Insurance Payout

Postby Carnan on Sat 24/May/14 12:46am

Hi all.

I got hit out on my 2013 Giant TCR Advanced 0 roadie the week before last. I am not too happy with the Insurance companies amount they have offered to pay me out. I have checked my policy and learnt a lesson. Thinking I was covered for replacement value - yeah yeah I know, but like I said lesson learnt. So the bikes pre accident condition was as new - pristine in fact. The market value they have offered to pay out I feel is too low.

So how would I go about getting some pre accident market valuations, to take back to my insurer and negotiate a better settlement?

I am not out to rip my insurer off either, just want to try to negotiate a better settlement to get back out riding.
Carnan
Member for: 3 years 4 months

Re: Insurance Payout

Postby happybaboon on Sat 24/May/14 1:29am

Photos + list of parts/condition, take to bike mechanics. Or better still get the corpse of the bicycle and get a valuation from some bike mechanics based off that :eh:
happybaboon
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Re: Insurance Payout

Postby Carnan on Sat 24/May/14 2:01am

Cheers. I should have stated ... Bikes written off. So the issue I have is with the insurers "market" value figure they arrived at.
Carnan
Member for: 3 years 4 months

Re: Insurance Payout

Postby CrustyMTB on Sat 24/May/14 6:51am

Carnan wrote:Cheers. I should have stated ... Bikes written off. So the issue I have is with the insurers "market" value figure they arrived at.
What babs said.
Ask for the report they're batting the value on and make sure they're comparing your bike with an equivalent too.
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"Tucker's Law "If some cunt can fuck something up, that cunt will pick the worst possible time to fucking fuck it up, cause that cunt's a cunt.""
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Re: Insurance Payout

Postby Crashed on Sat 24/May/14 5:52pm

If you got hit by someone and not your fault the other person insurance should be stumping up the cash, its not your insurance thats paying they recover the momey from the other insurance company.
Take your bike to 3 or 4 bike shops to get a value ,they may value it up for you if they think that they will be able to get a sale out of it .You could take the other person to small claims to recover the short fall from insurance etc .
Would the pay out cover the cost of the stuffed parts? you could then use the good parts from crashed bike and the new parts to build up a bike .
Crashed
Member for: 9 years 3 months

Re: Insurance Payout

Postby CrustyMTB on Sat 24/May/14 9:07pm

Crashed wrote:.You could take the other person to small claims to recover the short fall from insurance etc .

No you couldn't. Indemnity is market value. You might get the excess back though.
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Re: Insurance Payout

Postby Flyboy on Mon 26/May/14 11:41am

AA insurance has my bike under an agreed upon amount, which is based on the bike shops' valuation for replacement. Im pretty happy with that approach.
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Re: Insurance Payout

Postby phunk on Mon 26/May/14 11:51am

Market value = ($RRP/2) - (10% * n)

n being the number of years since new.
phunk
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Member for: 13 years 7 months

Re: Insurance Payout

Postby Al_Bushman on Mon 26/May/14 12:58pm

Flyboy wrote:AA insurance has my bike under an agreed upon amount, which is based on the bike shops' valuation for replacement. Im pretty happy with that approach.


I have AA contents cover too and they have been awesome. Replaced a 5 year old alloy roadie with a new carbon one for my wife's bike that got stolen from the garage.

Personally in the situation above I'd be hitting up your insurance company who will be hitting up the insurance company of the person that smashed your bloody bike, then asking the people that did it to cover any shortfall for a replacement.
Al_Bushman
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Member for: 11 years 3 months

Re: Insurance Payout

Postby great uncle bulgaria on Mon 26/May/14 1:16pm

phunk wrote:Market value = ($RRP/2) - (10% * n)

n being the number of years since new.


seems strange: it gives a market value of 50% retail to a one day old bike (and 40 % retail to a 1 year old bike).
I reckon , possibly in ignorance, that my hypothetical 10k bike would sell for more than 4k a year later . . .
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Re: Insurance Payout

Postby znomit on Mon 26/May/14 1:22pm

phunk wrote:Market value = ($RRP/2) - (10% * n)

n being the number of years since new.


What about things that always sell for $RRP/2 ?
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Re: Insurance Payout

Postby phunk on Mon 26/May/14 1:27pm

znomit wrote:
phunk wrote:Market value = ($PP/2) - (10% * n)

n being the number of years since new.


What about things that always sell for $RRP/2 ?


Should probably change RRP to actual sale price... $PP (price paid)
phunk
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Member for: 13 years 7 months

Re: Insurance Payout

Postby thorg on Mon 26/May/14 2:19pm

great uncle bulgaria wrote:
phunk wrote:Market value = ($RRP/2) - (10% * n)

n being the number of years since new.


seems strange: it gives a market value of 50% retail to a one day old bike (and 40 % retail to a 1 year old bike).
I reckon , possibly in ignorance, that my hypothetical 10k bike would sell for more than 4k a year later . . .
The equation works remarkably well in most circumstances, it's just that owners have an inflated sense of what their bikes are worth to other people based on what they themselves paid for them - especially if they pay full retail. . .

Though a 10k bike is a bit of an outlier - someone buying such a thing is unlikely to ignore it's worth when doing their insurance. More likely they will for an agreed value type policy.
thorg
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Re: Insurance Payout

Postby philstar on Mon 26/May/14 3:41pm

thorg wrote:
great uncle bulgaria wrote:
phunk wrote:Market value = ($RRP/2) - (10% * n)

n being the number of years since new.


seems strange: it gives a market value of 50% retail to a one day old bike (and 40 % retail to a 1 year old bike).
I reckon , possibly in ignorance, that my hypothetical 10k bike would sell for more than 4k a year later . . .
The equation works remarkably well in most circumstances, it's just that owners have an inflated sense of what their bikes are worth to other people based on what they themselves paid for them - especially if they pay full retail. . .

the problem is that market value and value to owner, are different things. and i think Market value = ($RRP/2) *(0.9^n) is a better formula as 5yo things are not free
philstar
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Re: Insurance Payout

Postby phunk on Mon 26/May/14 3:43pm

philstar wrote:
thorg wrote:
great uncle bulgaria wrote:
phunk wrote:Market value = ($RRP/2) - (10% * n)

n being the number of years since new.


seems strange: it gives a market value of 50% retail to a one day old bike (and 40 % retail to a 1 year old bike).
I reckon , possibly in ignorance, that my hypothetical 10k bike would sell for more than 4k a year later . . .
The equation works remarkably well in most circumstances, it's just that owners have an inflated sense of what their bikes are worth to other people based on what they themselves paid for them - especially if they pay full retail. . .

the problem is that market value and value to owner, are different things. and i think Market value = ($RRP/2) *(0.9^n) is a better formula as 5yo things are not free


Sure, but since market value is generally a lot less than value to the owner, its best not to underinsure your stuff by selecting and paying for market value.
phunk
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Member for: 13 years 7 months

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