Big insurance increase from Geico/Boat US

[Alaskaflyer]

Hmmm…my potential underwriters for my potential >50’ boat sure have a requirement that I know how to operate a boat in order for them to insure it But yes, on all my previous, <30’ boats, they didn’t.

When I owned my plane, the national direct writer insurance company required that the pilot in command be licensed for the type of operation it was engaged in, and current in requirements. Any properly licensed and current pilot was covered, not just me. Total hours and additional certificate endorsements and ratings factored in my rates but I doubt they were the significant factors in setting them. Being based in Alaska certainly was

 

[SteveK]

Hmmm…my potential underwriters for my potential >50’ boat sure have a requirement that I know how to operate a boat in order for them to insure it But yes, on all my previous, <30’ boats, they didn’t.

I hope you told them the boat comes with autopilot.

 

[Hippocampus]

Generally they get interested with a ~10’ jump in size. We just downsized but to a totally different type of craft. Gave the broker my resume. He told me I was judged to be in the “best risk” group. Even with a ticket would not have gotten a lower premium. Insurance companies ain’t dumb bunnies. In this day and age probably know which side you dress on before you get a binder regardless of what you write on your application. They apportion risk appropriately or would be out of business.

 

[Bryant]

Insurance

My insurance is GEICO, but recieved a notice they will not renew in April.

Pete has promised to get me insurance in April, so I don't worry. Pete ALWAYS comes thru!!

How do I get in touch with Pete? I currently have GEICO but they may not renew due to age of the boat.
Thanks.

 

[O C Diver]

How do I get in touch with Pete? I currently have GEICO but they may not renew due to age of the boat.
Thanks.

https://www.trawlerforum.com/forums/members/pau+hana-3607.html

Ted

 

[catalinajack]

Got my notice recently about new premium, a 24% increase from last year which was my first year. This brings the annual up to almost $2700. Keep in mind our season here is less than 6 months. I have had no claims. Only stated reason for increase "is to cover the rising cost of of providing insurance for your investment."

Anyone else get bitten? I guess it's time to do some shopping. I have USAA for all other insurance so I'll try them first.

I just received my renewal letter from GEICO. The premium DECREASED by $231. Same coverage.

 

[psneeld]

Boat neighbor was not renewed by Geico because he was through a broker....went direct to Geico and the premiums dropped a couple hundred.

 

[catalinajack]

Boat neighbor was not renewed by Geico because he was through a broker....went direct to Geico and the premiums dropped a couple hundred.

Forgot to mention, my insurance is through a broker. In the State of Maryland an insurer is required to maintain the brokerage agreements for two years notice of termination of the broker relationship.

 

[SteveK]

Boat neighbor was not renewed by Geico because he was through a broker....went direct to Geico and the premiums dropped a couple hundred.

That may suggest the broker was not getting enough commission.

 

[psneeld]

That may suggest the broker was not getting enough commission.

Not sure what you mean....the general story I hear is that Geico is eliminating independent brokers.

 

[SteveK]

Not sure what you mean....the general story I hear is that Geico is eliminating independent brokers.

I recall Peter said as much.
Commission is the reason brokers exist. The boater placed insurance directly at a lower rate as commission was not paid to broker.
If insurer 'A' offers 20% and 'B' 10% would you place clients with 'B'
They always get you the best deal, did they show you the other choices?

 

[Benthic2]

I think insurers generally eat the commission that goes to brokers. It's worth it for them because it essentially sub contracts the customer service function to the broker and reduces their servicing cost.

 

[psneeld]

I recall Peter said as much.
Commission is the reason brokers exist. The boater placed insurance directly at a lower rate as commission was not paid to broker.
If insurer 'A' offers 20% and 'B' 10% would you place clients with 'B'
They always get you the best deal, did they show you the other choices?

I don't think that's true.....


.....unless you are in a state that regulates how brokers interact with the insurance company....Geico is just not selling through brokers. Both myself and my neighbor would pay the extra $200 if the brokers still could keep the same policy....it's wasn't because they reduced the premium.

 

[SteveK]

A broker is a sub contractor of the insurer. They agree on commission, there is no regulation from GOV I am aware here that tells them what it must. Brokers that have several insurers are human and will sell you the policy that earns the most.
(All except Peter)
Real Estate professionals made it clear that these 3% houses can sell their own listings when the house across the road is at 7%

 

[BandB]

I don't think that's true.....


.....unless you are in a state that regulates how brokers interact with the insurance company....Geico is just not selling through brokers. Both myself and my neighbor would pay the extra $200 if the brokers still could keep the same policy....it's wasn't because they reduced the premium.

The fact is that by going strictly in-house, GEICO did not universally reduce premiums. Some had increases and some decreases. Some boats they will no longer insure.

There is also an assumption that having all sales by their own personnel reduces the selling costs, but that's not proven as they've been selling a lot direct in the past and the costs are only marginally less.

The real driving force is to have them represented only by their own dedicated staff, not by agents who are also selling other products.

 

[psneeld]

I was mainly try to point out that you can insure directly with them in many cases, just not through a broker and it wasn't the broker trying to switch...the letter was directly from Geico. The broker even recommended calling Geico if you still wanted them.

 

[JD5652]

I am with GEICO as well with a May 2022 renewal date. Talked with my broker yesterday and he stated that the insurance regulators told GEICO that they were over extended on their marine policies and needed to pony up a few more million $$$$ to cover their risk profile. Instead of ponying up the extra million$... GEICO opted to reduce their risk profile. This trickled down to boats over 50 feet and boats older than 30 years old.

