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post #11 of 50 Old 04-01-2013 Thread Starter
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Re: Boat Insurance Rate Increase

Oh yes, to clarify I have no beef with Boat U.S.' service. In fact, I merely inquired a couple of years ago about some hull damage to my boat (eventually did not file a claim) and they were incredibly responsive ... even eager to find a resolution.

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post #12 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

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Originally Posted by Tempest View Post
Just checking, because I have Boat US too.

Did it go down $ 40. from $700..to $680 after you doubled the deductable..? or down $40 from the new price of $900. to $860.

Congrats on the OUPV.
It went from over $900 to $680.

Thank you! I just wish that I could find some way to put the OUPV to work for me...


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post #13 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

This will be my third season with BoatUS. I started with $1000 deductible, and it "diminished" to $750 last year and to $500 this time. I called them up and told them I was confused, because in prior years they said I would not have to pay any extra for this "diminishing deductible." They said that wasn't the reason the rate increased (which I already knew), but I told them that from my perspective it looked like I was now paying more money for a lower deductible that I didn't really want. I was able to raise the deductible back to $1000, which wiped out MOST (not all) of the premium increase. I pay $158 a year, so it's pretty reasonable.

Next year if they lower my deductible again, I'm going to ask to raise it back up to $1000 again for another rate decrease, since I really only want to insure against a catastrophic loss. In my experience with other types of insurance, filing small claims is a losing proposition, since they always earn it back with increased premiums (or cancelling your policy completely).


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post #14 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

So will the premiums go back down when the insurance companies have covered their losses?
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post #15 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

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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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post #16 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

The industry is competitive within itself. Didn't the oil companies bring up the insurance industry profit margins when they got called up on the carpet a few years back. I believe their excuse at the time was they "need " those margins if something like hurricanes happen.
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post #17 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

The insurance carriers drive me absolutely crazy. I have named storm haul out coverage, which pays half the cost when a warning is issued. I asked them what the new rule was going to be, now that they won't necessarily be issuing warnings in the northeast any longer. They said they would make a case by case decision. Ridiculous. Which way would one expect them to decide, if there didn't turn out to be a direct hit?

Anyway, unlike the insinuation that they always win, insurance companies can and do go out of business after large losses. It happens all the time. That's why there is a profit, as they risk losing it all.

The concept is purely a sharing of exposure. The collective always pays the sum total of the loss. Its just distributed equally, rather than only to those that suffer the loss. This goes up and down and I've been around long enough to see my premiums go both directions.

Where the consumer gets screwed is when they are paying for a loss exposure that they don't have themselves. For example, if you live far from the coast, you are probably still paying part of that coastal exposure. But, before there is a cry for further restricting how insurance companies can pool these things, just take a look at the highest regulated insurance states. They have the fewest insurance companies willing to write a policy there at all and the lack of competition drives rates way up.

Finally, not all insurance companies are the same on claims. Indeed, some keep their premiums low with the intention of restricting payouts. Others charge more and pay more. Its simple. You need a pro to help know which is which.


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post #18 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

Not sure that I would agree with the assertion that insurance companies do not always win...

Boat US issues insurance policies through Continental Casualty Company. Mr. Peter E. Jokiel, age 65, serves as the President and CEO of Continental Casualty Company. Mr. Jokiel has been Chief Financial Officer, Treasurer of Specialty Underwriters’ of Alliance Inc. since December 2003 and its Executive Vice President since June 2004. He serves as Principal Accounting Officer of Specialty Underwriters' Alliance Inc.

Mr. Jokiel also serves as the Chief Financial Officer of Continental Loss Adjusting Services Inc. He serves as a Senior Vice President of Continental Assurance Company.

From April 1997 to January 2001, Mr. Jokiel served as the President and Chief Executive Officer of CNA Financial Corporations life operations. From November 1990 to April 1997, he served as the Chief Financial Officer of CNA Financial Corporation, or CNA. Prior to that time, Mr. Jokiel served in various senior management positions at CNA and was an accountant at Touche Ross & Co. in Chicago.

Now, 2012 was a bad year for the insurance industry, and the boat insurance industry in particular.

For 2012, the CEO of CNA Financial corporation was paid; $742K in salary, $1.1M in bonus, and received $8.3M in stock options... If I made $742K a year, I would think that I won the lottery. If I made $8.3M in options... CNA's executive compensation is in the lower third of this industry...

It sounds to me as if Mr Joikel, CNA, and the other two thirds of the insurance industry are doing quite well.


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Last edited by eherlihy; 04-01-2013 at 02:40 PM.
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post #19 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

Being a CEO of a public company is nothing like winning the lottery. You have to earn the job and have the technical expertise to do it. They get fired regularly too.

I'm not commenting on whether that particular pay package is appropriate, only that it has nothing to do with whether insurance companies always win. Some go out of business for having to pay out more than they have.


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post #20 of 50 Old 04-01-2013
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Re: Boat Insurance Rate Increase

My insurance went from $700 a year 7 years ago to $2500 a year with BOATU.S. I could lower my cost if I keep my s/v on the St. Johns River or the Chesapeake Bay. I do not know what the rates would be this year after the Northeast storm. I called and I was told my rates would go up this August but they could not tell me how much. So when I hear $900, you still are getting cheap rates. I will take the s/v somewhere this August to get cheap rates.
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