2021 What Percentage Did Your Insurance Go Up?

[Bud]

3.55% inflation is alot. Who gets a yearly raise equal to that? You can not even save money at that rate. The 30 year treasury bond is on;y at 1.69%

Bud

 

[O C Diver]

Heading off on a bit of a tangent, what percentage of your agreed hull value is your insurance premium? Obviously there will be significant differences with value, operator experience, prior claims, months of use, navigation limits, and hurricane coverage. I'm curious as to what the range looks like.

Mine went from .65% (less than 1%) to .67% this year.

Ted

 

[Shrew]

I think the concept of increasing a premium on the same risk is somewhat flawed. This seems more about raising revenue as opposed to qualifying true risk exposure.

The flaw is in assessing premium costs and risk as the only variables in play. The availability of materials has gone down and the cost of materials has increased. While the tariffs on imports is levied against the foreign manufacturer or importer, it is immediately passed onto the consumer.

One can't say that risk has stayed constant either. If you look at the historical insurance payouts due to the last few seasons worth of hurricanes, its the only logical conclusion. When claims go up, we all pay. It is literally the basis of how insurance works.

 

[O C Diver]

The flaw is in assessing premium costs and risk as the only variables in play. The availability of materials has gone down and the cost of materials has increased. While the tariffs on imports is levied against the foreign manufacturer or importer, it is immediately passed onto the consumer.

One can't say that risk has stayed constant either. If you look at the historical insurance payouts due to the last few seasons worth of hurricanes, its the only logical conclusion. When claims go up, we all pay. It is literally the basis of how insurance works.

The flaw I find with your assertion is that they are very specific in assessing the vessel (make, model, age and condition), owner /operator (experience level and prior claims), and navigation territory. If they're going to raise premiums in the Great Lakes for hurricane damage in the Bahamas, the company may loose clients to insurers who don't offer coverage in more high risk areas such as hurricane zones. I can see your argument to raise all rates in the same geographic area because of losses in that area.

Ted

 

[Rufus]

I don't care as long as they (Markel) let me do my own periodic insurance survey.

 

[Eagle Pursuit]

On a 32' trawler presently stored in St. Marys, GA, we saw 3.5% increase from Boat US / Gieco.

 

[Seevee]

Huh? In terms of life-sustaining items like food, inflation is out of control. The price of hamburgers has doubled in the last 10-15 years. Same with grocery prices. Five dollars an hour used to be nice wage in the 1970s. In my seven-decade life, the inflation has been over 1,000 percent. Most times when purchasing meal from a drive-thru, the price is higher than the last.

Well, that's about right, inflation (overall) has been about 3.6% on the average per year. And at that rate, things double in about 20 years.


Now some things go up higher than others. Lately, labor for services, food, insurance and housing have been brutal, and it's gonna get much worse after we get thru the recessionary effects of the covid. Just look at the increases in things over the past few months. Most everything has gone up using covid as the excuse. The problem is that the revenue has gone down in spite of the increases.

 

[Seevee]

3.55% inflation is alot. Who gets a yearly raise equal to that? You can not even save money at that rate. The 30 year treasury bond is on;y at 1.69%

Bud

Bud,



That's pretty normal and if you invest in treasuries, you'll end up behind.



As for boat insurance, mine went up 10% last year... waiting til April for renewal. My real estate premiums (home and rental homes) have gone up over 20%. And beer at my favorite American Legion has gone up over 10% and has doubled in 8 years. Gonna have to switch to water.

 

[BandB]

3.55% inflation is alot. Who gets a yearly raise equal to that? You can not even save money at that rate. The 30 year treasury bond is on;y at 1.69%

Bud

The average inflation in the 40's was 5.66%, in the 50's was 2.11%, in the 60's was 2.77%, in the 70's was 7.86%, in the 80's was 4.74%, in the 90's was 2.80%, in the 00's was 2.40% and in the 10's was 1.72%.

 

[BandB]

Heading off on a bit of a tangent, what percentage of your agreed hull value is your insurance premium? Obviously there will be significant differences with value, operator experience, prior claims, months of use, navigation limits, and hurricane coverage. I'm curious as to what the range looks like.

Mine went from .65% (less than 1%) to .67% this year.

