Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.

VIC Getting the most from your Insurer

Discussion in 'Politics, Laws, Government & Insurance' started by BlueR1, Mar 26, 2013.

  1. Hi all,

    I was hoping you could give me some advice or insight with respect to getting the most out of negotiations with an insurer.

    I T-boned a car about a week and a half ago. One second the road was clear, the next second there was a car there. I managed to land on the bonnet and roll off and land on my feet. Phew. Anyway, the accident is his fault. Might help to let you know this happened in Melbourne.

    At this moment the bike is sitting in a service center and having spoken with the head mechanic there, he would be surprised if the bike is not written off. So in the event that the bike is written off, the insurance company will pay me out for the bike.

    I want to claim from them the cost of the bike (02-03 Yamaha R1 in good condition), a new helmet (my current is a shoei xr1000), a new jacket and gloves. This is everything I was wearing at the time. Redbook values my bike at 8400 - 9900 and the average-ish cost of my bike on bikesales is around 8K. I would be super happy if I got 9.5k for the bike and just happy if I got 9k.

    I figure they will try and give me as little as possible, but I'm asking for insights from you so I can get a maximum return. I have never been in this situation.

    cheers in advance all!
    ...and I hope I have posted in the right place.
    • Like Like x 1
  2. Is your policy 'agreed value' or 'market value'.
  3. I don't have my own policy on the bike. I am dealing directly with his insurance company, QBE. So I would be guessing this would be a market value situation.
  4. Yes it will be market value I would think.

    What makes your bike above average market value?
    • After market parts, pipes etc.
    • Custom paint job.
    • Suspension parts
    • Recent new tyres.
    • Sports tuning or Dyno tuning done recently
    Do you have receipts for work performed on the bike that may show it's a well maintained bike?

    Was it low mileage for its age? i.e. 6k or less a year since manufacture is low.

    Take photos of the dame of your gear and forward that to the insurance company to substantiate your claim for gear.
  5. I have owned the bike for about just shy of a year. In that time I have had a bit of work done to it (chain+sprockets, radiator and fan, 40k service, etc) all at decent garages and I have the reciepts for all of it. So when I say good condition, I mean relatively stock condition, but I put effort into maintaining it. Does this count?

    The mileage on the bike was just shy of 50k.

    Okay, I still have all the gear at home and I took a bunch of pix of the bike at the crash scene too.

    Do you think my claim for 9k-9.5k are realistic?
  6. I think you are looking a bit high for the value.

    You said the average-ish sale price is $8k, then it will probably be based on this. If thats what you can buy the same bike for in same condition, then all good.

    Keep in mind that the insurer will also allocate a salvage value to your bike and deduct this cost. This is because the bike is still yours. Generally the figure they give you is based upon what a salvage yard will pay for it (sometimes confirmed by emailing the salvage yard, sometimes pulled out their butt). If your mechanic thinks its a write off, have him supply a price that he would buy the wreck for aswell. Then you may be able to sell it direct to him once you have your value from the insurer.

  7. I was under the impression that they paid you out for the bike at current market value, and then they took the bike and sold it off where ever they could to recoup some of that money. This is no longer (never was) the case?

    So, the two figures I need to negotiate with them are what my bike is worth and how much it can be sold for as is? Once this is settled, the insurance company will give me the difference, and I keep the bike to make the rest of my money with that?
  8. Yes you will be paid the market value for your bike. And like you have said the value is based on book guides and similar bikes selling in the local market. If you said the average price for your bike in selling ads is lower than the book price, i would expect to be settled on the ad prices. They will settle low if possible.

    That said, it is based on what is selling so is still fair.

    And yes you will keep the bike and need to sell it off after. They only keep your bike if you are insured with them. As you own the bike, it stays yours.

    So after that, yes you need to negotiate the market value and the salvage value. The salvage values are usually pretty low though so that's a good thing for you.
  9. Are you sure? I had same thing happen (write off, not my fault, other guy's insurance took care(?) of everything). They gave me $4.5k for my nija 250 (bought 5.5k second hand), and $500 for the helmet. But they DID keep the bike...
  10. I appreciate all your responses.

    So, I have done some research on the current market value of my bike. I presume it would be in my interests to put to them that my bike is worth redbook prices, and see how that fares. Otherwise, sale prices for similar standard bikes on bike sales etc will have to be my fall back.

    The second thing, I guess I need to do a little bit more research on is bike wrecker sale value. I am going to send some pictures to Victorian motorcycle wreckers on tuesday and have a chat with thier boss to see what he says, but as was said, the value is going to be pretty low. I guess I just need a couple of quotes.

    Guess all I can do now is wait.

    It would be a great outcome if they reimbursed me 9k for the bike and kept it themselves...
  11. Nice. Sounds like it worked out great for you. I do not often hear of insurers taking ownership of a third parties bike though. What insurer was this? Did you have to sign over ownership/allow the rego papers be changed into their name? Did this mean then that they were able claim back the outstanding refund amount on your registration?
  12. The other parties insurance company can not take possession of your bike, you simply do not have a contract with them.

    In this case, QBE must provide you with the source and details of whom they obtained the 'salvage' price from, yes it is then up to you to do what you wish with the bike and it shouldn't go on the WOVR.
  13. I didn't have insurance, but the other guy had thorugh AAMI, tow truck got the bike at scene of accident, haven't seen it since, no paperwork as far as ownership as I can remember, they just called me we agreed to 4.5k for the bike. 500 for the helmet. Then I went to vicroads, got the balance for rego back.
  14. Im hoping mine works out like yours mattizie!

    Im just getting frustrated now because its been two weeks since their assessor wrote of my bike (according to the head mechanic who said he'd done so) and they havent tried to contact me to let me know whats happening, no mail and I've even tried calling them about 3 or so times to see whats happening and I'm getting no where with that either.

    I just submitted an email to their complaints division. A very calmly worded one, but one that lets them know this is all taking way too long.
  15. iirc an insurnace compny must give you their final decesion no more than 10 business days from date of lodgement. If you get no love, use the ombudsman.
  16. Thanks for that Cazzo. I called a free legal assistance line today, and that guy said that the (financial) ombudsman is not for my type of situation. I would only be able to claim up to $3000 that way. He also didn't tell me about any other ombudsmen.

    I have had to use the telecommunications ombudsman in the past, and I got astounding results from that. Never saw a company go back on themselves so fast.
  17. Insurance ombudsman is not as powerful as the telco ombudsman.

    The fio only ensures that they comply with procedure not if the amount is fair.

    If you just want a bike just go hire one and sue the other driver for that. Or at least call the other driver and say that you are going to do that if you dont get a payout soon so that they gee up their insurer
  18. Not sure about that. But threaten them with it, should get them to act. I you lodge a complaint it will cost the insurer something like $700 straight up.
  19. I doubt if its that much. $700 to answer a call? Its not a penalty.
  20. I feel your pain. I crashed my bike on 16/2, the assessor told me it was a write-off on 21/2 and my insurance company (RACV) finally paid me out on 19/3. There were no particular problems with anything, they were just slow getting it processed due to a huge number of claims they were dealing with from floods and bushfires at the same time, or so they told me. I called them every 3 or 4 days, and each time I rang, the claim would progress a little bit more. I suspect if I'd just left them to it, I'd still be waiting.

    The best part of it all was that, when they finally paid out, RACV insurance posted a cheque to RACV finance, so it was another week before the loan actually got paid off and I could buy my new bike. Good job, guys.

    Good luck, hopefully you don't have to wait much longer.