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Help! Decision on boat purchase based on INSURANCE!

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Old 03-29-2006, 01:43 PM
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Default 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
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Old 03-29-2006, 01:51 PM
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Default 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?
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Old 03-29-2006, 01:55 PM
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Default 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?
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Old 03-29-2006, 02:05 PM
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Default 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...
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Old 03-29-2006, 02:15 PM
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Default 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.
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Old 03-29-2006, 02:17 PM
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Default 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.
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Old 03-29-2006, 02:19 PM
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Default 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.
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Old 03-29-2006, 02:21 PM
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Default Re: Help! Decision on boat purchase based on INSURANCE!

I just sold a 44 Ocean Sport Fish and was paying $2100 a year
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Old 03-29-2006, 02:25 PM
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Default 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

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Old 03-29-2006, 02:26 PM
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Default 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.
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