Help! Decision on boat purchase based on INSURANCE!
 

I have to make a GO/NO GO decision today on a 38 foot performance boat, and I'm getting real nervous about insurance. I've received quotes ranging from $1700 to $5000 per year (it's a cheap boat @55k). I'm on the Texas Gulf Coast...
The low end quotes are not too bad, but I'm scared of what I might find in my mailbox come next March. A $5000 insurance bill would make this completely undoable...

Does anyone have any insight into what's happening in the industry? I know the local agents and the boat dealers are losing their minds right now. People are leaving the dealerships in droves, and staying with their old boats, (which is what I may do!). Could I really see a 200% increase in my premium next year? (My agent thinks it could happen.) If so, I'm not going to move into a boat that I can't sell (because of insurance) and can't own (because of insurance).

Tell me someone is lobbying the industry!

Jim

Re: Help! Decision on boat purchase based on INSURANCE!
 

From reading your posts it sounds like a no go.

If a hike in insurance would make this a no go, what would a hike in fuel or a major breakdown do?

Re: Help! Decision on boat purchase based on INSURANCE!
 

Sorry to hear your dilemma.....I'm in Nj and just finished deal on new 38 Donzi ZR. The $5 G amount for the insurance is certainly the range I'm paying in. But then, since I'm fairly new to this caliber of boating, wasn't sure if that was over the top or not when I inked the deal for the boat. Since then I've found that the real problem seems to be (short) supply of actual insurers who want to cover anything that goes more than 55mph.....
so i guess we pay to play.......
Can anyone else add their insight to this?

Re: Help! Decision on boat purchase based on INSURANCE!
 

Fuel or a major breakdown I can handle. (Big shop, lots of mechanical experience). An insurance payment that is higher than a boat payment is an issue. Maybe just the principal, but an issue just the same...

Re: Help! Decision on boat purchase based on INSURANCE!
 

Fund Razor has a point here, If an extra 5k per year is too large of a suprize, to denote a purchase on a used boat, you may want to take a harder look at things. I know there is a lot of extra excitement before a purchase that makes you throw your better judgement to the wind, but please take into account the other suprizes that can occur, blown engine, grenade an out drive, fuel costs in Texas are going up .15 cents a gallon here in the next week or two because of an MTBE / Ethanol switch. All of these are very common suprises in every boat. I definently want you to have the new boat, especially since I live in clear lake and plan on spending alot of time out there on my boat, but there is nothing more frustrating then having a boat you are spending all your xtra $$ on that you cannot use because of an un expected suprise that take you over your budget. If its too close of a call, hold of on the deal untill its right, if there is one thing that is for sure another great deal on a boat will come up again and again.

Re: Help! Decision on boat purchase based on INSURANCE!
 

Kinda curiuos about this ins. problems we're having.Does anyone own say a 40' cruiser like sea ray or any boat that's similar valued at around $250,000,what are you paying for your ins.Is it anywhere close to what everyone is saying their paying.I gues my $3000 for 7 months is good from what i'm seeing.Hope you get the boat you want and the ins. doesn't hold you from getting it. good luck.

Re: Help! Decision on boat purchase based on INSURANCE!
 

What year is the boat, how much horsepower per side, and how fast?

Generally speaking, if the boat is less than 15 years old, under 500 HP per side and goes less than 70mph, insurance should be easier to find and I would say it should be in the $2K per year range. If it's older, more powerful or faster, that's when problems arise and you are in the $5K+ range.

Re: Help! Decision on boat purchase based on INSURANCE!
 

I just sold a 44 Ocean Sport Fish and was paying $2100 a year

Re: Help! Decision on boat purchase based on INSURANCE!
 

i have a 38 cig that is worth 150k and insurance is 2400 per year, my business partner has a 400ss Formula that is worth about 190k and his is 800 a year - WOW what a difference

Wild

Re: Help! Decision on boat purchase based on INSURANCE!
 

i think anything under 2k is reasonable for a 55k boat, and anything over 2500 is probably unreasonable. I recently got new insurance and the costs were all over the map with similar coverages. I doubt anyone can predict the future on the rates, but I'd say if you have a rate you are comfortable with this year, then go for it.

I understand what you are saying about the principle of insurance being higher than the payment.

Re: Help! Decision on boat purchase based on INSURANCE!
 

1993 38 Stryker, twin 502 Mags. Prolly 62-63 mph...perfect credit, perfect driving record, understand the cost of boating. An increase of 200% just has me a little concerned. More that I'm getting screwed than "can I afford to eat"...

