Insurance advice?

[C.Linnell]

As many/ all of you know, my brand new Street Triple R (3,000km on the clock) was stolen from Kohimarama a few weeks ago.

I had the bike insured with Vero through the dealership for $18,000 - the full purchase price.

Luckily Vero is willing to settle, but they've come through with a valuation of $16,000 (after deducting $500 excess).

I accept that motorbikes depreciate, and that if I'd sold it I'd get about 16k for it, but...

a) I thought insurance was about paying the replacement cost - I'd never find a Street Triple R with 3,000km on the clock. Thus I can't accurately replace my bike with a payout of $16,000. I need the full insured value to replace the bike.

b) If I'm mistaken, then why was I allowed to insure it for $18,000?


Vero did suggest I let them replace it for me, but then I'd have to get it refinanced (I have about 8k owing on it). The finance company didn't understand what I was talking about when I relayed that idea... nor do I for that matter. If they're willing to replace it why don't they just give me the full value?


Do I fight for the 18k? Let Vero replace the bike for me and have them duke it out with the finance guys?

What do you guys reckon?

[neels]

Depends on your policy, some have the option of a brand new replacement if less than a year old, or market value in which case $1500 off the brand new price seems reasonable.

Can't see what the hassle is with them getting you another bike and the finance. At the moment you owe some money for a bike, if it is replaced you have a bike and owe some money for a bike. If it's a security issue then the finance company should be willing to take the replacement bike as security, better than what they've got at the moment which is nothing.

[nodrog:Me]

why dont you just get them to replace it then?

[Devil]

Confirm the exact details of their 'replacement'.

The other option is to go to your dealer, explain the situation. You could buy another brand new one (if they give you a bit of a discount since you've already bought one from them). You may only have to find $1k to put on top of Vero's payout... Then brand new bike again...
My previous policies have had the brand new replacement clause within 12 months FYI...

[scott411]

write offs/payouts get messy with finanace involved, because you can not just transfer the finance to the new bike, normally the insurance company will pay the finance company then they pay you the balance,

as said above, a lot of insurance have a replacement clause with up to a year, if the dealer sold you the insurance with the bike go to them and they may have some pull with them, if its through a broker go to them,

[Laava]

You should be getting full replacement minus the excess

[wanpo]

My question for the masses is why do we insure a bike for a certain amount (paying more insurance fees) if when we ever come to need to claim, we don't receive the value insured for minus the excess?

[Icemaestro]

There are a few threads ok KB about that -because your insurance is a market value policy - Ie you the person getting it insured are asked how much do you think it is worth. Llooking on trademe, one seems to be able to get a 2011 new street triple for 15999...so that's probably what they've based their valuation on. http://www.trademe.co.nz/Trade-Me-Mo...-371914996.htm

Oh for the day they introduce agreed value (where they would pay out the amount agreed upon) policies for motorbikes in nz.

[nadroj]

Maybe they don't understand it is an 'R' model...

[Icemaestro]

Maybe they don't understand it is an 'R' model...

True! didn't see that! Quite possibly??

[C.Linnell]

Maybe they don't understand it is an 'R' model...

I checked that, yeah, and had her read the file to me. It's listed as an R model, and the dealership I bought it off (Holeshot) was one of the independent valuators so I imagine they'd know.

Thanks for all the advice guys. I've got Holeshot chasing it up as per scott411's suggestion.

[Icemaestro]

its more that when they were doing the 'market valuation' they didn't take it into account - from what I've heard they often do just what I did - jump on trademe and take a look at current value. Good luck!

[imdying]

Next time pay a few bucks more and get gap insurance (your finance company will probably have offered it to you it they're worth a knob of goat shit), it'll pay that short fall for you.

[skippa1]

Next time pay a few bucks more and get gap insurance (your finance company will probably have offered it to you it they're worth a knob of goat shit), it'll pay that short fall for you.

what he said

[Gremlin]

Agreed value doesn't really exist, except for classic type cover, where the bikes are older, you have restrictions on how much they are ridden etc.

My question for the masses is why do we insure a bike for a certain amount (paying more insurance fees) if when we ever come to need to claim, we don't receive the value insured for minus the excess?

If you under insure it, you'll get that amount only. If you over-insure it, you'll get up to that amount, unless it's market value is less. If they do try pulling a fast one on you it's simple. Get them to sort out your replacement (like for like). They usually back peddle quickly enough on the amount of payment.

List all accessories, so that they can't dodge. I've heard plenty around that too. I'm clear with my insurance that these items are included, and these items are not. Keep the list up to date. Read the fine print, there are restrictions on what items can be included in insurance.

Welcome to the joys of insurance. A necessary evil.

Oh for the day they introduce agreed value (where they would pay out the amount agreed upon) policies for motorbikes in nz.

Completely agreed. I've had long discussions on this, and it's always a real joy having to jump through hurdles and get assessments for the bike's value each year. I'm happy to pay the necesary premium... if I actually stand a chance of getting that money.

Op, the issue here is the finance company, which effectively control part of the bike's destiny, due to their interest. I'd be finding out exactly where you stand and what can/can't be done, and at what cost. Also, as above, if the price new has dropped from when you bought, you're pretty much shit out of luck.