Higher risk bike…

[ncpierce]

I am in process of considering changing my 2021 C400 GT scooter for a new model as the finance is about to come to an end. I also have a R1250 GSA TE (2024) model which is my mine bike but they are on a multi bike policy through Cornmarket. Both bikes are kept in the same locked garage with no additional security declared and they are insured for Class 1 Business use with quite a small mileage limit (5k per bike).

So I phoned Cornmarket this morning for a conversation to see whether there would be a big change on the insurance for going from a 2021 scooter (current value £4k) to a new 2025 scooter, same model, but a value of £8750. Now whenever I have insured both bikes the R1250 has been the bigger risk and the insurance on the C400GT is inconsequential and costs virtually nothing.

I was surprised this morning when they said to even get insurers to quote I would need to put additional security on the scooter when garaged and also that it was now seen as the bigger risk bike and they would have to swap the two over on the policy. Does anyone really understand how the insurance market works? The upshot was that to make the changes for the remaining 11months on the policy it would cost around £100 so not a lot in the grand scheme of things but I would also need to buy an insurance approved lock for the Scooter.

Also, as BMW now undervalue my bike compared to my settlement figure I have negative equity if I do a p/ex. I have about 3months left on my finance agreement do you think I could do a Voluntary Termination and get rid of the negative equity or am I better to wait until the end of the finance deal and just hand it back and then start again…

 

[wessie]

Also, as BMW now undervalue my bike compared to my settlement figure I have negative equity if I do a p/ex. I have about 3months left on my finance agreement do you think I could do a Voluntary Termination and get rid of the negative equity or am I better to wait until the end of the finance deal and just hand it back and then start again…

why do you need to change the 2024 GS? Is it dirty or something?

have you compared the settlement figure to buying a similar bike? If you keep the bike for the 3 year warranty period the depreciation will even out as you always get a big hit in the first year.

if you cannot afford to buy the GS outright, take out a personal loan so you eventually get off the PCP merry go round. Then buy a Voge, Vstrom or V85 for cash.

 

[ncpierce]

why do you need to change the 2024 GS? Is it dirty or something?

have you compared the settlement figure to buying a similar bike? If you keep the bike for the 3 year warranty period the depreciation will even out as you always get a big hit in the first year.

if you cannot afford to buy the GS outright, take out a personal loan so you eventually get off the PCP merry go round. Then buy a Voge, Vstrom or V85 for cash.

No the one coming to the end of the finance deal is the 2021 C400GT which was bought when there was a 0% finance offer and that is the bike with negative equity and the one that I am looking to change. If it was worth what the settlement figure is I would just buy it and keep it as it suits my usage but there is no point paying more for it than it is realistically worth hence why I am looking to change.

The R1250GSA is on a PCP and that still has around 3years to run - at the end of that I might go Chinese or R12 G/S and buy outright but at the moment given my circumstances the PCP works for me. I’ll worry about that when the time comes.

 

[wessie]

No the one coming to the end of the finance deal is the 2021 C400GT which was bought when there was a 0% finance offer and that is the bike with negative equity and the one that I am looking to change. If it was worth what the settlement figure is I would just buy it and keep it as it suits my usage but there is no point paying more for it than it is realistically worth hence why I am looking to change.

my point about the retail value of the bike against the trade in price still stands, then there is the massive depreciation on the newer bike once you ride it out of the showroom. For me, the factors to put into the purchase rationalisation calculation are more complex than this negative equity you mention. Of course, for most people, the economic rationalisation is a smokescreen to try to cover up the reality of an irrational new bike syndrome

 

[karlp]

The lock is a one off purchase - I am surprised you do not have one anyway.

£100 extra for 11 months is not that bad since the value of the c400 is almost double

 

[steve hughes]

The lock is a one off purchase - I am surprised you do not have one anyway.

£100 extra for 11 months is not that bad since the value of the c400 is almost double

Agreed , my insurers made me do this for a new bicycle! I bought , so as you say , in the grand scheme of things its nothing, especially as £40-50 of that increase is an admin fee and you increase the cover on the newer eg kept for longer bike

 

[Wapping]

I suspect that the insurer’s requirement for additional or amended security, is triggered as much by the mid-term alteration requested by the OP, as anything else.

It is quite possible that, without the mid-term changing of vehicles, Cornhill might have requested amended security for the vehicles at renewal, even if the vehicles hadn’t changed.

What people innocently forget or wilfully ignore, is that an insurance policy is a contract, entered into by two parties, the insurer and the customer. The policy (the contract) lasts 365 days. If you, the customer, don’t change anything, then the insurer cannot alter its terms over the 12 month period. However, if the customer requests a mid-term alteration of any sort, then the insurer can request amended terms, too.

 

[wessie]

What people innocently forget or wilfully ignore, is that an insurance policy is a contract, entered into by two parties, the insurer and the customer. The policy (the contract) lasts 365 days. If you, the customer, don’t change anything, then the insurer cannot alter its terms over the 12 month period. However, if the customer requests a mid-term alteration of any sort, then the insurer can request amended terms, too.

indeed, I imagine it only needs a neighbour to mow down a row of nuns at a bus stop, so to speak, for your postcode to go from benign to well dodgy.

 

[Pukmeister]

Scooter insurance went nuts recently, Carole Nash would not insure me 18 months ago after five years of covering my old Tmax, the underwriters panel they used had decided to stop selling cover.

Long story short, I ended up phoning Hastings Direct who put me on a new multi bike policy via the phone call (their website wouldn’t cover me). You are probably best off ringing around for new cover.

 

[ncpierce]

indeed, I imagine it only needs a neighbour to mow down a row of nuns at a bus stop, so to speak, for your postcode to go from benign to well dodgy.

I am in a dodgy enough postcode as it is (CR5) so am paying a large premium (£1800ish) for the two bikes at the moment and that's with brick garage, full no claims etc... so I am guessing the Scooter is seen as more stealable when compared to the GSA.

Scooter insurance went nuts recently, Carole Nash would not insure me 18 months ago after five years of covering my old Tmax, the underwriters panel they used had decided to stop selling cover.

Long story short, I ended up phoning Hastings Direct who put me on a new multi bike policy via the phone call (their website wouldn’t cover me). You are probably best off ringing around for new cover.

That's what I am guessing, the existing policy was only renewed a month ago and I have stuck with Cornmarket as they are the cheapest that I can get. We even looked at splitting the bikes on to two policies but that did not come out cheaper.

I just need to speak to BMWFS to see if I can voluntarily terminate for no penalty to get rid of the negative equity....

 

[Davel]

So my twelve moth insurance for the one year old Rocket,with Bikesure,was about £380 and I rang them to change to my new F800GS - so much less power and value.

Fuck me they wanted £750 for twelve months.

Both fully comp, protected NCD, Tracker, Datatag and disc lock, stored overnight in a garage

I’ll shop around next year

 

[wessie]

So my twelve moth insurance

a bunch of hawks, certainly not poplar ones

 

[Wapping]

I’ll shop around next year

Put a note on the calendar. You’ll only forget otherwise.