outboard cats vs. insurance
 

With all these new model cats with outboards, do the insurance companies look at them any differently? Just curious. I know there are many factors that come into play but I am mostly wondering if they see them any differently than one with 525s, 700s, etc...

From my experience with getting quotes and have insurance on my O/B Cat it is cheaper. I think it is based primarily on value, risk factor, and speed. It seems the break most them talk about is 120mph.

It's not the fact that it's a Cat that drives rates... Usually a $500k 130mph V such as an Outerlimits will cost the same to insure as a $500k 130mph V....
Our 34 OB runs just under that 130mph that seems to upset insurance companies.....
Value is a big factor in your rate. Usually agreed value is best, depending on how you own the boat... Got a loan, you'll need full coverage.. Own it outright and you can pick your value and keep costs down.

I would assume you meant to insert "cat" in one of those 500K Vee examples......


Part two you reference saving money on an agreed value policy. You are basically self insuring after a certain point. You are willing to take part of the risk for saving some insurance costs.

I have a buddy that has a 42 Fountain in South Florida that he has never insured (he bought it new). He didn't want to pay the rates and after 12 years he has about 200 hours on the boat. He looks at the premium as "sunk costs" since after 12 years he didn't have an accident. Lets say it was a 5K premium, he saved $60,000 over the years. The boat is getting to the point where it is probably only worth 100K anyway so even in a total loss the insurance costs are approaching the whole value of the boat!

That being said, he has never done a poker run (but would like to). He attends Key West annually for the races but has never brought the boat. Those 200 hours of use certainly were selective days and probably not much fun.

All well and good til you kill or injure someone!! Also, self insuring only works if you actually put the money saved in a fund to help you out if you have a loss. Most of us just spend it on important things like fuel and booze!!

200 hours/12 years = 16 hours a year. I would get 1/2 that is idle time only due to where the boat is kept. So chance of injury or fatality is pretty slim.

He paid cash for the boat and I believe it is owned by a corporation so liability is limited to a point.

I do know of another case with severe injuries where the boat was corporate owned in a foreign country (I think it was Cayman Islands). Capt was docking the boat and a "trying to be helpful passenger" fell off the transom and hit the metal dock head first. Owner of the boat has spent 50K in legal fees, boat insurance lapsed but at this point his only loss would be the boat itself (probably a 250-300K cruiser). He considered getting a loan on the vessel to pay the legal fees and if he loses the plaintiff could only recover the value of the boat minus the legal fees spent but I'm not sure if he took that route. I do know the boat is getting docked with zero maintenance so as the case takes time the boat is getting rougher (less valuable). The insurance lapse was an oversight, not a scheme to save money in this case. Owner is a high net worth person so the plaintiff's lawyers got all excited until they realized he didn't own the boat nor was he operating it at the time of the accident. Plaintiff has some legal issues of his own so despite the head injury there is a line of people looking to get paid from him also.

I know plenty of boat owners that have coverage other than "full coverage" . Many have liability only... to protect themselves.
Less than half of our boats are financed... So many owners can do as they please with insurance.

It seems that 130mph is that point in which insurance carriers get touchy....

Mine is based on value and the HP according to my agent... this makes things favorable for O/B's in my case.

Does anyone know if insurance was in place on the last 2 recent fatal cat accidents ?

the 32 Spectre with the 400's can be insured for under 4,000 thats with full coverage though Andy at Elton Porter