage sold through BoatUS. My policy has the coverage "TowBoatU.S. /$3,000".

Some highlights:

If you have a problem, call Geico, not TowBoatUS. Geico will call TowBoatUS and dispatch. You pay nothing--Geico handles it all. Just like having coverage through BoatUS. (However, Geico has told me that if you can't contact them--due to lack of cell coverage or timeliness or whatever--just contact TowBoatUS directly and things will get sorted out later. I have no reason not to believe them.)

If the problem occurs outside an area TowBoatUS covers, or they can't respond, the policy will pay up to $3K per incident to another towing provider.

IIRC correctly this coverage was about 1/2 the price of unlimited coverage from BoatUS.

One important difference for some: BoatUS coverage follows the operator (I think) or at least covers multiple boats. The Geico endorsement is for the insured boat and tender only.

Last fall I paid for a discounted renewal offered by BoatUS but didn’t get the renewal. I got nowhere after many calls for either insurance or my money refunded. So Now my intention is to not pay double for coverage, just not going to renew with them again UNLESS I need a tow! Yes, They will provide instant coverage for towing if you call and pay for the insurance at the time of need. And yes, my boat insurance does cover towing. After my needs are fulfilled, no additional renewals!

In the mean time, I intend to use the annual BoatUS fees to take Wifey out to dinner.

BOTH BoatUS and Sea Tow can not be signed up for at the time of a breakdown. Cant speak about the Geico insurance deal though.

Sea Tow sometimes includes a membership with a full price tow, but you are paying way more for that membership buried in the whole tow fee.

BoatUS starts its membership at midnight after you sign up.. (straight from their membership agreement..... ."This Towing Service Agreement becomes effective 11:59 PM on the day of payment and does not apply to: pre-existing conditions,*....."

Sea Tow, usually 24 hrs after signing up.

A very forgotten item.....if you ever buy or get as a gift a "box membership" for Sea Tow...make sure you you open snd activate it. Cant tell you how many poor souls have an unopened box and have to pat $1000 bucks or so because they never activated.

All franchises can always work some special deals for members....but never count on them unless in writing and never from any other franchise.

I have both towing services and my insurance has towing my thought is very cheap peace of mind. I have never used the service but like to have it same with my vehicles and AAA

psneeld said:

BOTH BoatUS and Sea Tow can not be signed up for at the time of a breakdown. Cant speak about the Geico insurance deal though.

Sea Tow sometimes includes a membership with a full price tow, but you are paying way more for that membership buried in the whole tow fee.

BoatUS starts its membership at midnight after you sign up.. (straight from their membership agreement..... ."This Towing Service Agreement becomes effective 11:59 PM on the day of payment and does not apply to: pre-existing conditions,*....."

Sea Tow, usually 24 hrs after signing up.

A very forgotten item.....if you ever buy or get as a gift a "box membership" for Sea Tow...make sure you you open snd activate it. Cant tell you how many poor souls have an unopened box and have to pat $1000 bucks or so because they never activated.

All franchises can always work some special deals for members....but never count on them unless in writing and never from any other franchise.

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OH REALLY???? Have YOU tried to renew at time of need BECAUSE I HAVE! Four years ago I neglected to renew. That summer I had an engine failure and called them and explained that I required a tow, would they tow if I renewed? Certainly was the quick answer and I paid. Fortunately I was able to power home on one engine although I could have waited for a tow.

its in the membership agreements...that pretty well sums it up...but for the sake of discussion.

I have talked to dozens of franchise iwners and national hq for both fir 15 years that I worked in the business.

I did post that a franchise owner can make exceptions...not many of those and usually only for long time customers.

I wouldnt expect it 2X though....

Exvept for the few exceptions, they would have to be out of their mind to renew on demand.

psneeld said:

its in the membership agreements...that pretty well sums it up...but for the sake of discussion.

I have talked to dozens of franchise iwners and national hq for both fir 15 years that I worked in the business.

I did post that a franchise owner can make exceptions...not many of those and usually only for long time customers.

I wouldnt expect it 2X though....

Exvept for the few exceptions, they would have to be out of their mind to renew on demand.

