Who has lowest cost insurance?

[Alaskaflyer]

On the topic of Underinsuring to save premiums or for other strategic reasons. I think this would put you in jeopardy of facing an otherwise unnecessary total loss which would leave you with a settlement amount that would not come close to replacing the boat you just handed the insurance company.

The threshold(s) for total loss is based on the insured value. Aircraft owners get their butt bitten by this semi-regularly.

 

[Seevee]

On the topic of Underinsuring to save premiums or for other strategic reasons. I think this would put you in jeopardy of facing an otherwise unnecessary total loss which would leave you with a settlement amount that would not come close to replacing the boat you just handed the insurance company.

The threshold(s) for total loss is based on the insured value. Aircraft owners get their butt bitten by this semi-regularly.

Don't see much difference with aircraft insurance.



Agreed on not underinsuring. However, I could see a large deductible to kee premiums down, but unfortunately, doesn't work that way.

 

[fryedaze]

It seems a lot of people shifted to Geico the last few years. In the last year I have heard a few stories of the "agreed apon value" of the boat being reduced by Geico. Has anyone experienced this.

 

[Comodave]

It seems a lot of people shifted to Geico the last few years. In the last year I have heard a few stories of the "agreed apon value" of the boat being reduced by Geico. Has anyone experienced this.

Boat/US (Geico) reduced my agreed value on our renewal this year. I called Boat/US and asked why. They didn’t have an exact answer. I asked to have it back to the previous valve so she looked up the ballpark value. She gave me the range of values in the book. They were higher than what I had originally so I said increase it to the high end of the book value. She said fine so we now have an increased value from last year. Premium was a bit more but negligible.

 

[Baker]

In reading the many replies, I have to remind all that one persons yearly premium has essentially zero bearing on what another might pay on a yearly basis- there are too many variables-

• Vessel info- year, make, model, fuel type, hull type, material condition, and more
• Owner experience
• Claims history
• Navigation area

Food for thought...

^^^^THIS^^^^

Also certain companies may be cheaper in certain regions. Geico is double what Progressive is for me in my area on my boat.

 

[SiestaG]

It seems a lot of people shifted to Geico the last few years. In the last year I have heard a few stories of the "agreed apon value" of the boat being reduced by Geico. Has anyone experienced this.

Geico just “offered” me a renewal with a 20% reduction in insured value. Even though I and my broker have provided them 4 current listings for sister ships that are well over my old insured value (asking price, I know!), they are digging their heals in. According to my broker, Geico uses ABOS as a valuation guideline which is probably accurate for higher production vessels like SeaRays but when it comes to lower volume / higher quality boats like the Sabre/Sabreline seems less reliable.

We’re still fighting it but I am starting to look at alternatives.

 

[Leatherneck]

Dave,
When I purchased my 1987 Jefferson 42 back in January I got a quote from GEICO that included the following:

"Depreciation applies to all partial losses and will be calculated at 10% for each year beginning with the 20th year of manufacture with a maximum of 80%. Depreciation applies to parts and material, not labor."

Since my Jefferson is 33 years old (and 13 years past where the depreciation kicks in) it seemed that they would depreciate all partial losses by 80%. Have you seen that clause anywhere in your policy or heard about it?
I went with Chubb instead and although about 40% more than GEICO's quote, it is still under $2,000/year.

 

[fryedaze]

Dave,
When I purchased my 1987 Jefferson 42 back in January I got a quote from GEICO that included the following:

"Depreciation applies to all partial losses and will be calculated at 10% for each year beginning with the 20th year of manufacture with a maximum of 80%. Depreciation applies to parts and material, not labor."

Since my Jefferson is 33 years old (and 13 years past where the depreciation kicks in) it seemed that they would depreciate all partial losses by 80%. Have you seen that clause anywhere in your policy or heard about it?
I went with Chubb instead and although about 40% more than GEICO's quote, it is still under $2,000/year.

I have the same wording. It was explained to me that the agreed value applied to total loss.

 

[Larry M]

Boat/US (Geico) reduced my agreed value on our renewal this year. I called Boat/US and asked why. They didn’t have an exact answer. I asked to have it back to the previous valve so she looked up the ballpark value. She gave me the range of values in the book. They were higher than what I had originally so I said increase it to the high end of the book value. She said fine so we now have an increased value from last year. Premium was a bit more but negligible.

