Nate5.0

So I bought my boat in Sept/Oct of this year. I have never owned a power boat and actually while sharing boats with buddies I had never had a boat in my name.

So I got to do all the fun things to get the boat insured and done. I contacted Sy at total dollar and he got me a grerat policy at what I feel is a VERY fair rate especially here in FL, I took Tres class which was great, as did my GF, and I paid up what all needed to to be paid.

Since I don't have super duper credit I choose to fiance a small part of the boat (about 1/5th total cost) at a small payment that is very very easy to make but helps my credit and helps the bank I am sure cause of my terrible APR at the moment.

So I got a letter yesterday from my Credit Union saying I have proper coverage but not a proper deductible....the bank says i MUST carry a $500 deductible or else they will place a policy on my boat that they see fit. So......I call up Total Dollar and they go over everything with me and kindly tell me that it's a % based deduct and if need be I can lower it to 3% but that is the lowest amount and it is well more than $500. So I call the bank who then says they will have to put a policy on the boat.....I ask for the details. They tell me it is a coverage that only covers the boat and damages to it and no liability or anything but is super cheap....a LOT less than my current coverage. So I asked if they are serious that they rather a customer have worse insurance so their deductible issue is fit for them.......they agreed it is dumb so I they put me in touch with a manager.

bits of the convo

Bank manager : Gives me resaon for $500 deduct and how some people can not afford $500
Me: I understand but you can see my account & history with you that it wont be a problem if I had to pay my Deduct for any reason.
Bank: So what if your transmission goes out and you make a claim for that?
Me: My boat does not have a transmission but if my Drive fails I am not calling my insurance provider.
Bank: What if a timing belt or other service issues causes major repair work
Me: You understand this is a boat right?

Long story short we are currently in limbo. I had to explain to her that most people are not calling insurance unless a boat is stolen, on fire, or at the bottom of the water. That broken parts are part of doing business and that if it breaks you fix it....you don't make a claim. She now she wants to mow it over and think about it.

I think I might just pay off the boat at this point cause talk about talking to people that have zero understanding. Sorry for the long rant but this has ate up most all my morning going back and forth.

baditude

Your best to just pay off the boat. I have credit unions call me all the time telling me that my clients $1000 deductable has to be lowered to $500 on thier vehicles. Then my clients call me irratated that their premiums go up.

VtSteve

Seems like there would be a Gap type of coverage available? It also seems like your bank is completely ignorant about what you bought, which in itself is interesting

How about a cash deposit at the bank, which is owned by the bank and you jointly, requiring two signatures. Interest-bearing, it would equal the difference between the deductible they want and what you have now.

Honestly, I'd just get a car loan for something and pay off the boat , or find a smarter bank.

Nate5.0

Oh the bank is very very clueless about the boat and it shows 100%.

I offered to maybe take their policy that is MUCH cheaper, get my money back for my year paid in full current policy, and use the difference for an umbrella policy or something like that to cover any issues if I ever did hit someone or what not.

Or just pay off the small loan that the bank holds.

Nate5.0

I don't mind it on cars and get the idea there but boats I feel are a different ball game or atleast to me they are.

Hell I carry a lower deduct on all my cars and they are all paid for in full.

Level III Chaos

iTrader: (1)

Sounds like the bank wants a binder policy. That policy will only be to cover their interest, not yours.

Sydwayz

iTrader: (1)

Did you talk to your general/home/auto provider on insurance? Mine has been very, very good to me. They have bent over backwards to earn and keep my business on all of my investments. They went to bat for me to their underwriting department and have binded everything I have asked them for.

I am about to call them with another custom vehicle; and this one may throw a monkey-wrench in the works though!

Nate5.0

That is exactly what they will put on it and it's more than half of what I pay now. So I could except that if I wanted and use the rest to get a personal policy to cover the rest.

Hopefully the bank will come to reason though that the current coverage is more than enough but with banks you never know.

Nate5.0

In the Great state of FL progressive who covers all my other stuff wont insure my boat for a fair cost (over $5k a year)...nor will Geico, State Farm, and opther companies like that.

jbraun2828

Just pay off the boat and start using the chit out of your credit card if you want more credit.