You may be better off if you're NOT insured

[klingon]

You may be better to have third party insurance only, if you get hit by another vehicle and it's not your fault.

My Volty is insured for $2000. That's below market value, but I was prepared to take the risk that if I did something stupid and crashed it, I would just have to live with the financial consequences. Basically I was backing myself to be a careful rider and not do stupid or dangerous things.

So on Monday I stopped at a stop sign (as you do). The car behind me didn't stop. She hit me hard enough to pitch me into the handlebars and send me and the bike crashing into the ground very hard. My bike sustained severe damage (to rear guard & light, headlight rim & mount, clutch lever, handle bars, bar end, front guard, indicators, shocks, gear lever, etc etc). The assessor is intending to write it off.

I did nothing wrong - the driver of the car is clearly liable. She is fully insured. But do I get a replacement bike to the same value as the one she just wrecked? No. I get a maximum of $2000 because that's what I insured my bike for.

I asked my insurance broker (John Baker Insurance) what would have happened if I had no insurance. The answer: I would get the pre-accident market value of the bike.

So I would have been financially better off to have been uninsured.

That sucks.

[Winter]

I dont know how much under market value that is, but If its any significant amount, you could try your luck at disputes tribunal - you'll never know untill you try.

[Karma]

Here's what I did... works a treat with insurance.

Value your bike at what it would cost to get a replacement. Easy done.

[riffer]

So I would have been financially better off to have been uninsured.

Or to have insured your bike for what its worth in the first place.

The lesson you have learned here is ...

[Steam]

Or to have insured your bike for what its worth in the first place.

I did that, then they changed the terms of the agreement by publishing a notice in the fracking newspaper, and I only learned they'd changed it when I read the fine print as I renewed it. So for a year I was only covered for second hand sale price. FUCKERS!
They are State insurance.

[Shadows]

I did that, then they changed the terms of the agreement by publishing a notice in the fracking newspaper, and I only learned they'd changed it when I read the fine print as I renewed it. So for a year I was only covered for second hand sale price. FUCKERS!
They are State insurance.

Second hand sale price would be the replacement value though. I don't see the problem with that.

Although I do agree that they are fuckers.

[BigG]

You may be better to have third party insurance only, if you get hit by another vehicle and it's not your fault.

My Volty is insured for $2000. That's below market value, but I was prepared to take the risk that if I did something stupid and crashed it, I would just have to live with the financial consequences. Basically I was backing myself to be a careful rider and not do stupid or dangerous things.

So on Monday I stopped at a stop sign (as you do). The car behind me didn't stop. She hit me hard enough to pitch me into the handlebars and send me and the bike crashing into the ground very hard. My bike sustained severe damage (to rear guard & light, headlight rim & mount, clutch lever, handle bars, bar end, front guard, indicators, shocks, gear lever, etc etc). The assessor is intending to write it off.

I did nothing wrong - the driver of the car is clearly liable. She is fully insured. But do I get a replacement bike to the same value as the one she just wrecked? No. I get a maximum of $2000 because that's what I insured my bike for.

I asked my insurance broker (John Baker Insurance) what would have happened if I had no insurance. The answer: I would get the pre-accident market value of the bike.

So I would have been financially better off to have been uninsured.

That sucks.

You got to insure to what the vehicle is worth, cos if you insure it for more than its worth you will only get market value anyway, it certainly does suck if its not your fault but thats life, Always insure it for what its worth.

[klingon]

Or to have insured your bike for what its worth in the first place.

The lesson you have learned here is ...

I still would have been financially better off in this case if I had no insurance. I was under-insured because I couldn't afford the higher premiums to insure it for the replacement value. I would need to calculate the difference between the higher premiums and the actual value to tell you how much it would ahve worked out to, but it's basically:

BEST OPTION: No insurance (or third party only)
SECOND BEST OPTION: Pre-accident market value
WORST OPTION: Full insurance, but less than market value

My sister was hit by a car when riding her Harley some years ago. The car driver admitted full responsibility and my sister (who was not insured) got her bike repaired to its pre-accident condition and got all her damaged gear replaced by the car driver's insurance.

[Grumpy Gnomb]

I suppose not insuring your bike for what it is worth is like gambling as if you roll the dice and you win everything is good but if you lose it hurts like hell and you are looking for someone to blame.

[Mole_C]

Could you try take it up directly with the other insurance company and leave yours out of it to try get full value? Could be a pain but could be worth a shot?

[klingon]

I just want to clarify something here...

I'm not actually advocating riding without insurance. It's just that IN THIS PARTICULAR CASE I would be financially better off if I had not insured the bike at all, compared to where I am now. I would get enough money to replace my bike with another one in a similar condition, and I would still have my premium in my pocket.

I had chosen to take the risk that if I crashed my bike and it was my fault, that I would be out of pocket. Deservedly so. I did not have any idea that this also limited the liability of someone else who failed to stop and ran into me.

Now that I know this, I will make a different decision in the future.

[Scorpygirl]

I guess this is the juggling act you have to play with insurance. No insurance and you have an accident and it is your fault then you are paying, paying, paying!! If you have no insurance and you have an accident with no other vehicle involved then there is no money and no replacement. Yes, it is your decision as to the premium vs market/below market value. But one trades off the other in a situation like this. Sorry.

[slowpoke]

For my 2 cents worth, when you signed the insurance agreement you agreed your bike was only worth $2000, end of story. Nowhere is there a box to fill out saying "partial replacement cost".
You took the risk, as you said yourself, and unfortunately it hasn't paid off.

[klingon]

I dont know how much under market value that is, but If its any significant amount, you could try your luck at disputes tribunal - you'll never know untill you try.

I'm considering several options. I may take it up with the other insurance company or directly with the car driver. She was so very clearly in the wrong that she may have the human decency to make up the difference. Perhaps I'm naive, but I still like to believe in decency and goodwill.

Could you try take it up directly with the other insurance company and leave yours out of it to try get full value? Could be a pain but could be worth a shot?

Apparently you are legally obliged to claim against your own insurance if you have it. When the woman at John Baker Insurance told me that I would have been better off to have no insurance, I said "ok then, I hereby withdraw my claim!" She got very edgy and said "You can't do that! That's illegal! You'd have to tell lies to the other insurance company!"

[Shadows]

It is all just a numbers game. A bit of a gamble. You traded off insured value for reduced premiums. It could have worked out, but in this case the gamble didn't pay off.
I'm sorry it didn't work out for you, but I think you'll just have to suck it up.