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.

Insurance extras - worth the cost?

Discussion in 'General Motorcycling Discussion' started by zeddicus, Mar 7, 2008.

  1. While discussing a new bike this afternoon with a Sydney dealer the topic of insurance came up. As I'm looking to finance the new baby full comp is required. This is expected, OK and normal. However, several "extra" options were offered by the insurer this dealer used.
    1. GAP cover. Basically the difference between "Agreed Value" payout and the owing finance amount if the bike is stolen/written off.
    2. Life cover. If you die the loan is paid out and thus no-one goes chasing your family for the debt.
    3. Disability cover. If you're disabled and cannot work the payments are covered.
    4. Unemployment cover. If you're fired (not sure if redundancy is covered but quitting is not) the payments are covered while you're unemployed.
    Does anyone have any experience with these extras? Opinions as to their worth or lack thereof?

    Personally I'm thinking that it's worth skipping all except the life cover, reasons being: in disability/unemployed I still have the bike and can sell it to cover most if not all of the owing amount; GAP isn't that much and basically comes down to excess + greenslip refund + any amount left owing on the premium if your bike can be replaced under "new for old" (as many/most insurers do for bikes < 2 yrs old).

    Regarding the life cover, is it even legal for a finance company to chase your relatives for payment of a loan if you have died? I would think "no" but am not sure (and don't wish to pay $ consulting a lawyer :LOL: ). Furthermore one would assume that if you did die while owing money on the bike, either the lender could recover most/all of the cost of the bike via selling it or the insurance company would payout on the agreed value if it was written off.


  2. If the loan doesn't have a guarantor who are they going to chase? It's an unsecured loan, its higher risk therefore you pay more interest to have that loan. I'm no egg-spurt but common sense tells me that's the way it would work?

    As for the other extras, read and re-read the fine print before agreeing to any of them.

    With some of the "if you are unemployed" crap, you need to be unemployed for xx amount of months before being eligible for assistance.
  3. Those 3 are covered by my loan protection insurance. Wasn't expensive, so I went for it. I'm covered if I lose my job or get sick and can't work.
  4. I know one or two people who've benefited ALOT from gap cover.. or at least they haven't been totally stuffed because of circumstances because of it.
  5. I was bitten by the gap on my last bike, being up for around $2000 after the insurance payout. Needless to say I wasn't thrilled but at least an expense of around this magnitude is generally payable within a reasonable amount of time. It'd be different if we were talking $5000 or $6000 bills but that shouldn't occur in the first two years of new bike ownership anyway.

    Given that (1) we expect (hope) not to require our full comp for write-off/stolen bike, (2) you save a not insignificant amount of money per month by not having the gap cover (can't remember the exact figure sorry) and (3) many finance companies are happy for you to continue to pay the regular monthly payment until the gap is covered, I'm thinking gap cover is not hugely important.
  6. I've never had a bike I didn't pay for in full with hard earned and saved cash. Seems to beat the hell out of paying interest and loan insurance on top of the purchace price. :)
  7. you dont have enough vices to spend your money on, other than bikes, Seany :p