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-   -   Insurance cost (http://www.wakeworld.com/forum/showthread.php?t=796232)

boardman74 11-20-2012 3:03 PM

Insurance cost
 
Has anyone else noticed sky rocketing insurance costs on boats. Every time we renew or change boats it seems to jump at an alarming rate. I suppose this has some to do with the price tags rapidly rising. I assume I have the lowest risk factor I can. 38, Married, kids, no tickets, no claims etc. Drivers safety classes, boat safety etc.

But I'm now at $650 a year for the new Tige with agreed value of 65K. Little higher than I paid but want to make sure i can replace it if something were ever to happen. Thats the value the insurance guy and me came to. He wanted to do it at MSRP but I said it wasn't needed and it would have been more. Old boat was only about $350/year so it was a shock!!

Are other people seeing higher rates over the last 5 years.

VLX_Fixation 11-20-2012 3:13 PM

damn...what was the value of your old boat vs your new tige? i just got a new policy for 55k on my malibu for $369 a year in california

boardman74 11-20-2012 3:16 PM

Old boat was only insured for 11K. I even shopped around. I use a broker and he shops like 12 places and I checked State Farm as our cars and house are there. They were actually the cheapest.

WakeDirt 11-20-2012 3:34 PM

Ive noticed here in CA, its about 100$ per 10k of worth....so you sound right about on-par for Cali prices. I love my yearly luxury tax too... I truly enjoy paying that one.

WakeDirt 11-20-2012 3:36 PM

Hey horton, wwho do you have? That sounds like a great deal. Full coverage I presume? I am insuring 50 k also, would love to knock off a hundred bucks!

chrisbucklin 11-20-2012 6:13 PM

Dam I guess mine is cheap! I have a 2013 sa550,and my ins us 572 a year and that's on 100grand....guess that ain't that bad.

fman 11-20-2012 6:26 PM

Same here, live in Nor Cal, $630/year on a 2011 vlx.... I do have guaranteed replacement, if the boat is ever unrepairable they will replace it with a brand new boat, same make and model, regardless of price difference. Luxury tax was another $598 this year... gotta love California.

tyler97217 11-20-2012 7:01 PM

I usually pay about $450 a year for a $60K+ boat.

boardman74 11-20-2012 7:13 PM

Sounds like I am in the ballpark. Do most of you guys have depreciated policy's or guaranteed value?

jeff_mn 11-20-2012 7:15 PM

You're an accountant who is shocked that your policy went up $30/month when your boat value went from $11k to $65k?

K

boardman74 11-20-2012 7:35 PM

touche'. Suppose that is a good point. Just seemed high, compared to what I have paid in the past. But like anything else it's quickly on the way up.

Insurance is the biggest scam around. Pay pay pay..make a claim and want a little back and then you pay more. So we pay money to hope we never have to make a claim to use said money!! Risk reward for sure!!

Never used to insure my paid off toys, but anymore with out sue happy society you have to for the liability.

jeff_mn 11-20-2012 8:36 PM

You'll be happy as a clam to make that $60/month payment when you hit a submerged stump on Prior and rip off $5k in running gear and gel..

Ask me how I know.

markj 11-20-2012 11:52 PM

Quote:

Originally Posted by jeff_mn (Post 1795403)
You'll be happy as a clam to make that $60/month payment when you hit a submerged stump on Prior and rip off $5k in running gear and gel..

Ask me how I know.

Sounds ugly. Do tell...

VLX_Fixation 11-21-2012 1:44 AM

Quote:

Originally Posted by WakeDirt (Post 1795349)
Hey horton, wwho do you have? That sounds like a great deal. Full coverage I presume? I am insuring 50 k also, would love to knock off a hundred bucks!

Allstate. I have my house 2 cars toy hauler and a rzr through them but they told me that the boat policy is different so i could not get additional "multiple policy" discount. So from what i understand anyone can get that price if thats accurate.

Michigantim22 11-21-2012 2:19 AM

Quote:

Originally Posted by boardman74 (Post 1795393)
touche'. Suppose that is a good point. Just seemed high, compared to what I have paid in the past. But like anything else it's quickly on the way up.

