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Insurance - Questions about procedures.

Discussion in 'Politics, Laws, Government & Insurance' started by Big Chris, Aug 30, 2007.

  1. Hi all,
    After being KO'ed off my bike last week,
    and has been inspected by one mechanic, opinion is a Write off.
    My bike is going to be inspected by the insurer of the driver that hit me,
    next monday or tuesday.

    Some questions

    If my some crazy idea they decide that is not a write off,
    they will give me a cheque for the value they think for repairs?

    If I they write it off, they will offer me a sum of money.
    Is that sum of money to pay for the fact their client smashed my bike?
    Or is it to buy my wrecked bike from me?

    And in both cases,
    what If I disagree with the amount they offer me?
    Lets say, if the amount they offer me is no where the amount I need to replace my 1999 CBR 900, with another 1999 CBR 900 of similar condition and kms.

    Thanks in Advance

    ps sorry if this is a bit disjointed,
    my evening pain medication is kicking in.
    Nite all.
  2. You are claiming 3rd party on the driver at fault, essentially his insurer will decide if the quoted cost of repairs (as provided by you) will make the bike un-economical to repair, and there are several possible outcomes:

    1) They agree with a quote for repairs and decide from that to pay for those repairs (getting it repaired is optional and you make that decision) or they pay you that amount depending upon your decision to repair or not.

    2)The quoted cost of repairs or a letter from a repairer states that bike is un-economical to repair, in this case you are only entitled to market value plus the depreciated value of any non factory accessories. The insurer must give you first rights to the wreck, and will usually not want it, so they will deduct from the payout amount the reasonable value of the bike as a salvage item ie: what it would fetch at salvage auction, or what a wrecker would pay for it. Usually if you make them take it, and don't want them to deduct the salvage value, they will value it at peanuts to minimise your payout, however if you opt to keep the wreck, they usually can't value a vehicle at much anyway, and you can ask them to demonstrate how they determine the cost of salvage they plan on deducting from you. More often than not, the salvage value they plac on the wreck will be much less than what you could sell it for, so keeping the wreck and selling any usable parts or as a whole could bring in more $$ for you.

    Remember, if they deem the vehicle a total loss and you decide to take the wreck, they will list it as a repairable or stat write off, a repairable write off can be repaired, inspected and re-registered, a stat write off can't be registered. If it is deemed a repairable write off, and you decide to use the $$ they gave you to fix it, just be careful, as a bike with it's frame number recorded as being a repaired write off will have very little re-sale value, and I would think it would be a waste of money to go ahead and repair it, so perhaps look more to replacing it.

    In the event you don't agree with:
    1) The determination to repair/write off the bike

    2) The proposed settlement value/salvage value

    You can ask them to demonstrate how they determine these amounts, and if you feel the answer is still unfair, you can have it reviewed by your own loss adjuster, or the insurance industry ombudsmans office or similar (whatever applies in your state)

    If they want to fix it and you think it's a total loss, get a second more expensive quote, and again can have it assessed by your own loss adjuster.

    Just ensure, that any quote you have is for the supply of NEW parts, this in almost every case where an older bike is being assessed will be enough to total loss it if anything more than a fairing or two is required. Often you will find that the payout figure the insurer comes to will be at least what makes you happy and often more. I've had a few total loss vehicles only 1 my fault, and other than that one where I claimed on my own insurer, I claimed on the other party as they were all insured, and was quite happy with the payout figures offered.

    Hope this helps
  3. Dont forget also that you are entitled to replacement of any helmet and apparel damage that you may have got. Eg. helmet and jacket/gloves etc. So make sure you also factor that into your claim amount. Get the shop to include such items in the quote that goes to the insurance company.
  4. I also read your thread about the market value of your bike Chris... IF the car drivers insurer insures bikes as well, I would be inclined to ring them now (not telling them who you are of course) and ask for a quote to insure your bike and what the agreed value would be. That way you have something to come back at them with if they offer you a lower amount.
  5. Hi all,

    Awesome info,
    will be speaking to the guys doing the quote about it.
    I think the bike is wrecked, damaged frame and swing arm,
    and would not want to see it patched up or just body filled and put back on the road, the car hit it hard. I would prefer to see it listed as a stat write off and not registered again.

    am planning on them paying for my gear,
    my helemt was not even 2 months old.
    They can pay for my work clothes that got cut off in hospital as well.

    Top idea, I will get a quote from RACQ, If they do bikes.

    Thanks heaps,