Test riding a bike - no insurance cover

[Silage]

I have a feeling this has been covered in a thread before but couldn't find it by searching.

A guy I know goes to a bike shop in Chch a few months ago to test ride a bike. He is given the normal blah blah about needing to pay the excess if he drops it. He does drop it and so pays out the $1000 excess. Then a couple of months later gets a letter from the shop's insurance company saying that he owes the remainder of the repair costs. If he had existing cover on a bike it may have covered this but as he doesn't yet have a bike, he had no bike insurance. But like others who he has talked with, the expectation is that the shop's insurance covers test ride accidents.

If he has been told correctly, then the excess he paid was the excess the bike shop has to pay on its insurance and then the insurance company can chase the person responsible for the remainder. It would seem that bike shops do not make this clear when we take a bike for a test ride.

Does anyone else have experience with this. If the test rider is not covered, then they take quite a risk when taking a bike out.

[Mikkel]

Dealer or not. If you lend out a vehicle to someone else, you can be held accountable unless you very clearly state that they are not going to be covered by insurance.

Anyway, this sounds pretty dodgy to me. There was an agreed upon excess, which was paid as I understand it - that should be the end of the matter as far as the potential customer is concerned.

[Juzz976]

I wonder if you can get insurance to cover you riding any bike you like as long as your on your full. I loose a bit of enjoyment riding another bike as I'm not insured to ride it.

[MSTRS:Me]

Insurance is on a particular bike/whatever, with an variable excess pertaining to anyone riding that bike. As long as they hold an appropriate licence...
I have heard that a person with full cover on a bike, may be covered on another bike for the purposes of a test ride...BUT don't quote me.

[Tank]

I have a feeling this has been covered in a thread before but couldn't find it by searching.

A guy I know goes to a bike shop in Chch a few months ago to test ride a bike. He is given the normal blah blah about needing to pay the excess if he drops it. He does drop it and so pays out the $1000 excess. Then a couple of months later gets a letter from the shop's insurance company saying that he owes the remainder of the repair costs. If he had existing cover on a bike it may have covered this but as he doesn't yet have a bike, he had no bike insurance. But like others who he has talked with, the expectation is that the shop's insurance covers test ride accidents.

If he has been told correctly, then the excess he paid was the excess the bike shop has to pay on its insurance and then the insurance company can chase the person responsible for the remainder. It would seem that bike shops do not make this clear when we take a bike for a test ride.

Does anyone else have experience with this. If the test rider is not covered, then they take quite a risk when taking a bike out.

Was it a verbal agreement - or did he sign a loan ageement with the teamr of the test bike loan?

[The Stranger:Me]

If he has been told correctly, then the excess he paid was the excess the bike shop has to pay on its insurance and then the insurance company can chase the person responsible for the remainder.

Yes I have heard of the exact same thing before. i.e. the insurer going the test rider.

Many car 3rd party insurance policies will cover you in someone elses car as that car is effectively the property of a 3rd party - ASB are one.
That of course requires you to have 3rd party cover on say your own car obviously.
Not sure about bikes however.

[Taz]

r.

Many car 3rd party insurance policies will cover you in someone elses car as that car is effectively the property of a 3rd party - ASB are one.
That of course requires you to have 3rd party cover on say your own car obviously.
Not sure about bikes however.

So if this is the case then I could insure both mine and the wifes car for third party and we could then swap vehicles and both be full covered? Or do they still just payout for the other person vehicle who ya hit?

[imdying]

Was it a verbal agreement - or did he sign a loan ageement with the teamr of the test bike loan?

If he signed nothing then they specifically said he would be covered except for the excess And if they don't like it, they're welcome to take him to court, and if they're not willing to do that they can go choke on a donkeys diddle.

[Hiflyer]

It is common practice for insurance companies to chase the person at fault for the rest of the money, too bad nothing was signed..

[CookMySock]

[...] Then a couple of months later gets a letter from the shop's insurance company saying that he owes the remainder of the repair costs.

This has been covered dozens of times.

It is standard operating procedure for the insurance company to bluff you into paying up. You have no legal obligation to pay them anything.

For myself, I would file the letter away carefully and do nothing. You will likely receive further bluff and bluster letters from them, and I'd just keep them on file as well.

Steve

[Oscar]

Yes I have heard of the exact same thing before. i.e. the insurer going the test rider.

Many car 3rd party insurance policies will cover you in someone elses car as that car is effectively the property of a 3rd party - ASB are one.
That of course requires you to have 3rd party cover on say your own car obviously.
Not sure about bikes however.

I suggest you read that again - most policies say that if you are driving another car that is uninsured, then any third party damage you cause is covered (but not to the car you're driving).

[Oscar]

This has been covered dozens of times.

It is standard operating procedure for the insurance company to bluff you into paying up. You have no legal obligation to pay them anything.

For myself, I would file the letter away carefully and do nothing. You will likely receive further bluff and bluster letters from them, and I'd just keep them on file as well.

Steve

The only thing that has been covered here a dozen times is the fact that you are a tool.

By paying the excess, this guy has effectively admitted liability.
Unless he has signed the standard test ride form, he may well be liable for the rest.

[p.dath]

I don't think this is clear cut. A verbal contract is clearly in existance. If both parties agree on that contract then it may be simpler.

There may be some remedy under the Consumer Guarantees Act. Was the insurance that the test rider was told he had fit for the purpose? Probably not.

I suspect the insurance company will sue the test rider, and the test rider will need to sue the dealer.

Horrible situation.

[Oscar]

Dealer or not. If you lend out a vehicle to someone else, you can be held accountable unless you very clearly state that they are not going to be covered by insurance.

You can be held legally liable if it's your fault.
If you are obviously not at fault, then it isn't your problem (legally speaking).

[AllanB]

What shop please. Good to know to ensure any paperwork is signed of prior to a future test ride.

Does anyone actually read any of the form they ask you to sign before a test ride? Must pay more attention in the future.