Boat insurance - beware of Foremost

[Big Al]

I renewed my policy on May 7th. I sold my boat on June 17th. So, I had insurance for 5 weeks on it. I paid $161 for the year on my policy. Expecting to receive say 75% back, figuring 3/4 since most companies use a quarterly payback, I was informed I am only getting back $61.
Beware of a minimum premium put on your policy by your insurance company! Foremost has a $100 minimum premium and it starts on day one. So, as soon as you sign a policy with Foremost, it costs you $100. If you write it today and cancel it tomorrow, you lose $100.
This is the first time in 40+ years I ever saw an insurance company do this. I just want you to be aware of this when you go to get insurance.
Foremost won't be getting any more money from me. BTW, they belong to Farmer's Ins.

[barkleyhawggitter]

you also need to change the value of the boat in the policy each year or they will charge you a premium based on the new value even though they wont pay it in a claim.

[richg99]

I believe that most insurance companies have a "minimum cost of coverage" or "Earned Premium". I am not defending insurance company overcharges...because they will take advantage of we mopes anytime they can....

However, there are plenty of guys who would take out their insurance in March; run the boat hard all summer; and cancel in September.

If they only had to pay for the portion of the calendar year....the insurance company would be taking most of the risk ( boats are busy during the Summer and dead in the Winter in many States)...but the policyholder would get away with only paying a portion, even though he used the boat during the riskiest time of the year.