Beware boat insurance billing practices

[Cyrus Safdari]

BoatUS has tried to charge me for insurance that I never signed-up for.

They sent me a contract that was WAY higher than other estimates, so I never signed it nor returned it. They recently tried to charge my credit card anyway (thankfully I had a new CC issued a couple of months ago for different reasons)

They actually had the nuts to email me and tell me about the declined transaction

[Jd1]

If you were a previous insurance customer, standard insurance practice is to renew your insurance unless it is specifically canceled. Trying to bill your credit card without authorization - not ok .... unless that was previously set up for the old insurance.
If you were not a previous customer, how did they get your credit card number ?

[Cyrus Safdari]

I guess I should not be surprised by entities that try to engage in dubious practices under the the title of "standard practice"

In my case this was not a renewal of an existing policy but a new policy that I did not want to sign-up for. They sent me a new contract with new terms etc. and I LOL'd and chucked it.

[Jd1]

Not a dubious practice at all (well IMHO) but rather a service to me, the customer. I get a phone call or email when my boat or house insurance gets close to renewal time, they have usually already renewed coverage and are asking for the bill to be paid prior to the expiry of the old insurance. No muss, no fuss, no panic. If I tell them to cancel the insurance they will cheerfully do that. If I had automatic payment set up, they will cheerfully take the money without my confirmation because everything is set up to function that way.
Again I ask .... if you were not a previous customer, how did they know your credit card # ???

[Cyrus Safdari]

Originally Posted by Jd1

gets close to renewal time

Not a renewal but a new policy, new contract with new terms etc

[ValiantV]

Originally Posted by Jd1

Again I ask .... if you were not a previous customer, how did they know your credit card # ???

The $64,000 question. Curious as well.

As BoatUS insurance is now Geico, and I'm familiar with Geico Auto insurance, they typically send a renewal letter AND a text or email informing that they will put a payment through on your CC that is on file. Quite far in advance actually - so you have ample time to call off the dogs.

[Hv2sail]

I went with GEICO years ago because they charged me half of what boat/US was going to charge and with out all the restrictions as to where I could boat. Now that GEICO owns boat/US are we talking lower rates for the Boat/US customers or new higher rates for the GEICO customers?

[Wallaby]

Beware the cute little Gecko. He sends out notices for insurance premiums to be paid over time. The statement includes a fairly large surcharge for the privilege of paying by installments. Nowhere on the statement does it say how much!

[Dave22q]

Ridiculous interest on time payments is a wide spread practice. We may think it's usury but the customers who elect to pay this way are not forced. Freedom always includes the freedom to be what I consider stupid! There might be a reason why time payments make sense but I have never heard one.

[Cheechako]

I've never seen a contract before asking to buy insurance. Sounds like a miscommunication to me. How did you get a contract without buying insurance and how did they get a CC # without you giving it?
Not that I would ever buy insurance from very high priced BUS

[Lake-Effect]

Originally Posted by Cyrus Safdari

I guess I should not be surprised by entities that try to engage in dubious practices under the the title of "standard practice"

In my case this was not a renewal of an existing policy but a new policy that I did not want to sign-up for. They sent me a new contract with new terms etc. and I LOL'd and chucked it.

You still haven't answered - were you previously a customer and this new contract came at the end of the existing coverage?

If so, this was essentially a renewal, and the fine print usually states that if you didn't want to renew, you have to notify them to decline.

No action = accepting the new renewal.

In fact, insurance companies can in some jurisdictions be liable if they let coverage just lapse without dire notifications (eg a registered letter letting you know your coverage will lapse)

Sounds like a normal automatic renewal to me.

[newhaul]

Originally Posted by Dave22q

Ridiculous interest on time payments is a wide spread practice. We may think it's usury but the customers who elect to pay this way are not forced. Freedom always includes the freedom to be what I consider stupid! There might be a reason why time payments make sense but I have never heard one.

Way back I paid for my broadform insurance on my drivers lic. Was 48 bucks a month and had a salvage contract that paid me $50 per month . It was worth it not to have to come up with $240 every 6 months.

[SV DestinyAscen]

If you read the fine print, there is probably an auto renewal clause in the previous insurance contract.

[ValiantV]

Originally Posted by Dave22q

Ridiculous interest on time payments is a wide spread practice. We may think it's usury but the customers who elect to pay this way are not forced. Freedom always includes the freedom to be what I consider stupid! There might be a reason why time payments make sense but I have never heard one.

I don't think this really qualifies as a "time payment" because you haven't received all of the goods or services and paid for them later. More of a *pay as you go" arrangement.

All semantics of course. Some insurers will quote you different amounts for paying for 6 months or a year up front vs quarterly or monthly payments. Done will add a set amount to each payment if you pay less than the full policy amount up front.

It was easier and I saved a few bucks by paying for a year up front. That's great if you have the $$$. Some things are just plain easier to budget since income often comes in monthly.

[buzzstar]

Something is missing here. A credit card number cancelled months ago, and a policy renewal or the first payment after those months. All too strange.