When Insurance offers too little for a "total loss" settlement

sezme said:
Correction: they are trying to spend as little as possible to maximize their profits.
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Spend as little as possible to maximize profits.

Spend as little as possible to minimize their losses.

potato, potahto...
 
OK, but a profit is actually the opposite of a loss. My point is that insurance companies are not in the business of breaking even. They are in the business of making as much money as possible. Saying that they are trying to minimize their losses makes it sound like they lose money covering people. I can assure you that that is not the case. The house always wins.

Anyway, I get your point: they have their agenda, and I have mine. Difference is that I was not trying to get anything more than what I was theoretically paying for. TD is looking to turn a profit. I think there may be fairer ways to determine the actual value of a bike so that the customer leaves satisfied but not over-compensated. (But of course I'm biased in my own favour...)
 
sezme said:
Follow-up on my story from here (+ Why we crash +): my insurance company has declared my bike a total loss. This is not surprising at this point, as the garage already showed me that their estimate to repair the bike (2014 Burgman 400) was about $13,000 – higher than the value of a brand new bike – lol.

So today, the insurance has come up with their settlement offer, and surprise, surprise, it's a real lowball. I looked at Kijiji and of the four listings I found in Ontario for a comparable bike (Burgman 400 within 2 model years), there was an average of around $5,500 (+ HST of course). TD insurance has offered me $3750, which I find kind of insulting. They claim this is based on JD Power estimates for "similar vehicles listed and sold for in your area".

I am planning to dispute the settlement by arguing my case and sending screenshots/links to listings. Any other advice? (For what it's worth, my bike was reported as being in "good" condition by the appraiser.)

What is my recourse if they refuse to negotiate, or come back with another unacceptable offer? I really can't come close to replacing my bike with the amount they offered.
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$3750 sounds about right -- prices listed are not always reflecting the replacement cost of a bike. The average price is is based on as-is condition bikes -- not the average list price on Kijiji. I've seen a handful of 2014 Burgman 400s list and sell at $3500 this winter. Here's one for $3200. 2014 Suzuki Burgman 200 for sale. ABS brakes, Pearl White. | Scooters & Pocket Bikes | St. Catharines | Kijiji
 
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