Is my hull insurance really worth it?

[OrangeCrush]

I have my boat insured for $78,000 hull value (my original purchase price) through BoatUS/Geico. I've owned it since 2016 and the annual premiums have crept up from $1300 to about double that, and I'm now paying over $2500 per year. I thought having no accidents would help my rates, but they tell me this is an industry-wide thing...

I haven't filed any claims but I started one in 2018 when my stern gear failed. The $4,000 deductible was almost as much as the repairs were gonna cost me, and they told me it would make my rates go up if I went through with the claim so I ate the cost. My "vanishing" deductible is now lower, but my premiums climbed regardless. It looks like I'm paying about twice the internet's "rule of thumb" of 1.5% total value for full coverage.

As you can see I'm not the happiest of customers. A smaller regional insurance company I was considering switching to just went out of business. I suppose I should shop around some more but I'm not eager to pay for a new survey. I could also reduce the value that I insure the boat for, maybe down to half its value. I doubt this would cut my rates in half but it might help.

Having spoken with some other boat owners, we share the concern that if something bad were to actually happen the insurance company might find a way to avoid paying out on it. If that's anything more than just paranoia it could be a factor. I take every precaution to keep my boat safely afloat, and I'm considering some more advanced monitoring systems as well.

But what I'm really tempted to do is reduce my coverage to liability only. I love my boat and I've invested a lot of time and money in it. I definitely couldn't afford to replace it, but maybe I could actually put some money away for a boating emergency without these big premiums.

Maybe all this just amounts to venting, but I wanted to see if any of you have been going through a similar thought process recently. Advice and perspectives are much appreciated.

[Creedence]

I’m feeling the same squeeze. As recently as 2016 I had a $300,000 powerboat policy that ran me around $1900 annually, but now I’ve got a $60,000 sailboat and I’m paying $2500. I can only assume it’s industry wide as well.

From personal experience, I’d suggest not reducing the hull value. I had a claim on a aircraft that was a total loss after doing just that. The premium inched down, but I shortchanged myself tens of thousands of dollars on the payout. That’s not a move I’ll be making again.

Best of luck whatever you decide.