Insurance is the biggest scam around. Pay pay pay..make a claim and want a little back and then you pay more. So we pay money to hope we never have to make a claim to use said money!! Risk reward for sure!!

Never used to insure my paid off toys, but anymore with out sue happy society you have to for the liability.

I am in the financial services industry and my practice includes life, health, disability and nursing home insurance. I have always chuckled at the "insurance is the biggest scam" mindset. The pure definition of insurance is to pay a defined and predictable premium, spread over a large pool of insured people, to cover an unknown and unpredictable catastrophic risk. Think of it this way. If everyone who has ever paid a premium "deserves" to collect and get back every dollar that they have ever spent on premiums, then that would leave no extra dollars for the insurance companies to pay out the catastrophic claims or even make a profit. No profit = no insurance companies. No insurance companies = taking on ALL risks by oneself. As an agent, I have personally delivered claims on life, disability and long term care benefits that far exceed the premiums that have ever been paid by those folks who have collected. Delivering a $million dollar death benefit to a widow with kids, all in exchange for a few hundred dollars of annual premium can only be supported if most folks who pay those premiums DO NOT collect. As for property and casualty insurance, I cannot speak, but think of the billions that are now being paid out for the countless people who suffered hurricane damage out east.

boardman74 11-21-2012 5:04 AM

Nick State Farm told me the same thing no multiple policy discount for the boat even though we have 4 other policy's there. Couldn't tell me why just that there wasn't.

Tim you make a good point. I guess I just always though of it like that because in 22 years of paying insurance now to how ever many different policy's I have never made a claim. So guess I am the guy who isn't collecting.

Michigantim22 11-21-2012 5:09 AM

Quote:

Originally Posted by boardman74 (Post 1795432)
Nick State Farm told me the same thing no multiple policy discount for the boat even though we have 4 other policy's there. Couldn't tell me why just that there wasn't.

Tim you make a good point. I guess I just always though of it like that because in 22 years of paying insurance now to how ever many different policy's I have never made a claim. So guess I am the guy who isn't collecting.

Todd,

Consider that a good thing that you have never had to collect! :)

ironj32 11-21-2012 5:24 AM

I'd say $650 seems a touch high for that price of boat. My insurance is like $730/year, and that's on a 2013 boat at $125k, guaranteed value. I have Progressive.

jeff_mn 11-21-2012 6:08 AM

Quote:

Originally Posted by markj (Post 1795418)
Sounds ugly. Do tell...

Labor Day weekend, 09 or 10', heading back to the launch, boat full of people at the end of the night.. Come out of a no wake zone, hit the "go buoy" and I hit the go handle, back end of the boat sinks as the bow rises - THUNK.. Off the gas, coast.. Back on teh gas and we just spin in circles..

Jump in, swim underneath and start feeling around.. Everything is flush.. No rudder, no shaft, no prop.. Sheered off flush with the gel.. The only gel damage was caused by the running gear. It was the exact perfect height to hit the running gear but not the boat. New shaft, rudder, prop, etc etc and some mild gel damage repair. $5k out the door. I wrote a check to insurance company for $500 and it was all done. I also got an upgraded prop out of the deal so I essentially paid the price of a new prop for the repair.

I got 10 years of insurance premiums in one "incident". My premium never went up.

dan_lee 11-21-2012 2:22 PM

Tim- Very well said. I sold commercial insurance for a few years before coming back into the boat business. If you think it is a rip-off or a necessary evil, don't buy it. Unless you have a loan on your boat, or a marina or private lake requires you to have liability insurance, it is your right to purchase or not purchase boat insurance.

Policies are not created equal so to ask what you are paying is like saying what is a 21' V-drive worth. Buy cheap insurance, get cheap coverage when you have a claim. I'd be happy to look over an insurance policy for anyone who is really concerned about their policy.