Added on top of all that is that 4 out of the 6 marine policy insurers that catered to specialty boat segments.. including the 50+ foot and older than 30 year class... has exited the market. He stated that there are now only two "specialty" marine insurers out there. Competition is less and this is translating into higher premiums along with significant Gulf coast hurricane losses in 2021.

This is the scuttlebutt I'm hearing.... YMMV...

 

[drf6]

We have had a policy with GEICO through an independent agent for six years. The independent agent thought he would be able to simply roll over our policy to Clear Springs Insurance. That turned out not to be the case. GEICO is terminating our policy through the independent agent as of 12/7. I called GEICO directly and asked if they would like to continue to insure our boat. The answer was no. They said due to its age (33 years) and length (40) feet, they weren't interested. They said anything over 20 years old in that size is no longer being underwritten. New Insurance with any other company will require an out of the water survey for valuation purposes, not exactly easy since we are in Florida for the season and the boat has been winterized, most items removed and covered up for the winter on Lake Erie. Our well maintained, 7 knot boat with a six year old 75 hp Betamarine diesel is an obvious insurance risk.

 

[Pat T]

Just a follow up from the OP. I did end up insuring with Markel via USAA. I do already have home & auto through USAA so I assume some sort of discount. Regardless, I am saving a good hunk of money for almost the same coverage - the only change being I am now only covered in the Great Lakes area and not the entire US/Canada area.
Thanks all for the many posts.

 

[Group9]

Our 48 year old 42 foot boat currently has Geico insurance. So far, no bad news from them about our scheduled renewal in April.

Last year, we got the renewal notice on January 26. I guess we will have three months or so to find a new policy if they give us the bad news on that date next year.

 

[Bryant]

Insurance

Our 48 year old 42 foot boat currently has Geico insurance. So far, no bad news from them about our scheduled renewal in April.

Last year, we got the renewal notice on January 26. I guess we will have three months or so to find a new policy if they give us the bad news on that date next year.

If you bought your policy through a broker, GEICO is going to cancel your policy when it expires. You will need to reapply for a new policy directly through GEICO. I just went through this after I received a mysterious email from GEICO telling me that I had been dis enrolled from auto pay. This happened just six weeks before my policy was due to renew. Took me two days to find out what was going on. I suggest you call GEICO now and start the discussion. Good luck.

 

[Group9]

If you bought your policy through a broker, GEICO is going to cancel your policy when it expires. You will need to reapply for a new policy directly through GEICO. I just went through this after I received a mysterious email from GEICO telling me that I had been dis enrolled from auto pay. This happened just six weeks before my policy was due to renew. Took me two days to find out what was going on. I suggest you call GEICO now and start the discussion. Good luck.

It was through Boat U.S.

 

[Bryant]

Insurance

It was through Boat U.S.

Boats US and Geico are synonymous, so you may be ok since Geico provides the coverage. I recommend you call them anyway for peace of mind. Geico is going through some strange changes and are limiting what they are covering.

 

[catalinajack]

If you bought your policy through a broker, GEICO is going to cancel your policy when it expires. You will need to reapply for a new policy directly through GEICO. I just went through this after I received a mysterious email from GEICO telling me that I had been dis enrolled from auto pay. This happened just six weeks before my policy was due to renew. Took me two days to find out what was going on. I suggest you call GEICO now and start the discussion. Good luck.

Except if you are in Maryland. If so, GEICO is required to maintain the broker relationship for two years. We just renewed; the premium was decreased by $231.

 

[Bryant]

Insurance

Except if you are in Maryland. If so, GEICO is required to maintain the broker relationship for two years. We just renewed; the premium was decreased by $231.

You are fortunate.

 

[Hygge]

Inland boaters should not insure with Geico/Boat Us or progressive as they don't have (as of last summer) an Inland water or Great Lakes only endorsement. So you pay for our southern friends' exposure to hurricanes. Rob Willis at www.charterlakes.com set up just fine with a much lower premium.

 

[BandB]

Inland boaters should not insure with Geico/Boat Us or progressive as they don't have (as of last summer) an Inland water or Great Lakes only endorsement. So you pay for our southern friends' exposure to hurricanes. Rob Willis at www.charterlakes.com set up just fine with a much lower premium.

Geico places inland with AIG, Chubb and Travelers. However, not necessarily a penalty for no Inland policy as if you have a policy above a certain area, you're not paying for Southern Hurricanes.

 

[Comodave]

Inland boaters should not insure with Geico/Boat Us or progressive as they don't have (as of last summer) an Inland water or Great Lakes only endorsement. So you pay for our southern friends' exposure to hurricanes. Rob Willis at www.charterlakes.com set up just fine with a much lower premium.

We do get a discount from the salt water areas with Boat/US insurance. It is a substantial amount.

 

[backinblue]

FWIW, my progressive policy has a "disappearing deductible". I forget the exact terms because I don't care that much but it's a nice perk. If I remember, it's something like every year w/o a claim, my deductible decreases by 25% until it reaches zero. Something to that effect anyway.

 

[Hygge]

We do get a discount from the salt water areas with Boat/US insurance. It is a substantial amount.

that is great. When I called them to complain about my 25% rate increase (no claims) they said it was hurricanes and increased accidents in southern waters. No Great Lakes only endorsement. Maybe enough people switched that they "got it" and revised the policy.