Insurance increase

[SailingDog]

Received my boat insurance renewal today. With very limited use over the last twelve months I am a bit surprised to see a 10% increase on last year. Is this normal ? Is this what other folks are experiencing ?

Thank you

 

[brainstorm]

Which insurer do you use?

 

[Alfie168]

Its called premium creep and they make it about 10% as people often don't complain about 10%. I agree with your complaint as lack of car use has seen premiums fall. I do wonder if break ins at boats have in fact gone up in the same period. I honestly don't know, but it might explain it...but somehow I think they do it because they can.

 

[Resolution]

My renewal quote this month from GJW was a 25% increase, admittedly after several years of no change. On questioning , the lady on their help desk said there had been several years of loss-making rates, so this was a catch up.

 

[Habebty]

My insurance went down big time last year! (£150 p.a.) GJW - been with them 16 years. I was so surprised, I phoned them up and checked the cover was the same, which it was.

edit, having seen the post above, I wonder if there has been some big rate/risk re-assessment exercise?

 

[Tranona]

My insurance went down big time last year! (£150 p.a.) GJW - been with them 16 years. I was so surprised, I phoned them up and checked the cover was the same, which it was.

edit, having seen the post above, I wonder if there has been some big rate/risk re-assessment exercise?

Yes - the yacht insurance business has gone through major changes over the last few years. Combination of a number of factors, mainly high claims particularly from storm damage, repair costs disproportionate to insured values, particularly for aging boats, political and regulatory changes. This has led to many insurers limiting their risk or exiting markets because of regulatory changes, merging with other insurers or pulling out altogether. Inevitably this has led to increases in premiums to try and get back to profits, limiting cover for the same reasons or r-assessing certain types of risk that can lead to falls in premiums for some.

Premiums were generally static for several years until 2019/2020 but the impact of the changes is now affecting just about everyone. Only answer is to shop around but look carefully at the cover offered as not all policies are equal and some of the better ones have been compromised in the changes. After 5 years with one insurer with static premiums, I went with the increase in 2019 because the cover was the best. However further increase in 2020 led to getting alternate quotes and got it back to the same level as before for the same policy. This provider has now been bought by another and I am expecting to have to go through the same process agin this year.

 

[SailingDog]

Hi All,
Thank you for the inputs, I plan to call current insurance co and explore if they will negotiate, I have 3 weeks so aim to shop around if they won't move a bit.

Thanks again.

 

[SailingDog]

Which insurer do you use?

Currently GJW

 

[Solent Sailor]

I am just going through this exercise and have posted on the MoBo forum about my experiences:

Currently with Y (now Topsail) - 2nd most expensive premium offered
Cheapest premium - Curtis/Towergate - just checking their terms though
Next cheapest - Porthcawl

All of the above are in fact underwritten by Nav & Gen - they are merely brokers. That said, the terms of the policies do differ something.

GJW - middle of the road price, but I was not happy with some of their terms (see other thread).

Most expensive - Pantaneous (although they are revisiting their quote for me). Historically, a very strong reputation, but the current policy is somewhat watered down compared to the previous "all bells and whilstles" version, bringing it into line with the others.

Cheapest quote £4 per '000 insured. Most expensive £7.20 per '000 insured. Renewal quote, £5.90 per '000 insured.

Shop around but read the Ts&Cs.

 

[Sybarite]

Hi All,
Thank you for the inputs, I plan to call current insurance co and explore if they will negotiate, I have 3 weeks so aim to shop around if they won't move a bit.

Thanks again.

I have been with the same insurer for 25 years and never (touch wood) had a claim. I got seriously stroppy with them after comparing premiums with other boat owners.
The result was a 38% reduction.

 

[lenten]

saga are getting out boat insurance-------need to find a new insurer for a 15 foot open boat-----displacement speeds only---15 hp 4 stroke yamaha----total value £5000--------any suggestions------thanks

 

[Osmosis]

Try Nautical. Have found them to be very helpful and competitive.
Policy wording appears to me to be as good if not better than Y . In my discussions with them understand they are underwriting agents for Travelers insurance and deal in house with all adjustments and claims.
Reassured if I required something instant or claims assistance they could act without having to send it on to the insurers or a claims management company with delay factor.