Re: Help! Decision on boat purchase based on INSURANCE!
 

You should have no problems then and should be at or around $2K per year.

Re: Help! Decision on boat purchase based on INSURANCE!
 

Jim before we bought our boat I had already made the deal before I shopped insurance. When I started shopping I was in shock I was getting quotes as high as 8000 a year. I spent most of the day on the phone trying to find cheaper insurance and ended up finding it for 1800 a year with no lay up period. The point to my story is that where there is a will there is a way. To make my dilemma even worse there are very few companies that write paper for cats but with the amount of companies out there that insure v's I feel that you should be able to spend a little time on the phone and find a very competitive rate when it does go up. Just for the record My insurance has not gone up, this is my third renewal. (YES I AM KNOCKING ON WOOD ) I would go 4 it, need to keep the little lady happy Jim!

Re: Help! Decision on boat purchase based on INSURANCE!
 

http://www.offshoreonly.com/forums/s...ight=insurance

This is what I'm worried about. I can get 1700 per year right now, but what happens next year? I can live with incremental increases, but what I'm hearing is BIG increases. My agent told me she would not be suprised to see it go to 200-300%.

Thanks Colby, that's a comfort! Maybe I'm just getting all worked up over nothing...

Re: Help! Decision on boat purchase based on INSURANCE!
 

Jim,

I just got my renewal (progressive), no change, just over $800 year.

Assuming your credit stays/is good, I don't think you have much to worry about.

Re: Help! Decision on boat purchase based on INSURANCE!
 

Mine hasn't gone up much in 2+ years. Most of the huge increases are with the Cats or the high-horsepower, high-speed rigs.

Re: Help! Decision on boat purchase based on INSURANCE!
 

BTW Jim,

If you do run into massive increases, I will probably be in a position to take that 38 footer off your hands next year :drink:

Re: Help! Decision on boat purchase based on INSURANCE!
 

Call Bob Luellen @ worldwide. 800-339-1235 He'll give you the real scoop.
Let me know how that works out.
http://www.worldwidemarineins.com/

Re: Help! Decision on boat purchase based on INSURANCE!
 

Who is your insurance through?

Re: Help! Decision on boat purchase based on INSURANCE!
 

Hope it works out....

wasn't trying to rain on any parades, just sounded at first like you needed someone to tell you the hard news that you already knew.

Of course I am rooting for the new boat.

Good luck. :D

Re: Help! Decision on boat purchase based on INSURANCE!
 

WoW Jim,

That is a very level headed, well taught out analysis in boat costs before purchasing a Performance Boat...

You obviously are way to intelligent and level headed to jump into Offshore Boat ownership... :D:D:D

Re: Help! Decision on boat purchase based on INSURANCE!
 

Obviously! And I'm going to SLOWER BOAT! :D

Re: Help! Decision on boat purchase based on INSURANCE!
 

Oh what the heck, you only live once right? We're on!

Here's a pic...

Now someone buy my Thoroughbred in the classifieds!

Thanks for all your comments, Jim

Re: Help! Decision on boat purchase based on INSURANCE!
 

Warning - we just changed insurers and when the policy came it said a condition of coverage was that the original motors where in the boat. Come on - the boat is a 1992! And the agent wasn't aware that language was in there. Read the fine print!!!

Re: Help! Decision on boat purchase based on INSURANCE!
 

My last insuror wanted to know everything , engine size and hp , top speed , waters navigated , where stored in seasson and for winter lay up , yadda yadda. I switched last year to travlers and they didn't ask most of those questions. Had a claim at the end of last season which they paid in a reasonable time considering I filed the claim the week of katrina and their marine ops are / were in new orleans. No haggle on what they covered and the depreciation was fair. I'll probably get slammed this year! Renewal is coming soon. Speed and hp definatly makes a difference in the quote.

Re: Help! Decision on boat purchase based on INSURANCE!
 

Congrats, nice looking ride! Can't wait to see it.

Re: Help! Decision on boat purchase based on INSURANCE!
 

My father just bought a 38 zr and he's insured through progressive at $1400/yr. and that's with 525's... It seems like the majority on oso is paying big $ to insure their rigs. Maybe it's age and driving records?

Re: Help! Decision on boat purchase based on INSURANCE!
 

