Bike Insurance Illusion

[cowboyz]

1. They can't just make up an excess - it breaches the Insurance Law Reform Act
2. Did you tell them that you were going to use it on the track?
3. It's not the fact that your on the road (paved or otherwise) that is the point, it's your use of the vehicle. If you read your policy it will define what is covered in terms of usage including racing, practising or training.

Basically what has happened is that you've changed the terms of the contract (I'll bet you didn't mention trackdays on the original proposal), leaving them free to impose whatever excess they think fits.

not at all! I was completely upfront about what I use the bike for. And I specifically mentioned the trackdays at time of purchase and it was a 'we will lok at that by a case by case basis.... as in .. if we decide to honour our part of the contract at the time or not. No discussion, in voice or in writing was made reguarding to excesses. It was only after they imposed the $2k excess where I questioned it to find that its 'common practice''. You talk to anyone who does trackdays.. esp on expensive bikes and they will tell you its acceptable that insurance companies charge between $2k-$4k for an excess for track - eventhough its not in their policy becuase tracks are dangerous and the risk is soo much higher. (another point I argue because the whole point of going to a track is to go fast in a safe environment)

The point is... Its only illegal if someone challenges it and its too troublesome/expensive to bother challenging it. You can jump up and down about insurance law reform acts all you want but that doesnt stop 'common practice'

[cowboyz]

This is fucked up. I can't believe how many of you are happy forking your money over for 'insurance' but have no idea what will happen in the event of a prang.

One would have assumed that one would discuss all these issues with the companies before signing anything!

discuss all you want.. its all a bunch of fluffies and yeah.. we will pay out if you crash.. no hassles.. remove all hassles blah blah blah... until...................................

[Owl]

...because it would open them up to heaps of potential bollix.
All the insurance companies that I know of utilise an independant source (bike shop etc...usually 3 different ones) to cover their butts

And if all else fails, they'll use the local dickhead tow truck driver.

No, I'm not kidding either!

[Pegasus]

and where the illusion comes in is if you under insure your bike!

bike insured for $15000.. market value 12k.. payout 12k.
bike insured fr $10k.. market value 12k.. payout 10k

Its not market value... Its actually... market value UP TO insured value! Of course, if at the time you take out insurance you ask them what they would be willing to payout if you crash they cant give you a figure because 'its a conflict of interest for them to value your bike!'


They say the proof of insanity is that you feel like your the only sane person left in the world!

You are close, but if as you used above your bike were worth 12K, and you only insured it for 10K, the Insurer would only pay you out 10. But once they start to "recover" the loss (sell the wreck etc) you are entitled to be indemnified before they are, therefore you could get more than the 10K depending on the situation.

A side note, was it your Broker who advised you to increase the value at renewal, and do you have it in writing?

[Gremlin]

I can't believe how many of you are happy forking your money over for 'insurance' but have no idea what will happen in the event of a prang.

No no, its quite simple. I'm going along , have a bit of a and I need to call insurance

We talk a bit, they do a bit of I and and eventually I'm again

[DMNTD:Me]

And if all else fails, they'll use the local dickhead tow truck driver.

No, I'm not kidding either!

Oh fark that! Way too easy to challenge his "valueation"

[Owl]

Oh fark that! Way too easy to challenge his "valueation"

We did and got it dropped, but at the price of dropping our highest valuation. His PAV was about $3K lower than the third highest, therefore way out of the ball park. Vehicle was insured for $8K.

[Logpot]

If the motorcycle is uneconomic to repair in our opinion,

we’ll:

1. pay you the sum insured, if the motorcycle was in a

good and well maintained condition in our opinion when

the loss happened, or

2. pay you the market value up to the sum insured, if

the motorcycle was not in a good and well maintained

condition in our opinion when the loss happened, or

3. replace the motorcycle with a new one, as long as:

(a) the loss happened within 12-months of you buying

the motorcycle new, and

(b) the same model and specification is available in New

Zealand.

I need to find out how the deem that the motorcycle was in a good and well maintained condition

[R-Soul]

Also I dont get this:

I insure the bike (for argument sake) at $5000 initially. The next year, they drop its market vaue by 15% for "depreciation'(despite this being bollox as it probably is worth the same or very similar) . So they will only pay $4250 now. But after that year, they have raised your premiums (to account for inflation of about 5%), so that you are paying more for less cover.

[breakaway]

Can't you just tell them to pay out on market value? That way at least you can be sure you will be able to replace your bike.

[Crisis management]

Can't you just tell them to pay out on market value? That way at least you can be sure you will be able to replace your bike.

Just a point here, I have always understood "market value" for insurance purposes to be the amount a bike shop will pay you for your bike if you wander in and say "I want to sell this to you"....not the price the bike shop will sell you the same bike for. There is a substantial difference in those figures.

[breakaway]

You understood wrong then. When I had my bike valued after a not at fault prang, they valued it at what they'd sell it for. Market value, by definition, is what a bike sells for. Not how much you'd get if you tried to sell it / trade it in. Damn, aren't/weren't you in business? Shouldn't you know this shit?

[Oscar]

Just a point here, I have always understood "market value" for insurance purposes to be the amount a bike shop will pay you for your bike if you wander in and say "I want to sell this to you"....not the price the bike shop will sell you the same bike for. There is a substantial difference in those figures.

Market value is supposed to represent the full retail cost of the vehicle.

When I was a broker, I got into an argument (not like me, I know) with an Assessor about the value of a car that had been stolen. The client insisted that it was worth 10k, and the Assessor made the mistake of saying that his valuation of 8.5k was based on prices from three local car dealers and you could buy one for that price in Auckland, no sweat.

I said, fine - my client will settle for one of those, could you direct us to their yards?
My client got a cheque for $9,500.

[Crisis management]

Damn, aren't/weren't you in business? Shouldn't you know this shit?

Wasn't me mister....just a simple pleb like you...where's Oscar?

Edit.....Shit, that was quick Oscar, obviously I am misinformed!

[breakaway]

Good stuff Oscar.

People who have insurance need to know that if your shit gets fucked up, often, it's not a case of just making a call and a new bike's in your driveway. Often, they will bitch about value and all sorts of shit and string it out for months.

A lot of them have a rosy picture of how it works. Just pay the money and forget about it until your shit gets messed up. More often than not, your shit doesn't get messed up.

The Insurance company business model is based on the fact that you keep paying premium and don't have any prangs. And boy, does it work well.