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post #1 of 13 (permalink) Old 06-27-2000, 09:13 PM Thread Starter
 
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Thanks for the input Fritz!!

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post #2 of 13 (permalink) Old 06-28-2000, 07:23 AM Thread Starter
 
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My question is: you owe $8,700 on your bike. But you can buy it new for $7,000 before tax, reg, fin.
You get into a accid. and the bike is a total loss. Do you get your loan payed off ($8,700)? Or do they give you $7,000 the price it would cost to get you a new one?
And if you only get $7,000 for a new one do you keep paying your loan for $1,700?

Hope this is not a stupid question. Just would like to know if any has a answer.

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post #3 of 13 (permalink) Old 06-28-2000, 08:00 AM
 
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You're giving insurance companies WAAAAY too much credit. Reality is:

Say if you just bought the bike for 7k, owe about 8700 on it and you total it on the way home from the dealer, your ins. will payoff it's actual VALUE. Meaning, once you pulled it out of the showroom, that 7k bike is now worth about 5800. THAT'S what the insurance co. will pay YOU. They don't care what you owe on it or what you paid for it. If you want loan protection insurance, talk to your lender. It's insurance that will payoff your loan if you lose the collateral (bike) lose your job, or die.

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post #4 of 13 (permalink) Old 06-28-2000, 08:42 AM Thread Starter
 
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Fritz,

I just called my Ins. company (AAA). They said that there is no insurance policy to cover the whole loan. Just to replace it at street value. So you are correct.

He said it would be better if someone stole it (you get replacement value which is more).

Do you or anyone know how you can get insurance to cover the loan??

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post #5 of 13 (permalink) Old 06-28-2000, 08:55 AM
 
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There are insurance carriers that sell "gap" insurance that will cover the difference between what your normal insurance covers and what you owe on your loan. Prices vary from reasonable to highway robbery. Your lender may be able to help you with this type of insurance although I don't recommend it due to the cost. If you do ever total the bike and the insurance pays out, offer to buy it back from them for a rock bottom price then sell the parts and you might be able to get close to breaking even.

By the way, that's the one thing I tell everybody if they can no longer afford their bike or if they do total it. Just toss it into a river and report it stolen so you can at least get a new bike without having to eat the difference between ins. payout and loan balance.

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post #6 of 13 (permalink) Old 06-28-2000, 01:43 PM
 
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<BLOCKQUOTE><font size="1" face="Aril, Helvetica, sans-serif">quote:</font><HR>Originally posted by Fritz:

By the way, that's the one thing I tell everybody if they can no longer afford their bike or if they do total it. Just toss it into a river and report it stolen so you can at least get a new bike without having to eat the difference between ins. payout and loan balance.
<HR></BLOCKQUOTE>

Hey isn't that "INSURANCE FRAUD"

My suggestion is to get insurance for the loan. Most institutions insist on it anyway.


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post #7 of 13 (permalink) Old 06-28-2000, 01:53 PM Thread Starter
 
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What do you mean "Most insist" I have never heard of it? And Honda didn't say anything and AAA says NO WAY....

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post #8 of 13 (permalink) Old 06-28-2000, 02:10 PM
 
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I have purchased several brand new and used bikes and the only insurance that my lender ever insisted on was full coverage for the bike, but that doesn't mean it will cover the amount of the loan as mentioned in a ealier post.


Kyle

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post #9 of 13 (permalink) Old 06-29-2000, 07:16 AM
 
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<BLOCKQUOTE><font size="1" face="Aril, Helvetica, sans-serif">quote:</font><HR>Originally posted by VYPIR:
Hey isn't that "INSURANCE FRAUD...<HR></BLOCKQUOTE>

"insurance fraud"? Now if that isnt an oxymoron than im a monkeys uncle.

I have no respect or sympathy for insurance companies. They are the biggest criminals in this country.

Talk about organized crime! The profits they make are unbelievably high yet they snivel about losing money (losing profit) at the tiniest excuse. Its all a crock if you ask me.

Yes we need insurance, and they do come through often, but the price we pay for that piece of mind is unecessarily high. Now the insurance companies are basing your rates on your credit report. And this has NOTHING to do with ones driving!!!



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post #10 of 13 (permalink) Old 06-29-2000, 08:14 AM
 
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Whatch it... my Dad is a retired insurance Claims Manager.

I admit that motorcycle insurance is a joke and an insurance scam but in their defense. They pay billions of dollars of money out to people for nuisance lawsuits every year.

Get pissed at the Ambulance chasing plaintiff lawyers because that creates a lot of the problems.

Does someone deserve to be a millionaire because they spilled coffee in their lap. McDonalds didn't pay that bill, an insurance company did.

A lawnmower company(I think Snapper) was sued because there weren't warning labels telling you not to use your push-mower to trim your hedges. They settled(insurance company settled) for several million dollars instead of dragging it through years of deliberation. Yes, a man held up his lawnmower with his hands to trim the top and side of his hedges. He dropped the mower and I believe chopped up his leg a bit. I don't know all of the details, but that is the jist of it.

Q: Who's the real crooks? A: Lawyers and insurance companies.

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