Motorcycle insurance claim

nikiziggy

Unfortunately, last week my hubby ran into a munkjack deer, ended in hospital, and wrote his motorbike off. He is now ok, but his bike is not.... The insurance company have offered £2k (£500 xs) although to replace the bike we would have to spend £3000-£4000.
They say because I ticked the box, (?) and filled the value at £2500 they can't, by law, pay us anymore than I valued the bike. It's a good insurance company, just wondered if this was true.

david29dpo

Cant say for sure but because you stated the value they could argue the premium was lower? i.e. £100 for £2500 or £150 for £4000?

missile

Seems that for whatever reason you made a mistake and stated bike was worth £2500? what bike, how old and we can advise value.

You may get a better response on the insurance forum

nikiziggy

Sorry I thought I was in the insurance bit. Not very good at this kind of thing!
The bike was a Suzuki GSX 1400 , 2001. Poor thing, his pride and joy!

Norman_Castle

They say because I ticked the box, (?) and filled the value at £2500 they can't, by law, pay us anymore than I valued the bike.

Your quote may have been based on a total loss payout of £2500 potentially reducing the premium. Read your policy, this may be the valuation you agreed to.
The legal status of paying more than your valuation seems unlikely.

mikey72

Get two new online quotes for insurance from your insurer. Use a close address, dummy name, and generic bike details, but put one at £2500, one at £4000. That should tell you if there is a difference in premium. Then make a complaint, advising you do not accept the offer, and the valuation should be done in accordance with http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html If they do not agree to a revised valuation, refer it to the FOS. It would be fair to have any premium difference deducted off the payout though. This assumes it's a normal policy, not agreed value though which tends to be more classic vehicle insurance.

dacouch

mikey72 wrote: »

Get two new online quotes for insurance from your insurer. Use a close address, dummy name, and generic bike details, but put one at £2500, one at £4000. That should tell you if there is a difference in premium. Then make a complaint, advising you do not accept the offer, and the valuation should be done in accordance with http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html If they do not agree to a revised valuation, refer it to the FOS. It would be fair to have any premium difference deducted off the payout though. This assumes it's a normal policy, not agreed value though which tends to be more classic vehicle insurance.

This is the relevant part of Mikey's link you need to refer them to (Assuming you made a mistake and did not do it intentiaonally)

"We are likely to award the policyholder the full retail value, even if he/she inadvertently under-estimated the value of the vehicle when filling in the proposal form or luckily bought the vehicle for less than it was worth. And we have seen exceptional cases where a vehicle’s value genuinely rose between the date it was bought and the date of the damage/theft"

It's not against the law at all.

nikiziggy

Thank you all very much. I will get on to it now.

dacouch

Which Insurer is it?

nikiziggy

Equity red star. I've done a quote as you suggested and there is a £9 difference in £2500 and £4000 valuation.

mikey72

Note the link refers to the retail value, not the trade in. So hold out for what you would expect to pay to a dealer to buy a new bike.