To insure, or not to insure...

[CAAD4]

Get quotes. I pay far less than that on a R30k bike.

Who are you with Pusher?

[Lamber]

With whom are you?

 

I pay R280 on a R50k bike, so R100 on R20k not bad I thinks

 

I'm with Santam. I'd like to keep all my stuff under one umbrella - so to speak

[Prozac]

To insure, or to insure...

 

Rather safe than sorry.

[chris_w_65]

Try Alexander Forbes for all your insurance. Pm me and I will give you the brokers details.

[Pusher]

With whom are you?

 

I pay R280 on a R50k bike, so R100 on R20k not bad I thinks

Alexander Forbes.

[NielC]

Howzit, I've insured with Outsurance and pay R320 a month. I've just had my rear suspension stay replaced after it broke. The excess was R650 for a R10k stay (been on bicycle insurance for a year) and I am VERY glad I have insurance.

[BenDL]

There is no magic to insurance. There is no money generated out of thin air. All premium go into one big pot. After all admin fees, salaries, etc. claims get paid. If there are more claims than premium, then premiums go up. In short, the insurer NEVER makes a loss. (In fact...)

 

So, over a lifetime, who pays the claims & the admin costs? YOU.

 

If you are at a higher risk than the average of the pool you contribute to (i.e. other folk who pay into the same insurance pot) - then it may make sense to insure (over your lifetime).

 

But if you are a "responsible person" & thus lower than average risk, then over your lifetime you will end up helping the bad risk, plus pay the profits of the insurance co.

 

My opinion?

Self insure from day 1 (when you start to earn your own money)

 

Only way to make money out of insurance co's is to buy their shares.

[Christopher Brunsdon]

There is no magic to insurance. There is no money generated out of thin air. All premium go into one big pot. After all admin fees, salaries, etc. claims get paid. If there are more claims than premium, then premiums go up. In short, the insurer NEVER makes a loss. (In fact...)

 

So, over a lifetime, who pays the claims & the admin costs? YOU.

 

If you are at a higher risk than the average of the pool you contribute to (i.e. other folk who pay into the same insurance pot) - then it may make sense to insure (over your lifetime).

 

But if you are a "responsible person" & thus lower than average risk, then over your lifetime you will end up helping the bad risk, plus pay the profits of the insurance co.

 

My opinion?

Self insure from day 1 (when you start to earn your own money)

 

Only way to make money out of insurance co's is to buy their shares.

 

I will have to disagree here with you 100%. Biggest misunderstand insurance is what its all about, its about insuring a risk that cannot be predicted.

 

Insurance (medical, life, tangible goods, etc) is like tax. Yes, some people see more of its value than others but it has a positive affect on our lives when we are in the pool.

 

You cannot insure yourself from the beginning as how will you be able to replace your R200K car if your just starting out? Are you going to match the value of your goods with that money in the bank?

[Thug]

A question I asked my broker....

 

If I have say 4 bikes, why can I not have a blanket cover for the one I'm riding at that particular point. I can't ride 4 at once, so the other 3 remain at home and get covered under householders. Why do I need to comprehensively cover all 4 ?

 

Answer......... Good point but thats not the way insurance works.....

[dirtrider]

There is no magic to insurance. There is no money generated out of thin air. All premium go into one big pot. After all admin fees, salaries, etc. claims get paid. If there are more claims than premium, then premiums go up. In short, the insurer NEVER makes a loss. (In fact...)

 

So, over a lifetime, who pays the claims & the admin costs? YOU.

 

If you are at a higher risk than the average of the pool you contribute to (i.e. other folk who pay into the same insurance pot) - then it may make sense to insure (over your lifetime).

 

But if you are a "responsible person" & thus lower than average risk, then over your lifetime you will end up helping the bad risk, plus pay the profits of the insurance co.

 

My opinion?

Self insure from day 1 (when you start to earn your own money)

 

100 % in agreement !!! Only problem is that I use my "insurance money " to buy booze . So if one day all my bikes do disappear I will be fooked I suppose . Sheeets happens .

