Boat Insurance Increase

[seasalt007]

My annual premium from Boat/US Geico just went up by 33%.

Must have been the 2017 hurricanes.

The letter from the underwriter stated:

"Congratulations! Because of your excellent claims record, you're receiving the benefit of our Diminishing Deductible which decreases your hull deductible by 25%.

The increase in your premium is to cover the rising costs of providing insurance protection for your investment".

Who knew?...my boat is an investment. Could've fooled me.

 

[roguewave]

All I have for the boat insurance company’s is a big middle finger from my right hand

 

[aboatman]

This past couple of years has been rough for boats and the companies that insure them.

The good news is, I asked about coverage for haul outs for named storms this year and they reimbursed me for the last one. I wasn't really expecting that.

 

[BandB]

What we're seeing so far is a very mixed bag. I know one property that got a bill for an increase from $3600 a year to $6000. Broker shopped and got it for $4000 from a better company and with a reduced deductible, which wasn't really desired. Some people are getting 30% increases on boat insurance and some are getting 5%. Many changing companies. Typical post hurricane mixed market.

Your reduced deductible doesn't sound so free when the rate is up 33%. I'd curiously ask them what it would be with your old deductible.

I know one person who claimed they switched from Boat US/Geico to directly with Geico and saved. Sounds crazy and don't know if the policies were the same plus can't be sure of their story.

I'd do some shopping and see what you find out.

 

[danderer]

I know one person who claimed they switched from Boat US/Geico to directly with Geico and saved. Sounds crazy and don't know if the policies were the same plus can't be sure of their story.

When shopping this year Boat US/Geico was significantly cheaper than Geico, which made no sense to my broker. There were some policy differences.

The underlying cause seemed to be that Geico was going through a period trying to reconcile how they wrote and quoted Boat US vs. their traditional policies. At the end of the day my broker got same policy, same rate.

 

[Larry M]

We're insured with Geico Marine and ours went down $125 when we renewed on October 2. Who knows what’s going to happen next year after they figure out their losses from this year.

Geico also added a "Disappearing Deductible" benefit to our policy. They said since we have no claims, with a long history, our hull deductible was reduced to $0 (excluding named storms).

 

[BandB]

No apparent logic and Geico still figuring out how to make their straight and their Boat US policies the same.

I hate shopping insurance and glad I have an employee who handles that. However, we filed no claims, home, businesses, boats or cars during this season and have incurred no increases above 3-5% on anything. Lloyd's did change one underwriter.

 

[nodestination]

I notice increase from $149 a year for liability to $197 from Geico Marine

 

[Larry M]

No apparent logic and Geico still figuring out how to make their straight and their Boat US policies the same...

I agree and it will be interesting to see how they do. BoatUS, I think, historically has insured smaller vessels and pretty much a domestic market. My experience with Geico Marine, which was Seaworthy, a Berkshire Hathaway Company before, insured larger vessels for domestic/international travel and we’re not as risk averse. We have an other Geico insurance policy and as of last week they hadn’t acknowledge Geico Marine as part of the “family”.

Maybe will here from Peter (Pau Hana), the insurance guy and get his read.

 

[seasalt007]

I notice increase from $149 a year for liability to $197 from Geico Marine

My increase was $660 over last year. 33%

 

[O C Diver]

This year I did the Great Loop and had my navigation area increased to include the Great Lakes (no additional premium ). My renewal now includes Canada out to Quebec City, the Atlantic to St John, New Brunswick, West past the Mississippi to the Gulf of Mexico, and all of the Bahamas.

Policy did increase for next year by $32 (1.5%). Think I'll pay the premium and be happy with the largely expanded navigation area.

Coverage is from Ace American Insurance though International Marine Insurance Services / Chubb.

Ted

 

[Edelweiss]

My annual premium from Boat/US Geico just went up by 33%.

Must have been the 2017 hurricanes.

Boat US has always been hard on Gulf coast and South East coast boaters. I'm guessing the higher risk due to storm loss is the deciding factor.

I referred friends in Texas to them and I was shocked by the high insurance quote they received. I've been with them for 16 years and rates have been relatively stable here in the PNW. I raised my liability another notch when I renewed in September and it went up only $30.

 

[BandB]

Boat US has always been hard on Gulf coast and South East coast boaters. I'm guessing the higher risk due to storm loss is the deciding factor.

I referred friends in Texas to them and I was shocked by the high insurance quote they received. I've been with them for 16 years and rates have been relatively stable here in the PNW. I raised my liability another notch when I renewed in September and it went up only $30.

One thing I saw on the Gulf Coast a couple of years ago was some companies raising rates significantly and the underlying reason was they wanted fewer customers in the area. Insurers don't just look at the exposure in areas but at their exposure. They hope to have coverage balanced across areas so one storm wouldn't impact them disproportionately. It's a bit like resort hotels now with their active changing prices where the fuller they are, the higher the price. In this case the insurer may have a target of x% of their business being in a specific area. If they find it's significantly above that they'll take steps to reduce it. Either it drops or the profits from it increase enough to justify the risk.