Chanquete
Member
I would appreciate knowing the value of an usual insurance as a percentage of the value of the boat
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Boat insurance
- Thread starter Chanquete
- Start date
Tranona
Well-known member
Meaningless figure. Insurance premiums reflect the risk if covering the boat. It is broadly in 2 parts, the first is third party claims and the second is all risks cover on the boat itself. While the second part is often calculated and expressed as a %age of the insured value the actual figure varies depending on the risk in the location and type of use. So in the UK for example this %age is generally low, whereas it is higher in the Mediteranian reflecting the higher risk of damage and the higher cost of repairs. To give an example, I kept a boat in Greece, then moved it to the UK and my premium was reduced by nearly 25% back in the UK. Also because third party insurance is largely a fixed cost (although that too varies from location to location) overall premiums reduce as a %age of value as value rises. I have just sold a boat insured for around £100k and the premium was £540 - just 0.5% and replaced it with a boat valued at £36k and the premium is £340 - just under 1%.
I would imagine insurance is much more expensive where you are because of higher risk and a smaller base to spread that risk so making comparisons (particularly on a %age basis) with other countries is largely meaningless. The only valid comparisons are between different insurers quotes for exactly the same cover for the same boat in the same place for the same type of use. Remember though that not all policies are the same so you have to read them in detail, plus of course not all have the same reputation for service and paying out for claims!
Hope this helps.
I would imagine insurance is much more expensive where you are because of higher risk and a smaller base to spread that risk so making comparisons (particularly on a %age basis) with other countries is largely meaningless. The only valid comparisons are between different insurers quotes for exactly the same cover for the same boat in the same place for the same type of use. Remember though that not all policies are the same so you have to read them in detail, plus of course not all have the same reputation for service and paying out for claims!
Hope this helps.
Chanquete
Member
Thank you very much Tranona for your clear and detailed explanation!
oldgit
Well-known member
....can also vary with regards to how much experience you claim to have, plus some companies will take into account any NCB you may have built up.
When a previous insurer gave me a quote to reinsure with them, just about every other company contacted and asked to quote gave a better price.
Price may depend if the company actually wants to insure your particular sort of boat.
Saga recently pulled out of the boat market completely.
When a previous insurer gave me a quote to reinsure with them, just about every other company contacted and asked to quote gave a better price.
Price may depend if the company actually wants to insure your particular sort of boat.
Saga recently pulled out of the boat market completely.
Tranona
Well-known member
Maybe worth adding a bit more on the use of %age of value. This derives from commercial shipping where the premium has 3 drivers, third party, hull and machinery and cargo - the latter often the biggest component. Shipping insurance is on a per voyage basis so rates are based on the cargo and the specific voyage and expressed as a %age which varies according to the risk of the planned voyage. So oil going through Straits of Hormouz and Suez Canal would be more risky than say from US to Europe and therefore premium higher as a %age of value. A good recent example would be the Black Sea where, apart from the partial blockade ot was the high cost of insurance (or lack of) that limited shipments. The negotiations to free up movements of grain included agreement by insurers to cover ships and cargos at an agreed rate.
Private boat insurance is different because the majority of claims under the all risks part are for relatively minor damage, often weather related. So in the UK rates are low because weather is less extreme and total losses rare whereas in the Caribbean where extreme weather is common claims are often high and total losses more common.
Private boat insurance is different because the majority of claims under the all risks part are for relatively minor damage, often weather related. So in the UK rates are low because weather is less extreme and total losses rare whereas in the Caribbean where extreme weather is common claims are often high and total losses more common.