We got the same notice from Geico Marine with our renewal on Oct 1. We've been carrying the same agreed value since 2007. We don't have a recent survey and Hobo is a depreciating asset. With the cost of a new survey I think were ahead.

Please note, underwriters have performed a regular review of the agreed hull value and have adjusted coverage to align with the current market value. The current agreed value is $208,000. If you wish to continue to insure the vessel at $260,000, please submit a recent condition and valuation survey for underwriting to review.

 

[Larry M]

Dave,
When I purchased my 1987 Jefferson 42 back in January I got a quote from GEICO that included the following:

"Depreciation applies to all partial losses and will be calculated at 10% for each year beginning with the 20th year of manufacture with a maximum of 80%. Depreciation applies to parts and material, not labor."

Since my Jefferson is 33 years old (and 13 years past where the depreciation kicks in) it seemed that they would depreciate all partial losses by 80%. Have you seen that clause anywhere in your policy or heard about it?
I went with Chubb instead and although about 40% more than GEICO's quote, it is still under $2,000/year.

We asked Geico about a depreciating waiver last year. Here's their reply:

They now have a “Partial Waiver of Depreciation” endorsement that can be added to your policy at renewal. I have attached a copy for you to look over. The additional premium for this endorsement is about $25.00 per year. With this endorsement, Geico will not deduct depreciation for repair or replacement of the following:
a. Fiberglass, plastic or wood hull materials;
b. Mast and spars;
c. Metal supports and framing for attached towers, T-tops and hard tops;
d. Bow, stern or deck railings; and
e. Glass

 

[Satch]

We have Boat/US which is Geico. We pay about $800 but we are in Michigan. They have always been good to us. You don’t necessarily want the cheapest.

We have the same (BoatUS/Geico) on two boats in Washington State, one of which is a 34' Trawler, for which we pay about $450 annually. They required an in-water survey which also cost us $450. We also looked at Progressive, which did not require a survey at all, but the quote we got was about $700 annually.

If you belong to a yacht club, you can probably get BoatUS membership through it for $10 per year. Otherwise it's only $35 per year. You should consider it even if you don't want their (Geico) insurance. It pays for itself in discounts at chandleries like West Marine, and their emailed maintenance tips and classifieds are fun to look at.

 

[Jimintheair3]

Amazing

www.Boat Insurance only.com
Twin Rivers Marine Insurance Agency
7 Marina Plaza
Antioch, CA 94509
800-259-5701 (USA Only)
Gary Clausen

 

[SiestaG]

Geico just “offered” me a renewal with a 20% reduction in insured value. Even though I and my broker have provided them 4 current listings for sister ships that are well over my old insured value (asking price, I know!), they are digging their heals in. According to my broker, Geico uses ABOS as a valuation guideline which is probably accurate for higher production vessels like SeaRays but when it comes to lower volume / higher quality boats like the Sabre/Sabreline seems less reliable.

We’re still fighting it but I am starting to look at alternatives.

Good news. After a couple of weeks of arm wrestling, Geico Marine agreed to return the Agreed Value back to last year's AV, which I feel is a realistic amount. Not without a rate increase of course, but at least a reasonable one. I feel much better that we will not be out here underinsured.

 

[William983]

United Marine Underwriters.
50% less than my geico last year.

AB@BREAUD.COM
Breaud insurance agency

 

[mikentosh]

UPDATE! Geico totally screwed me over. After giving me a quote and telling me to get a survey which I did and paid $500 for it they now tell me they don't insure boats like mine in Florida. Bastards!

 

[mikentosh]

https://www.geico.com/information/aboutinsurance/boat/

GEICO has teamed up with its subsidiary, BoatUS, to bring boaters a policy developed by experts, with the great service you expect from GEICO. Policies are underwritten by GEICO Marine Insurance Company. When you begin a quote, you'll be taken to the BoatUS website for a secure boat quote.

Geico screwed me over, they told me they would insure my about after a survey which i got then they told me they dont insure boats like mine in Florida.

 

[SteveK]

My boat is paid for and insured for agreed value. The marina cares about if I have liability insurance and I do too, just in case. Since the boat is already paid for I am not as concerned about a total loss as someone might be carrying a loan on it.
Sounds like others insure for agreed value at a rate that is satisfactory should a total loss occur, but may not be replacement value.
Question for the insurance guru Pau Hana, Peter, do insurance companies care if you under insure just to get the liability portion?

