Bike Insurance Premiums going through the Roof

[Pure Savage]

  On 12/12/2018 at 1:40 PM, Chingy182 said:

My only remaining thought is that bike-related claims due to theft,etc. and the general cost of bicycles have caught up to insurance companies.

 

This is most likely our new reality

I think the profile of a cyclist has changed, as more people actually start using their insured bikes the profile changes. I think in the past insurance companies insured bikes that sat in garages for years with little claims. Now more people actually using bikes the risk profile has changed. 

 

I now use my bike daily, much higher chance of a claim to when I was using it on Saturday only. 

[Mountain_Goat]

  On 12/12/2018 at 11:19 AM, Chingy182 said:

Has anyone tried registering an additional bike with their Insurance lately?

 

I have my first bike Insured for R70 000 at about R200p.m

second bike insured for R20 000 at about R100p.m

 

Requested a third bike added to the premium yesterday for R30 000 and I was given a quote of R320p.m

 

I immediately query this and the lady tells me that they have gone through the process of re-evaluating their premiums on bicycles and since my other 2 bikes were insured before the change in Risk classification, or whatever, their premiums remain the same. But now any additional bike gets slapped with a hefty fee.

 

Or is this simply just a case of insurance companies waking up and catching up to the amount of bikes being stolen?

I think the increase in insurance premiums for bicycles can be due to all the fraudulent and false claims.

 

At the beginning of this year I had a minor fall where a few mechanical parts were damaged and had to be replaced which came to a couple of grand.

 

After lodging the claim, apparently the insurance company phoned my broker to ask 'If there is really a bicycle involved and should they approve the claim'

[droo]

  On 12/12/2018 at 11:34 AM, Christofison said:

Yass, I was quoted R650/month for a R50k bike. I told them to get lost and moved my car insurance to King Price + R1 for the bike. The crazy thing is that my premiums for both car + bike together are now cheaper than the car alone was at the previous company.

 

Anyone is welcome to DM me their number if they're interested and I'll get the most helpful rep. to give you a call. If you decide to sign up I get a lekker kickback.

 

You tried claiming yet?

 

  On 12/12/2018 at 11:44 AM, Dieter ( ͡° ͜ʖ ͡°) said:

Where do I get these people? 

 

Is it the old adage of you must find the good ones as the bad ones will find you? 

 

My insurance guy is a family friend, so I really have no idea.

 

My bean counter (who has so far saved me about 20x what I've paid him) was a recommendation from a riding buddy.

[Chingy182]

  On 12/12/2018 at 2:25 PM, Mountain_Goat said:

I think the increase in insurance premiums for bicycles can be due to all the fraudulent and false claims.

 

At the beginning of this year I had a minor fall where a few mechanical parts were damaged and had to be replaced which came to a couple of grand.

 

After lodging the claim, apparently the insurance company phoned my broker to ask 'If there is really a bicycle involved and should they approve the claim'

I'm sure there are a few fraudulent claims, but just a quick scroll down the Stolen Bikes section and the reality of bike jacking also becomes apparent.

 

I'd like to think real claims FAR outweigh the fraudulent ones.

[Dirkitech]

  On 12/12/2018 at 11:19 AM, Chingy182 said:

Has anyone tried registering an additional bike with their Insurance lately?

 

I have my first bike Insured for R70 000 at about R200p.m

second bike insured for R20 000 at about R100p.m

 

Requested a third bike added to the premium yesterday for R30 000 and I was given a quote of R320p.m

 

I immediately query this and the lady tells me that they have gone through the process of re-evaluating their premiums on bicycles and since my other 2 bikes were insured before the change in Risk classification, or whatever, their premiums remain the same. But now any additional bike gets slapped with a hefty fee.

 

Or is this simply just a case of insurance companies waking up and catching up to the amount of bikes being stolen?

How long ago was the 2nd bike added Chingy?

I added my 2nd bike about 4 months ago, around the same value and premium as your 2nd one. BUT this was only after I received a high premium and queried it as well. Maybe a 2rd/3rd/4th query until they bite, if they bite?

R320 for R30k sounds like nonsense - my motorbike is around R350 for R70k so no way that premium gives good value. 

i see people already mentioned brokers, but I haven't noticed whether you're going through a broker?

[PingPong]

  On 12/12/2018 at 4:36 PM, Chingy182 said:

I'm sure there are a few fraudulent claims, but just a quick scroll down the Stolen Bikes section and the reality of bike jacking also becomes apparent.

 

I'd like to think real claims FAR outweigh the fraudulent ones.

Don't be so sure, I have been witness to many a brag session around a braaiing and a coffee shop of how they pulled one over their insurance company to get the new upgraded bike. And then the insurance company makes the mistake of letting them buy the 'damaged' bike for next to nothing which his kid now rides. But hey Karma is a bitch I say and you will loose your teath on a lekker down hill run on that new insurance upgrade. For the rest of us we must maar pay up to cover all the dodgey claims

[keithbe]

Right on the money comment!!!

 

  On 12/12/2018 at 5:22 PM, GrantHardTail said:

Don't be so sure, I have been witness to many a brag session around a braaiing and a coffee shop of how they pulled one over their insurance company to get the new upgraded bike. And then the insurance company makes the mistake of letting them buy the 'damaged' bike for next to nothing which his kid now rides. But hey Karma is a bitch I say and you will loose your teath on a lekker down hill run on that new insurance upgrade. For the rest of us we must maar pay up to cover all the dodgey claims

[M Hickley]

  On 12/12/2018 at 11:19 AM, Chingy182 said:

Has anyone tried registering an additional bike with their Insurance lately?

