Insurance Valuation

[snerkler]

I've jsut been doing a big clear out of paperwork this morning and noticed that the insured sum of my bike stated on my insurance documents is only £12k, when I valued it at £13,500 (bearing in mind when I renewed my insurance it was November 2010). I've been doing some research to find out what my bike is currently worth to see if there's any point ringing the insurance company. Unfortunately there are no direct, or very close comparisons on the BMW website so am wondering if anyone has any input as to the current valuation of my bike please? Details of my bike:-

March 2010 R1200GS Adventure DOHC with 5500 miles.
Premium Pack
Dynamic Pack
ESA
BMW Alarm
BMW Adventure Panniers and Top Box
Pristine Condition.

 

[autogs]

12000? doesnt seem to bad to me,i dont think the innsurance valuation bears any resemlance to what you would be offered in the event of a claim though.if you looked at the for sale sec i would be surprised if you could sell it for 1200.

 

[snerkler]

12000? doesnt seem to bad to me,i dont think the innsurance valuation bears any resemlance to what you would be offered in the event of a claim though.if you looked at the for sale sec i would be surprised if you could sell it for 1200.

Thanks for your input. Surely an insurance valuation is based on what you can get a replacement for and not what you can sell it for?
And I would want an AU BMW, not a private purchase.

 

[littleredrooster]

Makes no difference unless it's a proper 'agreed value' policy. These are usually only offered for classic vehicles. You would be offered 'Market value' in the event of a claim.

 

[autogs]

Thanks for your input. Surely an insurance valuation is based on what you can get a replacement for and not what you can sell it for?
And I would want an AU BMW, not a private purchase.

yea that would be nice wouldnt it?

but as the tv ad says,it doesnt work like that,as mr rooster has confirmed.

 

[mrsroynie]

Frankly, its a scam by the insurance companies to ask you for the current market value of your bike/car when you take out the policy. Obviously you're going to give them the purchase price and they will charge you according to the (maximum) value you quote. But there is no need for insurance companies to do this, the underwriters know exactly what a vehicle's market value is based on age and mileage ... and that's the figure they'll pay out in the event of a claim.

For this reason, French insurers don't bother to ask.

 

[snerkler]

Makes no difference unless it's a proper 'agreed value' policy. These are usually only offered for classic vehicles. You would be offered 'Market value' in the event of a claim.

But if your estimate is less than Market value I would assume they would only pay up to what you estimated though?
What's the best way to find out Market value then, as looking at prices on biketrader, MCN etc won't be 'Market value'? With cars it's easy enough to get a valuation from glass's, but with bikes glass's falls short with options.

 

[DavidJames]

looking at prices on biketrader, MCN etc won't be 'Market value'?

Why not?

It shows the amount of money you'd need to buy a bike that is the same as yours

 

[autogs]

Why not?

It shows the amount of money you'd need to buy a bike that is the same as yours

hes right ya know.

 

[snerkler]

Why not?

It shows the amount of money you'd need to buy a bike that is the same as yours

Well I asked the question that surely your insurance value is that which you could find a replacement and I got the reply that it makes no difference as you only get back market value, suggesting that Market value is not the same as what it would cost to buy a replacement

Assuming then that market value is the price it would cost to replace your bike, could you argue with the insurers the Market value of approved BMW from a main dealer as I wouldn't be confident buying private?

 

[autogs]

ok,the insurance value is of no value to anyone,the market value,which i take to be the cost of replacement with a similar bike is all you will get unless you get a value agreed policy which has already been pointed out to you.
my only experience of claiming on an 06 1200 ended up with me being offered more than i paid for the bike 10mts earlier,i cant remember what value i gave them when i took out the policy.

 

[snerkler]

ok,the insurance value is of no value to anyone,the market value,which i take to be the cost of replacement with a similar bike is all you will get unless you get a value agreed policy which has already been pointed out to you.
my only experience of claiming on an 06 1200 ended up with me being offered more than i paid for the bike 10mts earlier,i cant remember what value i gave them when i took out the policy.

