100 mph V-hull vs. 100 mph Cat Insurance
 

Let's say you have two boats that do 100 mph. Both have the same hull value of $100,000. However, one is a V-hull, and the other is a Cat. What would the ratio of the insurance rate be between the V-hull and Cat (eg. Cat three times the V-hull, two times, etc.)?

Would the ratio be the same for first time boat owner?

Michael

I asked a while back. Fo me the cat would be about 1k more.

You might luck up and get the v insured for $800, but more likely $1-1200 due to insurance underwriter not really paying attention and thinking just another pleasure boat(this will be more likely if it's a brand like formula, etc) cat is going to throw a flag up. $1800-2200 is what I hear some guys pay for cat worth $100k

what if registered in ca?

Hmmmm. That's cheap! I don't lie on my ins. Owned a high performance boat for 17yrs. I was quoted $18-2200 for a t/s Gun or Glad and $25-3000 for a 35-36 Motion or Spectre. 110-115mph.

That is a good rate for Motion at that speed in my area.

I'd say you're probably looking at about 2x as much, but I'd call Stacy at Wake Zone for a more accurate number if you're serious. I do know the difference is significant.

I posted this in another thread but same applies here:

Our agency writes A LOT of CAT insurance. Our most recent was a client with a 199mph boat...

So, I can tell you based on my experience that the average CAT insurance rates for an experienced CAT owner is about $2.00 - $3.00 per $100 in coverage afforded on average for liablity and physical damage. That usually equates to 2% - 3% of your insured hull value as your total premium. (This number is extremely dependent upon the types of coverage you have, credits that can be applied, location, MVR etc).

If you are inexperienced and a first time CAT owner you're looking more towards $3.00 - $4.00 per $100 in coverage afforded or 3.5% - 4% of your insured hull value.

We just insured an MTI valued at $400,000 in TX on a year round policy and the insured is paying $7,300 a year. But this was for a very experienced CAT owner.... he has "paid his dues" over the years.

The following is the ideal situation (best rates) if you are looking to get into your 1st CAT (note I didn't say first boat that is a cat):

1. 35 years or older
2. no more than 1 minor MVR violation in the past 5 years (NO MAJORS ex. DUI, Reckless)
3. at least 5 years of total boat ownership experience (this can be a boat of any kind)
4. top speed of vessel UNDER 100mph (best rates are for boats under 75mph top CAPABLE speed)

If you do not (or the boat does not) fall within the guidelines above, you'll be lumped into one of our programs that runs at about $4.00 per $100... So, you would be at around $4,000 per year on a $100,000 purchase price, give or take a bit. After you've owned the CAT for two years loss free, then we can move you into the cheaper program that I mentioned above.

At Wake Zone we can insure any boat and any operator, even young first time CAT owners. The only exceptions to this rule are boats kept in CA and NY (carrier won't write coverage in these states).

If you need help getting insurance, let me know. We've helped many of the first time CAT guys here on OSO get insurance.

I'm looking into getting my first CAT and have been told to check the insurance rates before I come home with one. I had no idea there was THAT big of a difference between the two. Is there a statistic or reason a cat is that much more?

Thanks, Stacy. What would these approximate percentages be if it were a V-hull?

Dare I ask what they would be for the first time boat owner?

Michael

While I do not have exact statistics to point to, I can point to real situations that justify the cost of insuring a CAT. While I realize that ALL TYPES of boats, slow or fast, performance or non, have claims. The severity of the physical damage amount and the liability/bodily injury rates is much higher at greater speeds. CATS just happen to be the vessels that are capables of some of the fastest speeds in the industry.

I do not like re-hashing tradgic accidents but OSO is full of threads about bad accidents that involve the loss of life of our fellow performance boaters. Often, these boaters were operating high speed CATS.

I can think of 9 instances where there were losses of life on CAT accidents. The insurance companies not only had to pay out for the hull damage in these accidents but often times, other individuals (survivors) suffered injuries and sued the deceased's insurance company for bodily injury damages that were well into the millions for each claim.... needless to say, that can drive up rates...

Michael,

V-Hull coverage is typically $1.00 - $1.50 per $100 in coverage afforded on hull and machinery BUT these numbers can vary greatly and depends on the vessel your buying and what program the boat will fit in. I can't give you a number on here but if you're a first time boat owner, I suggest keeping the top capable speed below 75mph for the first boat, then once you have owned that for a year, you can begin to upgrade. Just remember the faster your boat is, the more costly the insurance.

Stacy

Stacy,

That's great information, and a help to those looking at purchasing boats. The reality is, insurance needs to be taken into consideration before making a purchase.

Thanks!

Michael

And when you have a boat that will go over 100mph it will just about double your ins...

WOW I must be at the wrong place. My old scarab is not worth that much any more. I boat half the year and it runs over 300 per year. Stacy where do PWC's fall in this mix?

PWC's are not grouped with boat insurance policies, as they have a market of their own. Nearly any carrier will write PWC coverage so the markets tend to be pretty steady and the rates similar from carrier to carrier. Definitely nothing like a performance boat... average PWC policy for the newer, high performance PWCs run around 300 - 400 a year due to the high cc/speeds

Stacy quoted me on a few boats.

I am 27, no previous cat experience.

Perfect record, never had a claim on any insurance, no tickets etc...

Quoted a 2003 Eliminator Daytona, twins, 115mph.

I was not eligible for American Reliable INS, so she had to quote me through another agency. My final ballpark was $3900-4400. This required me to take Tres's class within 90 days of binding.

If this info helps at all for any reference.

PWCs should be put in the same class as the superfas cats then maybe stupid people wouldnt buy them & piss off actual boaters. I had an idiot on a pwc try to take a shower IN MY ROOSTERTAIL & wondered why it hurt, I pointed him toward the ramp & told him to go back to his playstation if there was a cop around I probably would have taken down his #. Should at least be a mandatory safety course before you can buy one!

Who tells the insurance co...how fast your boat realy goes!! :lolhit:

Definately check first before picking up your boat or assuming an older/cheaper boat will fit into this percentage. Seems as a boat gets older, it will get more expensive to insure as a percentage.

I bought a 1986 Formula 272 with stock 350's, will go upper 50's to 60. Quoted $300k in liability, uninsured boaters and oil pollution (incase it sinks! Learned about this from one of Stacey's articles, thank you!). Boat was only $5,500 so I did not insure it for physical and my quote was $500 a year, so 9% of value without insuring the value.

TDS, that is not bad at $300, how old is it?

I am 42, have a few years experience boating with a bow rider I owned before, no tickets. (Married, kids, engineer, white, receding hairline.... about as plane jane as insurance clients come! LOL)

Definately get some ball park quotes before you sign or you may be surprised!

Brian