Geico vs Boat US Insurance

[tomfl]

Originally Posted by Jrs1958

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

Looks like something similar for GEICO gobbling up Boat US. My Boat US rate for the last three years was just over $US2,700 but GEICO wants $US3,800. When I called up to asked about it they said it was due to a state wide increase. Friend in North Carolina got a decrease.

I am shopping around now.

[brownoarsman]

My insurance with boatus/Geico went down by 20%, so I'm a happy camper.

I did notice there is now an exclusion clause around abandoning. If you abandon: which means the act of voluntarily giving up, surrendering, deserting, or relinquishing property and all rights to its control with the intention of terminating ownership and without the intention of vesting ownership with any other person or entity.

I'm not sure if this refers to mooring it somewhere in Florida and leaving it there, or getting off the boat at sea because you're seasick.

[ValiantV]

Originally Posted by Sandero

Does anyone care to explain WHY different companies would charge different amounts for the same level of coverage?

Intuitively this makes no sense... aside from each company having different operating cost and profit margins... or actuarial stats.

I find insurance a sort of "scam"... because of the variable rates for the same coverage.

It can also be affected by what the company WANTS to insure.

I used to have Allstate auto - for many years. I tried to insure a motorcycle with them, and they quoted me fully DOUBLE what Progressive quoted.

I told my agent "I guess you guys don't want to insure my motorcycle." He replied "Actually, you're right. We prefer not to, but we will for a much higher price."

Also finding Geico quote on the '92 Catalina 30 MKII to be about half of BoatUS (even though they insure through Geico) so that's a hard one to figure out.

Scam? Not really. Complicated & nonsensical? Quite often.

[Limpet]

Does anyone self-insure?

[Lepke]

Some of the insurance companies that advertise the most and offer the best rates will raise the rates on the 1st or 2nd renewal. I have used Geico on small boats and cars and found that is exactly how they operate. I suppose some people renew without looking over their papers.
I price my insurance every time.

[ValiantV]

That's fine if they do. At least I'll have gotten the first year "cheap" - which is harder when you buy your first boat and have no record of safe and claim-free operation. If Geico bumps their price for the second or third year, I'll reevaluate the rest of the pack. I had a quote or two that weren't that much higher, so I'll just go with the flow.

Sent from my XT1254 using Cruisers Sailing Forum mobile app

[ValiantV]

Originally Posted by Limpet

Does anyone self-insure?

Howdy Limpet,

By "self-insure" do you mean not contract with an insurance company and just pay out-of-pocket for a loss or accident?

I suppose if someone had a boat that cost more to insure than it was really worth (like all my cars...) Then it would make sense as far a loss or damage. But in this litigious society, I can't imagine being wealthy enough to be able to fork over $100-$300K in case somebody wants a piece of me. I guess if you have enough $$$ to have a killer attorney on retainer that may not be a problem.

My full-coverage us costing me about 5% if my purchase price. Sure, if the boat sank I would live, but if somebody sued me for 6 figures, I'd be in deep doo doo. Wouldn't most people?

[stgermain45]

Originally Posted by Lepke

Some of the insurance companies that advertise the most and offer the best rates will raise the rates on the 1st or 2nd renewal. I have used Geico on small boats and cars and found that is exactly how they operate. I suppose some people renew without looking over their papers. I price my insurance every time.

This is EXACTLY what we experienced trying Geico, both car and boat. We switched to Markel after the first year and pay less than we did with Geico, even with an additional liveaboard endorsement (similar to homeowner's policy). Pays to shop around.

[wingless]

Thanks for this information.

My Florida boat has been insured w/ BoatUS (now Geico) for about a decade w/o any claims.

They increased my premium by 25% this year w/ no coverage change.

My discussion with them did not provide any significant change. I told them that they were losing an excellent customer, to no avail.

My research led me to discover, in my case, that the best premium was offered by TradeWinds, costing me 42% of the quoted renewal for equivalent / better coverage.

[Dave Lochner]

Originally Posted by Limpet

Does anyone self-insure?

I'm sure that there are people who do "self-insure" but it is a really bad idea. Broadly speaking there are 2 parts to insurance, hull and liability. Depending on the value of the boat hull insurance may or may not be worth the expense. If you sink your $10K boat, you're out $10K.

Liability is another issue. A gallon of diesel fuel spilled at the marina will cost a boatload of money to clean up. Do you have a spare quarter million dollars to clean up the mess? What if you hit a boat and someone is injured? Do you have the money to cover the medical and other costs?

Last fall there was a thread on another forum about a boater who bought a cheap boat that he had planned to live on. He didn't insure it. Hurricane Mathew came through and put the boat up on a marsh island. He's liable for any damage the boat may have caused and he has to foot the bill to salvage the boat. A few hundred dollars of insurance would have protected him from the expenses involved.

[TabbyCat]

Originally Posted by tikirawker

I was told Gieco doesn't insure boats over 27 feet. Is this not true?

Not True! At IMIS we're Agents for Geico Marine (GMIC), formerly Seaworthy. They insure boats up to 68' in length.

Best Regards,

[TMT2]

We find that 5 conditions get a negative reaction or expensive reply from most insurance companies (or a significant mark up):

1. If you live aboard
2. If you cruise beyond coastal limits
3. If you do not have significant (documented) boating experience
4. If you have an older boat
5. If you wish to insure for replacement value versus purchase price

We use Bluewater out of Florida. 40 year old, 53 ft Gulfstar, insured for purchase price plus tender (not replacement), $500k liability, Portland ME to Brownsville TX, 200 NM out includes Bahamas for $2800 per year. Riders available for further out and cruising health coverage.

[TabbyCat]

TMT2,
You wouldn't get a negative response from IMIS - 3 out of 5 of your parameters define our target market!
However:
#3 - "significant experience" - how would you define that? 1 year of boat ownership? 3? 10?

#5 Replacement Value - that's not actually a good term to use. "Replacement" is too subjective- replacement with what? A 40 year old Gulfstar or a 2017 one (if they were still made)? Surveyors do include replacement value in their reports to indicate what a brand new boat would cost, but it's kind of meaningless. When looking at a survey, the value insurance companies use is the FMV (Fair Market Value). Insurance companies usually either use Agreed Value (similar to FMV) or Actual Cash Value. Underwriters are seeking to restore you to the condition that you were before the loss, but not better. Agreed Value (AV) means paying you a specified amount, agreed in advance for a claim; Actual Cash Value (ACV) means paying you the market value at the time of the claim, and is generally less than AV. ACV is usually calculated by applying depreciation to the new cost.

I see you're in Maryland, so you probably have a hurricane date restricted navigation territory, which does save you on the premium. What underwriter do they have you insured with?

[Dave22q]

GEICO sells through BoatUS. I'm in Florida and live aboard but they never asked about that. I use agreed value to make total loss calculations easy. They will not cover Cuba and for Mexico you need to buy extra from a local they can refer you to. Probably not the cheapest but great customer service including claims (based on sample of one).

[TMT2]

Tabbycat,

Bluewater has my policy underwritten through American Reliable Insurance Inc. I'm currently covered for Chesapeake and Delaware Water systems at $1800 per year. When I was in Tampa I had the ME to TX coverage at $2800. We have agreed value with them. Any suggestions to improve?...We will update our cruising plans to the broader US East Coast and Caribbean in NOV.