2013 Insurance Premiums

[Gelfling]

I just received a quote from my boat insurer and I noticed that there was a big increase over last year. I have not had any files claimed against my policy and have paid it timely and whole year was paid in full at the start of each contract. I sent an email to my carrier and asked.

"I just received my paper copy of this quote in the mail.

Can you please advise me, why is there a 25% increase in my premium this year over last?"

The response was:

"Unfortunately, there was a rate increase across the board due to the number of catastrophic losses incurred by the insurance companies the last couple of years.

This is the best rate we can offer based on the coverages provided."

Is everyone else seen these "across the board" insurance increases?
Any suggestions on insurance companies that I can contact for simple coastal navigation in US waters?
Is there an insurance provider that will cover just inside the Chesapeake? (I don't have any plans to cruise outside of it in the coming year)

I don't think I want to accept the explanation "you need to pay for the mistakes of others".

[Kettlewell]

Get a liability only policy from Progressive so you don't have to pay for all the boats wrecked by Hurricane Sandy.

[Rakuflames]

Originally Posted by Gelfling

I just received a quote from my boat insurer and I noticed that there was a big increase over last year. I have not had any files claimed against my policy and have paid it timely and whole year was paid in full at the start of each contract. I sent an email to my carrier and asked.

"I just received my paper copy of this quote in the mail.

Can you please advise me, why is there a 25% increase in my premium this year over last?"

The response was:

"Unfortunately, there was a rate increase across the board due to the number of catastrophic losses incurred by the insurance companies the last couple of years.

This is the best rate we can offer based on the coverages provided."

Is everyone else seen these "across the board" insurance increases?
Any suggestions on insurance companies that I can contact for simple coastal navigation in US waters?
Is there an insurance provider that will cover just inside the Chesapeake? (I don't have any plans to cruise outside of it in the coming year)

I don't think I want to accept the explanation "you need to pay for the mistakes of others".

That's about how much mine went up, too.

[sailorboy1]

Mine hasn't changed much. I have Markel though IMS.

[djmarchand]

"you need to pay for the mistakes of others"

That is the nature of insurance. The insurance carrier has no way of knowing if you are going to make a mistake. And maybe you don't either ;-).

David

[Kettlewell]

Actually, the insurance companies make most of their money by investing your premiums, and the investment climate is impacting them worse than damage claims at the moment. They aren't getting the investment returns they got a few years back during the real estate bubble fueled world economy.

[jkleins]

Actually mine didn't change but a few dollars either and I use the same company as Don L. Maybe we already pay too much.

Jim

[sailorboy1]

Originally Posted by jkleins

Actually mine didn't change but a few dollars either and I use the same company as Don L. Maybe we already pay too much.

Jim

I doubt it as I got quotes from Boat US the last couple of years prior to renewing and they wanted 50% more!

[Two Fish]

I am just buying new insurance for our new boat. But we spent a bunch of time comparing the features of each insurer. Some insurers require that you inform them of who would be steering in advance. Others have very large hurricane boxes. Lightning coverage and dingy coverage are two other distinguishing factors. Finally the credit rating of the insurer is relevant as you would like them not to be bankrupt when you call for a claim. So comparing by price has been tough for us.
The insurance biz hikes rates after big losses. Then over the years lowers rates. Sounds crazy but its true.

s/v two fish

[FLLCatsailor]

Get vessel guard and reduce your insurance by up to 25%....

[gettinthere]

Vessel guard?

[onestepcsy37]

two fish said -

The insurance biz hikes rates after big losses. Then over the years lowers rates. Sounds crazy but its true.

not crazy but true. it's how they get their money back. here's my experience.

i live in a townhouse community. the hoa insures the exterior of all homes and common areas. in 2004 we paid $50k for coverage, an amount we had been paying for several years. then we had three hurricanes go through. we put in a claim for $300k, and they paid.

the next year, 2005, our insurance policy doubled to $100k. the next year, 2006, it went to $150k, and the next year, 2007, it went to $200k. it stayed at $200k in 2008, then went down to $150k in 2009. in 2010 it went down to $100k, where it has remained.

so if you think we could have been paying $50k a year if there had never been a hurricane, it appears that for paying our $300k claim in 2004 the insurance company had already recouped it's payout by 2007. since then they've taken in an extra $400k.

the way i see it, our insurance company doesn't need to invest in the stock market. they make far better returns investing in the 'insurance' market...

[Jimbo485]

Originally Posted by Gelfling

I don't think I want to accept the explanation "you need to pay for the mistakes of others".

but that is the essence of insurance - sharing the risk.

Or do you want others to pay for your mistakes, while you don't reciprocate.

Why not just self insure? Plenty do it and that way, you only pay for your own mistakes. It has the added benefit of making you more responsible.

[Gelfling]

Originally Posted by Jimbo485

but that is the essence of insurance - sharing the risk.

Or do you want others to pay for your mistakes, while you don't reciprocate.

Why not just self insure? Plenty do it and that way, you only pay for your own mistakes. It has the added benefit of making you more responsible.

1) The essence of insurance, is profit. Or nobody would be in this business.
2) No and no...and that is the reason for my 'half rant'.
3) do you have any further info on how to do this legally. I am sure that a marina isn't going to take my 'word' that I 'self insure' and everything will be taken care of in the event of an accident. I like this idea...but not sure how to accomplish this. Please advise.

[sailorboy1]

self insurance is BS

it basicaly is: you run your boat into mine boat and I take your word on it that you will cover the damages, if you wouldn't I just get screwed!