Insurance -- how much is enough?

[n4wwl]

As a new boater I have gotten some scary advice on insurance that makes me wonder why anyone would want a boat in the first place. For example, I have been told that whatever your insurance estimate is you should triple the coverages to play it safe. That is because there are so many novice boaters, too many accidents, and the costs of doing damage to someone else or their property can be astronomical.

I have one insurance policy with a $500 deductible, $10,000 for medical payments, and $25,000 liability. Uninsured boaters coverage is included. Is this sufficient?

I have another estimate from BoatUS that lists a $250 equipment deductible, $500 theft deductible, $1,000 storm deductible, $50,000 liability (per person), $100,000 aggregate limit each accident, $800,000 fuel/spill liability, $1,000 medical payments, and $100,000 uninsured boaters coverage. The premium on this policy is over 40% higher than the first policy.

Are all these coverages necessary or desirable?

I would be interested in hearing from others about how much insurance they have and what they consider to be sufficient for recreational boaters. BTW, I am the new owner of a 1990 Ciera 2651 Sunbridge.

Thanks.

 

[Silvertip]

Re: Insurance -- how much is enough?

Look at it from a different perspective. How much can you afford to pay out of your pocket and how much stuff do you own that could be lost in a lawsuit? There are about three important parts to the decision. 1) what's the age of my boat so if it's stolen, what am I out? 2) What if I hit another boat or worse, a person? Personal liability claims almost always end up in a court battle so , ask yourself am I safe boater, do I have a fast or big boat, do I boat on crowded water. The answers should help determine how much of a liability risk you have. 3) Boats, particularly engines and drives, are expensive to repair/replace. Physical damage coverage should be sufficient to cover total replacement of the engine and drive minus whatever deductable you are comfortable with. You might want to check with your insurance guy and add a personal liability umbrella on your homeowners policy. 25G's is not enough liability in this day & age. A few days in the hospital and resulting attorney fees will eat that up in a hurry.

 

[glennrow]

Re: Insurance -- how much is enough?

the second actually looks better to me ( im an agent )....i would suggest even higher liability limits ( min. 500k, we are a sue happy society )......find an agent ( in your area ) that you trust and a good insurance company...rates will always vary and there will always be someone cheaper.....ill check this topic later if you have any questions.

 

[n4wwl]

Re: Insurance -- how much is enough?

Thanks. I may switch policies or just up the liability coverage. I'm currently covered through a company that is the preferred carrier of my auto insurance company. I think in this area the motto better safe than sorry probably applies in spades.

Appreciate the help.

 

[arthat]

Re: Insurance -- how much is enough?

Silvertip and Glennrow gave solid advice. If you own property, you may want to seriously consider the umbrella policy Silvertip spoke of. Having an agent to speak with is valuable too.

a couple sites to check: www.progressive.com, www.unitedmarine.net, www.geico.com, ww.insurance.allstate.com

I hope this helps.

Successful Boating,

Art

 

[bucky7680]

Re: Insurance -- how much is enough?

My boat is worth $100,000 how are you going to pay for it's replacement when it is your fault? You can't replace much for $25,000 and $10,000 won't pay for for the surgery to my broken leg. Oh and my lost wages from work since I can't work with this broken leg for six weeks.
I called that lawyer from TV and he wants a list of every thing you own. The Coast Gard just called and they want you to remove your sunken boat before any more fuel and oil leak from it.

Still want to go cheap on your insurance?
What are the prices you were quoted?
No I do not sell insurance.

 

[whblaylock]

Re: Insurance -- how much is enough?

I have statefarm on my house and use them for my boats. Physical damage with your choice of ded is easy but where do you draw the line on liability? I have always carried a personal umbrella of 1mil and i am seriously considering going to 2. Lots of things can go wrong on the water with other boaters and passengers but did you know that you are also responsible for any damage your wake does? sad part is you may not at be responsible for resulting damages but if sued it may cost 10's of 1000's just to defend yourself. plus is an umbrella will also extend your other personal policies such as your homeowners and auto liability. wh

 

[Frugal Floater]

Re: Insurance -- how much is enough?

