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N/A | National Tips from an Insurance Claims Consultant

Discussion in 'Politics, Laws, Government & Insurance' started by Twisties92, Dec 31, 2014.

  1. Hi Guys,

    My name is Jon and I work for ..lets say a "big insurance company" that holds customers all across Australia. My daily job consists of theft claims all the way to hail damage claims and I can assure you that theres never a dull moment.

    A few things I have noticed when I deal with claim denials, refusals or cancellations is that customer's are never informed enough at the time of buying a policy. So I wanted to give the newbie's some tips when it comes to picking a policy but I also wanted to throw in some tips for the veteran's.

    Tip #1 - Always read your PDS
    Many customers have claims denied because they didn't know they weren't covered for certain events. A famous example I deal with almost every day is "I left my riding gear on my motorcycle now its missing". Unless your PDS clearly states that your riding gear is covered for theft then you need to keep your gear under lock and key! Or attempt to insure it under your home contents policy (if you have one). If not then I advise you shop around to make sure your provider has your riding gear well protected.

    Tip #2 - Check what personal items are covered
    Many customers don't know if the stuff in their backpack is covered or even if the contents in the saddle bags are covered. For many insurance companies they won't cover whats INSIDE a backpack or saddle bag because the risk is far too great for them to calculate and to put into a premium adjustment. A common example I get is "so your telling me my prescription reading glasses in my harley bag isn't covered". Again it always pays to read your PDS.

    Tip #3 - No collision? Then you have an at fault claim
    Veterans of the forum that read this may be thinking "hey hold on a second, if someone pulls out in front of me and I drop my bike, how is that my fault". Let me explain, if a collision has not occurred between parties then it is very hard to recover costs off another party. For example "Car A reverses out of driveway and doesn't see motorcycle A until last second and hits the brakes. Motorcycle A who saw car failing to give way hits the brakes and drops the motorcycle causing damage. Because there was no collision as an insurance company we cannot prove who is more liable for the accident as Motorcycle A made a conscious decision to drop their motorcycle and Car A reversed and didn't see the motorcycle. In this instance it would be a simple case of EBO (each bear their own costs associated). If you have comprehensive insurance then your excess would apply and we would fix your motorcycle. This points leads me to my final tip

    Tip #4 - Always have comprehensive insurance
    If your involved in the above situation which I'm sure many riders have been in before and you don't have comprehensive insurance then you can kiss your sweet earn't money goodbye because third party insurance will only cover the damage you cause to other party's property (car's, fences, you name it!). Comprehensive insurance can be expensive yes! But simply put, its better to have a back up option which is what comprehensive insurance gives you than no back up option which means your bike is stuck in the garage for the next 6 months as you work off to pay for it.

    I hope these tips have made your brain think! If you do have any insurance questions then I'm happy to help out as I'd rather know riders out there are protected and safe.

    **Please note I will not disclose who I work for and will not promote any particular company over another**

    Thank you.
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  2. Bullshit that my bike is stuck in the garage for six months just because I don't have comprehensive insurance. I have plenty of money in the bank to buy another one brand new

    I know the more insurance that people get the more likely that you have a job but don't post lies. .
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  3. Also you are probably in breach of the laws around recommendation of general advice. You can't possibly recommend that comprehensive insurance is always better for everyone without knowing their personal circumstances

    People please don't consider the above on its own but get advice suitable for your particular circumstances.
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  4. I think everything that is posted is correct and true and most of it common sense.... but people seem to still get caught out by the fine print.
  5. Great advice, Jon. Ignore the ignorant sour grapes, some people here have a chip on both shoulders. Anyone who has a vehicle should have comprehensive insurance: that's the start and finish of it. And if you can't afford to insure it you can't afford to ride or drive it.
  6. I'd agree, but if you have a bike of little value e.g. sub $1,000 3rd party/property is probably all that is required, for the possibility you are at fault in a collision and damage someones very expensive vehicle/property.
    • Agree Agree x 2
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  7. I think the other things to take into account when shopping for insurance is that cheaper is not always better.

