How do I get insurance and how much does it cost?

northoceanbeach · #1 02-02-2013

Hi, I am looking at my next boat. It's been a while. I have never been required to have insurance. I called a marina today in Slameda California and they were very friendly. They said I needed title, registrations and insurance. Can I assume the title and registration are simple tasks just involving fees, but I don't know where to begin with insurance. Is it like with a car? Or do I have to have a costly inspection or something else. How much does insurance cost and Is it hard to get?

I'm not talking about an expensive boat. Just looking at 25-30' 1970's sailboats. Thanks for the help and I appologize for spelling, my words are invisible to me for some reason!

rgscpat · #2 02-02-2013

With a small boat that is sailed locally, you might get an inexpensive policy from your house or car insurance company. It may not have all the coverages that a more specialized insurer could provide, but it would get you into the marina. As boats get bigger and plans get more ambitious, going through someone like Boat US or some marine speciality insurer or marine insurance broker would make more sense. Also, you'll see a lot of ads for brokers and insurers in the backs of boating magazines.

Minnewaska · #3 02-02-2013

There are two major things one would considering insuring. First is the value of your boat, should it be damaged or lost. You make it seem like your investment in your boat is not worth insuring and that's your choice.

The second is the liability you would have, if you damage another boat or the marina itself. The biggest liability that concerns me is environmental: fuel spills, chemicals, salvage/recovery. This is likely the one that the marina requires and regardless of the size of your boat, you should want as well.

There should be a local insurance agent that is experienced in these policies. You can get the cheapest, lowest cost policy available. However, I highly caution that you shop for value, not just the lowest price. Why have insurance that doesn't cover anything?

It should not be terribly expensive for just liability coverage, depending on your sailing resume. Hull coverage is another story and depends on age, condition, etc.

fmueller · #4 02-02-2013

neither my home or auto insurance provider would even give me a quote for our boat because of its age. 1969.

I ended up using Progressive and it was easy and fairly priced. Got an instant quote online.

because of the age of the boat, i got liability only plus a small 'stated value' policy. that works well for me.

chuck53 · #5 02-02-2013

As far as an expensive inspection goes, yes you will need a marine survey. Basically, their are two kinds of survey, a basic insurance survey and a more intensive pre-purchase survey. An insurance survey will probably run in the $12-17 per foot range, with a pre-purchase survey in the $16-25 per foot range. Most Sailnetters will strongly suggest you get a full pre-purchase survey. It just might save you thousands of dollars finding hidden problems that will have to be fixed.

I'm on my fourth boat, all insured with Boat US.

In reading some of your old posts, didn't you buy a Cascade 29 a few years ago you were going to cross the ocean with? What happened with that one?

Alex W · #6 02-02-2013

My insurance provider only requires a marine survey on boats insured for $25,000 or more. Most people who buy a boat at that value will have already had a pre-purchase survey that is considered acceptable. Check with your provider.

Insurance is pretty cheap as far as boat things go. I think I paid about $200/year to insure my Catalina 25 for $10k replacement value and $300k liability (the minimum that marinas generally want).

RobGallagher · #7 02-02-2013

I use a good local agent who shops around for all my insurance. So far I have never been able to beat the prices by calling the big companies myself. I give her all my business and she often calls me first with better prices if my rates go up.

I have to admit that I have never heard of some of the companies, but, I have had claims in the past and never a problem (so far). Plus, she gets involved with the process. (She could be selling hundreds of policies to a company and maybe they respond better?)

Anyway, same agent for 20 years. So far so good.

Minnewaska · #8 02-02-2013

Quote:

Originally Posted by RobGallagher

I use a good local agent who shops around for all my insurance. So far I have never been able to beat the prices by calling the big companies myself. I give her all my business and she often calls me first with better prices if my rates go up.

I have to admit that I have never heard of some of the companies, but, I have had claims in the past and never a problem (so far). Plus, she gets involved with the process. (She could be selling hundreds of policies to a company and maybe they respond better?)

Anyway, same agent for 20 years. So far so good.

This is absolutely the way to go, IMO. The agents have much more leverage with the carriers than you could ever have. The carriers have to compete to get the agents to send them business. The agents know the differences in coverage and responsiveness and can help you make a good decision. Least expensive is not always the most effective. Quite the opposite usually.

A good knowledgeable independent agent that works hard is worth it.

northoceanbeach · #9 02-02-2013

Well although I enjoyed that Cascade and learned a lot, poor female choices caused me to forego crossing the ocean.

But now I'm back on track and will be starting with dome coastal cruising.

Fau · #10 02-02-2013

Is there a way to get insurance without pulling the boat out of the water? I have an old 27' O'Day that i didnt spend a whole lot of money on. Id like to ensure it but without incurring a huge cost.