That's interesting, I thought Progressive won't tough anything with over 500hp per side. You might want to check that out.


http://watercraft.progressive.com/Corporate/types.asp
Shop > Boat/PWC >

Boats/PWCs We Insure

You can insure the following types of boats/PWCs with a Progressive DirectSM or Drive® Insurance from Progressive boat policy. Click on a link for a more detailed description and a picture of the boat.
Runabout
Mini Jet Boat
Sailboat
Pontoon
House Boat
Cabin Cruiser
Bass Boat
Other Fishing Boat
Personal Watercraft
Homemade Boats (Liability Only)


The following coverage is not available:

* Physical Damage coverage on boats more than 15 years old AND worth more than $20,000
* Physical Damage Only policies
* Engine/Motor Only coverage

The following cannot be insured with your Progressive Direct or Drive boat policy:

* Boats over 50 feet in length and/or with values over $250,000
* PWC valued over $27,000
* Boats with max speed exceeding 75 mph
* Bass boats with max speed exceeding 90 mph
* Boats with engine horsepower greater than 500 for a single engine or 1,000 for twin engines
* Boats equipped with over-the-transom exhaust or exposed inboard engine(s)
* Boats with more than two motors (other than trolling motors or “kicker” motors)
* Wood, steel, ferro cement or performance catamarans/tunnel hulls
* Boats that do not meet published U.S. Coast Guard standards
* Boats principally docked/moored/stored in Massachusetts, New Jersey, District of Columbia, Canada, Mexico or Puerto Rico. Principally docked/moored/stored is defined as at least 6 months in a given state or location.
* Boats used as a primary residence (“Live Aboards”)
* Boats used for any business or commercial purpose, including, but not limited, to: pickup or delivery of goods, limousine or taxi service, emergency services, food concessions or commercial fishing (including netting and trapping)
* Boats used for racing or speed tests (except sailboats)
* All amphibious land boats, hovercraft or airboats
* Foot pedal/paddle, steam, glass bottom and ice boats (sailboat)
* Homemade boats with Physical Damage coverage
* Homemade boats without a serial number
* Houseboats that do not have motors
* Boats leased or rented to others by the insured
* Any boat on consignment
* Boats with more than two owners

Re: Help! Decision on boat purchase based on INSURANCE!
 

Congrats. Sweet boat.

Re: Help! Decision on boat purchase based on INSURANCE!
 

Likewise, I have Progressive. $960 a year for a 95 35' Lightning. You may want to give them a call.

Re: Help! Decision on boat purchase based on INSURANCE!
 

I see your point, but why then would they give him a quote if he doesn't meet several guidelines?

I keep telling him to make sure Progressive knows exactly what they are insuring.

Re: Help! Decision on boat purchase based on INSURANCE!
 

The high insurance pricing & huge increases I would say have more to do with the area lived in... :(

Re: Help! Decision on boat purchase based on INSURANCE!
 

That's a good question. Occasionally some agents can get a little creative, but that won't change the fact that if you ever need to file a claim or collect, there may be problems.

Re: Help! Decision on boat purchase based on INSURANCE!
 

He's never turned in any nickel and dime claims, such as dock gouges. That usually just comes out of pocket. So, I guess since 1987 he's never turned in one claim. That's gotta help some.

Still, the big question is? What happens the day something big happens? :rolleyes:

Re: Help! Decision on boat purchase based on INSURANCE!
 

Bob Luellen from Worldwide discussed this w/ me awhile ago.
I was paying $700 w/ progressive for 330hp 1995 24pantera($24000 value), full yr no layup.
After rebuild, I was nervous about this same situation w/ 560hp. Bob quoted me 780 w/ a 6mo layup for the 560hp(32,000value).

I'm in NY, so I layup anyways. Seemed cheap upgrade for the pc of mind.

Re: Help! Decision on boat purchase based on INSURANCE!
 

$5K sounds crazy expensive for a V bottom - did you do much shopping around?\

What kind of power are you running?

Re: Help! Decision on boat purchase based on INSURANCE!
 

[QUOTE=bglz42]http://www.offshoreonly.com/forums/s...ight=insurance

i guress i just dont worry too much.
hell the world could freeze over next yr
if ins gets out of line sell it and loose a few bucks is worst case right?
human nature is to survive and you will figure out hwat to do if it does go up..
hey it might go down.. :rolleyes: :D

Re: Help! Decision on boat purchase based on INSURANCE!
 

So the ZR does not go over 75 MPH???

Re: Help! Decision on boat purchase based on INSURANCE!
 

How fast is your lightning??

Re: Help! Decision on boat purchase based on INSURANCE!
 

dont bs the ins company..
that will bite u bad if u ever have a need for them!.. could ruin your life forever.. i wouldnt f- with that,,