 

Only way to make money out of insurance co's is to buy their shares.

[tombeej]

Ditto to the point someone made earlier about specifying everything, even components you've bought separately.

 

Everything of value to me, from bikes to cell phones, GPS units, Oakley sunglasses, fishing skis, fishing reels, whatever - I specify them in my insurance policy with the serial number (if applic.), replacement cost, scanned copy of the invoice (emailed to the insurer), etc.

 

That way I know I'm not going to get any stories from the insurer when it comes time to claim for lost/stolen equipment.

[Grebel]

Don't be the guy that says: "If only I had..." or "It'll never happen to me!" Pay the R100 and be done. I had a bike stolen from my driveway and it was insured. Best thing I did! Checked with my broker and my R20k bike (including all accessories including Garmin etc) costs me +/- R100/month. It is NOT coverred for racing or any professional activity, but it is comprehensively insured which covers all damage (I checked!), loss etc.

[Grebel]

Ditto to the point someone made earlier about specifying everything, even components you've bought separately.

 

Everything of value to me, from bikes to cell phones, GPS units, Oakley sunglasses, fishing skis, fishing reels, whatever - I specify them in my insurance policy with the serial number (if applic.), replacement cost, scanned copy of the invoice (emailed to the insurer), etc.

 

That way I know I'm not going to get any stories from the insurer when it comes time to claim for lost/stolen equipment.

 

+100!! Get all the proof of ownership stuff on file now. When the time comes to claim, the process is much faster and it adds credibility to your claim because the insurance have had your details on file for a while. Having said that, as long as you can prove ownership there shouldn't be any problems!

[Slowbee]

So, to add another thing!

 

The bike is worth R20k. You pay R100 a month to insure it.

 

If you have a home loan, and you pay that R100 into the home loan its going to take you a very long time to pay back the 20k. (16 yrs or there about without taking interest into account).

 

Now, this helps pay back your home loan. However, should you need to take the 20K out to replace the bike, then you need to pay back R200 a month (10% interest).

 

So the question comes back to what has been asked before ........ what is your appetitite for risk i.e how much beer money do you want ?*

 

*mathematical calculations are examples only and are very likely to have HUGE errors, and they are thus not quotable.

[Christopher Brunsdon]

Ditto to the point someone made earlier about specifying everything, even components you've bought separately.

 

Everything of value to me, from bikes to cell phones, GPS units, Oakley sunglasses, fishing skis, fishing reels, whatever - I specify them in my insurance policy with the serial number (if applic.), replacement cost, scanned copy of the invoice (emailed to the insurer), etc.

 

That way I know I'm not going to get any stories from the insurer when it comes time to claim for lost/stolen equipment.

 

Thanks for the advice. My insurance starts in May for my bike (still need to finalize it). Must say it was great to work through a broker, my wife (who pays the insurance) is now getting her business, the car, the bike and the household insured for less than what her existing business and car insurance costs.

 

And the broker pointed out that she was under-insured for her business, it was cover we "thought" we had but did not.

[Christopher Brunsdon]

So, to add another thing!

 

The bike is worth R20k. You pay R100 a month to insure it.

 

If you have a home loan, and you pay that R100 into the home loan its going to take you a very long time to pay back the 20k. (16 yrs or there about without taking interest into account).

 

Now, this helps pay back your home loan. However, should you need to take the 20K out to replace the bike, then you need to pay back R200 a month (10% interest).

 

So the question comes back to what has been asked before ........ what is your appetitite for risk i.e how much beer money do you want ?*

 

*mathematical calculations are examples only and are very likely to have HUGE errors, and they are thus not quotable.

 

Good point but considering that a bike does not last the length of the bond but I would say 4yrs max for most guys. So your insurance would be R4800 vs paying off roughly R8K of that R20K through your bond.

 

That now gave me a brain fart, should we now approach the purchase of our bikes with the thought of adding in our insurance. So your new R20K bike that will last 4yrs is actually costing your R25K and should it be removed from your possession during this time, you will have it replace with a new R20K bike and allowing you to reset the purchase cycle.