Advice needed For Post Bike Sale

[Arrie]

Send specs of bike along with proof of ownership to LBS. Get quote for replacement if lost or irreparable damaged.

Send to insurance and pay premium accordingly.

What am I missing here?

Exactly, im also not sure what I am missing. That's the exact procedure requested from my insurance.

[Rock Guy]

So you want to pay 10, insure for 100, pay the premium and then claim 100. Personally, I don’t agree with this, but each to his own. Insurance is there to protect your risk, not upgrade your lifestyle. Pay 10, insure for 10, bike lost, you get 10 minus your excess and go buy another bike.

Yup, totally agree. Insurance will however often dodge paying out on a claim based on some fine print. I highly recommend clarifying this with your broker, preferably over email so you have a record for when the paw paw hits the fan. My broker always tells me to have some kind of proof of payment on record in case I need to claim.

 

You could also ask your LBS to to do a valuation on your bike. even if you pay a small fee for this it will help to justify why you insured your bike for the amount you specified. In my experience you may need to politely remind them a few times to do this for you as it's obviously not a priority to them (I'm sure they would much rather be fixing and selling bikes).

 

(Also Santam is legit)

[cadenceblur]

That's what I did. Have evaluation from bike shop.

[porqui]

To OP 

 

Contact this lady    http://www.wendyknowler.co.za/  

 

Ask her how to go about applying the Consumer Protection Act.

 

She is a hound dog - knows her stuff and is feared by many.

[Captain Fastbastard Mayhem]

Let’s say you buy a TCR 2010 model on the hub for 15K. You phone for insurance and get told go for a replacement Quote. Giant tells you they only have 2020 and 2021 TCR and give you a 60K quote. Now, you contact your insurance and insure you 15K bike for 60K, all is well.

Correct up to this point. Insure your bike for the amount it will cost, for the new replacement model. It's covered under home contents, which is the same way (you insure a product, regardless of its value, for the amount you'd need to replace it with the currently and widely available new model of that item)

 

Motor vehicles are different.

 

If you insure for UNDER the retail replacement value, then you'll have problems unless you have a contract / policy with one of the larger insurers that don't "average" claims, unless there's a full loss.

 

Averaging example:

 

You buy your TCR for 15k

The wheels are worth (new) 20k

You insure it for 15k

It costs 60k to replace with the current model

 

You break your wheels (or Rd, shifter etc etc)

 

Wheel replacement claim is 15k. But bike is insured at 25% of replacement cost

 

So wheel claim = 20k x 25% = 5000 paid, minus excess.

[Skylark]

I'd do a lot of things but buying a R60k 2hnd bike sight unseen relying solely on the integrity of the seller in terms of the condition is not one of them.

[TNT1]

Correct up to this point. Insure your bike for the amount it will cost, for the new replacement model. It's covered under home contents, which is the same way (you insure a product, regardless of its value, for the amount you'd need to replace it with the currently and widely available new model of that item)

 

Motor vehicles are different.

 

If you insure for UNDER the retail replacement value, then you'll have problems unless you have a contract / policy with one of the larger insurers that don't "average" claims, unless there's a full loss.

 

Averaging example:

 

You buy your TCR for 15k

The wheels are worth (new) 20k

You insure it for 15k

It costs 60k to replace with the current model

 

You break your wheels (or Rd, shifter etc etc)

 

Wheel replacement claim is 15k. But bike is insured at 25% of replacement cost

 

So wheel claim = 20k x 25% = 5000 paid, minus excess.

Which works out fine if you want to replace the 20 year old R20k wheels with second hand ones for 5k, right?

[Captain Fastbastard Mayhem]

Which works out fine if you want to replace the 20 year old R20k wheels with second hand ones for 5k, right?

Yup. 

[AdamA]

I'd do a lot of things but buying a R60k 2hnd bike anything 2nd hand over R10k sight unseen relying solely on the integrity of the seller in terms of the condition is not one of them.

 

fixed

 

A couple of years ago there was a bargain on 2nd hand Giant Trance in Cape Town, I was preparing to fly to Cape Town, check and inspect the bike and fly back the same day (with the bike). 

 

my logic was 

• The R3500 return plane ticket the price of the bike was still a bargain
• Loosing R3500 doing a due diligence was better than buying something that wasn't what I expected.

The bike was sold before I booked the plane ticket.

[ABrooks]

Correct up to this point. Insure your bike for the amount it will cost, for the new replacement model. It's covered under home contents, which is the same way (you insure a product, regardless of its value, for the amount you'd need to replace it with the currently and widely available new model of that item)

 

Motor vehicles are different.

 

If you insure for UNDER the retail replacement value, then you'll have problems unless you have a contract / policy with one of the larger insurers that don't "average" claims, unless there's a full loss.

 

Averaging example:

 

You buy your TCR for 15k

The wheels are worth (new) 20k

You insure it for 15k

It costs 60k to replace with the current model

 

You break your wheels (or Rd, shifter etc etc)

 

Wheel replacement claim is 15k. But bike is insured at 25% of replacement cost

 

So wheel claim = 20k x 25% = 5000 paid, minus excess.

 

Lets say you by the TCR for R8k second hand, but new it is worth R15k. Do you insure for R8k or R15k?

[Captain Fastbastard Mayhem]

Lets say you by the TCR for R8k second hand, but new it is worth R15k. Do you insure for R8k or R15k?

Always the cost of the bike at the normal retail price.

 

15k

Edited January 28, 2021 by Captain Fastbastard Mayhem

[lechatnoir]

Always the cost of the bike at the normal retail price.

 

15k

 

And the insurer will set premiums for a 15k replacement. Pick n Pay... pretty simple really...

[Pure Savage]

 

Edited January 28, 2021 by Pure Savage

[Rockjock]

Legal obligation aside...Bikehub is a trading plaform and community for all cyclists. Theres a certain amount of trust involved when we trade between each other. That should be protected no matter what...seller knowingly selling faulty goods should be erradicated from our community...plain and simple

[Shebeen]

OP: hey guys, i bought a bike from a hubber with a good rating, and it wen south, what is the right thing to do?

bikehub: here's some insurance advice

[eddy]

Lets say you by the TCR for R8k second hand, but new it is worth R15k. Do you insure for R8k or R15k?

Speak to your ******* broker