Need Questions Answered about Insurance?

**Fub@r** · 21st July 2006, 10:36

Originally Posted by gamgee

sorry, can i just get something cleared up, my bike is insured at market value, but I'm only paying my premium on the value I bought it for about $2500, but the dealers are selling the same bike for $4000, so if my bike was stolen, would the insurance company pay out the market value - $4000?

I just purchsed a car for my other half, paid $6500 wholesale, insurance company listed value is 9-10k. They will only insure it for the purchase price, to get market value we have to get the car valued which costs about $30 at any car yard, then the insurance will do the agreed value policy.

I think from what you have said above insurance will only pay out for the sum insured ie: $2500 maximum minus depreciation from date of purchase

**Oscar** · 21st July 2006, 11:13

Originally Posted by gamgee

sorry, can i just get something cleared up, my bike is insured at market value, but I'm only paying my premium on the value I bought it for about $2500, but the dealers are selling the same bike for $4000, so if my bike was stolen, would the insurance company pay out the market value - $4000?

Most insurers will pay market value to a maximum of the sum insured. A few will pay more than the sum insured (rare) and some pay agreed value (rarer).

Best ring your insurer to clarify.

**Fub@r** · 21st July 2006, 11:40

Pitfall of an agreed value policy is that the insurance company would rather pay repair costs up to the agreed value rather than write the vehicle off and pay you out.

Happened to my brother once. The cost of repairs to his car was just under the agreed value and the insurance company opted to repair it. Even though the nose of the other vehicle that rear ended him ended up with the nose of her car hard up against the back of the driver seat of his car. ie half the rear of my brothers car had to be replaced. Who wants to keep a car after thats happened to it

Luckily for my brother he was at work and wasn't in the car at the time, person that hit him was high as a kite on drugs and didnt realise she was even on planet earth

**NSR-Dan** · 21st July 2006, 17:44

Originally Posted by Fub@r

Pitfall of an agreed value policy is that the insurance company would rather pay repair costs up to the agreed value rather than write the vehicle off and pay you out.

Happened to my brother once. The cost of repairs to his car was just under the agreed value and the insurance company opted to repair it. Even though the nose of the other vehicle that rear ended him ended up with the nose of her car hard up against the back of the driver seat of his car. ie half the rear of my brothers car had to be replaced. Who wants to keep a car after thats happened to it

Luckily for my brother he was at work and wasn't in the car at the time, person that hit him was high as a kite on drugs and didnt realise she was even on planet earth

i guess its like if your car gets stolen and then recovered, most people do want cars after thats happened. its a business so an insurer will pay what ever is less if thats the way they work.

but yeah oscars right. here are the descriptions.
market value = will pay the market value of the car at the of total loss. what they do is get 2 assesors to put a value on the car on what they think it would be worth the minute before the accident and the insurer will take an average from those values and thats what they will payout regardless of the sum insured.

Depending on the company if the assesors estimate is higher than the sunm insured, some companys will pay the market value or the sum insured, what ever is less. some companys will pay the market value regardless of the sum insured even if its more, but as oscar said this is very rare.

Agreed value= currently is an uncommon option but is a trend that alot of the big insurers are moving to as its more appealing to customers. AMI and AA i think were the first and State have just recently brought out there agreed value policy (maybe other still). what it means is that the insurer will pay the agreed value (value agreed by both the insurer and the insured) of the motor vehicle (sum insured on the policy document) regardless of the market value. but the insurer requires the vehicle so have a precise valuation so sometimes will request a valuation from a dealer, this will happen if the customer thinks that there vehicle is valued higher then the insurers estimate (which is a dealers red book estimate) or if the customers purchased the vehicle cheap of a friend or a family member.

**Clivoris** · 21st July 2006, 18:37

Big ups to Sun Direct. Several years ago I had a car burn up and they paid out 2 grand more than the value that we had insured it for. Stunned me so much I have struck with them even though we have been offered cheaper policies. They wont touch my bike though.
I even rang them to make sure they weren't making a mistake about the car.

