Buying down bareboat deductible?

Hey Gang:

I feel like this has been discussed before, but couldn't find it via search.

For a security deposit with our bareboat provider, there are two options. You can put down a refundable ~$6K and be liable up to that amount, or pay a non-refundable ~$60/day to 'buy down' the refundable deposit to ~$2.5K (and be liable up to that amount).

1. Is it worth paying ~$500 (via daily rate) to reduce your exposure from $6K to $2.5K?

2. Historically, how often have you had damage/issues on the bareboat trips you've taken over the years?

I realize that YMMV. I'm just hoping to hear what others do - and what logic others use to make that decision.

Thanks in advance!

I think the simple question is how confident are you in your ability as a captain. And is it worth it to have the peace of mind knowing you'd at most be out $2500 if there was an issue?

For us as owners we were going 3 times a year so the added insurance costs added up and multiple trips with no issues would easily have covered a single trip with an issue. And we had over a dozen trips and never had an issue.

End of the day, only you can answer your #1 question.

That's a really high deductible after paying for the insurance. The norm is around 800.00
G

I wonder what charter company he is referring to.

Keep in mind, that you also have to consider the impact of paying $6000 if there was a problem. For some people, this could be real hardship.

"Total waste of money... until the day you need it"
"Then it becomes the smartest purchase ever made...."

Exploring/sharing the various charter policy/procedures here, would probably be very helpful to many
Might even serve to keep some outfits in line.. if they are perceived to be unfair

When we charter through TMM (sailboat) there's no choice; it's $350 "security insurance" for the week plus a $1000 refundable insurance deposit when you show up for the charter.
With Virgin Traders (power yacht) we chose the $3000 insurance deductible with no daily charges.
Never had an issue with any charter boat.

We never buy down nor pay for any supplemental insurance. We always take the time to understand the full risk we assume when we buy a house, car or whatever. We take the same consideration when it comes to borrowing a friends car or renting a boat or vessel of any type. In general the "buy down" or supplemental insurance is a profit center for those trying push you to pay.

In our case our personal liability insurance will pay for anything we do not intentionally damage. Research your non owned vessels and vehicle coverage. We would decline it and be prepared to pay the $6K if it came to it just like our own boat. Factor the amount into the total trip cost. If you do not end up paying or owing it. You are ahead.

Putting down a refundable 6k is a great deal when you consider the value of the boat. Paying 500 to save 4500 in the unlikely event is as stormjib says a profit center. Used properly, the only purpose of insurance is to protect you from catastrophic losses. If $4500 is catastrophic to you you can't afford to be taking sailing vacations in the Carib.

Thanks, all - agree with and appreciate your thoughts.

It'd be one thing if paying a daily rate got the deductible down closer to $0 - then you're spending money but at least that removes the worry factor. But spending $500 to only get the deductible down to ~$2.5K -- when most of the 'more common' damage scenarios are probably below that amount (ie, you'd still be paying) -- doesn't seem like a good exchange for an experienced/conservative boater.

Love input from anyone else with thoughts or perspective - particularly someone that have had a deductible-eating event on a bareboating trip.

(P.S. To keep superstition at bay, I'm knocking wood the entire time I'm typing this whole post - to make sure none of us ever have an issue! <img src="http://www.traveltalkonline.com/forums/images/graemlins/Grin.gif" alt="" /> <img src="http://www.traveltalkonline.com/forums/images/graemlins/Grin.gif" alt="" /> <img src="http://www.traveltalkonline.com/forums/images/graemlins/Grin.gif" alt="" /> )

We've never paid the supplemental insurance, partly because it really adds up on the longer charters we typically do. If the supplemental isn't optional I would consider it dishonest pricing.

Thanks again, all. One addendum... To Stormjib's thought on the possibility that personal insurance provide some protection for rented/non-owned assets like a charter boat. We're US-based and our (Allstate) guy said our policies essentially just cover personal items when we're out of the country. Others' may be different.