Stunned by insurance increase!

[Alan Gomes]

I just received a text today remining me that my autopayment for my Geico/BoatUS insurance was going to take place on August 13. I was shocked when I noticed that the amount had increased by 50% from last year! (Last year I paid $380 and my upcoming payment will be $579.)

When I called, I was told that it had nothing to do with my specific policy, since I have not filed any claims in the last year or had any other issues related to my particular boat. Rather, I was told that it was tied to more "regional" changes, i.e., in California, due to increasing repair costs, the number of claims they are receiving for a particular area, etc. The answer was very general so I was not told more than this, but it appeared to be primarily a California thing.

I called back so I could talk to another representative just to see if I got the same story. It was basically the same, though the second one said that there have been price increases across the country, so now I'm not sure how much of this is tied specifically to being in California.

I'd be curious as to what the rest of you are seeing on your policies as they are coming up for renewal.

 

[Alan Gomes]

I did find this notation online, when I looked at my account: "The increase in your premium is to cover the rising costs of providing insurance protection for your investment." It also "congratulates" me for my "excellent claims record," which decreased my hull deductible by 25%. That's well and good, but even with that the policy jumped 52%! But the notation does further confirm that this increase was not apparently tied to my policy in particular.

 

[Loren Beach]

Awful.
Reminds me of Michael's line from The Godfather: "It's not personal, it's strictly business!" Except that you are the ones getting the business....
Further reassurance that I did the right thing when I cancelled BoatUS-Geico. At least until my geographic area gets singled out, too. (sigh)

 

[Prairie Schooner]

@Alan Gomes - Alan, I'm curious, is that monthly, quarterly, annually? Our car policies have gone up, but we haven't seen the latest boat policy update yet.
Jeff

 

[Loren Beach]

It might be good to link up, by reference at least, this thread to a longer past insurance thread:

INSURANCE (Combined threads)

Time to renew my insurance. My policy for my 73 35-II is with Zurich. $ 900 deductible with $ 30,000 replacement value. Annual rate $ 740.00 How does this compare? John

ericsonyachts.org

 

[Alan Gomes]

@Alan Gomes - Alan, I'm curious, is that monthly, quarterly, annually? Our car policies have gone up, but we haven't seen the latest boat policy update yet.
Jeff

Annually

 

[gabriel]

Mine didn’t go up at all, but then again, I’m just a lowly 25’ trailer sailor. I did get a notice that my policy wouldn’t be renewed unless my recently expired drivers license was renewed. After a visit to the DMV I was charged the usual whopping sum of $130 annually.

 

[Alan Gomes]

but then again, I’m just a lowly 25’ trailer sailor.

My boat is an Ericson 26, scarcely different from yours.

Are you with BoatUS?

 

[gabriel]

My boat is an Ericson 26, scarcely different from yours.

Are you with BoatUS?

Hi Alan,

Pacific specialty insurance out of Anaheim is my policy holder. The agent I went through in MG insurance in San Jose. I don’t exactly remember how I found out about them but if you’d like, I’ll give you the agents contact information. They might be able to give you a cheaper quote.

 

[Alan Gomes]

Hi Alan,

Pacific specialty insurance out of Anaheim is my policy holder. The agent I went through in MG insurance in San Jose. I don’t exactly remember how I found out about them but if you’d like, I’ll give you the agents contact information. They might be able to give you a cheaper quote.

Do they specialize in marine insurance? I would not want to have to deal with an adjuster at some point who didn't know anything about boats.

While I'm not happy with this rate increase, I'm happy with everything else about BoatUS. I did have to file a claim on an outboard motor that was destroyed in a storm. They made good on it promptly and replaced it at no additional cost to me. And they did not raise my rates for filing the claim a few years ago. This new increase was across the board, if they are to be believed.

My boat is insured for an agreed value of $15K, and I also have the $300K liability that the marina requires. (That seems high to me but that's what they demand--or, rather, I think it may be the harbor department tariff that requires it. Not sure, but I have no choice on that one.) Just curious what your coverage limits look like.

 

[Loren Beach]

upcoming payment will be $579

By my (SWAG) calculation your boat should be valued at approx $57K. That said, you do have a very nice 'small yacht' !! Seriously, I wonder if your sailing area is considered "high risk" for potential loses?

