Why bother with insurance?

**Grasshopperus** · 17th September 2009, 22:14

Hi everyone,
I've noticed a lot of people on KB talking about the need for insurance but I'm curious about what the actual benefit is.
It seems to me that;
1. Bikes are cheaper than cars.
2. Bikes won't damage another vehicle as much as a car will.

Let's say, as a learner rider, I get a $2000 GN250. There doesn't seem to be much point in paying $500 a year and then having a $500 excess if I need to use it anyway. (I'm just guessing at the numbers here but I don't think they'd be that far off).

I'm not trying to be a troll, I'd just like to hear some compelling reasons.

I do see the wisdom in life insurance but I don't use vehicle insurance of any kind.

**speights_bud** · 17th September 2009, 22:18

Because even with 3rd party cover you wont have to pay out for the $50,000 BMW that you've ploughed into and written off

Oh and If you don't have at least 3rd party the other persons insurance company will RAPE YOU

**klingon** · 17th September 2009, 22:23

Originally Posted by Grasshopperus

Hi everyone,
I've noticed a lot of people on KB talking about the need for insurance but I'm curious about what the actual benefit is.
It seems to me that;
1. Bikes are cheaper than cars.
2. Bikes won't damage another vehicle as much as a car will.

Let's say, as a learner rider, I get a $2000 GN250. There doesn't seem to be much point in paying $500 a year and then having a $500 excess if I need to use it anyway. (I'm just guessing at the numbers here but I don't think they'd be that far off).

I'm not trying to be a troll, I'd just like to hear some compelling reasons.

I do see the wisdom in life insurance but I don't use vehicle insurance of any kind.

I have highlighted the major error in your logic. How much damage do you think a GN250 can do to a reasonably expensive car? Answer: LOTS! So you really do need third party insurance. And in my case I couldn't get third party on its own, it came as part of a comprehensive insurance package. So no matter how cheap your bike is, you still need insurance!

**PirateJafa** · 17th September 2009, 22:27

Declare backruptcy.

Would probably work if you're a chap without too many commitments/assets etc. Although I can't recall the details off the top of my head.

Jafa takes not responsibility for loss of property, life or limbs as a result of this advice

**Big Dave** · 17th September 2009, 22:28

Ahhh Gwasshopper, As the speights said. Maybe it's not worth insuring your vehicle - but get some 3rd Party cover for the bus that veered over the cliff to avoid hitting you.

**FJRider** · 17th September 2009, 22:28

Originally Posted by speights_bud

Because even with 3rd party cover you wont have to pay out for the $50,000 BMW that you've ploughed into and written off

Oh and If you don't have at least 3rd party the other persons insurance company will RAPE YOU

What he said ... 3rd party is a good idea. Have you any idea what it may cost to get even a small gouge out of a Merc door that you could run into in a New World carpark ... ??

**monkeymcbean** · 17th September 2009, 22:29

Well it covers 3rd party insurance, alot of people have expensive bikes, more expensive than there cars.

I'm insured as i bought a new bike for just under 10k, ive dropped it a couple of times which has caused a few minor scrapes lower down, not enough to bother claiming. It could get stolen, but im not in a high risk area.
So i don't no really why its insured, it just felt right at the time and until it devalues enough it will stay insured.

Its insured with 'swann' i just read in some thread recently they were being a little difficult paying out on a straight forward claim it seems!

But your right my 250 i had valued at $2000.00 was only insured for 3rd party.

**Grasshopperus** · 17th September 2009, 22:33

I really dislike this type of argument. Using this logic you should be paying for volcano insurance, terrorism insurance, leaky home insurance, bad hair day insurance ad infinitum.

Wouldn't it be difficult to cause that much damage to a car while riding a smallish bike?
Also, if I caused that much damage I'd probably be dead

I do see your side of the argument though which is "at least get 3rd party dude!".

**steve_t** · 17th September 2009, 22:36

Originally Posted by speights_bud

Because even with 3rd party cover you wont have to pay out for the $50,000 BMW that you've ploughed into and written off

Oh and If you don't have at least 3rd party the other persons insurance company will RAPE YOU

Yup. My brother's mate had a BMW 330M. Some dickface smashed the driver's window to grab the V1 radar detector. Retail of V1 $1400. Replacing the window $3000!! For a fricken window!! Imagine a replacement door or front/rear bumper that you've stoved in with your bike

**Molly** · 17th September 2009, 22:37

Just to play Devil’s advocate: Insurance companies’ actuaries determine risk and calculate a premium accordingly with a margin for profit. Therefore, mathematically at least, that margin represents your potential saving if you choose not to have insurance. That said, I wouldn’t ride down the road for a bag of chips without being fully comp.

Never risk that which you can’t afford to lose.

**JimO** · 17th September 2009, 22:39

Originally Posted by Grasshopperus

I really dislike this type of argument. Using this logic you should be paying for volcano insurance, terrorism insurance, leaky home insurance, bad hair day insurance ad infinitum.

Wouldn't it be difficult to cause that much damage to a car while riding a smallish bike?
Also, if I caused that much damage I'd probably be dead

I do see your side of the argument though which is "at least get 3rd party dude!".

my son riding a nz 250 was hit by a old guy in a nissan bluebird, it was the old geezers fault the front guard/bonnet/bumper/grill headlight were munted on the car probably 4k worth of damage, you can risk it i wouldnt. My 2 week old hilux was clipped by a young feller at a comp stop, bent bumper no paint or glass damage $1500 for a new bumper

**caseye** · 17th September 2009, 22:43

Originally Posted by Grasshopperus

I really dislike this type of argument. Using this logic you should be paying for volcano insurance, terrorism insurance, leaky home insurance, bad hair day insurance ad infinitum.

Wouldn't it be difficult to cause that much damage to a car while riding a smallish bike?
Also, if I caused that much damage I'd probably be dead

I do see your side of the argument though which is "at least get 3rd party dude!".

3rd Party at least, oh and by the way volcano's don't hit other cars, you on the other hand could, through no fault of your own be forced to hit a car instead of a bus, or going over a cliff.
What are you going to do evaluate all possible options and hit the least expensive?
"Get a perm" insurance!

**Jonno.** · 17th September 2009, 22:48

I have full insurance on a 150: 350 a year 150 excess (AMI).
I got it 3 days on my learners with only a car restricted.

I've seen it happen, friends who know better clip a merc and get done with tens of thousands of dollars resulting in parents selling their homes to pay for it.
Sad story, but then again it'll never happen to you

**klingon** · 18th September 2009, 09:42

Originally Posted by Grasshopperus

I really dislike this type of argument. Using this logic you should be paying for volcano insurance, terrorism insurance, leaky home insurance, bad hair day insurance ad infinitum.

Wouldn't it be difficult to cause that much damage to a car while riding a smallish bike?
Also, if I caused that much damage I'd probably be dead

I do see your side of the argument though which is "at least get 3rd party dude!".

No, it wouldn't be hard at all to cause that kind of damage. I have fallen against a stationary car (knocked off the bike by a door being opened) and between my partner and I falling on the car we dented and/or scratched every panel on its left hand side and my partner broke the wing mirror with his head! The bike didn't even touch the car - it was just us!

I don't know how much the final bill came to, but the (uninsured) person who opened the door onto us probably got a bill of around $16,000 - $8k for damage to the bike and $8k for the car.