 

[psneeld]

Geico screwed me over, they told me they would insure my about after a survey which i got then they told me they dont insure boats like mine in Florida.

Boats like yours?


Get them to explain that for you.


Based on your posts I have read, how much large boat experience do you have?


Mine went through like Teflon.... I did use a broker, you may have to go that route.


As far as screwing you over, almost any insurance you get will require that survey anyhow.

 

[Nomad Willy]

Just a thought ...

Whomever has the lowest cost insurance almost certainly has the lowest level of service.

 

[mikentosh]

Boats like yours?


Get them to explain that for you.


Based on your posts I have read, how much large boat experience do you have?


Mine went through like Teflon.... I did use a broker, you may have to go that route.


As far as screwing you over, almost any insurance you get will require that survey anyhow.

No one does boats over 26ft.

 

[SteveK]

No one does boats over 26ft.

what are you trying to say, first boats like yours a 36, now over 26. The rest of us have insurance.

 

[Pau Hana]

Geico screwed me over, they told me they would insure my about after a survey which i got then they told me they dont insure boats like mine in Florida.

As of December 15th, GEICO revised their underwriting guidelines to boats no older that 40 years of age (as well as a few other changes).

My boat is paid for and insured for agreed value. The marina cares about if I have liability insurance and I do too, just in case. Since the boat is already paid for I am not as concerned about a total loss as someone might be carrying a loan on it.
Sounds like others insure for agreed value at a rate that is satisfactory should a total loss occur, but may not be replacement value.
Question for the insurance guru Pau Hana, Peter, do insurance companies care if you under insure just to get the liability portion?

You can under insure the vessel if you wish- the insurer will pay out only the agreed values of the policy (assuming you have an agreed value policy) in the event of total loss.

No one does boats over 26ft.

Of course they do- including GEICO.

 

[Alaskan Sea-Duction]

As of December 15th, GEICO revised their underwriting guidelines to boats no older that 40 years of age (as well as a few other changes).



You can under insure the vessel if you wish- the insurer will pay out only the agreed values of the policy (assuming you have an agreed value policy) in the event of total loss.



Of course they do- including GEICO.

So what are the "other changes?"

 

[Group9]

Just a thought ...

Whomever has the lowest cost insurance almost certainly has the lowest level of service.

Or lives somewhere that hurricanes and storms don't hit very often.

We had a whole lot of boats sunk, put on land, or damaged down here, in 2020. Although ours survived with no damage, as always, I'm dreading our new policy quote in March.

 

[Landfall]

Happy with United marine underwriters, 742.00 for steel, 43 foot, 175,000.00 value, Great Lakes with 4 months layup. Chubb has the policy.

 

[ksanders]

Seems to me we shouldn't be asking "who is cheapest"

We should be asking "who offers the most comprehensive coverage at a reasonable price"

Insurance is not something you think about for most boaters except when paying the bill of if they have a loss.

The cheapest is not always the best here.

 

[SteveK]

IF the cheapest offered the best coverage there would only be one brand of insurance.
I suppose the cheapest necessary insurance is liability, nothing covered for the boat.
Smart underwriters would still demand a survey.

 

[Pau Hana]

Seems to me we shouldn't be asking "who is cheapest"

We should be asking "who offers the most comprehensive coverage at a reasonable price"

Insurance is not something you think about for most boaters except when paying the bill of if they have a loss.

The cheapest is not always the best here.

IF the cheapest offered the best coverage there would only be one brand of insurance.
I suppose the cheapest necessary insurance is liability, nothing covered for the boat.
Smart underwriters would still demand a survey.

Spot on.

Nothing is free, and that includes quality coverages. Anyone looking for the cheapest coverages will surely compromise coverages as a result.

In 20 years of writing marine insurance, I have seen too many carries close shop because they considered nothing except the lowest price- and the insureds (policyholders) suffered as a result.

Caveat Emptor is the operative watchphrase here.

 

[Comodave]

Seems to me we shouldn't be asking "who is cheapest"

We should be asking "who offers the most comprehensive coverage at a reasonable price"

Insurance is not something you think about for most boaters except when paying the bill of if they have a loss.

The cheapest is not always the best here.

100% agree. Unless you consider the boat a throwaway item, then you want good insurance not just the cheapest.

 

[otis maximus]

Mikentosh,

Did you ever find insurance? I got dropped from Gieco on their 40 year rule and am now searching myself, checking with Allstate as that's where the home and autos are.