Geico vs Boat US Insurance

[Deep Blue Blues]

Originally Posted by EmeraldCoastSailor

I just completed an online Geico app and the results indicate I could cut my insurance bill in half by switching from Boat US. This seems a little too good to be true. Has anyone had experience filing claims with Geico Marine? I don't mind paying for good insurance but I guess I do mind paying twice what I need to pay if all else is about equal.

Haven't read this thread but I think if both boats are covered by geico, they won't pay either party. Stick with the real guys but call them and tell them geicos quote. Maybe they can knock some off.

[emcmia]

Originally Posted by estarzinger

This is not totally correct.

First, the depreciation is only on replacment parts (so no effect on hull damage/value for instance) and only on a partial loss (so no effect on what you would be paid if you had a total loss - which would still be the agreed value).

Second, your old policy already also had depreciation for parts in the small print. In fact the policy has gotten "more valuable" because the old depreciation clause started at 10 years and it is now 20 years.

Third, I am told the depreciation is now 10%, not the 20% you mention.

They are obviously doing a terrible job explaining this.

Just received renewal notice for my BoatUS (now Geico Marine) policy on my 1993 catamaran. Premium jumped from $5100 to $6250/yr. Referring to earlier comment above pertaining to depreciation limited to parts only and not hull, the new policy states in Section IV, A. Hull and Equipment, 4.c. Amount Paid to "You" in event of loss, paragraph (2) Repairs for Partial Loss: ""We" will pay the reasonable cost of repairs or replacements, in accordance with quality marine repair practice, less depreciation. Depreciation shall be calculated at 10% for each year beginning with the 20th year from manufacture. In all cases, there shall remain no less than 20% residual value regardless of age. In the event of damage to plywood, plastic, fiberglass, metal, cement or other molded material, "we" are obligated to pay only the reasonable cost or repairing the damaged area."
BoatUS has subsequently confirmed this relates to any property claim (e.g. hull damage or parts) other than personal affects.
Deductible for "Named storm" (which now also includes even unnamed storms outside of U.S.) increased from 3% to 5% of boat's insured value.

[Sandero]

Geico gives a discount if you insure both car and boat with them.

[Capt.Don]

I dropped Boat US a couple years ago when I felt their underwriters were jerking me around for insurance coverage into Mexico. This was essentially a coastal cruising trip from LA to Cabo with less severe conditions than typically found in the Channel Islands.

First they said no problem, they could issue the rider, just call back a month or two before departure. At that time, then they wanted a new survey - my original survey was less than 3 years old. Also, they didn't like my crew qualifications and wanted a 4th person onboard.

I switched to ACE, saved a few dollars, they provided comparable coverage based on my qualifications and accepted our survey.

Interesting that Boat US is now underwritten by Geico.

[Jrs1958]

After Geico bought Seaworthy they raised rates in FL 20%+

[fallingeggs]

My Seaworthy policy was raised about 12% this year in NY after being lowered the year before. Not a budget buster with my old boat.


Sent from my iPhone using Cruisers Sailing Forum

[Dave22q]

My rate went down significantly. Yea merger!

[Dirk Williams]

A dumb question however after reading some of these numbers, I've become concerned. What can I expect to pay " ball park" for a 1970 Hallberg RASSY, 33. In primo shape?

All I'm really interested in collision insurance. If I screw the boat up, I'll pay to have it fixed.

Thank you in advance.

DW

[Dave Lochner]

Dirk,

My experience has been that for a standard yacht policy the cost is about 1% of the agreed hull value. Your mileage may vary.

As noted here and elsewhere in the forums, there are a number of factors that contribute to insurance cost, one is the value of the boat, others include location and how much of a risk you present. The latter aspect is one that seems difficult for people to understand as it is based on things like the person's driving record, claims history on the yacht policy and other policies, and credit scores (FICO). Throw a DUI, speeding tickets, bankruptcy, or history of many homeowner claims and the risk that a person will file a claim goes up and so does the premium.

Yacht policies are different from car policies, there is no "collision" policy, only a general liability provision that covers damage to another boat, marina, person, etc.

One of the most important coverages is fuel spill liability. The cost of cleaning up even a small spill can easily run into hundreds of thousands of dollars.

As to the original topic, received my renewal notice from BoatUS/Geico and found that the premium went down, the coverage area increased, and oil spill protection increased. The change was about a 15% decrease in premium. Also they have maintained the reduction in the deductible based on years without a claim. At this point, I'm pleased with the change in providers.

[Dave22q]

Originally Posted by Dirk Williams

A dumb question however after reading some of these numbers, I've become concerned. What can I expect to pay " ball park" for a 1970 Hallberg RASSY, 33. In primo shape?

All I'm really interested in collision insurance. If I screw the boat up, I'll pay to have it fixed.

Thank you in advance.

DW

You need to begin at the beginning. What is your boat worth? That will be the key variable foe damage insurance. You may not want liability insurance but all of your neighbors and most marina will insist. You may be sure you will never hit anybody but the rest of the world may not share your confidence. That said, assuming your value is under $20 k figure on less than $2000/year in US waters.

[Dave Lochner]

Originally Posted by Dave22q

You need to begin at the beginning. What is your boat worth? That will be the key variable foe damage insurance. You may not want liability insurance but all of your neighbors and most marina will insist. You may be sure you will never hit anybody but the rest of the world may not share your confidence. That said, assuming your value is under $20 k figure on less than $2000/year in US waters.

$2000 a year for a $20,000 boat? That's a lot of money.

My last boat was insured for $20K and it cost around $225.

My current boat is insured for $90K and the bill is $765.

[Sandero]

Both BoatUs and Geico are owned by Bershire Hathaway... AKA Warren Buffet.

[Dave22q]

Originally Posted by Dave Lochner

$2000 a year for a $20,000 boat? That's a lot of money.

My last boat was insured for $20K and it cost around $225.

My current boat is insured for $90K and the bill is $765.

Sounds almost too good. Who wrote the policy and is it good for coastal US waters?

[Dave Lochner]

Originally Posted by Dave22q

Sounds almost too good. Who wrote the policy and is it good for coastal US waters?

BoatUS and its various underwriters. Current quote from BoatUS/Geico is $765 down from a $910. Covers US and Canadian Inland and Coastal waters.

We sail on Lake Ontario, so the season is short and the hurricanes infrequent.

$90K agreed hull value with $225 deductible.
$300K liability
$900+K Fuel/Oil spill liability
and a few other small coverages, uninsured boater, personal effects, towing, etc.

[Dirk Williams]

Followed your lead, did the online paperwork, was shattered when I discovered that my Hallberg RASSY 33, was a wooden boat and two old to insure.

Went to my personal insurance folks, whom are independent insurance folk, they shop all the insurance companies.

Was told since my HR, was 50 hp or less, my home owners likely covered it, for liability use.

Ditto on my Hunter 25 and my Santana 20.

I did ask for quotes for replacement related stuff, haven't heard back yet
.

Dirk