Ins. Questions
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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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Dan F4 Red/Black
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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Dan F4 Red/Black
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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"It's easier to get forgiveness than permission."
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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"It's easier to get forgiveness than permission."
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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Dan F4 Red/Black
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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Dan F4 Red/Black
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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"It's easier to get forgiveness than permission."
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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"It's easier to get forgiveness than permission."
<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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You get the best thrills on two wheels!
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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You get the best thrills on two wheels!
Joined
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873 Posts
<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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Fear Green.
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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Fear Green.
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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Ride Hard!
John
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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Ride Hard!
John
Lawyers are in a whole different catagory of lower life form than insurance people.
Screw insurance fraud!! One good example is when I had a small lowside last year and made a claim on my bike insurance. Keep in mind that I have had these guys (Nationwide) for 16 years and have policies on my house, three cars, life and personal property in addition to the bike. In all this time I had NEVER made a claim. Anyway, I make the claim to fix the bike and within THREE DAYS, even before an adjuster looked at my bike, I received a notice that my premiums were going up. I couldn't believe it! I called my local agent and told him that if this is how they operate, to take the call as a 30 day notice to cancel ALL of my policies with Nationwide. He called me back within 15 minutes and said that my rates wouldn't go up, so he saved it.
My point is, that's how they operate. They don't have any problems cashing YOUR check year after year but when you want some return on it, they act as if you're stealing from them. Insurance is a necessary evil but it really IS legal extortion. There are people out there the defraud ins. companies that need to be in jail, but I have NO problem whatsoever getting a little bit of my money back.
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"It's easier to get forgiveness than permission."
Screw insurance fraud!! One good example is when I had a small lowside last year and made a claim on my bike insurance. Keep in mind that I have had these guys (Nationwide) for 16 years and have policies on my house, three cars, life and personal property in addition to the bike. In all this time I had NEVER made a claim. Anyway, I make the claim to fix the bike and within THREE DAYS, even before an adjuster looked at my bike, I received a notice that my premiums were going up. I couldn't believe it! I called my local agent and told him that if this is how they operate, to take the call as a 30 day notice to cancel ALL of my policies with Nationwide. He called me back within 15 minutes and said that my rates wouldn't go up, so he saved it.
My point is, that's how they operate. They don't have any problems cashing YOUR check year after year but when you want some return on it, they act as if you're stealing from them. Insurance is a necessary evil but it really IS legal extortion. There are people out there the defraud ins. companies that need to be in jail, but I have NO problem whatsoever getting a little bit of my money back.
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"It's easier to get forgiveness than permission."
Insurance on sportbikes is high because squids crash their bikes and report them stolen. They even crash them leaving the dealer lots before they are even broke in and say the dealer is at fault for selling it to them with mold releasing compound on the tires. How many times have you heard about a guy that nearly or completely totaled his bike within 90 days of buying it. Then wants a brand new bike because he doesn't trust that bike anymore. Can you say screw you fellow insured riders?
Most accidents happen to new owners/riders. A lot happen to people borrowing a friends bike. The break in period for bikes should apply to riders (new or old) too. Take time to get used to your bike and help your(and mine too) rates go down. I had a company that the deductable was double for the first three months and tripled during this period for anyone else riding my bike. I didn't mind because they gave me a good break on rates.
On a rant,
Crusty
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It went...Earth Sky Earth Sky Earth Ambulance.
Crusty
Most accidents happen to new owners/riders. A lot happen to people borrowing a friends bike. The break in period for bikes should apply to riders (new or old) too. Take time to get used to your bike and help your(and mine too) rates go down. I had a company that the deductable was double for the first three months and tripled during this period for anyone else riding my bike. I didn't mind because they gave me a good break on rates.
On a rant,
Crusty
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It went...Earth Sky Earth Sky Earth Ambulance.
Crusty
Joined
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525 Posts
I think we need to divide health ins and MC ins in this thread. Yes the rates we pay for health ins is good compared to what the ins co. has to pay out for accidents. The rates we pay for MC ins is just plain robbery, considering they are uptight about paying out 10K for a bike when you've been paying high rates on it. If someone finds the perfect ins co. then post it for gods sake. I guess I never answered the original question!!
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