Ok thanks for the clarification. I always give the current Market value of cars/bikes (as have found very similar comparisons) so the insured value does reflect the Market value, at the time of policy renewal at least. Trouble is at this precise moment I can't find a similar comparison, only a 2011 Anniversary edition with 4k less on the clock

 

[JohnnyBoxer]

£12000.................maybe £11000, it lost the Vat already c £2500 from the invoice value and then you've used it

 

[autogs]

like jonny says in the real world of some one actually buying it i reckon a realistic figure of between 11000 11500.

 

[gwigglesworth]

What does the policy say?
Replacement bike provided or Cash handout?
If it's like for like replacement it does not matter too much...
A 2010 is worth less than a 2011 bike i.e. a new one...

 

[Rasher]

I don't worry too much as it may never happen that you need to claim, I do however estimate the value quite high, just in case they try to use the figure you gave them if it turns out below this magical "market value"

IF it does happen the thing to do is go through Bike Trader, MCN, E-Bay and around dealers and look at similar machines- age, mileage, value when new i.e. simialr option packs etc. - although many accessories are not covered by the insurance (panniers and such like may not be taken into the value)

Hopefully you have some pictures showing how mint it was, a complete service history and a list of prices for Approved bikes similar to yours, if the offer falls short you can use this "evidence" to chase their value up a bit.

In my experience (luckily quite limited) insurance claims are costly things, unless you can blame someone else and get back out of pocket expenses then expect to be down.

Best bet is to avoid crashing in the first place (or at least have someone you can sucessfully pin the blame on) and to avoid having a bike Stolen.

Any shortfall from Market value will probably pale into insignificance alongside excesses and increased premiums etc..

 

[JohnnyBoxer]

What does the policy say?
Replacement bike provided or Cash handout?
If it's like for like replacement it does not matter too much...
A 2010 is worth less than a 2011 bike i.e. a new one...

That would only be valid for a period of 6 months from date of 1st registration and only applicable to the 1st registered owner

So if his bike is registered before 8th Nov 2010.................it's Market Value that would apply

Back to the old chestnut..............£11000-£12000 tops

If you have GAP insurance you'd be ok

Buy a new bike, lose money if you sell it or crash it........................simples

 

[snerkler]

I don't worry too much as it may never happen that you need to claim, I do however estimate the value quite high, just in case they try to use the figure you gave them if it turns out below this magical "market value"

IF it does happen the thing to do is go through Bike Trader, MCN, E-Bay and around dealers and look at similar machines- age, mileage, value when new i.e. simialr option packs etc. - although many accessories are not covered by the insurance (panniers and such like may not be taken into the value)

Hopefully you have some pictures showing how mint it was, a complete service history and a list of prices for Approved bikes similar to yours, if the offer falls short you can use this "evidence" to chase their value up a bit.

In my experience (luckily quite limited) insurance claims are costly things, unless you can blame someone else and get back out of pocket expenses then expect to be down.

Best bet is to avoid crashing in the first place (or at least have someone you can sucessfully pin the blame on) and to avoid having a bike Stolen.

Any shortfall from Market value will probably pale into insignificance alongside excesses and increased premiums etc..

My question of course was hypothetical, I was just a bit concerned that the value was different to the one I'd given and didn't want it to be underestimated, but was obviously aware that the bike's 6 months older now than when I took the policy out. It appears that I'm well covered for the current market value so no need to worry
As for GAP I've never bothered on my bikes, although I've had it on my last 5 cars due to the value of the cars.

 

[snerkler]

Buy a new bike, lose money if you sell it or crash it........................simples

Buy a new bike and you lose money regardless (assuming it's not written off or nicked within 6 months, or you have GAP)

Out of interest are there any insurers that are better at giving a more realistic price on payout? I'm currently with BMW.

 

[JohnnyBoxer]

Buy a new bike and you lose money regardless (assuming it's not written off or nicked within 6 months, or you have GAP)

Out of interest are there any insurers that are better at giving a more realistic price on payout? I'm currently with BMW.

Pray tell.....................why are you so concerned thst your insurers won't give you a correct market price for your 2010 12GSA

Have you any evidence to the contrary?

I'm at a loss to see why you're worrying about a hypothetical situation

Have you declared your bike a total loss, in the last 7 days