Insurance Write Off Boat Giveaways. Right or Wrong?

At Boatbreakers we regularly deal with insurance companies to dispose of written off boats. But in the last few years we have noticed a rise in insurers giving damaged boats back to the owners. Or giving them away all together. It’s something that we think comes with certain risks.

We believe insurance companies should refrain from giving away written-off boats for a number of reasons. When a boat is declared a total loss due to damage or other issues, it signifies that the cost of repairs exceeds the vessel’s assessed value. In such cases, insurers often take ownership of the damaged boats. While it might seem charitable to give away these boats, several practical and ethical considerations argue against this practice.

Firstly, safety concerns loom large when it comes to written-off boats. These vessels have undergone significant damage, and their structural integrity may be compromised. Allowing these boats to enter the hands of unsuspecting recipients could pose serious risks on the water. The potential for accidents and maritime mishaps increases when individuals are unaware of the extent of the damage or lack the expertise to perform necessary repairs.

Secondly, distributing written-off boats could have detrimental effects on the marine environment. Boats often contain various materials, including fuel, oil, and other hazardous substances. Releasing damaged vessels without proper disposal or cleanup measures could lead to environmental pollution, harming aquatic ecosystems and marine life.

Furthermore, giving away written-off boats may set a precedent that encourages insurance fraud. Individuals might be tempted to intentionally damage their vessels with the expectation of receiving a replacement for free. This not only undermines the insurance industry’s integrity but also contributes to increased premiums for other policyholders. There is also a high chance that these boats have a high chance of being abandoned. As repair bills mount up people may decide to dump the boat rather than responsibly dispose of the vessel.  This then leaves the boat disposal price to fall to someone else entirely. Usually a local authority or the tax payer.

In conclusion, insurance companies should exercise caution when considering the disposal of written-off boats. Prioritising safety, environmental responsibility, and the prevention of fraudulent activities should guide their decisions. Exploring alternative methods of disposal, such as salvage operations or responsible recycling, ensures that the potential risks and ethical implications associated with giving away damaged boats are adequately addressed.