Insurance Premiums

[Mutt]

*** NB - NOT to be construed as advise of any form, Relating of a personal experience ***

 

 

 

I moved Insurance Brokers about 2 years ago and at that time the broker advised i review the values on a regular basis. I did this yesterday and managed to get a reduction on my premium of about R200.00

 

 

 

It turns out that the Scott MC-40 which I was quoted R48 000, replacement cost last year, is now down to R26 000 this year. That alone saved me R75 odd a month! The balance of the saving is in my cars market value having deprciated.

 

 

 

I believe it was a good idea for me to review the value of my bikes because even if it is insured at R48 000 and I pay a relative premium you will only get either a replacement bike or cash to the value at the time of loss.

[Stain13]

Here is something you might appreciate. I participated in a Tri-Athlon series last year that was sponsored by a local insurance firm (I'm from Durbs). Seeing that they are actively involved in the sport I thought it suitable to give them a chance to quote on my insurance. Turns out that as a standard they insure your most expensive bike for free! So I got my bike insured for nothing and only pay for my wife's Scott Contessa which is valued at about R8000! BEst of all is my bike is even covered during event/ race participation which it wasn't previously. Oh and I got a discount on my total insurance premium as well.

Send me a pm if you want contact details - it's just too good not to share.

[Jackes]

Same thing as with your car, replacement value should be updated every year to get the saving

[Mutt]

Same thing as with your car' date=' replacement value should be updated every year to get the saving

 

[/quote']

 

 

 

I check my cars every 3 months or so as the value on most peoples cars are quite high and they depreciate fast.

 

 

 

My bikes are covered as specified items and even covered for event use as long as it is not professional competition

[Justin]

Just check the compition thing. I asked my insurance whether the 94.7 counts as a "non covered race" and the answer was yes. If you ride in an event where someone can win, it's a race and not covered.

[Wheelsuck]

Santam did the same with the depreciation without me having to call them. However my bikes were with Cyclesure and they charge 5% excess and 10% when it is theft or Hijacking-not much fun when u want to claim and find out that u cannot get the bike u had  got much better rates and Excess from Garrun Group.

[clivem]

Good advice is to check the policies and values and the insurer each year, just to keep them on their toes.  Also saved a bit of tin by doing this.  I asked for an annual rate which gives around a 10% discount too, but gotta have the boodle upfront for this!

[Stain13]

Hi Justin,

Remember that there's no rule that says that it must be like that for all insurers. If your insurance decides not to cover races that is their decision.

To me it makes no sense to have insurance that doesn't cover me in a race. If anything I'd say my risk of falling and damaging my bike is a lot greater when doing a race than when I'm just training. Obviously the insurers see it like this as well which is why they don't cover races. But then, I'm insuring for my own benefit -  not for the insurance company's benefit.

[SURFER]

How does it work?

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Let say I insured for replacement value, R40 000 (new) in 2008.   Two years (2010) later  bike is worth R20 000, but to replace similar bike in 2010 will be, let say R50 000.

 

What will the I get paid.   Current value of R20 000 or to replace, which means R50 000

 

[Stain13]

Surfer - how can you "replace" a 2008 model with a 2010 model? That's an upgrade. And insurance doesn't pay for upgrades. The idea with insurance is to put you in the same position you were in before your loss/ damage occured.  So they will give you just enough to go and buy exactly what you had before at a market related price.

[Riccardo]

How does it work?

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Let say I insured for replacement value' date=' R40 000 (new) in 2008.   Two years (2010) later  bike is worth R20 000, but to replace similar bike in 2010 will be, let say R50 000.

 

What will the I get paid.   Current value of R20 000 or to replace, which means R50 000

 

[/quote']

 

Depending on the policy wording,there are 2 ways that yr clm can be settled.

 

1.In the event there is no average clause then you should be paid what you claimed,but not exceeding the sum insured.

 

2.If there is an average clause and the bike is covered for R20 000 but the new replacement value is R40 000,following a partial claim you will then receive 50% of the loss.It is important to note that average should NOT apply following a total loss.So if the replacement cost is R40 000 but you are insured for R20 000,you will then get the R20 000.

 

All policies are subject to replacement value conditions irrespective of the age of the bike.

 

In my opinion one should be cautious insuring with a company not specialising in bicycle insurance,try to explain a potential problem to a person who knows nothing or very little about bicycles.

 

Riccardo

[Riccardo]

Surfer - how can you "replace" a 2008 model with a 2010 model? That's an upgrade. And insurance doesn't pay for upgrades. The idea with insurance is to put you in the same position you were in before your loss/ damage occured.  So they will give you just enough to go and buy exactly what you had before at a market related price.

 

I disagree with you there,please note that I have been in short term insurance for 26years(for my sins)20 years as an independant insurance assessor and handled many losses for bicycles.Insurers accept that there will be an improvement between a 2008 and 2010.Should the latter be a fair replacement of the former then that is what you will get.The same principal works on computer losses,a pc 6 months old is outdated,but the insurer will supply you with the current replacement.

 

However should there be a huge difference between what you had and what the current replacement is then any insurer will look at betterment and ask for some form of contribution.

[AndreZA]

Surfer - how can you "replace" a 2008 model with a 2010 model? That's an upgrade. And insurance doesn't pay for upgrades. The idea with insurance is to put you in the same position you were in before your loss/ damage occured.? So they will give you just enough to go and buy exactly what you had before at a market related price.

 

 

 

That is not correct. How and where will you buy a old bike with old parts? That is why you insure it fro replacement value. This is bike specific insurance and that is why the premiums are higher then car premiums.

[kevind]

Try Alexander Forbes.... have had no problems with claims at all

[Wheelsuck]

Also remember the excess like with Cyclesure: Standard excess is 5%+if it is theft/hijacking, which means 15%, you have to buy a bike from that money, try replacing your bike after they have knocked off 15%

[Wheelsuck]

Sorry meant 5% excess and 10% for theft and Hijacking.