Ted

Ours range from .4% to .8% by boat with no navigation limits, no prior claims, 12 months of use, full hurricane coverage, deductibles of .5% to 1%.

 

[O C Diver]

Ours range from .4% to .8% by boat with no navigation limits, no prior claims, 12 months of use, full hurricane coverage, deductibles of .5% to 1%.

I've been thinking about it the last few days, and while a 13% increase annoys me, it's one of my lowest boat expenses. Haven't surveyed in 7 years, so probably not going to consider anything else until I have a survey in hand, maybe next December.

Ted

 

[Bud]

The average inflation in the 40's was 5.66%, in the 50's was 2.11%, in the 60's was 2.77%, in the 70's was 7.86%, in the 80's was 4.74%, in the 90's was 2.80%, in the 00's was 2.40% and in the 10's was 1.72%.

Good info. I bet the 30 year treasury bond correlates to the up and downs in the inflation curve. Inflation is less destructive when interest rates go up with it.

Bud

 

[BandB]

I've been thinking about it the last few days, and while a 13% increase annoys me, it's one of my lowest boat expenses. Haven't surveyed in 7 years, so probably not going to consider anything else until I have a survey in hand, maybe next December.

Ted

It's not an amount (when considering past rates) nor is it the time I would choose to make a change.

 

[fryedaze]

Heading off on a bit of a tangent, what percentage of your agreed hull value is your insurance premium? Obviously there will be significant differences with value, operator experience, prior claims, months of use, navigation limits, and hurricane coverage. I'm curious as to what the range looks like.

Mine went from .65% (less than 1%) to .67% this year.

Ted

Mine is 1.6%. The agreed value is the same as what is was 11 years ago, what I paid for the boat. No cruising restriction and a $1850 named storm deductible.1 mil liability.

 

[Jay N]

Heading off on a bit of a tangent, what percentage of your agreed hull value is your insurance premium? Obviously there will be significant differences with value, operator experience, prior claims, months of use, navigation limits, and hurricane coverage. I'm curious as to what the range looks like.

Mine went from .65% (less than 1%) to .67% this year.

Ted

1.4%, 2% ded, 1M liability, Alaska to Mexico

 

[Trawler_traveler]

Ours went down for the same coverage. Geico Marine, So. Cal., maybe 1% lower.


-Sven

 

[Don G]

Insurance renewal to State Farm

We switched our coverage to State Farm. An agreed value policy with the same limits of coverage and same cruising area. You will need a survey two years old or less.
20% less than the old Chub rate.

 

[Bryant]

Insurance

Just received my insurance renewal for 2021. It is the exact same policy, navigation limits, and coverage amounts, with a 13.5% increase in premium. Now I understand that my premium also reflects 2020 claims from others in the pool and not my lack of any claims, ever. Maybe I missed something, but I thought this wasn't a bad year as far as storm / hurricane claims, and a whole bunch of new customers buying boats. Maybe it's the increasing lack of experience in new boaters that's driving my premium up.

Anyway, I'm curious what others are seeing for percentage increases.

Ted

The entire Gulf Coast was hit hard this year. These companies are trying to recoup their losses. We are all going to pay for that.

 

[Hobbit]

Our insurance went up another 10% or 400.00 after an increase of 90% or almost double last year. 4242.00 with Agreed value 377,000.00 and 1% deductable same coverage and no claims ever in 40 plus years.
Thats for coverage seattle to prince william sound offshore 100 miles.
I think its just another way to gouge everybody...blame it on hurricanes etc but the bottom line is they have to generate higher profits every year.

 

[Xsbank]

Mine was about the same as Hobbit's, $400 for no change except 2 mil. down from 3. Would have been more except for that downgrade.

If you switch underwriters here you need a new out-of-water survey, which is a huge pita, especially if you don't proof what they write and make you overhaul or repair something because they wrote "must" instead of "consider" or similar.

 

[LongStoryGB36]

I’m happy to say, and sorry at the same time. No change in our policy at all for 2021, just renewed in November. Our cost dropped 6%. Were listed at coverage limits any location on the Great Loop. We are also one of those over 30 year old boats. (Were a 1978 Grand Banks 36). Also for what ever effect it has in rates I have over 45 years experience operating boats up to 65’

I hope things don’t change in 2022

Russ