Shortfall Insurance

[t2grr]

Well just over a week to go before I pick up my new Adventure.

I wonder if you guys have any advice. My dealer has offered me’shortfall’ insurance where if anything was to happen to the bike, and the insurance company offer me a low value, BM will fill the shortfall.

This cover costs about £250 for 3 years and on the face of it sounds like good value, (except I would be paying more money…..and as a Yorkshire man I am not to keen on that).

Have any of you guys been offered this, taken the cover, used the cover or have any comments about these schemes.
I find it annoying that after 1 day of ownership the insurance company would value my ‘new’ bike a lot less than what it was worth before my name was stamped on the V5.

Cheers GRR

 

[pragmatix]

We had it on our freelander, and a good job to freelander got stolen, was valued at 9250 by insurance but we still owed nearly 11000 on it so it paid for itself. good insurance as I see it and if I was ever buying on HP/loan again I would have it .

Pete A

 

[Ron Gibson]

re shortfall insurance

took it out when i bought my new adv last year, have'nt had to use it but friend in the trade said it was good value "just in case"
i took out the 4 year option. only cause it was avalable on 10 payments interest free. i was also quoted for 3 yrs with £58.18 deposit and 10 interest free payments of £17.45

 

[Jim McSharry]

Excellent time to raise this subject with all you lucky barstewards getting your new 1200's.

My story - quickly:

Came back to 'biking in '99 and bought the F650 @ £5,000.00

Shortfall Insurance also bought at about £100.00.

Within 12mths 'bike was written off in a crash - insurance offered me £3,500.00 (So much for residual value eh???).

Shortfall came in and settled the £1,500.00 difference so, got 12mths free m/cycling.

Now take it if I buy new motors ALWAYS.

Covers motor getting stolen or written off by the way.

Highly recommended boys and girls - if your dealer doesn't ask you make sure you ask him is my advice.

 

[Chris Hazard]

As someone who sells the product , I can say that of all the financial products that can be offered this is probably the best value for money.

You need to make sure that the Shortfall Insurance is a Return to Invoice product unless you are financing the purchase through Dealer finance, in which case Finance Settlement Shortfall would possibly be a better option.

The likelihood of a bike being written off is much greater than that of a car, but in your first year of ownership, your insurers would usually replace on a New for Old basis for a Brand New bike.

In the second or third year they would pay 'Market Value' for the bike which even on a GS would be at least a a couple of thousand pounds less than what you would have paid for it.

Some policies even cover your insurance excess so that your pocket doesn't get hit when you claim.

I've dealt with claims on cars and the minimum I have seen paid out was £2750 , the most being £13000.

£250 for three years cover (£83 per year) doesn't sound bad value when it can return you a few thousand quid in the event of your Pride and Joy being nicked by scum or mangled by myopic TinBox Twonks.

It's just like any insurance - Complete waste of money till you need it!

 

[AndyT]

Sounds good value

I've never heard of this before but it sounds great. Is it available for all motorcycles and insurance companies...!!!!!

regards

AndyT

 

[Chris Hazard]

Shortfall Insurance is usually only available at the time of purchase of the bike/car and is normally offered by the supplying dealer.

Some policies can be taken up within 30 days of invoice of the vehicle.

B*W Financial Services/B*W Insurance offers the product and some details are shown on the Motorrad UK website under Financial Sevices.

I'm not aware of any company offering Independent products outside of dealer purchases, but that's not to say that they don't exist.

Hope this helps

 

[The Stimulator]

If you run a Google search for Gap Insurance or Vehicle Shortfall Insurance or something similar it will bring up a few independent companies - one that I saw was Gap-UK.Co.Uk.

I'm just buying a new car so was looking into this type of insurance - as has already been said £250 -300 is a lot for insurance if you don't use it, but in my mind it's peanuts to pay if you do need to use it.

Iain L

 

[Shurv]

Part of my job ( I work for a finance company) is to teach sales people how to sell this stuff.
Really, this cover in my mind is a no brainer................you'd be daft not to take it out if you can buy it from your dealer. The problem is, not all dealers actually sell it/offer it, or even know about it. In the end, you makes yer choice and takes yer chances, it's the same as fully comp vs TPFT ,you get what you pay for.

It's better to have it and not need it, than need it and not have it...................
........cue cheesy music etc.........
The answer is in the comments from those who've had to make a claim on it......



Marcus

 

[t2grr]

Should anything happen and you are not able to ride again, do the shortfall insurance company, (in this case, BM) offer you a cheque, i would have thought it would only offer a voucher and you would take that and your insurance money back to BM for another bike?

GRR

 

[firestorm]

Recommendations ??

Hi,
Any recommendations for short fall insurance (UK), the companies I found only do cars ...

Cheers