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Not really. Many sales departments are measured on sales and the reps could care less about the particulars

To plagiarize from another member here:

"There's the Right Way, the Wrong Way, and what some guy says he's gotten away with"

No plagiarism here:

The right way was BoatUS’s choice to either provide a refund or the service I expected when I paid them last fall for this season’s insurance.

just got this email from BoatUS headquarters...

Dear Mr. Neeld,



"Thank you for your email. If you join when you break down the Service will not be provided for. You can sign up and get towed, but you will have to pay out of pocket for the services"

Yes, I read the above post but that does not change the facts that I posted above. Maybe she does not speak for all those participating in their sales department.

Now for the IMPORTANT NEWS!!!! Today BoatUS contacted me pertaining to my payment claim from last October. The lady I corresponded with said they could not find evidence of my October payment and asked if I could help.

I sent her a copy of my CC statement for that month giving proof to my claim. Later she acknowledged finding my payment and it will be refunded! I responded saying I would put that towards my renewal. This mess should not have occured to begin with and I am pleased that it is now resolved.

Many different scenarios talked about and experienced here on this thread.

As a BoatUS member (only) with Progressive Insurance, 50 years of never needing anything from insurance (fix it, or use the radio for a tow from someone private), I blew an engine attempting a bar exit from a port...limped back to a dock, tied up and called BoatUS . . . who were polite but not going to participate, Progressive got into it and the BoatUS franchised guy arrived-towed us 45 miles to home port-and left. Cost "0", the discussion was that each BoatUS tow operator is independant, and has an area of coverage restriction by BoatUS, but, not for other carriers, in my case Progressive would have paid for a tow anywhere to anywhere, BoatUS only within region. Then I checked rates, BoatUS is more than twice the cost of my Progressive tow insurance, end determination was "it depends on the towing guy and his allegiance to one (or all) companies and the boating community (Commercial and Yachtee), I hear horror tales of "Sorry you are 5 miles too far out of my area, call someone else or drift into my zone" crap from weekender tow companies with a franchise and attitude. Not impressed with BoatUS.

I can't imagine BoatUS would allow boaters to sign up when they need a tow. Their very busniness model depends on having lots of people paying their yearly fee and only a few needing their service. If everyone just signed up when they were stranded, the cost would skyrocket.

This is a good example of why towing memberships are not for everyone and all cruising areas.

John Baker made a good case either last year or a couple years back based on frequency of needing a tow versus just paying for ond when you need one.

It is good to know membership rules in and out before purchasing...but more important "expectations of service" and how they will fiddle with your emotions when service doesnt meet them...whether legit shortcomings or not.

Talking to a lot of captains formerly or currently in the business may give you insight to the ins and outs of the business.

Talking to national hq, franchise owners, office people, reps at boat shows or younger captains needing the job or ones selling memberships may not always give the best answers.....they are probably gung ho company people or dont have a realistic appreciation of how business is actually done.

Try some old timer captains who are finished with assistance towing or semi retired and just doing assistancd towing for fun.....they may be the ones who give you the most honest answers.

So going back to the original question.

My standard boat policy includes emergency assistance at no extra charge. I have coverage for tows, fuel drop off and emergency on-site mechanical to a maximum of $5,000 per occurrence. No deductible. And they specifically say that claims under this are not counted as an insurance claim.

I see no benefit in paying to enroll in a towing service... It seems like there's little offered above what I have already.

Jeff F said:

So going back to the original question.

My standard boat policy includes emergency assistance at no extra charge. I have coverage for tows, fuel drop off and emergency on-site mechanical to a maximum of $5,000 per occurrence. No deductible. And they specifically say that claims under this are not counted as an insurance claim.

I see no benefit in paying to enroll in a towing service... It seems like there's little offered above what I have already.

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Well, i'm glad that's settled.

As for the "sign up at time of need", I notice that it never actually occurred, but was based on a phone call to BoatUS, with the operator saying they could sign up now.
Yeah, good luck with that.

I would need a few extra arms and legs to count the number of times, someone on the other end of the line, misquoted the rules, only to discover upon arrival, that in fact, the caller wasn't covered and would have to pay up front. And maybe it was even a purposeful misquote

That's what would have happened in this situation.

