Insurance - Is this correct?

[John Laverick]

I recently had my motorbike stolen/recovered and then written off by the insurance. I have had my payout and purchased a 2005 Suzuki GSX-R 600 to replace my 2004 Yamaha YZF-R6 [both being supersport 600's]. I assumed that although the new bike was 1 year younger and worth a little more that I should still be able to put it on my current policy [maybe a slight increase in premium] which still has 5 months to run.

Spoke to the insurance company today and they have informed me they can not insure my on the Suzuki at all ??!! Which effictively means I have to either sell the Suzuki and buy another R6 or loose the 5 months I still have to run.

Is this correct? Can the insurance company refuse cover in this way?

[Troesma]

It is their privilege to decide on which basis (or meeting which criteria) they are able to offer cover or not. If they agree to offer cover, the policy can indeed be altered and any remaining validity transferred to the new vehicle (rules apply sometimes, typically min number of months remaining). Now, as to why they refused cover in your particular case, no idea.

Edited by Troesma on Tuesday 27th November 20:56

[a boardman]

I thought it was the case that the insurance policy is stopped once they pay out, thus you have no insurance left to run.

[Troesma]

a boardman said:

I thought it was the case that the insurance policy is stopped once they pay out, thus you have no insurance left to run.

You are absolutely right... major oversight... replied as in the case of changing vehicle and transferring the policy to the new one...



Insurance has ceased in this case. It does not explain why they refused to re-insure (as I would have expected them to say "because your policy is now concluded" or something like that.)

[H_Kan]

Actually the policy is not terminated, that view is hardly fair. eg. If my car is repaired then I am still covered for the remainder of the policy, so it is not fair that I lose this should they decide my car is not worth repairing.

When LV declared our 2nd car a total loss they also refunded the remaining cover of around 4-5months with a small admin fee removed.

[BIG DUNC]

When I had a total loss pay out, I transfered the remainder of the policy to my replacement car with no problem. ( the replacement car was a slightly lower risk ).

[EU_Foreigner]

I think the official line is indeed that the insurance cover has ceased upon payment of a total loss. It does make sense, as you insured bike A which has been paid off, so there is nothing to insure any more. A new bike is a new risk, so a new policy

[Trax]

Your insurance NEVER finishes when you have a claim for a total loss. Your insurance policy is for a full year, the insurance will obviously finish on the car written off, but the policy is still there.

Usually with people who pay by direct debit, they will take the remaining premiums from the pay out, to stop people canceling the remainder of the policy and stop paying for the full year that they have to.

I wouls say that they will not insure the new bike for you as it doesnt meet their criteria for your circumstances. They would let you put another bike on, but not that one, its likley its insurance group and your age or something like that.

[John Laverick]

Correct .... the insurance policy is not finished because they have paid out … after all I have paid for 12 months cover.

I double checked with them and they confirmed that if I bought another 2004 R6 I could simply put this bike on the policy with a £25 admin fee.

I’m just a little annoyed / disappointed, after all I am happy to pay the difference between the remainder of the policy on the R6 and the GSX-R … but they can’t do it at all.

They also confirmed that because a payout has been made they will not refund the remainder of the policy duration which seems fair enough.

They will re-quote me on the Suzuki but they want £1300 for a year [the R6 was £500] with no other change of circumstances other than the theft.

[SLCZ3]

You should be able to simply cancel the policy and then insure through another company, the only problem will be when the new company ask, have you ever been refused cover.

[gozomark]

SLCZ3 said:

the only problem will be when the new company ask, have you ever been refused cover.

if I've read it right, he hasn't been refused cover - they gave him a quote - what they won't do is transfer the policy

[Noger]

John Laverick said:

Correct .... the insurance policy is not finished because they have paid out … after all I have paid for 12 months cover.

I double checked with them and they confirmed that if I bought another 2004 R6 I could simply put this bike on the policy with a £25 admin fee.

I’m just a little annoyed / disappointed, after all I am happy to pay the difference between the remainder of the policy on the R6 and the GSX-R … but they can’t do it at all.

They also confirmed that because a payout has been made they will not refund the remainder of the policy duration which seems fair enough.

They will re-quote me on the Suzuki but they want £1300 for a year [the R6 was £500] with no other change of circumstances other than the theft.

The policy IS ended. They have satisfied their contractual obligations, and there is no longer any insurable interest.

So in strict terms they can keep your money for the year an walkaway. They are just "being nice" in allowing you to transfer the risk. If they won't insure you they won't insure you. Sounds like they are changing their risk profile, so it will just be easier to go elsewhere.

[John Laverick]

SLCZ3 said:

You should be able to simply cancel the policy and then insure through another company, the only problem will be when the new company ask, have you ever been refused cover.

I haven't been refused cover ... not how I understand it anyway. What is the definition?

I'm always getting refused cover [as I would imagine 1000's of other people do] everytime they do an online quote there are always a few companies who decline to cover.

I assumed cover refused was if the insurance company fail to payout?

[John Laverick]

Noger said:

John Laverick said:

Correct .... the insurance policy is not finished because they have paid out … after all I have paid for 12 months cover.

I double checked with them and they confirmed that if I bought another 2004 R6 I could simply put this bike on the policy with a £25 admin fee.

I’m just a little annoyed / disappointed, after all I am happy to pay the difference between the remainder of the policy on the R6 and the GSX-R … but they can’t do it at all.

They also confirmed that because a payout has been made they will not refund the remainder of the policy duration which seems fair enough.

