Insurance valuation of bikes

[Icemaestro]

I'm pretty sure it's build year 1992 (though I have to go by rego) as the rims match those from 1992 (1990 and 1991 ones are different) - is there any way to know for sure? I can't put pics in a PM for some reason, here it is here: http://www.kiwibiker.co.nz/forums/sh...d.php?t=106201

(note: these pics are from a couple weeks ago as I'm still re-doing the paint job to what I described before - is only looking better now though.

Is it build year 1992 or Rego year 1992?

I have a '90 250RR and I reckon mine's at least $4,500. But I've played with mine heaps - engine swap + cleaned internals, full aftermarket exhaust, new fairings + tinted screen, shift lights, modified airbox bla bla bla list goes on.

PM me with a pic and I should be able to help you out. Also check out cbr250.com there's a wealth of info on there.


p.s. considering the nature of the thread and my previous posts I should add that this post is made in a personal capacity.

[jetboy]

I'm pretty sure it's build year 1992 (though I have to go by rego) as the rims match those from 1992 (1990 and 1991 ones are different) - is there any way to know for sure? I can't put pics in a PM for some reason, here it is here: http://www.kiwibiker.co.nz/forums/sh...d.php?t=106201

(note: these pics are from a couple weeks ago as I'm still re-doing the paint job to what I described before - is only looking better now though.

PM sent

7890

[p.dath]

Not that many insurance companies offer "agreed value" policies on motorcycles. Even when you have an agreed value policy the agreement usually lapses after 12 months and becomes market value, unless you ring them up and make another agreement.

Also agreed value policies usually have a tolerance. They can only be a certain % above or below market value.


When an insurance company does a market value appraisal it is often done from recent sales. For instance, you can buy purchase data from people like Turner's Auctions (for cars ...). The insurance companies effectively have a book of what every make, model and year of car is worth, retail and wholesale, for any one point in time.

If you go to a site like www.carjam.co.nz, and enter your car number plate, you'll see what I mean.

[Icemaestro]

For instance, you can buy purchase data from people like Turner's Auctions (for cars ...). The insurance companies effectively have a book of what every make, model and year of car is worth, retail and wholesale, for any one point in time.

If you go to a site like www.carjam.co.nz, and enter your car number plate, you'll see what I mean.

Key word there being cars..both that and the valuation thing doesn't seem to work with bikes, even 2008/9 ones... (of the 2 I've tried :-P)

[jetboy]

Not that many insurance companies offer "agreed value" policies on motorcycles. Even when you have an agreed value policy the agreement usually lapses after 12 months and becomes market value, unless you ring them up and make another agreement.

All agreed value policies I deal with are 12 month policies (i.e. you buy for a year) and after that you need to renew - this is completely normal and market value policies are the same. The same policies do not drop to market value after a year. You might be confused with cover extensions some policies offer.

The insurance companies effectively have a book of what every make, model and year of car is worth, retail and wholesale, for any one point in time.

Really?

[Mully]

If you insure the bike for $4k but it's actual market value is worth $6k, then your initial claims settlement will be based on the $4k - however the remaining $2k is what's called an 'uninsured loss' and may be recoverable. The important thing to remember with market value policies is that your claim will be based on the sum insured or the market value, whichever is the lesser amount.

Right. So I should get the bike valued and ring the insurance company then?

[jetboy]

Right. So I should get the bike valued and ring the insurance company then?

Valuations from registered valuers cost money...so be aware if you decide to go down this route.

Another (free) option is to pop into your local dealership/service mechanic and ask them what you should expect to insure it for...in it's present condition and including any extras. Although not 100% accurate or reliable, it gives you a fair idea of what to expect.

Then call your insurer, tell them how much you want to insure it for and they will set up the policy based on that figure. I'd suggest keeping up to date with the value of your bike and advising your insurer (once a year) to avoid disapointment in the event of a claim.

[swbarnett]

Insurance premiums are based on the sum insured. If the payout is lower than this then should I not be entitled to a partial refund on premiums? Clearly I've been overcharged.

