What Value To Give, When Insuring Your Bike?

It seems bollocks really. They'll charge you a premium based on how much you value the bike at, then pay you market value.

But if you under value the bike, they'll pay you the lesser amount that you valued it at.

They're c**nts!!!

 

You are correct and the insurance industry has a name for the principle, which I can't remember. If you insure for half the value you are only covered for half the loss.

 

They'll pay out on "market value" regardless of your valuation. You hiking the value only increases the premium. Agreed value is the way to go. You'll need one, maybe two valuations to back this up.
If it's your R you're thinking about, it may fall in to classic status now (used to be over 10 years). Might be worth a look at one of those. Cost is usually pretty good to.

 

Or not.
"When contents insurance states that new-for-old applies, this increases the likelihood of underinsurance. For example, a quantity of items amongst the contents might have a low resale value but a high new-for-old value. This can happen if quantities of used or second-hand goods are collected; their resale value may be low, but to replace as-new would require a high payout against the policy. In such a case, if the policy is subject to average, any claim will be reduced by the value of the underinsurance."

 

Perhaps you are thinking of "Subject to average".

 

That doesn't ring a bell but it certainly makes sense.

 

Trying to insure my Anniversario was a joke, when I said the value was 24K I was quoted £7500!!! I said okay value it at 20k and the quote went down to under a grand! Now with Ducati insurance who seem to have a bit more common sense thankfully.

 

I've got agreed value for my bikes, whether they would actually pay out the agreed value unconditionally I'm not sure, fortunately not had to find out yet.

I recently renewed my car insurance and they asked me for the value as part of the way they calculate the price of the policy. I tried a value and then dropped it by £1,000 and this reduced the price by around £7-£8 IIRC.

They then told me that they would only pay market value anyway in the event of a claim and I have no doubt their idea of market value is far less than the motor industry's (i.e what I would have to pay to replace it from a dealer), so they are basically a bunch of lying, cheating cnuts, unfortunately we have no choice but to deal with them...

 

It's referred to as the average condition in an insurance policy and is particularly relevant to property insurance. Declare half the value of the bike or insured asset which - produces a cheap lower premium - but when it comes to claim settlement the insurers payout will amount to a max 25% of replacement or market value (declared value less 50% under-estimation / 50%. Ouch!

 

Might be a different formulation depending on insurer and policy type, but you get the gist of it!

 

I got mine on a 'custom' policy (Carole Nash) which I believe doesn't need to be as old as a 'classic' but allows for modifications and an agreed value, that said my newest bike is more than 15yrs anyway but wasn't when I first took out the policy - I started with just the 916 and added the Monster and Guzzi later as a multi-bike.

As per usual with insurance it started out very reasonably priced (not a lot more than a decent non modded bike policy) but was ramped up each year just enough to stop me shopping around (can't do online for modded bikes so need to spend 15-20 minutes on hold/giving details etc. only to find it's more expensive) but I get breakdown cover (useful with old Italian bikes) and they are all covered at a good agreed value.

In fact I'd get significantly more than I could sell them for if they all got stolen...

 

Amazes me that they get away with this blatantly.

Amazes me but doesn't surprise me that the government state everyone has got to have it, yet they don't regulate them properly.

Standard procedure then.

 

lady pulled out infront of me and my bought new (£2200) but 6month old cbf125.

i valued the bike on the policy as £2200 as thats what i paid.

they valued the bike at £1864? i think to be exact.

i then bought the bike from them for £290

recieved my bike and a payout enough to fix the bike up reasonably well myself (less labour that way)

i also recieved a small lump some for my back ijury that still bothers me today.

that amounted to £2600.
which then bought my kwaka er6f


so no they dont pay out your issued amount. but it seemed a fair priced for a now used bike. do a quote for the bike undervalued. then do a quote for it over valued. the premium if atall changes very very slightly.

so why not over value. and just receive what you get.


im sure if somone hit my ducati. i would loose out on £1000's payout.

but hopfully i could either buy back and take my bits off the bike or swap them for standard units i still have