Another insurance thread.... Geico

Discussion in 'General Discussion' started by Boat Guy, Jul 9, 2020.

  1. Boat Guy

    Boat Guy Well-Known Member

    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?
     
    Last edited: Jul 9, 2020
  2. CaptRonn

    CaptRonn Well-Known Member

    973
    May 25, 2016
    on a large body of water
    1999 Sea Ray 400 Sedan Bridge
    Convert fuel into noise
    My rates went up about a $100 over last year.
     
  3. Boat Guy

    Boat Guy Well-Known Member

    For illustrative purposes, mine is up 32% or $400...Not sure the rate matters, as it will be dependent on cruising area, insured amount, etc...
     
  4. CaptRonn

    CaptRonn Well-Known Member

    973
    May 25, 2016
    on a large body of water
    1999 Sea Ray 400 Sedan Bridge
    Convert fuel into noise
    Then mine came up about 6%.
     
  5. firecadet613

    firecadet613 Well-Known Member

    May 10, 2007
    Indiana
    '07 V358
    T- VP 5.7GXi
    I was about $20 more to last year. Give Charter Lakes out of Michigan, a call.
     
  6. El Capitan

    El Capitan Well-Known Member

    Jul 9, 2014
    Chicago IL./Vero Beach, Fl
    1970 SRV 180 w 2.5L Mercruiser.
    2000 Ford Expedition Eddie Bauer
    120HP Mercruiser
    They see valuations increase in boat market so they want their juice.
     
  7. GypsmJim

    GypsmJim Active Member

    295
    Aug 8, 2018
    Western New York
    '19 SPX 190 OB, 150 & 5 Mercs
    '17 Whaler 150 Montauk
    '15 Yamaha FXHO
    '60 Mulray Dinghy
    '52 Lyman 15'
    Mercury 150 4-stroke
    68 Outboards representing 11 manufacturers
    One of my Geico boats stayed the same, one went up a few dollars (not much) and my Geico Jetski went down $1.
     
  8. b_arrington

    b_arrington Well-Known Member GOLD Sponsor

    Feb 21, 2007
    Setauket, NY
    2018 Back Cove 34
    Cummins QSB 6.7 480
    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.
     
  9. Boat Guy

    Boat Guy Well-Known Member

    This is an agreed upon value yacht policy. It hasn't changed in 5 years.

    Thanks for the info guys.
     
  10. douglee25

    douglee25 Well-Known Member

    Jan 13, 2008
    Dallas, TX
    Cruisers 3575
    Twin 7.4l
    I just got my renewal.... It went up 52% over last.
     
  11. ttmott

    ttmott PhD in OCD GOLD Sponsor

    Apr 3, 2012
    Space Coast Florida
    2006 52 Sedan Bridge
    Cummins QSM11
    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....
     
  12. northern

    northern Well-Known Member

    Jan 17, 2007
    West coast Vancouver to Alaska
    380 Aft Cabin 1989 GPS and Charts by Nobeltec
    Twin 454 strait shaft
    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.
     
  13. Boat Guy

    Boat Guy Well-Known Member

    @douglee25 - What's the company?

    @ttmott - What you said makes sense... I have no problem with actual risk assessment, and I'll pay my fair share. But, I want to hear it from Warren himself as to why they think they can justify this.
     
  14. douglee25

    douglee25 Well-Known Member

    Jan 13, 2008
    Dallas, TX
    Cruisers 3575
    Twin 7.4l
    American Modern
     
  15. MonacoMike

    MonacoMike Well-Known Member

    Sep 15, 2009
    Indiana lakes and Lake Michigan
    2000 Cruisers 3870
    8.2 Mercs
    85 Sea Ray Monaco 197
    260hp Alpha 1
    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.
     
    CaptRonn likes this.
  16. skibum

    skibum Well-Known Member

    Jul 30, 2007
    Perry Hall, MD
    2005 Sundancer 260
    496 Magnum HO
    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.
     
  17. ttmott

    ttmott PhD in OCD GOLD Sponsor

    Apr 3, 2012
    Space Coast Florida
    2006 52 Sedan Bridge
    Cummins QSM11
    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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