Insurance write off

**Oscar** · 9th July 2009, 09:04

Originally Posted by p.dath

Alas they are not likely to give you any "credit" for fitting a new motor. They just go on "book" value.

If a new motor increases the market value, then they'd have to allow for it.

**rosie631** · 9th July 2009, 09:07

Originally Posted by Oscar

If a new motor increases the market value, then they'd have to allow for it.

Yeah, they do seem to be giving the bike a good going over to determine value, so I think that's a good thing.

**PirateJafa** · 9th July 2009, 09:15

If you want your bike back:

Insurance companies will write the bike off if the damage is going to cost more than 80% of the insured/market value of the bike. If they say the level of damage is greater than that percentage, then they will write the motorbike off.

However, you can ask for them to instead leave you with the damaged motorbike (still registered) and ask them to pay you that 80% in cash, so that you can repair the motorbike yourself.

Last time a moron hit me, I ended up with a hardly-damaged-but-was-going-to-be-written-off VFR400R in my garage (now my race VFR) AND a absolutely mint new VFR400R next to it, courtesy of the "money for repairs".

The write-off percentages/thresholds will vary from company to company, but the practice remains the same.

**Oscar** · 9th July 2009, 09:20

Originally Posted by rosie631

Yeah, they do seem to be giving the bike a good going over to determine value, so I think that's a good thing.

If you're concerned about the process, you should get an independent valuation.

**Oscar** · 9th July 2009, 09:21

Originally Posted by PirateJafa

The write-off percentages/thresholds will vary from company to company, but the practice remains the same.

Yeah, Vero's website says 60%.

**p.dath** · 9th July 2009, 09:35

Originally Posted by davebullet

Then the insurance company decides what the value is. If your policy said "agreed value" then it would be a sum insured amount set in your policy. The market value comes usually from an external company like Dealers Guide or Redbook.... but they can use an assessor to fine tune this. Your last renewal notice may contain the market value (my car policy depreciates a bit each year... but it may be agreed value - can't remember).

If the market value seems to low to you, you can complain or take it to the insurance ombudsman.

When my car was stolen, converted and written off, I got a full payout (market value though). I then went to turners and bought it back at auction and used the money to fix it up (with cash left over).

Personally - I would always go agreed value... then you know what you have insured for and can choose the amount to appreciate / depreciate each year.

Just a warning, "agreed value" is usually for the first 12 months of the policy. If you don't re-agree on a new value for the next 12 months then it usually reverts back to market value. I can't remember the percentages (they are big), but if the agreed value is more than a certain percentage above or below the market value, them the entire policy can be voided.

In the current market, many agreed value policies have been withdrawn by insurance companies. So if you don't have one in place already, you have have trouble finding an insurance company prepared to offer you a new one.

**Suzi Q** · 9th July 2009, 09:44

As an insurance person I have a little knowledge of what could happen. If there is frame damage - in a car it would equate to chassis damage - then the bike may need to be deregistered first, then if you want to put it back on the road it would need to go through an expensive process to get it back on the road. if it is just cosmetic then let them know now that you want to get the bike back and they will work with you to do that for you. If you keep them up to date with what you want they will then settle accordingly.

**Suzi Q** · 9th July 2009, 09:49

Originally Posted by p.dath

Just a warning, "agreed value" is usually for the first 12 months of the policy. If you don't re-agree on a new value for the next 12 months then it usually reverts back to market value. I can't remember the percentages (they are big), but if the agreed value is more than a certain percentage above or below the market value, them the entire policy can be voided.

In the current market, many agreed value policies have been withdrawn by insurance companies. So if you don't have one in place already, you have have trouble finding an insurance company prepared to offer you a new one.

I work for an insurance company that has changed it's motorbike policies from market value to agreed value. The agreed value is the sum insured, there is depreciation each year and it is up to the owner of the bike to make sure they aare happy with the sum insured. The only time market value is paid is if the bike was in below average condition prior to the incident, a pre accident value would be requested by the assessor and the valuation would need to state that the bike was in below average condition. I think the Vero policy is market value, but I could be wrong.

**unrealone** · 9th July 2009, 09:59

Yep, my RS is 'agreed value' and just recently depreciated by $1000. I was advised I would need to get it valued again to bring it back up to my original which is fair.

I have gone through the process in the past of: Crash > Make Claim > Bike gets "Written" off due to cost of bodywork alone > Bike shop value it > Ins co offer to me for that amount > Agreed Value - Excess - buy back = good deal when you can get it done for 1/5 the price.

**rosie631** · 9th July 2009, 12:30

OK guys. Have heard from insurance assessor. The bike is a write off. The value they have come up is 14grand, which isn't enough for a totally standard superglide let alone what I had. Have asked him for a buy back price and he is going to get back to me.
The issue to buy back is complicated by the fact that I don't think it has had a complete repair assessment. Total was 10grand but that was pretty much for the cosmetic shit, which I know I can do WAY cheaper. Problem is that apparently there is a 'clicking' noise when it is wheeled backwards but not forwards. They reckon they would need to strip it down to find out what's causing that. Could it be structural?? Also apparently the front forks are bent. Can they be straightened? What cost? Safe? Or would I need a whole front end.
Am now thinking if buy back price is cheap enough I will do it and keep as long term project. Use rest of money to buy something cheaper so I can at least keep riding.
Opinions please??

**rosie631** · 9th July 2009, 12:32

Originally Posted by Suzi Q

As an insurance person I have a little knowledge of what could happen. If there is frame damage - in a car it would equate to chassis damage - then the bike may need to be deregistered first, then if you want to put it back on the road it would need to go through an expensive process to get it back on the road. if it is just cosmetic then let them know now that you want to get the bike back and they will work with you to do that for you. If you keep them up to date with what you want they will then settle accordingly.

Ok, so when assessor gets back to me regarding buy back price I need to check if it will be deregistered? Anyone know cost to put back on road if it does get deregistered??

**YellowDog** · 9th July 2009, 14:42

Originally Posted by rosie631

Ok, so when assessor gets back to me regarding buy back price I need to check if it will be deregistered? Anyone know cost to put back on road if it does get deregistered??

It's just a compliance check at about $250ish. Coventry Group or the AA can do this for you once it has been repaired to the original OEM standard.

It may not necessarily get degregisterred. Worth asking them though.

If the loss assessor makes you an offer, make him/her a counter offer of 30% less.

**Squiggles** · 9th July 2009, 15:09

Chances are if its bent the forks etc they're going to deregister it, and you're (probably) going to need to get it all checked out to show its straight (some $$ involved) then the usual compliance check. How good are you with tools?

**AllanB** · 9th July 2009, 17:25

Forks, a slight bend can be straightened, or search for a US site called 'Forks by Frank" - they will quote you a price for brand spanking new tubes (US$) that will be heaps cheaper than stock ones.

If the forks are bent you'll want to check out the triple clamps too.

Clicking when going backwards..... could be pee all or ........

Do you know anyone who you trust with HD knowledge?

Also - you know what you recently spent on that engine - a fair few $ I suspect - if the buy back is low enough it may pay to keep it as a donor - you can always sell the bikes bits on Trademe.

Also sounds like a good way to get a cheap Harley project with a sweet engine on the go ......