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Insurance question

Fuzzbuster

Fuzzbuster

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I am looking at insurance for a bike and wondering what is the correct response for how much I paid for the bike. I am assuming that there is no listed value for the bike because it is older. Would it be wise to provide a lower number in the hopes of avoiding a possible appraisal and keeping rates lower. Or would it make sense to give a higher number in case of an accident. I don't really care about replacement value, I just want a low rate. This is all hypothetical of course!
 
Have you tried and TD online quote system? I believe you can specify the purchase price of the bike and see how that affect the outcome of policy cost.
 
oioioi said:
Have you tried and TD online quote system? I believe you can specify the purchase price of the bike and see how that affect the outcome of policy cost.
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I have tried the online forms in the past and always have to phone in because of the age and model of the bike. It is generally black listed. With my current company I know I can get the coverage, but I just need to provide the most sensible value for this situation. Again I am more concerned with the rate than Replacement cost. I just want to ride the frigging thing!
 
Just for trial purposes I just went through the quoting system for my current bike (DL 1050).
First pass was with a purchase price including tax was $1000. Second pass was $10,000, all other info remained the same and as accurate as possible. Total annual policy cost $1346 for both scenarios.

Maybe @Jay Alexander can chime in on how much the purchase price affect the total policy cost. Especially on older bikes.
 
The value of the bike shouldn't make much difference. But think of it this way...if your bike is written off, you claimed that it's worth 1k, when in reality it's worth 10k.

Guess which one you'll get, or have a hard time justifying the difference.

The bulk of the policy is the benefits to keep you alive and bring back to 'normal'.

If you bought the bike for 8k, I'd probably state it's worth 6-7k or so just to be on the safe side.

Did you try a broker? They can answer a question like that better than we can.
 
mimico_polak said:
The value of the bike shouldn't make much difference. But think of it this way...if your bike is written off, you claimed that it's worth 1k, when in reality it's worth 10k.

Guess which one you'll get, or have a hard time justifying the difference.

The bulk of the policy is the benefits to keep you alive and bring back to 'normal'.

If you bought the bike for 8k, I'd probably state it's worth 6-7k or so just to be on the safe side.

Did you try a broker? They can answer a question like that better than we can.
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i hear what you are saying! Problem is that I don't pay much and I increase the value. But I also don't want to say that theoretically it is worth $12k and then they want an appraisal. Not worth my time.
 
It really doesn’t affect your premium all that much. The key is, the value to replace it. Even if you say it’s worth $10k and it’s a total write off and they can find a road worthy replacement for $2k, that is all they will pay out anyways.
 
For anyone wondering, the bike is old so basically they have no way to value it except through an appraisal which can be done by a mechanic. I don't think it would have mattered what I said the value was or what I paid for it. They probably just note it on the file. Can not be covered for comprehensive without the appraisal. For me that works.
 
If the bike has little value, why bother getting anything other than liability? If it’s wrecked or stolen it really has no actual replacement value and a claim will just increase your future rates. You will barely get anything after the likely deductible. This approach also gets you a lower rate.

Personally, I purposely buy old beater cars and can usually sell them for the same or just slightly less then what I paid for them and never get anything other than liability.
 
Sukiyaki said:
If the bike has little value, why bother getting anything other than liability? If it’s wrecked or stolen it really has no actual replacement value and a claim will just increase your future rates. You will barely get anything after the likely deductible. This approach also gets you a lower rate.

Personally, I purposely buy old beater cars and can usually sell them for the same or just slightly less then what I paid for them and never get anything other than liability.
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Do you need the car to get to work?
 
Sukiyaki said:
If the bike has little value, why bother getting anything other than liability? If it’s wrecked or stolen it really has no actual replacement value and a claim will just increase your future rates. You will barely get anything after the likely deductible. This approach also gets you a lower rate.

Personally, I purposely buy old beater cars and can usually sell them for the same or just slightly less then what I paid for them and never get anything other than liability.
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You are partially correct, it didn't have much value in the beginning. However, it is worth a fair amount at the moment. But I agree that the insurance company simply won't pay out the money that it is worth.
 
Out of curiosity, what bike are we talking about here ?
 
Must an an URAL.....
 
If the question is "What did you PAY for it?", then just tell the truth. That has no bearing on the actual value if it were to get written off. Vehicles do depreciate/appreciate differently, and the condition you bought it in could change after you've invested some time/money. On the other hand, if the question is "What is the value?", then you have to be more careful to determine whether this means the insured value, or really the purchase price. In either case, it sounds like you don't care what they will pay out, so just go with the purchase price. If they were somehow able to find out what you actually paid (which seems unlikely), then you won't be caught in a lie which will definitely void your policy.

NFP estimated $428/yr for my Hawk pending appraisal for vintage insurance, with the assumption it was mostly stock. I have to imagine that Hawks were valued at less than $2000 at the time, but I don't know for sure. The appraisal valued a stock one at $4000, then added all my upgrades which came out to a total of $13,000 and increased the final quote to $531/yr. So $100/yr premium difference on $11,000 value difference.
 
Relax said:
If the question is "What did you PAY for it?", then just tell the truth. That has no bearing on the actual value if it were to get written off. Vehicles do depreciate/appreciate differently, and the condition you bought it in could change after you've invested some time/money. On the other hand, if the question is "What is the value?", then you have to be more careful to determine whether this means the insured value, or really the purchase price. In either case, it sounds like you don't care what they will pay out, so just go with the purchase price. If they were somehow able to find out what you actually paid (which seems unlikely), then you won't be caught in a lie which will definitely void your policy.

NFP estimated $428/yr for my Hawk pending appraisal for vintage insurance, with the assumption it was mostly stock. I have to imagine that Hawks were valued at less than $2000 at the time, but I don't know for sure. The appraisal valued a stock one at $4000, then added all my upgrades which came out to a total of $13,000 and increased the final quote to $531/yr. So $100/yr premium difference on $11,000 value difference.
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I will get the appraisal done in the near future once I decide if I even want to ride this particular bike for any length of time. They said it is just a form that needs to be filled out by a actual mechanic unlike myself! I also have other trick parts that need to be installed before the appraisal. For now I just want to ride!
 
You should be able to get liability only with no appraisal. Desjardins only requires appraisal if you want comprehensive or collision. And NFP only required appraisal for vintage coverage. If Service Ontario is telling you this, ignore and go to another wicket.
 
Fuzzbuster said:
I'd rather not say, for political reasons of course!
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Political... interesting...
But as other have said the value you give means little to the overall policy, just pick a number you're comfortable with.
 
Relax said:
You should be able to get liability only with no appraisal. Desjardins only requires appraisal if you want comprehensive or collision. And NFP only required appraisal for vintage coverage. If Service Ontario is telling you this, ignore and go to another wicket.
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Its all good! Liability only for now! Don't steal my bike! I have absolutely no issues at service Ontario! 😉
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