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Insurance when selling a bike?

Discussion in 'General Motorcycling Discussion' started by CodeBlueChick, Mar 2, 2005.

  1. Just posting this question for a girl at work who is selling her/her partners bike due to a bundle of joy (or something like that!) on the way.. She was just curious.. what happens with insuring the bike for someone test riding it? What happens if they drop it and how do you enforce that they pay if they do? Obviously a valid and non restricted bike license would be mandatory..are there any tips from those who have sold their bikes? :)

  2. Yeah,dont let people ride your bike. :D Most insurance(full comp) will cover an anonymous driver/rider as long as you pay an exorbitant excess.Mines $1500 excess for someone else riding the bike.How do make them pay? Good luck. :D The best thing to do is offer to take them for a spin on it,never let someone just ride off on your bike cos chances are you'll never see it again. :(
  3. When I was shopping for the Across a year or so ago, sellers held my car license while I was out testing the bike. This way they had legal ID with my full name and address on it. One seller, noting that I was having trouble putting my helment on, noted "If you drop the bike, it's yours, ok?".

    I think sellers just trust that the buyer will come through with the cash if they drop it while riding. I know that, as a buyer, I would pay for a bike (or for the repair costs) if I dropped it while testing it.

    I somehow doubt, however, that a verbal agreement would stand up in court if the buyer refused to pay up.
  4. ask for the asking amount in cash up front, before riding is always the safest way, some people say they will leave there car keys etc, but the car could of been stolen, which is known to happen before. If they crash it, they bought it. ALso leave a small amount of fuel in the tank, ie leave it on reserve so if they do try and nick, they wont get far. Oh btw hiya CBC :) you should come over for a bbq on a sunday evening that u dont have to work..
  5. For most(all?) the motorcycle policies it works like this...

    1. If you have a named rider policy, your screwed and can't claim. You'd have to negotiate payment for repairs between you and the test rider.

    2. If you don't have a named rider specific policy, then you are covered. Some insurance companies add on an additional excess (eg. Swann adds $500) to your normal excess, others just apply additional excesses if applicable (eg. inexperienced excess, and < 25yo excess at WesternQBE). In all circumstances it's treated as an at-fault claim, so you loose on rating too as well as being left to negotiated between you and the test rider to pay the excess amount. You aren't covered at all if they thief the bike and don't return, because you allowed them to ride the bike.

    If the situation of a crash when a test rider was going around the block were to happen, I've heard of someone :wink: who stated that the bike was parked on the roadway and was knocked over by another person with full name and licence details given. That way it's a not-at-fault claim, but the other person would have to accept full liability and you'd have to hope they do.

    Essentially, it's just not worth it to allow them to test ride unless say you take cash up-front for the amount of the excess that would apply, but then your still left with a lowered rating, a policy claim, and not being able to sell it until you get it repaired. Either that or you negotiate with teh test rider for them to repair it and not go through insurance .. still left with the hassle and negotiation and not being able to sell it until it's repaired.

    Ultimately, it's a trust and risk thing. Do you trust the person to take it easy and not crash, or do you take the risk of perhaps not selling it if the person can't even test ride it.

    In the past when I've sold car or bike, I've always taken the person keys AND license whilst they were test riding/driving.