Boat insurance is always a lively topic on the list! I have resisted participating, but wanted to offer a few more philosophical type thoughts.
As all of us know, getting insurance quotes for anything -- car, house, boat, life, will result in a very wide range of premiums. Usually, the policies are not identical either making a comparison difficult. It's a good idea to get several quotes for insurance every five years or so. Before purchasing insurance, be clear about why insurance is being purchased and what is being protected. Most financial advisors will promote insurance as a protection against catastrophe. That will result in the most reasonable insurance cost and balances risk (risk = probability x consequence). Many consumers want to insure against any and all loss. That raises premiums dramatically because, for the insurance co. the probability of a claim is high now, but maybe the peace of mind is worth it to some. As has been mentioned before, the liability coverage is absolutely necessary and the most important part of the insurance -- boat, car, home. Insurance premiums for automobiles are closely related to the insureds credit rating. This is permitted and there is a very close correlation between how someone handles finances and how they handle risks in life. I don't know, but expect, boat insurance is similarly connected to credit rating. I'd offer this about the $70k agreed value, 42-yr-old C&C Landfall, not to pick on that boat or owner, but it is very illustrative. The owner is wanting to protect against any loss. And the premium is high, as would be expected. In 10 years, the owner will likely have paid $30k in insurance premiums given rate increases. A 52-yr-old C&C38 (ten years from now) in top condition might be sold for $30k to $40k. Something to think about. My premium for a '81 C&C34 in above average condition and agreed value of $27k (now too high really after 5 years) is less than $220 per year. That doesn't mean a lot to anyone unless we go through all the details of the policy, but the boat and I are covered for the worst -- liability, environmental damage, loss of boat. In nearly 50 years of owning and insuring boats, I have never made a claim. Jeff Laman '81C&C34 Harmony Ludington, MI ________________________________ From: Della Barba, Joe via CnC-List <cnc-list@cnc-list.com> Sent: Tuesday, June 28, 2022 9:45 AM To: Stus-List <cnc-list@cnc-list.com> Cc: Della Barba, Joe <joe.della.ba...@ssa.gov> Subject: Stus-List Re: [EXTERNAL] Re: Insurance... what is to much? I keep waiting for Progressive to get revealed as a huge scheme. I was paying $700/yr. to Geico (nee BoatUS) for ONE boat and now I have all three of my boats on Progressive with better coverage for $700/yr. They had no issue with quoting a C&C 41 and I think their website states they go up to 50 feet or so. I am also about to switch my car insurance to them, same deal, better coverage for less money. Not that I would actually try it, but my Boston Whaler is insured to go 100 miles offshore from Maine to Florida and so is the dinghy. How do they do this? I also wonder about the insured value, on the form to sign up it is whatever you say it is. I wonder if it has some algorithm to flag wildly inappropriate values. I swear I was being careful, but my $150,000 dinghy got loose and vanished. Darn the luck! Joe Della Barba Coquina
