Theft insurance excess???!

[idb]

I have just bought another bike.
I was told that it has a standard excess for theft of 15% of the purchase price.
The lady was very nice but couldn't understand my line of reasoning on this query;
I can understand an excess on damage. You have a small ding and it isn't worth claiming. The administrative costs for the insurance company would make it uneconomic.
But surely if a bike is stolen it's either gone or it isn't - its not slightly gone or gone to a value of less than 15%. Why have an excess (even ignoring the outrageous figure of 15%)?
Can anyone explain this one?

[Oscar]

Shop around.
15% is by no means standard.

[Slingshot]

The reality is that if there was no excess the premiums would be higher. The other thing is it forces a bit of responsibility...what I mean is you'll do everything you can to avoid the bike from getting stolen.\
I would prefer to pay a slightly higher excess and lower premiums anyway...it's like placing an each way bet, you're betting that your bike won't be stolen and therefore come out on top, if the bike is stolen then you've lost the bet but still get some cash from the insurance company.

[Devil]

I have just bought another bike.
I was told that it has a standard excess for theft of 15% of the purchase price.
The lady was very nice but couldn't understand my line of reasoning on this query;
I can understand an excess on damage. You have a small ding and it isn't worth claiming. The administrative costs for the insurance company would make it uneconomic.
But surely if a bike is stolen it's either gone or it isn't - its not slightly gone or gone to a value of less than 15%. Why have an excess (even ignoring the outrageous figure of 15%)?
Can anyone explain this one?

From the Insurance companies point of view:
Why pay out everything if we dont have to?
And yeah, shop around.

[jrandom]

The lady was very nice but couldn't understand my line of reasoning on this query

Your point makes perfect sense. The real reason that excesses are applied to theft damage, I suspect, is the fact that premium and risk calculations take excesses into consideration in global payout costs. If theft events carried no excess, they'd have to change their financial model and we'd end up paying higher premiums.

In my experience, most people you get to actually talk to at insurance companies don't have the faintest, foggiest idea about how it actually works.

If they were capable of understanding the nuances of insurance, they'd probably be doing something else. Like working in a job where they didn't have to be nice to people like us over the phone.

Like everyone says, just shop around...

[vifferman]

What bike was the quote for? The ins. companies seem to have standard lists of "risky" bikes, based on size, model, etc. I had a very good premium for my VF500, but when I got the VFR750, it had stuff all excess for accidents, but (IIRC) $1000 for theft. Then the VTR has $1500 excess for everything.

It's a bit crazy, as they need more scientific criteria, then they would've realised it needed to be based on other factors, like the Laziness Factor, which the VFR had a very high one of. I'd be riding along, minding my business, and the bloody thing would get tired and think up some excuse for laying down in the middle of the road for a rest.:spudwhat:
Should have had no excess for theft (it spent most of its life sleeping in the secure gargre at work, or the locked and alarmed one at home), and massive tax on its lazy arse.

[idb]

[QUOTE=firestormer]What bike was the quote for?

I hoped someone was going to ask me that!
It's a shiny red 1994 Ducati 888. I've lusted after one of these for years
I'll be riding it home from Hamilton next week....woo hoo!

[Dodgyiti]

I hate the insurance companies.
I'm like, about 90 years old with no claims, and it still costs a fortune, I didnt bother for 12 years on a 6 grand bike, I would have paid for the thing just in insurance money, had I kept it covered

[750Y]

theft insurance? AVOID state who WILL try their damnedest to screw you out of your money. trust me on that. i have a 2k theft excess on the last couple bikes i owned. did i mention state suck? ahhhh that's better 8-)

[ManDownUnder]

theft insurance? AVOID state who WILL try their damnedest to screw you out of your money. trust me on that. i have a 2k theft excess on the last couple bikes i owned. did i mention state suck? ahhhh that's better 8-)

Let me break that one down for a minute

"AVOID state who WILL try their damnedest to screw you out of your money."
- AGREED. I've had bad experiences and good experiences with a variety of insurance companies... State don't appear on the good list at all...

" i have a 2k theft excess on the last couple bikes i owned"
- I'm with AMI and I think it's a $250 excess (on a $6,500 bike - agreed value)

"did i mention state suck?"
- Yes, and it was very eloquent

"ahhhh that's better 8-)"
- I know... it's like having an overdue dump really. You can only hold it in for so long and then...AAAAAAAHHHHHH!

MDU

[riffer]

" i have a 2k theft excess on the last couple bikes i owned"
- I'm with AMI and I think it's a $250 excess (on a $6,500 bike - agreed value)

I'm with AMI too. $250 excess for anything that happens to the bike. Fully comprehensive. Insured for $4000 agreed value. $35 a month.

I'm 37, 18 years full licence, no claims for at least 5 years, clean licence (well, 80 demerits actually but haven't lost it yet).

[MOTOXXX]

owwww dont u guys get me started on state inscrewance!
The storey goes.
Imported a 96 type r integra from japan when i was about 19.
i knew i would get snaked on insurance as it was a rare expensive car and somewhat quick. Im ok with that. Got a local insurance broker who realy helped me out and it came down to National auto club or state.
The broker managed to neg with state as my parents have 7 vans insured with them (new).

National auto club gave me a realy high price as did state.
I sent a cheque away to state as there xs was about $200 less than national auto clubs.

So i get a call from my broker a few days latter and he says.
"hey eamon bla bla, state got the cheque but they still feel that u r a high risk. They have come back to me and said they will still insure u if your parents swich their home and contents cover over too".

I said tell those f**kers to tear up that cheque and have been with nat auto club ever since.


Thanks state. Uve lost yourself a client for life

[Mongoose]

Its called sharing the blame/responsibilty, or words to that effect.Insurance is all a gamble, you are betting your money called a premium, agaist what they agree to pay in the event of a claim.
If they paid out full value, your premium would be a lot, lot higher

[Gixxer 4 ever]

AVOID state

That's interesting. I have a cover on my Gixxer at State. It has a value of 7-8 k to replace. I have a clear claims sheet on the bike and have listed it as travelling 10,000km a year. I did 14,000 last year. I have declared the speeding tickets even though most people do not. Remember if you do not it can be the out the company wants to save them paying out. All my other vehicles are with State and the premium is

Suzuki GSX-R 750V

Value $7000.00
Excess $250.00 excess for what ever the claim is made on.
Premium for 12 months $495.15 inclusive

So is this too high? Do not try and get insurance on States 0800 number. Go to the branch and sit down and talk to the staff. It has knocked $400.00 off my daughters car premium doing this.
As far as claims go we have had very few but I did have a fight with State over my mothers car. It was 11 months old and hit by a Falcon under full throttle and wrecked down the drivers side and a big ripple in the passengers back guard. A lot of structural damage.. State wanted to rebuild it. They had a quote for over $14,000.00 to do the work. I refused to accept it. My argument was the policy stated the car would be returned to the value and condition it was in before the accident. The quality is one I am not experienced to comment on but if a car has had that much spent on it in the rebuild you try and sell it. So they gave in and paid out. The car was never fixed.