Re: Boat Insurance Rate Increase
Originally Posted by scratchee
So will the premiums go back down when the insurance companies have covered their losses?
In fact, I am confident that they probably will (unless we continue to get pounded by hurricanes every year).
The industry is competitive, which means that other companies will try to attract your business with lower rates, and your own company will have to respond by lowering their rates too. Much as they might like to keep their profit margins artifically high for the long term, their own desire to win new business will cause profit margins to erode over the long term to a sustainable level. If the hurricanes stop, the rates will come down. If the hurricanes keep hitting populated areas, rates will stay up.
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Formerly posted as "RhythmDoctor"
1998 Catalina 250WK Take Five (at Anchorage Marina, Essington, on the Delaware River)
1991 15' Trophy (Lake Wallenpaupack)
1985 14' Phantom (Lake Wallenpaupack)