Wxx3 said:

Well, i'm glad that's settled.

As for the "sign up at time of need", I notice that it never actually occurred, but was based on a phone call to BoatUS, with the operator saying they could sign up now.
Yeah, good luck with that.

I would need a few extra arms and legs to count the number of times, someone on the other end of the line, misquoted the rules, only to discover upon arrival, that in fact, the caller wasn't covered and would have to pay up front. And maybe it was even a purposeful misquote

That's what would have happened in this situation.

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You are referencing one of my posts where I described an actual occurrence. My experience was real, the coverage was was paid via CC on the phone and was told that I could call for a tow. Fortunately I was able to return to my home dock with one engine and a tow was not needed.

I don’t care what you believe or not believe but if you reference one of my post, do it correctly!

Back to the original question. To answer it one needs to look carefully at the insurance policy. Most insurance policies have towing coverage but only in the event of an insured event. So, they will provide towing for some, but not all circumstances that the membership programs will. For instance, they will not provide it for just an engine or fuel problem. They will provide it for running aground.

I happened to check out my policy yesterday. I have Geico insurance through BoatUS. It has a $250 tow allowance, no deductible. I’ve only needed a tow once and I was just a couple miles from my home dock. That tow didn’t cost me anything.

At $400/hr and up, it doesn't take long to exhaust a towing rider on your regular insurance. That's from dock to dock for the tow boat, not how long the actual tow takes.

There are really only two recreational tow boat operators in the US; red and yellow. Both are franchises, with defined service areas. Outside those areas, or outside the hours or conditions when the franchisee captain "feels like" coming out, there is no coverage. This from multiple, first-hand experiences (on other people's boats, not mine!)

The towing companies will both promise 24x7 "dispatch" services, but look at the fine print. They'll only come get you if it's convenient for them. Otherwise they'll seek another provider. Since there are only two, chances are good they won't find one. At that point, they'll offer to call the CG for you.

The CG will issue a "MARB" (Marine Assistance Request Broadcast.) In other words, you'll wait hours for a good Samaritan to answer the call before they'll send a CG vessel.

I have a towing rider and one of the two tow boat services, and I'll probably sign up for the other. But you should at least know what to expect if you get in real trouble outside a harbor where one of the tow boat franchises is located.

Oh, and if you hear a MARB, consider helping a fellow boater!

Agreed that the farther you get from popular boating centers, the more towing services may get a little sketchy.

Well rest assured when passing by Southern New Jersey, one assistance company doesnt come out at their convenience. The captains are on 24x7 and will come in all but life threatening weather for any covered service. The will also come in life threatening weather, or fire/explosion, or dang near anything else maritime including pro bono search and rescue for all kinds of missions.

I have delivered 2 gallons of 2 cycle oil 60 miles out....and missed probably more holidays and family events than when I eas in the USCG.... so convenience doesnt aoply to all franchises.

There are people who choose to not buy memberships or pay for tows and call the USCG hoping to avoid spending money. It usually becomes obvious after a few radio calls who they are and some are legit low income boaters, many around here are not. So MARBS are common yet both towing companies are waiting till the boater gets tired of waiting and agrees to pay.

As I posted before, hard to pin down exactly what to expext or not with towing companies...but generally they do follow their national membership rules or risk losing their franchise.

Heck my old boss got fined $100 every time one of his captains was caught not wearing a life jacket underway by national....

A big reason that I bought towing separately from my insurance was if I bought towing thru insurance company it only covered that vessel. If I buy towing separately it covers any boat I am on. I happen to also have an 18ft powerboat as well as trawler.

pretty sure....plus any boat you bareboat charter or definitely any boat you borrow without the owner aboard.

While Progressive & Geico have tow coverage, read the fine print. It could have a limit of covering tows up to $300 or some other low figure. If your tow costs $800, then you have $500 out of pocket.

Or some insurance policies have a mileage limit. They will only covered a set number of miles. If the tow is more miles than what they allow, you pay beyond what they cover.

When an insurance company covers boat towing, they usually have limits of some kind. The terms are not as liberal as the tow coverage on your car.