**The Pastor** · 21st July 2006, 22:30

Yeah I heard of a story like that too, this guy bought an $800 beamer and the day after it got insured it got stolen they payed out $3000! but it took a while as the insurance company had to investigate etc.

**gijoe1313** · 22nd July 2006, 12:27

Hi there, thanks for offering your knowledge for insurance! I'm just starting out as a learner on a bike and was wondering what companies have a good policy for coverage on bikes.

I currently have my car insured with AA. Any advice or thoughts on this matter much appreciated!

**NSR-Dan** · 22nd July 2006, 14:58

best bet would be to try swan insurance.

AA doesnt like insuring learners on motorcycles. 4 years on a full license for insurane, they sometimes will insure restricted bikers but depends on the bike.

**NSR-Dan** · 22nd July 2006, 15:00

Originally Posted by Clivoris

Big ups to Sun Direct. Several years ago I had a car burn up and they paid out 2 grand more than the value that we had insured it for. Stunned me so much I have struck with them even though we have been offered cheaper policies. They wont touch my bike though.
I even rang them to make sure they weren't making a mistake about the car.

Stay with Sun direct to. if you leave you wont be able to come back, as they wont take on any busness. (Sun Direct has become SIS insurance, but are keeping all there existing customers so dont worry they wont close down)

**bane** · 23rd July 2006, 18:59

got a quote from AA for the bike. Although ive only had a full licence for 2 years, I thought id try given my 10 year history of car/house/contents with AA - I was hoping to add the bike to have all with the company

After discussion with the underwriters, I was offered insurance - extra loading due to "lack of experience" (+15% on premium, +extra $300 on excess)

This wasnt an issue - the quote was still reasonable, except the company refused to give me any no claims bonus, even though I have 4 years of claim free motorcycle history (half 3rd party, half full cover) with my other company. I made the point to AA that a premium/excess loading was understandable, but 0% ncb sucked.

Damage done, and as such, over the next year I will be moving all my other insurances to the company that, without extra loadings, has insured me over the last 4 years. They will even match AA "ncb for life" on my car.

**Suzi Q** · 23rd July 2006, 20:03

Originally Posted by NSR-Dan

Thats fair enough what they said.

The whole idea of insurance is to protect your belongings and if any thing unexpected happens is to put you back in the same financial positition that you were in before the time of loss..

Most insurance companies will insure it for more if you can prove it's worth - get a valuation done.

I work in insurance too!

**Suzi Q** · 23rd July 2006, 20:06

Originally Posted by NSR-Dan

i
Agreed value= currently is an uncommon option but is a trend that alot of the big insurers are moving to as its more appealing to customers. AMI and AA i think were the first and State have just recently brought out there agreed value policy (maybe other still). what it means is that the insurer will pay the agreed value (value agreed by both the insurer and the insured) of the motor vehicle (sum insured on the policy document) regardless of the market value. but the insurer requires the vehicle so have a precise valuation so sometimes will request a valuation from a dealer, this will happen if the customer thinks that there vehicle is valued higher then the insurers estimate (which is a dealers red book estimate) or if the customers purchased the vehicle cheap of a friend or a family member.

Where are you getting your info about State from? Do you work for them?

**NSR-Dan** · 23rd July 2006, 20:21

Originally Posted by bane

got a quote from AA for the bike. Although ive only had a full licence for 2 years, I thought id try given my 10 year history of car/house/contents with AA - I was hoping to add the bike to have all with the company

After discussion with the underwriters, I was offered insurance - extra loading due to "lack of experience" (+15% on premium, +extra $300 on excess)

This wasnt an issue - the quote was still reasonable, except the company refused to give me any no claims bonus, even though I have 4 years of claim free motorcycle history (half 3rd party, half full cover) with my other company. I made the point to AA that a premium/excess loading was understandable, but 0% ncb sucked.

Damage done, and as such, over the next year I will be moving all my other insurances to the company that, without extra loadings, has insured me over the last 4 years. They will even match AA "ncb for life" on my car.

dude pm me your policy number, and ill grab the fax num for you. if you can fax me your NCB from your other company ill add an ncb for your motor cycle. the aa ncb for motorcycle is 25%, but ill do what i can do to get it added on