My advice is to price around. It varies greatly by geography as you probably know...For example, I use to have Geico (subbed out to Travelers) in MD when I lived near the Chesapeake...They were 30% lower than Erie Insurance. Once I moved to Pennsylvania, Erie Insurance is now the cheapest/best I could find for my 18' center console. I know many insurance companies in hurricane prone areas have boosted rates quite a bit after recent losses...some have kept rates the same.

Also, take a boaters safety course (did mine online on my lunch break via boat safe website) and get a discount from most insurers.

 

[ruf1967]

Re: Insurance -- how much is enough?

I own a 2006 Sea Ray 185 and carry $300,000 Liability to others (bodily injury, fuel spill recovery and property damage), uninsured/underinsured boater $300,000, comprehensive and collision are calculated as total loss replacement, $375 deductible on coll. and comp.

 

[tashasdaddy]

Re: Insurance -- how much is enough?

we have found the best rate for the best coverage for home, auto and boat, at "farm bureau insurance" you don't have to have a farm.

 

[bbright]

Re: Insurance -- how much is enough?

.If you get a loan to buy a boat get insurance ASAP. When i bought my boat in october, i stored it in a garage with home owners insurance and thought i would be ok until i set up a plan. I did eventually get insurance with foremost the 3rd of january and it is only $250 a year. A week after i bought insurance i received a letter from my bank saying that they didn't have proof of insurance and they provided their own insurance and applied it to my loan already. It was $2,700 for one year!?! and it didn't even cover the boat, just my loan. so I showed proof of insurance and the 2,700 was removed from my loan. thought i was in the clear, i thought 50K homeowners insurance on the garage was enough....NOT, i got another letter a week after. The bank billed me $700 for insurance, from the time i bought the boat to the moment i bought boat insurance. even though i was current on my payments. yeah it was probably my fault for not getting insurance right away but they did not say anything about back charging me for a ridiculous amount. my loan is through mountain west and I don't love where I bank.

 

[tashasdaddy]

Re: Insurance -- how much is enough?

bbright, i think you need to contact the state banking commission on this. they should have require insurance, with them as the lien holder prior to issueing the loan..it may take a while, but i think you can get your money back. file the complaint, against the bank and the loan officer. then send them a copy registered mail, return reciept. it was their oversite. you don't buy a car without insurance before you leave the dealer.

 

[bbright]

Re: Insurance -- how much is enough?

ok tash, I'll do just that. i tried fighting the bank and they finally got back to me a couple weeks after, saying the money was already paid to their insurance company and could not be returned. as if they couldent get their money back. yet they returned the $2,700 the first time. i will try again, thanks

 

[MASTER Brian]

Re: Insurance -- how much is enough?

I didn't read the last few posts, but I am wondering the same things. I currently have a boat worth about 7k and I have full coverage on it through State Farm and pay about $12 per month. I've been wanting to change my autos from State Farm, but all the other boat Insurance is about tripple. I did get a quote from Boat US as well and they wanted around $35 per month for less coverage on my boat. Their big thing seemed to be the $800,000 spill coverage. Somehow I don't see how my 24 gallons of fuel would amount to anywhere near that.

I don't recall all the specifics about my State Farm policy, but I am thinking it should be close to what I had BoatUS quote on the $300,000 Liability.

I'm curious who others are using etc....

 

[WillyBWright]

Re: Insurance -- how much is enough?

One trap you should be warned about is overinsuring your boat. I hear all the time about boaters insuring their rigs for many times the value of the boat. Say they have a boat worth a grand and insure it for five. Total the boat and what do you get? A grand! All you get for the "additional" coverage is a higher premium.

 

[95yj]

Re: Insurance -- how much is enough?

bbright, don't you love lender's collateral insurance? Another scam by the insurance companies. I used to work for Progressive in the early 80's in the computer department and saw the premiums they were charging people who let their car insurance lapse. What a racket!

You are probably out the money unfortunately. A decent lender would have sent you a letter stating they were going to hit you with LCI when you failed to provide proof of insurance. You should have gotten another letter stating that they were adding it, and how much, to the principal on the loan. It's probably written up in the loan policy that you will automatically get nailed for it and that's why you're out the money with no hope of getting it back.