DatTexasBoy 11-21-2012 3:53 PM

I have my boat set at $55k and total relacement. If it's scrapped I get a check for $55k no questions. $530/yr Worth every pennie.

markj 11-22-2012 12:18 AM

J D, that sounds like you hit a rock. What was it.

srock 11-28-2012 1:41 PM

I have found it necessary to shop my boat policies every 3-5 years. All of a sudden the costs jump or they drop me. Insurance on the Florida coast can be expensive and sometimes elusive. Yes elusive...State Farm of Florida dumped me one policy at a time then said good-bye. No claims, accidents or late payments. Sounds like New Yorkers are about to get a good dose of insurance hell and a bunch of new building codes to boot.

wakesetter672010 11-28-2012 6:48 PM

Quote:

Originally Posted by ironj32 (Post 1795435)
I'd say $650 seems a touch high for that price of boat. My insurance is like $730/year, and that's on a 2013 boat at $125k, guaranteed value. I have Progressive.

yep I pay about 700.00 for my 2010 with progressive, I made sure my stereo was completely covered, over 10000.00 in that. so i'm sure that bumped it up a bit..

drnate 11-28-2012 8:00 PM

two word for you. "skisafe" google it

jeff_mn 11-29-2012 5:32 AM

Quote:

Originally Posted by markj (Post 1795580)
J D, that sounds like you hit a rock. What was it.

Wasn't in the mindset to swim back over to where the impact was and dive for it..

Heard there was a large rock submerged in the area - so I'll trust that. We had half ballast + 8 or 9 people, we were at max draft and I was just starting to get up on plane so I'm sure it was 3' under surface.

live/learn.

cadunkle 12-14-2012 12:55 PM

Quote:

Originally Posted by drnate (Post 1796273)
two word for you. "skisafe" google it

I looked at them and while they offer lower prices that seem reasonable, they do not cover several things that apply to me...

They will not cover you from wind storms, tropical storms, hurricanes, named storms, etc. if the boat is more than 100 miles from where you tell them you keep it... Even if it's on land or inside when the storm hits. This is no good for me as I take mine on vacation and it stays in the water on a mooring about 500 miles from home for 2-3 weeks every summer. Obviously if a big storm is coming I pull it out and keep it on dry land where it is much safer. It's rare for any big storms to happen there, but it has happened a time or two over the years. Never any real damage to anything but it's certainly a concern for me and not a risk I'd like to take. So if a major storm is coming it wouldn't be pull the boat and put it somewhere safe, it would be pull the boat and start driving home which would most likely put me heading right into the storm while it is stronger.

The other is they will only do an agreed value policy for the first two years of the policy. Fine if I only stay with them for two years, but puts me back to shopping at that point. After two years they will only pay whatever they think is the value, and not actual replacement cost. This is no good for those of us like myself with an older boat with wood stringers which have been totally redone and numerous upgrades. They would pay enough for me to buy a rotted out boat and it would cost me $3k-$6k out of pocket to get back to where I am. Unacceptable.

Progressive I've heard a lot of bad things about from high performance guys. If you break a drive or other components from hitting something they are very cheap and will only pay to replace with cheap Chinese parts. Granted that's not a huge concern with our boats as I'm not aware of any foreign manufacturers of inboard running gear. Progressive I've had on two boats for the past few years and they keep jacking up the price every year. It's up to $500 for a $12k agreed value policy. I also have a car and motorcycle policy with them. Motorcycle price is great and always has been. Price on my truck jumped ridiculous a while back so I switched to AllState and cut the price in half for a year, then recently went back to Progressive on the truck and cut AllState's price in half.

AllState agent said he couldn't match the price for renewal but call him in 6 months and he'll likely be able to beat Progressive's price. I asked but he said it's complicated and just how insurance is done and how the underwriters quote things. Sounds shady but my experience supports that's how things are.

What other companies do you guys use that offer reasonable rates on agreed value policies? I don't think I'm looking for anything crazy. Just about $12k coverage, which is approximate replacement cost if I had to buy another Saltare, put floor and stringers in it, get the gel shining, and address any mechanical issues. My boat has had stringers, floor, engine and trans all rebuilt a few years ago, hence my desire for an agreed value policy that will cover me on my home waters (kept on trailer and rarely goes more than 2 miles from the boat ramp) as well as the one lake I take it to for 2-3 weeks in the summer. I just don't understand why insurance costs are so high and rising, yet they want to write you a policy that excludes them from paying whenever there may be a chance of a loss.


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