    When comparing quotes you need to take into account what they cover, other things to think about are:
    - Reputation (are they known for dicking people about with claims)
    - Excess (cheap quotes might have massive excesses that aren't immediately obvious e.g. basic excess + age excess + experience excess + whatever else they have dreamed up
    - Choice of repairer (Read the fine print about what and how they will fix things, you might be disappointed when you get your bike back with cheap Chinese after market parts used.
    - New for Old (but be careful this often comes with a lot of caveats and often benefits the insurer rather than the owner)
    - Market value v's agree'd value
    - Hire car
    - Gear and personal property
    - Payout turn around times
    - When and when not excesses are payable
    - Are you covered for training and practice on closed circuits
    - Are your modifications covered
    - What voids the policy

    I will pay a higher premium for piece of mind in the fact that i can choose my repairer, only new OEM parts will be used, no excess to pay when not at fault, no claim discount protection, fast turn around and agree'd value. when you look at the fine print many of the smaller budget and "bike friendly" companies have some pretty nasty fine print.
  8. I wasn't out to offend anybody mate. If you have enough dough to cover your bike if its scratched up then good job! Trust me if people don't buy insurance then I'm still in a job so theres no benefit for me.
  9. I would argue that for anything less than $5000 there is little value in comprehensive insurance particularly if you are under 25 as a lot of newer riders are.

    My bike for example was purchased for around $3500. The best quote I could get was around $1000 as I bare the dreaded p plate. Add to this an excess in the vicinity of another $1000 and we are already hitting the $2000+ mark.

    I prefer to absorb the risk myself and keep that money in my pocket. In the event of an accident though almost any crashed bike will have some resale value potentially adding to thousands if you have the time to part it out yourself.
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  10. End of the day as long as you weigh up what you need insurance for and your comfortable with your decision then I can probably speak on behalf of every insurance company to say "Yay!!".

    I would just hate for my mates on here to get caught out and end up in worse case scenario.
  11. I always suggest people get 3rd party property - at least then you're covered if you break a tail light on a Ferrari.
  12. That is a far better statement than "Always have comprehensive insurance......."
    • Agree Agree x 1
  13. What about 3rd party/property, if you tap someones rear fender or if you have an off and your bike slides into a Porsche, you could be up for some pretty hefty repair bills if you don't at least have insurance to cover such an event.

    EDIT: It pretty much got said while I was posting
  14. Jon,

    Thanks for the write up.

    Peresonally - I think it should be mandatory that all road users have 3rd party insurance. (Not TAC but damage). See too many people driving into houses and shops these days let alone other cars- the onus should not be on the victim. If you want to use the roads you should be in a position to ensure that you can cover any damage you may cause to others, period.

    As for full comprehensive - I don't really care. Each to their own. Provided you don't put anyone else out - one can do as they want from my point of view.

    As for your bit about non-collission - what happens to the policy? I understand that excess is paid, but do you lose your rating as well, even though it was 'the other drivers fault', or are insurance companies a little more giving there?
  15. Typically speaking it would be a non recoverable claim/at fault claim which would affect your rating. It does suck!
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  16. Forgot to mention that, it should go without saying but unfortunately it doesn't. I have had discussions with intelligent people who don't understand that a CTP greenslip in NSW is different from third party property insurance.

    I generally get third party fire and theft. I prefer to have my bike covered against theft than being in a constant state of paranoia. For me the extra hundred or so a year is good peace of mind. I suppose one could make the same argument for full comprehensive though.

    At the end of the day I think the best advice is do your research and choose the policy that suits you and your financial situation best. There is no such thing as the golden rule.
    • Like Like x 4
  17. VC, i don't pass comment on your postings - but you really are a Class A cock at times.
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  18. Which post are you not providing comment on just so we are all clear.


    I would rather be class a cock than give out selfish advice to benefit me rather than riders.
    • Dislike Dislike x 4
  19. Vertical CVertical C there's a time and a place and this ain't it.
    Please take it to another thread because this may actually turn into a useful thread (something that's been a bit lacking here of late).
    • Disagree Disagree x 1
  20. Ok Mod Edict.
    VC you made your point now stop defending it.
    The rest VC made his point, you made yours lets get back on topic.
    OP good sound advice but I will also offer a proviso that it should be at least 3rd party fire and theft as a bare minimum as premiums and excess for younger riders on cheap bikes is way overpriced.

    no more name calling pls.

    And happy new year ride safe everyone.