Total loss premium? Protecta Insurance

**peterpan** · 11th October 2010, 10:12

has anyone heard of this.... i wrote my new bike off two weeks after getting it brand new. now the insurance company happily replaced it ( thanks) but when i went to insure the new one i thought that i would have to pay an extra couple hundy to top up for crashing the first one since i had paid in full for the whole year, but no. apparently the company takes the rest of your insurance premium along with your excess to help pay for new bike... buy buy $600.

is anyone fimiliar with this?

**Bald Eagle** · 11th October 2010, 10:18

I think this may be the common practice, when State wrote my bandit off they told me that is effectively the end of the policy and they take the unused premium and also the registration refund when they de-reg the wreck as an off set against their costs.

**CHUNKY MONKEY** · 11th October 2010, 10:18

sounds right,fail to see the problem. You crashed and needed to pay your excess and what was owed on your yearly insurance fees.

**scott411** · 11th October 2010, 10:23

that is standard with all insurance companies,

basically it is much better to write off your bike in the last month of your insurance year, than the first month

**ckai** · 11th October 2010, 10:27

Your insurance covers the loss for a year even if you pay it in montly/fortnightly. If you were paying it in instalments you would have been asked to pay for the entire year before you got your flash wheels.

Not meaning to be rude but you've got an issue with paying $600 for a new bike (effectively)? Yeah you paid for it already but now it's new again

Completely standard practice. It will state it in the policy conditions - that no one reads

I get my wife to tell me the ins and outs since she used to be a dodgy insurance seller.

**peterpan** · 11th October 2010, 10:34

Thanks guys... do they not take into account the heart break and embarrassment of crashing a bike before its first service. at least the family waited 10 minutes before taking the piss out of me.

**CHUNKY MONKEY** · 11th October 2010, 10:39

yes and then they laugh

**rustyrobot** · 11th October 2010, 10:41

Wow, I had no idea about this. I have no love at all for insurance companies, a barely tolerated necessary evil. Just like banks it all seems to be one-sided and everything in their favour. I had genuinely thought that if my bike is written off, they would replace it and the new one would be insured for the remainder of the insurance term.

Thanks for the wake-up call I guess. Thought I had read my policy closely enough, but maybe missed the implications in some of the jargon. I've only ever paid three full years of insurance in my life, but never claimed anything on that, so they got all that money for a minimum of administration costs, must be a fair few people like me, so seems unfair they make life hard for those who do need to make a claim.

Is this only for 'total loss' then? (Time to dig out the policy again).

**peterpan** · 11th October 2010, 11:09

yep, this is my first claim, so was unaware of the fine print. wish i had crashed my over insured Ducati before selling it cheap...wouldn't hurt so much.

**NinjaBoy** · 11th October 2010, 12:17

Originally Posted by peterpan

yep, this is my first claim, so was unaware of the fine print. wish i had crashed my over insured Ducati before selling it cheap...wouldn't hurt so much.

If the Ducati was over a year old then you get into a whole new level of pain arguing over the market value

The odds are always in their favour ...

**trustme** · 11th October 2010, 14:48

Insurance companies are bookies in a flash suit, playing the odds that the premiums collected will be greater than claims paid . You don't have to play their game , it is entirely your choice. just one question you gotta ask, 'do you feel lucky ?', can you afford to take the hit ?
Personally I don't have a problem with this practice .

**p.dath** · 11th October 2010, 16:41

Originally Posted by ckai

Your insurance covers the loss for a year even if you pay it in montly/fortnightly.

+1. It's standard practice.

**ckai** · 12th October 2010, 07:52

Originally Posted by rustyrobot

Is this only for 'total loss' then? (Time to dig out the policy again).

Yeah, if the vehicle insured is written off, the policy ceases. If it's damaged and repairable, the insurers will ask for any outstanding premiums, then repair the damage and you're policy continues as normal. Of course, on write-off they ask for outstanding premiums as well.

Originally Posted by trustme

Insurance companies are bookies in a flash suit, playing the odds that the premiums collected will be greater than claims paid . You don't have to play their game , it is entirely your choice. just one question you gotta ask, 'do you feel lucky ?', can you afford to take the hit ?
Personally I don't have a problem with this practice .

That's pretty much how my wife explained insurances too me. Thanks to mum, I was pretty anti-insurance. Then the wife asked "can you afford to lose it?". With regard to my bike, hell no. Apart from losing all the money, I wouldn't be able to afford to repair it so the simple answer is to insure. Essentially "paying off" future repairs.

The same goes for my income protection. We'd be screwed if I couldn't work so that sorts that.

If I had a $2000 bike or car I may not insurer it but I would consider 3rd party even though the bastards change more for that then full cover now (in most cases). I sure as hell couldn't afford to fix a snooty [sic] beemer drivers optional indicator.

**MSTRS:Me** · 12th October 2010, 08:12

Originally Posted by rustyrobot

Is this only for 'total loss' then? (Time to dig out the policy again).

Further clarification...
Total loss (write off) means the insurer pays you $ for your bike. You've sold it to them, they now own it. Any 'unused' premium is forfeit. You can't insure a vehicle you don't own, so the policy that covered it is now ceased.
If you use the payout to purchase another bike (which is the same as if the insurer sends the cheque to the bike shop to cover the replacement) you then have to take out a new policy, and pay a new 12 months premium. Probably at a higher rate, and/or without the discount for no claims (unless your company offers 'lifetime NCB'.

**Oscar** · 12th October 2010, 08:24

Originally Posted by rustyrobot

Wow, I had no idea about this. I have no love at all for insurance companies, a barely tolerated necessary evil. Just like banks it all seems to be one-sided and everything in their favour.

So who's holding a gun to your head?