Another insurance thread.... Geico

Boat Guy

Well-Known Member
May 15, 2013
2,289
Who knows? Could be Cali, Oahu, Florida, Annapolis
Boat Info
400 DA
Engines
CAT 3116s
So, I got a call today from my insurance broker. They don't normally call, but in light of the fact that my rate increased as much as it did, they thought it warranted a call...

It started with, "have you seen your new rate?".... I was like, "No"

It turns out, thanks to those with boat owners that couldn't get their boats away from hurricanes, we are all paying for it...Ok, I get that...As long as it's reasonable and reflective of risk...Meaning those boats in hurricane alley need to foot their bill...

Then she mentions something about credit score, etc...and I'm like, "ok", it should be the best so that shouldn't impact the rate...But she says she doesn't think I have the best rate...

Now why would a guy with $0 debt other than monthly revolving (paid off monthly) and substantial financial assets, be dinged by GEICO for a higher rate...I told her to get to the bottom of this and get some clarity....

What say you, brain trust? Is this what you're experiencing?
 
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I was about $20 more to last year. Give Charter Lakes out of Michigan, a call.
 
One of my Geico boats stayed the same, one went up a few dollars (not much) and my Geico Jetski went down $1.
 
My insurer exited the recreational marine business. My new rate is about 20% higher. Other folks with my type of boat are seeing the same increases.
 
Some states allow a credit based insurance score to determine insurance rates and some do not. Florida does. It appears you have excellent base credit scores however insurance companies have a risk model that considers active credit history to determine insurability risk. So, for example, if your boat is paid off and you haven't had a loan history for the past sequence of five years they consider your risk higher and rates will be higher. You could have a base FICA score of 820 and still be considered higher risk. Florida law allows you to revisit this each year at renewal time and the insurance company is required to justify their risk category.... I go through this each year and between me and my broker we are able to keep the gophers in the holes....
 
One insurance company we had based your rate partly on the number of traffic tickets you had plus any auto insurance claims. We have a jetboat one insurance company wanted four times what my home owner insurance plan wanted.
 
Credit scoring sucks for very responsible people and if you are not checking your scores on credit karma or the like regularly you have no idea what they’re doing to you. scores can fluctuate over 100 points in a month and no one would think it irresponsible.

Guy A has a big mortgage, car payments, and a boat payment, he has 6 CC with $20k owed of $80k limits and a 720 score.

Guy B has a mostly paid off house, boat payment and 1 CC paid off monthly with a $15k limit and a 780 score.

If both need to use the CC and put $13k on it, guy A loses 15 points, guy B loses over 100 points because he now is using the majority of the limit available to him.

The credit scoring system is based on heavy users of credit and having lots of credit available not being used. I think we would all agree that B is the better risk.
 
I just got my renewal from NBOA (underwritten by Chubb) and it's up 9.7% from last year.

I was about to take it personal, but I see it's a trend this year.
 
Credit scoring sucks for very responsible people and if you are not checking your scores on credit karma or the like regularly you have no idea what they’re doing to you. scores can fluctuate over 100 points in a month and no one would think it irresponsible.

Guy A has a big mortgage, car payments, and a boat payment, he has 6 CC with $20k owed of $80k limits and a 720 score.

Guy B has a mostly paid off house, boat payment and 1 CC paid off monthly with a $15k limit and a 780 score.

If both need to use the CC and put $13k on it, guy A loses 15 points, guy B loses over 100 points because he now is using the majority of the limit available to him.

The credit scoring system is based on heavy users of credit and having lots of credit available not being used. I think we would all agree that B is the better risk.
Ah, but you missed it - Insurance Credit Scoring does not really use the "Score" but rather the 5 year history of credit maturity to establish insurance rates. You are more looking at obtaining the best rates for a loan.
 

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