I finally got my boat running at the end of the season and contacted my insurance company about getting insurance on it. They said that the underwriters needed a survey or appraisal. I got an appraisal done. The insurance is from Foremost. The policy was bound on Sept 29th and the insurance company sent me a bill for the down payment. I was only able to use the boat for another 2 weeks after that when I had an incident (70% leak-down in one cylinder) and called it quits for the season and am pulling out both engines to freshen them. I keep the boat in my driveway all year long. I did not send Foremost the down payment yet, but when I called my insurance company and told them to drop the insurance, they told me that I couldn't because they had already bound the boat and the insurance was thru Foremost and put in all this work to write the policy. The question is can I cancel the policy still even if I did not send in the down payment, and should I cancel it for the winter.

When I pulled the engines out of my Outlaw ( insured with Foremost ) and put them in my TG, Foremost would not write a policy on a boat with no engines in it, if there is no lien on the boat requiring insurance, then do what you want. bound or not without payment there is no policy....jmo

Well I just heard back from my insurance and this was their response:

I just discussed your file with our Underwriters at Foremost. They advised if you cancel the current policy, they will not be willing to offer coverage to you this Summer. The annual rate of $975 already factors in downtime because obviously in MI, you cannot use the boat year round. There is an option, you can reduce coverage during the Winter, which would decrease your premium to $603. This would be done by lowering your Liability to the minimum limit and removing med pay, towing, personal property and uninsured watercraft. We would not be able to remove Collision because Comp and Collision are packaged together and you would want Comp anyway for losses such as theft, vandalism, fire, anything other than Collision.

If you want to reduce coverages and let the policy remain in force, let me know and I will send you a reduction letter. If you still want to cancel altogether, let me know and I will send you a cancel request. You will still owe for coverage afforded. If you have any questions or concerns, please feel free to contact me.

as an insurance agent in the state of michigan who deals with foremost.. this is your best option

Cancel??? You don't think it can be stolen, vandalized, or tree fall on it while wintering in your driveway?

Padraig

unless you can absorb a total loss keep it insured,jmo.

I'm with Mike, you not saving that much money if you look at the big picture.

Reduce it to the minimums they suggested, and keep it. It's getting harder and harder to insure boats, especially older ones. If you are bound, you need to keep it.

I agree with all above,,,,,,its pennies in the big picture of owning a boat

Want to know the fastest way to get on the blacklist with a carrier and/or agency?!?! Cancel/rewrite your insurance each fall/spring. Believe it or not, carriers track this. Do it once, you probably won't even get on the radar, but if you do it more than that your account get's flagged and you will be denied coverage at one point. The high performance and mid performance market is small, doing this you will burn one bridge at a time until you are left with very little to no carriers willing to insure you.

Insurance companies want to see someone with continuous insurance. Several reasons for this:

1. Rates are calculated on ANNUALIZED exposure (in season and out). Your boat could still burn up in the winter in a building. And contrary to what some may think, your building insurance policy or home insurance policy has a $1500 sublimit on it for payout for a watercraft in the garage/building. There are plenty of loss scenarios that happen in winter months. If you have purchased a policy where you have gotten credit on your rate for having a lay up (down time). your annual rate was adjusted downward for this. When you only pay half the year, the carrier isn't collecting the correct amount of premium that the actuaries of deemed necessary for the carrier to take the risk to start with. That is why they will just stop offering terms if that is or becomes your habit.

2. If something happens tot he boat in winter and you re-up in spring, what is to keep someone from claiming the damage happened when the policy started up again?

3. You are likely already being given a credit by a lower overall rate for being in a state where you get 4 months to use your boat or you have a lay up period and credits factored into your policy.


As obnoxious said, in the grand scheme of things, don't cancel. You really are not saving much at all. And ho9nestly, causing you and your agent more work at the end of the day...