 

[Supine Being]

Currently GJW

It's always good to shop around. In the past, I have phoned GJW when they upped my premium and had a little moan, and they dropped it right back again, almost as if they were chancing their arm. If, as other have suggested, they have changed their rating criteria, then you might be stuck with it.

On a slight tangent, check that your sum insured is still consistent with market prices. I originally insured for what I paid for my boat, but as the market dropped then I found, after a few years, that changing the sum insured accordingly made a big difference to my premium. They won't pay you any more than market rates in the event of a total loss anyway, so there's no point in over-insuring.

 

[C08]

I am just going through this exercise and have posted on the MoBo forum about my experiences:

Currently with Y (now Topsail) - 2nd most expensive premium offered
Cheapest premium - Curtis/Towergate - just checking their terms though
Next cheapest - Porthcawl

All of the above are in fact underwritten by Nav & Gen - they are merely brokers. That said, the terms of the policies do differ something.

GJW - middle of the road price, but I was not happy with some of their terms (see other thread).

Most expensive - Pantaneous (although they are revisiting their quote for me). Historically, a very strong reputation, but the current policy is somewhat watered down compared to the previous "all bells and whilstles" version, bringing it into line with the others.

Cheapest quote £4 per '000 insured. Most expensive £7.20 per '000 insured. Renewal quote, £5.90 per '000 insured.

Shop around but read the Ts&Cs.

Wow that looks good - I pay £15.9/£1000!

 

[C08]

It's always good to shop around. In the past, I have phoned GJW when they upped my premium and had a little moan, and they dropped it right back again, almost as if they were chancing their arm. If, as other have suggested, they have changed their rating criteria, then you might be stuck with it.

On a slight tangent, check that your sum insured is still consistent with market prices. I originally insured for what I paid for my boat, but as the market dropped then I found, after a few years, that changing the sum insured accordingly made a big difference to my premium. They won't pay you any more than market rates in the event of a total loss anyway, so there's no point in over-insuring.

How does that work with an "Agreed Value"?

 

[Supine Being]

How does that work with an "Agreed Value"?

If it's agreed value, then you should get what you agreed in the case of a total loss. AFAIK these policies are less common because it would mean that the insurer has to do some analysis and horse trading in order to give you a quote, which raises their operating costs and, eventually, your premium. They won't want you bumping the value of your vessel too much above market rates as there's a moral hazard there, so this would be generally be used for one-offs or classic yachts. As always, it's best to read your policy and understand what your cover is.

 

[Tranona]

This is one of the sticky points of insurance and as you say why it is essential to check the exact wording. some insurers have moved toward market value or equivalent rather than agreed value, particularly for older and lower value boats. This is because the replacement value of such boats has fallen compared with what people paid for them or particularly spent on them (new engines, electronics, sails etc) and the cost of repairs for damage risen again in relation to value of boats. Exact replacements are difficult to find, so "equivalent value" is offered or more likely write off at their estimate of market value. This particularly affects larger, older boats that have had major refits that can cost as much as the purchase price, so getting an agreed value policy is important for many.

That was one of the attractions of Y Yacht as their policy was definitely agreed value, reviewed every year, but at more modest premiums than other well known agreed value insurers. Mine comes up for renewal in July so will wait to see what the new owners Topsail have to offer.

 

[laika]

On questioning , the lady on their help desk said there had been several years of loss-making rates, so this was a catch up.

I've had pretty unreasonable increases from Pantaeneus for the past 3 years (~10% p/a despite no claims in 10+ years of cover). The last couple of years I've questioned it and had the above response. I've stuck with them, partly because each year I plan on doing an azores trip "next year" and I know they're good about extending cover for that, but mainly because I leave it til the last minute to complain...

 

[dgadee]

My renewal quote this month from GJW was a 25% increase, admittedly after several years of no change. On questioning , the lady on their help desk said there had been several years of loss-making rates, so this was a catch up.

So was mine. Still not extortionate.

 

[jimi]

I had an increased quote, phoned them up and expressed surprise. Broker said they’d call back, did so and requoted at exactly the same as previous year.