Stolen bike claim

kellyp

Hi

I had my bike stolen last week. I bought it new for £700 5 years ago but it’s been hardly ridden and was as good as new. That bike model is no longer available and insurer has tried to offer alternative of similar spec (same brand). He sent me the links which cost £585 plus some accessories costing approx £25. I dont want to go for this bike and have asked about cash alternative but will only give £570 total. Should I dispute this as I had proof original cost me £700 or does this seem acceptable/reasonable?

Browntoa

Wear and tear , not new .

It's acceptable practice

kellyp

Just checked my policy and it does say “will pay cost of replacing pedal bikes without deducting amount for wear, tear or loss of value”. Therefore am I right to ask for the £700?

paddyandstumpy

If the bike you had is no longer available but a same spec, same manufacturer alternate is available then that is all you are entitled to.

sheramber

Insurance companies buy at a discount so any cash alternative is based on that price.

kellyp

Thanks all. Much appreciated. Just want to make sure I’m not being short changed!

savemoney

I wonder if insurance company could get the item without VAT as its B2B transaction, hence the price difference £574 plus vat would be £684

TrickyDicky101

savemoney wrote: »

I wonder if insurance company could get the item without VAT as its B2B transaction, hence the price difference £574 plus vat would be £684

No it couldn't - insurance companies don't make taxable (VATable) supplies so they pay VAT on any purchases like any other end consumer.

EdGasketTheSecond

You are lucky to get a settlement at all, so many insurers never pay out for stolen bikes unless they are deposited in a bank vault and someone has thrown the key away.

Aretnap

The purchase price is irrelevant - a new for old policy promises to replace your item with an identical new one, or the nearest equivalent, if the exact model is no longer available . The actual purchase price of the replacement may be more or less than your original purchase price., depending on what the market has done in the meantime. With electrical goods it's nearly always less because they become cheaper over time - a smartphone which was top of the range and cost £800 a few years ago would be a mid-range model costing much less today; I imagine the same is true of bikes, though probably to a lesser extent. So it doesn't sound improbable that you could get a similar spec replacement for £585. Of course if you thank that the one they're offering is actually of lower spec then that's a point you can argue, you just have to base your arguments around the specifications themself rather than the selling price.


As above, if the insurer offers a cash alternative it will be based on the price they would actually have paid for a replacement, which will usually be a bit lower than the headline price as insurers are in a position to negotiate bigger discounts than you or me (they do buy a lot of bikes after all).


If you want to take the opportunity to get a different bike then £570 for a 5 year old bike is not a bad result - it's more than you'd have likely got for it second hand even if it is in very good condition.