Insurance value on new bike

luv2ride

HI all. New bike just arrived (not even out of box as working from home, so am trying to be good). It's reasonably valuable, probably most most expensive bike currently in the stable at RRP, but I paid a lot less for it as it's a 2016 model.

So, question, should I value it at RRP for insurance purposes, or what I paid for it? Sorry for the numpty question but have quietly avoided getting the bikes insured up to now, but know I'd be unable to replace their value now if ever stolen.

Cheers

L2R

craigus89

Luv2ride wrote:

HI all. New bike just arrived (not even out of box as working from home, so am trying to be good). It's reasonably valuable, probably most most expensive bike currently in the stable at RRP, but I paid a lot less for it as it's a 2016 model.

So, question, should I value it at RRP for insurance purposes, or what I paid for it? Sorry for the numpty question but have quietly avoided getting the bikes insured up to now, but know I'd be unable to replace their value now if ever stolen.

Cheers

L2R

I think the bit on bold makes this pretty obvious. In 6 months time it was nicked, would you get it at the price you paid for it again? Not likely.

dinyull

Hmm, not sure if insurers replacing bikes goes along the same as cars.

If it does, they'll look at second hand/used to replace "like for like". And if not, I'm sure they'd ask for a receipt as proof.

Sorry I can't help more than that.

Grill

It's illegal to underinsure in such policies (you'd need to go to a declared value policy which most specialist bike insurers don't offer), so RRP it is.

cooldad

Illegal?

Really? I don't think so.

pblakeney

Replacement value.
No point otherwise.

Grill

cooldad wrote:

Illegal?

Really? I don't think so.

I should have said that it's against the T&Cs of most insurers and can lead to them not paying out or cancelling your policy altogether.

cooldad

Grill wrote:

cooldad wrote:

Illegal?

Really? I don't think so.

I should have said that it's against the T&Cs of most insurers and can lead to them not paying out or cancelling your policy altogether.

Really? They may have an Average clause, but most likely will just pay up to the sum insured. No insurer will cancel a policy because the value is not RRP. How the hell would you insure a non current bike?

darkhairedlord

it's a year old, probably worth half rrp to the insurer.

cooldad

Most policies are on a replacement value basis, so an item will be replaced with an equivalent new item, or the cash.

If the sum insured is lower than replacement cost, then indemnity or second hand value will likely be applied.

You really need to actually read your own policy.

Mine says:

1. The sum insured
At all times the sums insured must be at least equal to the full
cost of replacing the property ‘as new’ (apart from clothing and
linen, where a deduction may be made for wear and tear and loss
in value).
If at the time of a loss the sum insured is too low, we will not
settle claims on an ‘as new’ basis and will reduce any payment to
reflect wear and tear.

Grill

I'm just going by what I've been told by a couple insurers. Then again they wouldn't insure me anyway and I've never had need to read through the T&Cs.

darkhairedlord

No insurance here. I've saved about double the cost of a new bike by not insuring.

cooldad

I have about 12 bikes, none particularly valuable, but it costs me about £8 a year to add them onto my contents policy for use away from the house, including damage being used (as they are all mountain bikes I wouldn't actually take the piss when I break one.)

norvernrob

You need to insure for RRP as stated above. When I phoned my home insurers to ask about my Foil, I told them I paid £3k for it but the RRP was £6k (previous years model). They said it had to be insured for the £6k, and I then added it as a named item onto my policy for hardly any extra. Covered for theft from home, a locked outbuilding, a car, away from home and accidental damage.

luv2ride

NorvernRob wrote:

You need to insure for RRP as stated above. When I phoned my home insurers to ask about my Foil, I told them I paid £3k for it but the RRP was £6k (previous years model). They said it had to be insured for the £6k, and I then added it as a named item onto my policy for hardly any extra. Covered for theft from home, a locked outbuilding, a car, away from home and accidental damage.

That's helpful to know - our home and contents insurance expires any day so wanted to get this sorted asap - who did you insure with BTW (I'm liking the sound of a £6k bike being insured "for hardly an extra" )