 

I have my first bike Insured for R70 000 at about R200p.m

second bike insured for R20 000 at about R100p.m

 

Requested a third bike added to the premium yesterday for R30 000 and I was given a quote of R320p.m

 

I immediately query this and the lady tells me that they have gone through the process of re-evaluating their premiums on bicycles and since my other 2 bikes were insured before the change in Risk classification, or whatever, their premiums remain the same. But now any additional bike gets slapped with a hefty fee.

 

Or is this simply just a case of insurance companies waking up and catching up to the amount of bikes being stolen?

The opposite happened to me. Added a second bike at the same value as the first. Second one is less than half of the first.

[Butterbean]

Went with a broker after patch gave some advice here..

 

So happy with all the bikes insured there and never had an issue on premiums or claims... Hell, he saves me money every time I add another item.

 

And his first quote for more cover was cheaper than my last cheapest premium with King Price...

[ChrisF]

  On 12/12/2018 at 11:32 AM, Bloukrans said:

I'm waiting for Patch to tell you the following:

 

"Get a broker"

 

Take that advice

 

my broker got me R54k insurance for R150 per month, few weeks ago.

[Grease_Monkey]

Added a second bike today. My premiums have gone up a bit since I claimed for a cracked carbon frame earlier this year.

 

Bike 1 insured @R540/month

Bike 2 insured @R240/month

 

It's rough, but I will happily pay as I have been paid out more from Cyclesure than I have paid them. And to be honest, both of my claims (1 component claim, 1 cracked frame claim) have gone through without a hitch.

 

My experience with insurance in general is that going for the cheapest option is not always the best. Cyclesure is expensive, but when sh!t happens, I'm not stressed about what the outcome will be.

[Patchelicious]

  On 12/12/2018 at 5:22 PM, GrantHardTail said:

Don't be so sure, I have been witness to many a brag session around a braaiing and a coffee shop of how they pulled one over their insurance company to get the new upgraded bike. And then the insurance company makes the mistake of letting them buy the 'damaged' bike for next to nothing which his kid now rides. But hey Karma is a bitch I say and you will loose your teath on a lekker down hill run on that new insurance upgrade. For the rest of us we must maar pay up to cover all the dodgey claims

Defrauding insurance companies is not a victimless crime. WE end up paying for it.

[Mental Mamba]

  On 12/12/2018 at 5:22 PM, GrantHardTail said:

Don't be so sure, I have been witness to many a brag session around a braaiing and a coffee shop of how they pulled one over their insurance company to get the new upgraded bike. And then the insurance company makes the mistake of letting them buy the 'damaged' bike for next to nothing which his kid now rides. But hey Karma is a bitch I say and you will loose your teath on a lekker down hill run on that new insurance upgrade. For the rest of us we must maar pay up to cover all the dodgey claims

Agreed .......had my bike and everything else stolen recently off a hijacked courier truck, put in the claim and started replacing the old bike way before insurance paid out. 

 

Do I want my old bike back as I know that it will lay in the recovered stores and then sold for almost free. So why not offer them a buy back and at least get my old bike back, but but but, what to do with the old bike...ride it and race the other...pay the additional insurance as I now have to insure both the bikes.....

 

what I can say is....BROKERS are not all bells and whistles.......read your policy, understand the contents and how it should be specified under the portable possessions....got a new broker after the claim as there was about 90k difference in pay out, not because of being under insured, but because of the specifications or lack thereof or wrong underwriting due to broker error. Although not challenged, not because of a weak case, but rather energy related.....new broker looks at policy and immediately informs me that it needed to change, this change however means an additional

R 900-00 in premiums and from 2019 it will be  R 1500-00 additional.

 

Studied the policy in detail and realised that if you make a calculated risk decision and screwing the insurance company is not YOUR reasons for insurance but rather to be covered in the WHAT IF event you will find yourself being the one feeling screwed. Shortened version, informed new broker to make certain changes to my policy and decided to self insure certain items, so if nothing happens in the next 12 months, which I believe will be the case, I would have saved an amount = to my highest item excluding Bike. There after I will place that premium into long term saving for retirement.  DON'T know if it is the right decision but rather that than being uninformed.

[Tabula Rasa]

  On 12/12/2018 at 2:05 PM, Spoke101 said:

Haha, I'm paying just north of 2k a month for 2 bikes and some accessories with steep excess percentages but I can't take the risk of not insuring when racing competitively and they are the only ones who will insure for replacement value and they have been good to me in the passed.

That's a lot of money.

[Spoke101]

  On 12/13/2018 at 5:01 AM, Tabula Rasa said:

That's a lot of money.

yea but 305k worth of all risks cover including racing and international. Not to bad if you ask me.

[Chingy182]

  On 12/12/2018 at 5:19 PM, Dirkitech said:

How long ago was the 2nd bike added Chingy?

I added my 2nd bike about 4 months ago, around the same value and premium as your 2nd one. BUT this was only after I received a high premium and queried it as well. Maybe a 2rd/3rd/4th query until they bite, if they bite?

R320 for R30k sounds like nonsense - my motorbike is around R350 for R70k so no way that premium gives good value. 

i see people already mentioned brokers, but I haven't noticed whether you're going through a broker?

My primary bike was added a year ago and added the second bike shortly thereafter.

I don't make use of a broker currently.

 

Agreed, the R320 premium on R30k bike came as quite a shock and in comparison is quite ridiculous. I'm waiting for feedback and to see if they can improve the price for me.