 

[Alan Gomes]

By my (SWAG) calculation your boat should be valued at approx $57K. That said, you do have a very nice 'small yacht' !! Seriously, I wonder if your sailing area is considered "high risk" for potential loses?

Only off by $42K (or more)!

They did tell me that it was a California thing. But then the second rep I spoke with said that prices were going up across the country. So I don't know quite what to think.

I do think I'm going to shop around a bit....

 

[bigd14]

Yes my Boat US/Geico insurance went up too. And my “agreed value” went down, which I had not agreed to. When I called them to tell them that I had not agreed to the reduction in value they reviewed the policy and told me that they would not increase it. They were happy to keep the increased price in place however.

 

[Alan Gomes]

Yes my Boat US/Geico insurance went up too. And my “agreed value” went down, which I had not agreed to. When I called them to tell them that I had not agreed to the reduction in value they reviewed the policy and told me that they would not increase it. They were happy to keep the increased price in place however.

By what percentage did your premium go up? Mine increased by over 50%!

 

[Loren Beach]

And my “agreed value” went down

That's the stunt they tried to pull on me. I called them on it. Unethical, and actionable. They backed down and restored our previously "agreed" value. That was pretty much the Last straw....
After the repaint/re-fit they refused to increase the new agreed value anywhere even near what it surveyed at, and I found a better insurer... who wanted to insure me immediately. (!)

 

[KS Dave]

Hey Alan - just to chime in because we have the same boat/insurance. I have $10K agreed coverage and my current premium is $329 (it actually went down for 2023 - was $412) I'm not up for renewal until February, so I guess we'll see what happens.

 

[Alan Gomes]

Hey Alan - just to chime in because we have the same boat/insurance. I have $10K agreed coverage and my current premium is $329 (it actually went down for 2023 - was $412) I'm not up for renewal until February, so I guess we'll see what happens.

Thanks for this data point, Dave. Perhaps it is a California thing. The added $5K on my agreed coverage accounts for about $70 of that difference, so our policies were quite comparable prior to this increase.

 

[gabriel]

Do they specialize in marine insurance? I would not want to have to deal with an adjuster at some point who didn't know anything about boats.

While I'm not happy with this rate increase, I'm happy with everything else about BoatUS. I did have to file a claim on an outboard motor that was destroyed in a storm. They made good on it promptly and replaced it at no additional cost to me. And they did not raise my rates for filing the claim a few years ago. This new increase was across the board, if they are to be believed.

My boat is insured for an agreed value of $15K, and I also have the $300K liability that the marina requires. (That seems high to me but that's what they demand--or, rather, I think it may be the harbor department tariff that requires it. Not sure, but I have no choice on that one.) Just curious what your coverage limits look like.

Alan,

i’m not sure if my insurance company specializes in marine insurance to be truthful. I also only have the 300k liability which is probably why my premium is so low.

I mainly got liability in order to be able to grab a guest slip at any marina and cover any damage I may cause if I damage another boat. I didn’t even consider the boat to be worth insuring, but you got me thinking about that!

I suspect that insurance companies may consider the greater Los Angeles area a high-risk area for theft due to the current situation. though I don’t know if that necessarily applies to boat marinas.

 

[Alan Gomes]

Alan,

i’m not sure if my insurance company specializes in marine insurance to be truthful. I also only have the 300k liability which is probably why my premium is so low.

I mainly got liability in order to be able to grab a guest slip at any marina and cover any damage I may cause if I damage another boat. I didn’t even consider the boat to be worth insuring, but you got me thinking about that!

I suspect that insurance companies may consider the greater Los Angeles area a high-risk area for theft due to the current situation. though I don’t know if that necessarily applies to boat marinas.

Yeah, not really an apples-to-apples comparison I'm afraid.

I'm checking into some other options and will report back.

 

[william.haas]

Yes my Boat US/Geico insurance went up too. And my “agreed value” went down, which I had not agreed to. When I called them to tell them that I had not agreed to the reduction in value they reviewed the policy and told me that they would not increase it. They were happy to keep the increased price in place however.

I appreciate this thread... my annual insurance premium is set to autopay and I just logged in and checked the policy. Same thing happened to me - premiums up and agreed value down. Also Geico Marine and moored in Chicago.