[FROSTY:Me]

Folks I have a customer dealing with this EXACT issue. The good news is she listened to me and took Gap insurance on the car.
The way Gap works is that it pays the difference between what the normal insurance covred her for and what she owed on the car.ie the setlement figure.
I'm personally of the opinion that AS A MINIMUM any vehicle on finance should be covered for enough to settle out the finance.

[325rocket]

Insurance premiums are based on the sum insured. If the payout is lower than this then should I not be entitled to a partial refund on premiums? Clearly I've been overcharged.

This is the kicker for me. Surely it is illegal to charge premiums based on an insured value and then when the time comes pay a lower amount that was not mentioned in the contract? I signed an agreement that I would be paid out replacement value of $17000 for my bike. The insurance company had no problem working premiums around this figure so a contract was drawn up and agreed to by both parties. From what I have read on here it im guessing I would probably be paid out around $14500 - $15000. Well that’s not what im paying for! If that was the deal my premiums would have been $40 odd less a month. This really pisses me off and I think the insurance world needs a bit more transparency and possibly more regulation.

Is YOUR bike condition taken into account upon settlement?

[p.dath]

This is the kicker for me. Surely it is illegal to charge premiums based on an insured value and then when the time comes pay a lower amount that was not mentioned in the contract? I signed an agreement that I would be paid out replacement value of $17000 for my bike. The insurance company had no problem working premiums around this figure so a contract was drawn up and agreed to by both parties. From what I have read on here it im guessing I would probably be paid out around $14500 - $15000. Well that’s not what im paying for! If that was the deal my premiums would have been $40 odd less a month.

If it is a market value policy, then yes, you are quite likely to be paid out less than you have it insured for. And no, its not illegal for you to insure the bike for more than its market value (unless you insure it for a grossly higher amount, but that is a different story).
Basically it is your responsibility to insure you bike for its market value - which is what you stand to loose. Not for what it will cost when you bought it (or what it will cost to replace it).

Is YOUR bike condition taken into account upon settlement?

Not usually.


Insurance is one of those bastard things, it reminds me of a lottery ticket. You can never be completely sure of the outcome until it is all over.

[325rocket]

Basically it is your responsibility to insure you bike for its market value - which is what you stand to loose. Not for what it will cost when you bought it (or what it will cost to replace it).

it just seems strange to me. ‘We’ agreed on the value not just me.
Also why does it matter what the market value is? I don’t see why I cant insure my bike for full replacement value and get that paid out. As far as the insurance company is concerned isn’t it just $17000 worth of ‘product’. The ‘product’ shouldn’t matter. If I crash or my bike is stolen and there is no question of insurance fraud on my part surely I should get what I have been paying for!
I know it doesn’t work that way but it should. When the policy was drawn up all premiums were based on their risk of $17000. I seriously think there is a gap here for the likes of Erin Brockovich to step in and get us all a refund for historic over paid premiums.

[NSR-Dan]

nothing wrong with a market value policy, but you should get your own valuations on an annual basis and inform the insurance company every time you renew your policy.

Also when you make a claim that ends up being total loss, you allways have the option to get written valuation from a dealer of your choice, which the insurance company has to go by. I think this has to do with nz laws and your rights as a consumer. If not i think you can make a complaint the the insurance ombudsman.

[NSR-Dan]

it just seems strange to me. ‘We’ agreed on the value not just me.
Also why does it matter what the market value is? I don’t see why I cant insure my bike for full replacement value and get that paid out. As far as the insurance company is concerned isn’t it just $17000 worth of ‘product’. The ‘product’ shouldn’t matter. If I crash or my bike is stolen and there is no question of insurance fraud on my part surely I should get what I have been paying for!
I know it doesn’t work that way but it should. When the policy was drawn up all premiums were based on their risk of $17000. I seriously think there is a gap here for the likes of Erin Brockovich to step in and get us all a refund for historic over paid premiums.

An Agreed policy is when "we" agree on a value
a Market policy, "you" Agree on the value and its your responsibility to adjust this value as your vehicle depreciates

[jetboy]

Is YOUR bike condition taken into account upon settlement?

Not usually.

I don't know which insurer you use p.dath but the ones I use sure will. It's unfair to settle a rusty POS in the same fashion you would settle an immaculate example of the vehicle.