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Thread: USA costs more!

  1. #1
    Join Date
    Oct 2008
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    50% Uk 50% on my boat
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    5,404

    Default USA costs more!

    Just having to pay extra for less cover when in USA waters.
    They add about $1000 for its part of the year from April to November and then half the public liability down to 1m when in USA waters.

    I can understand the public liability bit in the climate of USA trigger happy lawyers but why is it considered to be riskier to boat in the USA when there are so many more immediate services there? Anyone like to guess?
    Safe Sailing
    Paul
    Blog: www.suliere.com

  2. #2

    Default Re: USA costs more!

    Quote Originally Posted by ForumAdmin View Post
    Just having to pay extra for less cover when in USA waters.
    They add about $1000 for its part of the year from April to November and then half the public liability down to 1m when in USA waters.

    I can understand the public liability bit in the climate of USA trigger happy lawyers but why is it considered to be riskier to boat in the USA when there are so many more immediate services there? Anyone like to guess?
    In a word: profit. But maybe that's just me being cynical.

    It would be interesting to see how much Americans pay for their boat insurance and then do a comparison with non-US citizen rates when cruising US waters.

  3. #3
    Join Date
    Aug 2009
    Location
    Stratford upon Avon, boat Poole
    Posts
    3,381

    Default Re: USA costs more!

    Assessed on what the market will bear. Not actuarial risk assessment.

    Mike
    Nothing works on an old boat, except the skipper.

  4. #4
    Join Date
    Dec 2008
    Location
    Tavernier, Fl
    Posts
    62

    Default Re: USA costs more!

    It's all about the liability in the US. I would bet that is responsible for both the drop in coverage and the increase in premium. We found our insurance cost dropped significantly went we left the country and went back up when we returned.

  5. #5
    Join Date
    Sep 2011
    Location
    Melbourne Australia
    Posts
    548

    Default Re: USA costs more!

    Mine.

    Agreed Value, $150,00-00 Full replacement,
    Public liability $10,000,000-00
    Coastal water of Australia only, Up to 200 Nautical miles off shore,

    $1400-00 per year, full payment including brokers fee.

    Which I thought was quite reasonable for the peace of mind,
    Close to shore is the most dangerous, Especially in tite Marina's,

    That 50 million yacht your almost going to scratch on your way in, and then bounce off and T bone that other boat right in front of you,

    Pun intended, Hahahaha,

    America has a Terrorist problem, That could account for your high insurance costs, They have paid out a lot of money for Things destroyed in Terrorism acts,

    Refuse to go further on that one,

    $100 Million pay check for the CEO of your insurance company, Might have a lot more to do with it as well.

    Plus upper management would well and truly have their fingers in the money grab Pie as well.

    Equals, higher premiums,

  6. #6
    Join Date
    Jul 2009
    Location
    currently Columbia/Panama
    Posts
    346

    Default Re: USA costs more!

    We are US citizens. Our policy covers us on the NA East coast from Newfoundland down through the entire Caribbean and the US Gulf coast out to 50*W longitude.

    We pay $4,000USD for $265,000USD agreed value with a $5,000 deductible.

    This is our new policy. Our old policy, whose insurer left the marine market this year, was $3,265 for the same agreed value with a $3,000 deductible. Its coverage was only for the entire Caribbean and Pacific side of Central America up to South Carolina - and not the entire US East coast.

    Both policies have/had $1M liability.

    It is better to look at insurance as a % of agreed value and a % deductible, because that makes comparisons more apple-apple between boats and cruising areas. So in our case, we are paying 1.5% with a 1.9% deductible.

    Also, it is extremely important to note whether the policy is an agreed value one or a cash value one. Policies written by terrestrial insurers like Allstate are often cash value policies. These will be much less expensive, but pay out only a fraction of costs in a claim.

    Mark
    Mark Cole
    Manta 40 "Reach"
    www.svreach.com

  7. #7
    Join Date
    Oct 2008
    Location
    Port Canaveral Florida
    Posts
    700

    Default Re: USA costs more!

    Quote Originally Posted by ForumAdmin View Post
    .... but why is it considered to be riskier to boat in the USA when there are so many more immediate services there? Anyone like to guess?
    Hurricanes

  8. #8

    Default Re: USA costs more!

    We had a cash value policy through Nationwide when we went through Hurricane Ike in 2008. They way overpaid us for the damage done to the boat.

  9. #9
    Join Date
    Oct 2008
    Location
    Home port Chesapeake Bay; Cruising full time.
    Posts
    1,588

    Default Re: USA costs more!

    Quote Originally Posted by ForumAdmin View Post
    Just having to pay extra for less cover when in USA waters.
    They add about $1000 for its part of the year from April to November and then half the public liability down to 1m when in USA waters.
    Compared to where and when?

    The important unknown required to guess at an answer is exactly what you mean by "in USA waters"? What are your navigation limits? If you are covered for offshore waters south of about Cape Hatteras and into the Gulf of Mexico, April thru November covers hurricane season and this will be a huge increase in your premiums. Of course, this would also apply to the Carib during the season, so if that's what you're comparing to, then the increases are due to something else.

    2 Hulls Dave

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