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No claims discount: how the years are counted
Short answer
No two boat insurers count clear years the same way. Whether an open reserve already counts, how far one claim steps the scale back and what proof carries a record across a border decide what the discount is worth.
On a car policy the no claims discount is the best understood number on the schedule. On a boat policy it is one of the least, because no two insurers count it the same way. Some start a new customer at nought and build the discount a year at a time. Some grant the full scale from the first day and use the claims record only to take it away again. Some run no scale at all and price the risk from the boat, the cruising area and the survey instead. Asking which of the three a quote belongs to explains more about the figure at the bottom than any list of clauses.
Three questions decide what a discount is actually worth. First: does a claim have to be paid before it counts, or is it enough that a reserve has been set aside on the file? On many wordings the reserve is enough, which is why damage notified in October can move a renewal the following March. Second: how far does a claim step the scale back, and how many clear years does it take to climb again? A drop of two levels with one level a year back is a four year consequence, not a one year one. Third: is there any protection after a run of clear years, so that a single claim leaves the scale alone?
For anyone moving between insurers, or between countries, the practical point is proof. A record held by a Dutch or an Irish insurer is not automatically readable by a British one, and a broker placing boats across several markets will ask for a letter rather than take a figure on trust. Request that letter before the renewal date rather than after it, because once a policy has lapsed some underwriters recognise clear years only if they ended within a set period. And keep the small claim question in view: reporting damage that costs little more than the excess can be the wrong trade when the discount is long and the scale is steep.
Worth remembering
One claim
can cost several years of discount
One letter
is what carries the years across
The discount is not the figure printed on the schedule. It is the rule that takes it away again.
Questions
What owners ask us about this
Does every boat insurer give a no claims discount?
No. Some price from the boat, the cruising area and the survey and run no scale at all. That is worth establishing before two quotes are compared, because the same figure can be built in very different ways.
Does a claim count if nothing has been paid yet?
Often yes. On many wordings a reserve set aside on the file is enough to move the scale at the next renewal, long before any repair is settled. It is worth asking how an open file is treated.
Can years earned with another insurer be carried over?
Sometimes, and usually only with a letter from the previous insurer stating the clear years and the date cover ended. Across borders that letter matters even more, because the scales themselves differ.
Is it worth reporting a small amount of damage?
Weigh the repair against the excess and against what a step back costs over the following years. A long discount and a steep scale can make a small claim the more expensive route by some margin.
Related
Not sure whether you qualify?
Whether it is “No claims discount: how the years are counted” or another question: send us your residence and the flag your boat flies. You will get a straight answer in one email; including a no, if that is the answer.
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