PeteM wrote:
In the UK you can get insurance to cover the difference between purchase price and write off payout, no idea about the company below but this shows the sort of thing you can buy https://www.insurethegap.com/gap-insurance/return-to-invoice
Now that is more like my original understanding. If you buy a bike (outright) at a dealer and it is then written off or stolen, your insurance should pay out the "market" value - which is probably similar to what you could expect as a trade-in at a dealer. That means you're going to have to find some money to put yourself back on the "same" bike (or theoretically what you would pay in a private sale).
If I could spend £50 to (potentially) save £1000 I'd really have to consider it, but I'm not sure those numbers would be realistic.
As always, horses for courses !
[size=14px]"Alphera Shortfall Insurance is designed to bridge the gap between the motor insurance settlement and either the amount you paid for your vehicle, or the outstanding amount due under your finance agreement if your vehicle is declared a total loss, whichever is the higher amount. [/size] [size=14px]Key benefits of Alpehera Shortfall Insurance [/size] [size=14px]Cover available for 2, 3 or 4 years[/size] [size=14px]The insurance could pay up to £500 to cover any excess you have as part of your motor insurance claim"[/size]
The insured value was based on the invoice price including all the dealer fitted accessories at the time of purchase - around £7,700.
My premium was £159, paid to BMW Financial Services, for 3 years cover on my Yamaha. I am based in London, where the theft rates are comparatively high.
That does sound like it pays for the difference in what you paid for the bike and insurance value. That does not mean you can go buy another bike just like you had with no out of pocket expense. Maybe you got a really good deal, factory incentives and so forth. Then each model year goes up some...
But a good plan for those not able to eat the difference easily. I have saved enough over the years in going with high deductible amounts that I NEVER buy something like this. I am already well ahead in what I have saved over what buying stuff like this would have cost.
WERKS Quiet Ride windshields and Headlight Protectors for R 1200-1250 RT. 2021 and up RT Quiet Ride Windshields.
I bought the bike outright, so I’ve got no reason to cover any outstanding finance should the worse happens.
The benefits of the gap insurance sounded too good to be true, hence my original posting asking on experiences of this insurance.
When the salesman first mentioned the gap insurance, the first thing that came to mind was ‘oh no, here we go’ but once he’d finished explaining I was quite tempted, I asked the obvious questions at the salesman, (who happened to be the sales manager of the shop) he was quite clear about the main benefits, gap insurance will cover the difference of market value and the cost of a new bike through total loss or theft.
I’ve never been one to take out extra insurances because like most, I think it’s just another method of extracting more of your hard earned cash.
Duggie wrote:
I bought the bike outright, so I’ve got no reason to cover any outstanding finance should the worse happens.
The benefits of the gap insurance sounded too good to be true, hence my original posting asking on experiences of this insurance.
When the salesman first mentioned the gap insurance, the first thing that came to mind was ‘oh no, here we go’ but once he’d finished explaining I was quite tempted, I asked the obvious questions at the salesman, (who happened to be the sales manager of the shop) he was quite clear about the main benefits, gap insurance will cover the difference of market value and the cost of a new bike through total loss or theft.
I’ve never been one to take out extra insurances because like most, I think it’s just another method of extracting more of your hard earned cash.
Duggie
I took out gap insurance when a few years ago I bought a new Volvo V60 R Design. It was a rare moment of madness. The car was expensive and I was not willing to take the hit between market value and new replacement if the car was written off. As far as I remember I did not have insurance that covered new replacement if written off in first year. Like you I never buy extra insurance however in this case I felt it was worth it. So if you feel having bought your bike outright you can take the financial hit if the worse happens then don't bother with the gap insurance, otherwise take it for peace of mind. It all depends on risk. If bike is securely garaged and you only ride a small amount in good weather then the risk is low. However if you are an all weather rider riding big milages then your risk is obviously higher.
Bought mine outright too and never bothered with gap insurance. The bike's chained up in the garage and we are in a pretty safe place near Southampton. He also tried to sell me tyre insurance. Oh how I laughed..... not so much when I got home 50 miles later and found a big screw in the back tyre.
Sprintgull wrote:
Bought mine outright too and never bothered with gap insurance. The bike's chained up in the garage and we are in a pretty safe place near Southampton. He also tried to sell me tyre insurance. Oh how I laughed..... not so much when I got home 50 miles later and found a big screw in the back tyre.
I've bought my new bike outright as well, not bothering with GAP insurance either, I live in Salisbury, pretty safe unless you upset the Russians
Never bothered with GAP insurance before, as so far Insurers refund the full price of the new bike for up to 12 months. Now the things changed and they cover only 6 months, so I started thinking about GAP.
Yeah, I have garage, anchor, chain x2, etc. Still things can happen.
BMW GAP is not the cheapest one. Do you guys know some other insurers who will doing that?
I have probably about 6 months to decide and apply. But I think starting research now is not bad idea.
I suppose GAP insurance is more to make sure if you're bike is a total loss you don't get left with the liability of a PCP or Contract hire short fall.
As you say, our motorcycle policy have changed and new for old is just the first six months now on a lot of motorcycle insurance policies.
If you're happy to take the hit/risk if you're bike goes missing or is a total loss in a accident then that's fine.
You could park it and it could be hit by a passing car! Most bikes are written off with only minor damage...
Arek wrote:
Never bothered with GAP insurance before, as so far Insurers refund the full price of the new bike for up to 12 months. Now the things changed and they cover only 6 months, so I started thinking about GAP.
Yeah, I have garage, anchor, chain x2, etc. Still things can happen.
BMW GAP is not the cheapest one. Do you guys know some other insurers who will doing that?
I have probably about 6 months to decide and apply. But I think starting research now is not bad idea.
There are loads of online providers, as you say BMW Gap is very expensive. I have never bothered either, but I will have a look in a few months time for options
