Insurance woes

[bikerboy]

A mate has just recieved his insurance pay out for his bike which was stolen a few months ago.
Included with the check was a letter stating that as he has had two bikes stolen within five years his policy would not be continued.

He has since been told by other insurance companies that he is ineligible for cover for the same reasons. This was determined by his answering honestly to the question, "ever been denied cover...." in his search for a new company.

Is this legal? common? and if so, how does one get insurance for the replacement bike?

Comments/advice appreciated.

[MikeL]

Is this legal? common? and if so, how does one get insurance for the replacement bike?

I'm pretty sure that an insurance company is within its rights to refuse cover based on its assessment of the risk, provided it doesn't infringe anti-discrimination laws. It still seems grossly unfair and I hope it's not common.

[wkid_one]

Yup - the insurance company is within its rights - and actually doesn't even have to give you a reason if they so chose (same as Banks with lending products).

At the end of the day - the insurance company has a reason - they base the risk of future claims on the previous history - which in this instance isn't flash.

My advice - keep calling insurance companies. Re your comment about 'answering honestly...' - if he doesn't this will only come round to bite him on the arse anyway.......I would hate for him to lie, pay 12 months of premiums, write off the next bike, only to have the insurance company do a little research (and it isn't hard) - and refuse to pay out on it.

Worst case - he is going to never get insurance.

[aff-man]

hmmm good idea would be to go in and talk to someone. Over the phone they are rather mechanical and just file forms. If he explains his situation in person then they will either have to deny him insurance to his face or they may be able to work something out. IN person always gets better results aye

[ManDownUnder]

My suggestion would be to find an insurance broker and talk it through with them. They have a vested interest in getting you cover (i.e. they get a cut too...) and will also know the various specialists in the region.

MDU

[marty]

how does he get 2 bikes stolen? is it his behaviour that lends to the theft (parking/leaving outside/keys in ignition/not alarmed or secured etc), or is he just unlucky?

[Blakamin]

The thing that shits me is the fact he gets penalised for some dirty, stinking low-life taking his pride and joy... what happens to the said scum??? a slap on the friggin wrist so they can do it again

[MikeL]

how does he get 2 bikes stolen? is it his behaviour that lends to the theft (parking/leaving outside/keys in ignition/not alarmed or secured etc), or is he just unlucky?

"To lose one motorbike may be regarded as misfortune; to lose
both looks like carelessness."

Apologies to Mr Wilde

[Artifice]

how about all the people with conetents insurance that get robbed 1 week after thier last insurance payout... do they have the same result? personally i think its motorcycle insurers trying to cut thier losses due to smaller pool of insurees. fact of life own a motorcycle it'll end up costing more than a cage one way or another.

[Ramius]

The thing to remember in all of this, the insurance company is a business, and a business that wants to make money, if they see that in the future the money they take now is going to cost them three or four fold soon, they are not going to do it, makes no business sense.

[750Y]

bummer BB, maybe he could register the bike in someone else's name and be the main nominated rider? I've had a bike stolen. If someone stole another one from me i'd be in the same boat presumably. of interest STATE used their superior knowledge & manipulation of the system to refuse to pay out because of a technicality. They lied, covered up, & misplaced the only evidence I had which could have saved me & misrepresented themselves & made untrue statements(total dishonesty) & I'm being serious here. 12 grand down the drain and i've never made a bike claim except that one. STATE SUCK! maybe if everyone stopped crashing their bikes though, things would get easier... but where's the incentive when you can call the insurance & get them to pay for all your fuckups.

[750Y]

actually sorry i should apologise for that last remark... i was just getting a bit wound up over the whole insurance thing. shit does happen & that's what insurance is for.

[Dr Bob]

I went for a very long period of time without insurance, I only got it because the missus insisted. When I did get it I was being charged full rates because they said my driving record of cages didn't apply to bikes, so I had a little conversation with the insurance company about my other insurance policies, I asked them to calculate the total of our other policies so that I could make a simple comparison with other companies when I am phoning around for cheaper bike insurance. They obviousley changed their tune. What leverage does your freind have, parents, other policies, work related pressures etc.? Fish around and something might help, otherwise, as aff-man pointed out, go and talk with them. Changes in circumstance (place you live, garaging, type of bike, value of bike, etc.) may change the picture and make it worth while.

[Oscar]

how about all the people with conetents insurance that get robbed 1 week after thier last insurance payout... do they have the same result? personally i think its motorcycle insurers trying to cut thier losses due to smaller pool of insurees. fact of life own a motorcycle it'll end up costing more than a cage one way or another.

BZZZt. Wrong.
Try having several large value contents claims in short duration...

Several other facts of life, vis a vis insurance: The more you claim, the more we pay. Insurance is not charity, neither is it a form of gambling, if you have a habit of repeating the same claim, expect to be out on yer proverbial. Having several bikes stolen leads an underwriter to wonder why - Is the type of bike? Lack of security? Moral hazard? The last one is insurance speak for "dodgy bastid".

[justsomeguy]

It's actually quite simple:

DB>UB=NI

The total number of "dodgy bastid's" is usually more than the total number of unlucky bastid's". So they generalise that they are all "dodgy bastid's" and give them all "no insurance".

Insurance is always a bitch. A friend had problems with his cage. He knew little about cars and bought a very good looking one. Then he found out that his water pump was full of nothing and his cage needed the engine gaskets, seals replaced (new engine). The cage was under full mechanical warranty. And the mechanic took one look and said mate the dealer ripped you off. My mate said damn, but thank god I got insurance.

YEAH RIGHT!

The insurance company said ok no worries we'll pay you right away - but just for formality sake we have to do some tests to see what caused the probs. By the way you will have to pay for these tests if we find that you caused the problems. We will compensate you for full if it is the dealers fault.

After a $1000 worth of tests, 2 weeks with no car, and no sign of any end to this robbery. My mate simply bought a new engine for another $3000. Everytime they finished one test they would say they have another to do. this included the cost of the test, labour and frieght and it added up like a gambler losing money.

bucking fastards