Insurance, good or bad?

[Aussiebikerdave]

I posted this on the "Fear of the unknown" thread but thought it deserved it's own spot!

I went for years not insuring any bike I owned. I reckon that over the years, I could've afforded to write off two or three bikes and still be in front.

Sometimes you have no choice eg, if you live in the UK or need finance, or both but think about this:

In Australian dollars, your Rocket costs about $26,000 on the road. If you choose not to insure your bike and in the event of a total write off in a single vehicle accident your losses are: $26,000 less what you can salvage by selling the wreck at a vehicle auction. Worst case senario - $8000 for wreck, best case senario - $16000 for wreck, depending on extent of damage. So, you could be out of pocket from $10,000 to $18,000.

If you choose to insure, your llikely loses could be summed up this way:

Annual premium - say $600 per year but you've owned the bike for two years prior to the accident, therefore, $1200.
Insurance excess, you pay the first - say $800.
Because the motorcycle is no longer new, the payout figure at 'market value' may be only $20,000, not $26,000 - your cost therefore $6000.
Loss of insurance rating resulting in higher premiums for replacement motorcycle spread over next few years - say an extra $1000.

Summary: So you had your 2 year old motorcycle insured, had an accident where bike was 'written off'. Despite your insurance cover, your direct costs could be as much as $9000. Now all this depends on the good graces of the insurance company because if they can find an out eg, you had an blood-alcohol content, you contributed to the accident in any way such as speeding, failing to give way, riding with undue care and attention (a favourite of the NSW police) your insurance company may wipe their hands of you!

Believe me, they don't employ fools to run insurance companies! Davo


[ This message was edited by: Aussiebikerdave on 2006-02-02 16:28 ]

[RocketlessTodd]

How about liability? Have you figured that into the figures for the annual premium?

[IceT]

Dave,

I got Shannons insurance for agreed vaul of $26,500 not market value...for $625/yr, also remember you need thirdparty property...which would normally be around 250 bucks a yr, as you cant afford to hit a merc in one of these things....so thats sort of mandatory...

[Pig9r]

You are riding a $26,000 AU bike that hits a $35,000 AU car and does $10,000 AU of damage to the car plus medical, and it is a chargeable accident to you. What's your savings there?

[Aussiebikerdave]

Regarding the liability and third party factors, these are the lessor risks but also the greatest risks meaning that statistically I am led to believe that single vehicle accidents occur more frequently than multi vehicle accidents with regard to motorcycles. With regard to multi vehicle accidents, the fault lies with the car driver in the greater percentage of cases. So, the chances of a multi vehicle accident where it is your fault are slim by comparison however in the remote chance that you are involved in a multi vehicle accident and it is directly your fault, you might want to be insured :-D .

Similarly, if through your actions, a liability suit has been brought against you, you again might want to be insured.

However my point is this, life is about weighing up the risks and taking whatever insurance you deem appropriate.

If you are young motorcycle riding risk-taker with not a lot of accululated asset to loose, you might take more risk than if you are older (and wiser) with a life long accumulation of valuable asset to loose.

You pays yer money and you makes yer choice! Davo

[ This message was edited by: Aussiebikerdave on 2006-02-02 18:22 ]

[Robyyy]

For $55.00 a Month why not be insured fully comprehensive.... whats that a day ? just a few dollas it worth it to be in insured fully.. IMHO ...

[Aussiebikerdave]

On 2006-02-05 10:19, Robyyy wrote:
For $55.00 a Month why not be insured fully comprehensive.... whats that a day ? just a few dollas it worth it to be in insured fully.. IMHO ...

Weeeell Rob, if you put it like that... it kinda makes sense! Davo

The big cost is not your bike, but the car and people you might hit. Liability is the big issue -- at least in the US. Also, if you are in an accident without insurance, you are automatically at fault. In California, you will lose your license for 2 years, your bike will be confiscated and impounded and you will pay upto $5000 in fines and spend up to 18 months in jail. If some one is hurt, you automatically go to jail -- do not pass go, do not collect $200.

Insurance also provides roadside protection -- towing, over night hotel, etc ... in case of a break down.

My wife has an insurance agency that specializes in motorcycle insurance, and we hear all sorts of stories about what happens with no coverage or bad coverage.

http://www.southbayinsurance.com/motorcycle/

[Aussiebikerdave]

On 2006-02-06 14:09, RedondoPat wrote:
The big cost is not your bike, but the car and people you might hit. Liability is the big issue -- at least in the US. Also, if you are in an accident without insurance, you are automatically at fault. In California, you will lose your license for 2 years, your bike will be confiscated and impounded and you will pay upto $5000 in fines and spend up to 18 months in jail. If some one is hurt, you automatically go to jail -- do not pass go, do not collect $200.

If you are breaking the law by not having your vehicle fully insured then you are your own worst enemy however in Australia, this is not the case.

In Australia there is no legal requirement to insure your vehicle or yourself against liability and the lack of insurance does not automatically mean that you are at fault. If it were not the case then I wouldn't have written the first post in this thread. You will note that I qualified my comments in the first post by saying "sometimes you have no choice...etc..."

Davo