They will re-quote me on the Suzuki but they want £1300 for a year [the R6 was £500] with no other change of circumstances other than the theft.

The policy IS ended. They have satisfied their contractual obligations, and there is no longer any insurable interest.

So in strict terms they can keep your money for the year an walkaway. They are just "being nice" in allowing you to transfer the risk. If they won't insure you they won't insure you. Sounds like they are changing their risk profile, so it will just be easier to go elsewhere.

You sure about that?

I have paid for 12 months cover ... surely if I replace my vehicle with another model of the exact same spec [or lower] they are duty boung to cover me for the rest of the policy term?

[sjtscott]

John Laverick said:

Noger said:

John Laverick said:

Correct .... the insurance policy is not finished because they have paid out … after all I have paid for 12 months cover.

I double checked with them and they confirmed that if I bought another 2004 R6 I could simply put this bike on the policy with a £25 admin fee.

I’m just a little annoyed / disappointed, after all I am happy to pay the difference between the remainder of the policy on the R6 and the GSX-R … but they can’t do it at all.

They also confirmed that because a payout has been made they will not refund the remainder of the policy duration which seems fair enough.

They will re-quote me on the Suzuki but they want £1300 for a year [the R6 was £500] with no other change of circumstances other than the theft.

The policy IS ended. They have satisfied their contractual obligations, and there is no longer any insurable interest.

So in strict terms they can keep your money for the year an walkaway. They are just "being nice" in allowing you to transfer the risk. If they won't insure you they won't insure you. Sounds like they are changing their risk profile, so it will just be easier to go elsewhere.

You sure about that?

I have paid for 12 months cover ... surely if I replace my vehicle with another model of the exact same spec [or lower] they are duty boung to cover me for the rest of the policy term?

I'm with you John since I too had a motorcycle stolen, sorry all those that think that the policy is automatically cancelled you are simply wrong. I was paid out as a total loss on a gsxr600 and the policy did indeed continue to run until the termination date and just required me to change the vehicle on the policy when I bought the replacement bike (an R6) out of the money they paid me. Luckily for me there was no cost involved for me to add the bike to the policy unlike yourself it seems.
I hate to say it but I think the insurance company can ask for more money or refuse cover if you change your vehicle mid policy if it is seen as a higher risk irrespective of whether your previous bike was stolen or sold. An example of this was I changed my bike earlier this year and got an £11 refund as the new bike was less risk. However I still can't get either resonable cost or an offer of cover from certain insurance companies on certain 1000cc plus bikes as my theft is still being counted against me.

Edited by sjtscott on Wednesday 28th November 14:34

[H_Kan]

Noger said:

John Laverick said:

Correct .... the insurance policy is not finished because they have paid out … after all I have paid for 12 months cover.

I double checked with them and they confirmed that if I bought another 2004 R6 I could simply put this bike on the policy with a £25 admin fee.

I’m just a little annoyed / disappointed, after all I am happy to pay the difference between the remainder of the policy on the R6 and the GSX-R … but they can’t do it at all.

They also confirmed that because a payout has been made they will not refund the remainder of the policy duration which seems fair enough.

They will re-quote me on the Suzuki but they want £1300 for a year [the R6 was £500] with no other change of circumstances other than the theft.

The policy IS ended. They have satisfied their contractual obligations, and there is no longer any insurable interest.

So in strict terms they can keep your money for the year an walkaway. They are just "being nice" in allowing you to transfer the risk. If they won't insure you they won't insure you. Sounds like they are changing their risk profile, so it will just be easier to go elsewhere.

Mate that is simply not true, you have paid for 12 MONTHS cover and as such unless there is an express clause saying that they terminate the agreement upon a total loss then no the agreement is not over.

For the OP, they can't refuse to let you cancel it, it is not fair if they are not competitive and for all they know you may have decided not to replace your bike straight away.

[randlemarcus]

Personal experience, bike nicked, total loss payout, new bike accepted without a major issue, bike swapped later in policy year, again no issues. Not looking forward to renewal, but hey..

As far as the not refunding on cancellation, that seems eminently fair to me. They've taken x hundred pounds premium, and paid out y thousands, and you cant really argue over the return of six months premium, can you?

Ooh, forgot. Be very sure your claim is all sorted out, and closed before getting insurance from elsewhere, or they'll hammer you. And you have zero no claims (unless it was protected), so its gonna cost you Try Bikesure, and tell them you have decent quotes from elsewhere...

ETA the bit about the new policy.

Edited by randlemarcus on Wednesday 28th November 15:02

[John Laverick]

Thats cleared that up ... no I'm not expecting a refund on the remainder of my policy. I paid a £500 policy they've paid out £3600 - salvage value [maybe a couple of grand].

What I want is to put my new bike on the remaining 5 months of the policy [paying an extra premium if necessary].

However they've said in no way can this be done ... I must start a new policy if I am to insure the Gixxer or buy an R6 to use the remainder of the policy.

Ah well.

[This is a broker btw if that makes a difference].

[randlemarcus]

John Laverick][This is a broker btw if that makes a difference said:

.

Might do - have you tried ringing the insurer themselves, and enquiring direct? Not that we're all cynical old swine, but there are probably different payments to brokers for new policies...

[John Laverick]

randlemarcus said:

John Laverick][This is a broker btw if that makes a difference said:

.

Might do - have you tried ringing the insurer themselves, and enquiring direct? Not that we're all cynical old swine, but there are probably different payments to brokers for new policies...

Good thinking batman .. i'll give it a go. Can't do any harm!