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FFS - Insurance Claim!

(40 Posts)
MTBMummy Fri 07-Oct-16 19:12:11

Posting here primarily for traffic, but we (actually DP) are having an absolute nightmare with a certain insurance company, and I wondered if we were BU in our expectations, or if the Insurance Company was trying to pull a fast one.

2 weeks ago DP was cycling to work and was hit by a car, driver admitted completely his fault, DP surprisingly OK, but his bike is completely written off.

Insurance company was contacted and DP submitted prices to replace bike, pictures etc. They came back earlier this week and offered a third of what it would cost to replace the bike. after a fairly terse but polite phone call, they have upped their offer to 60% of what it would cost to replace his bike. Their reasoning is that the bike is 4 years old and if they paid out for a new bike DP would actually be better of (cycling technology moves on over 4 years) and that equivalent bikes can be found on eBay for the 60% mark. Now those eBay bikes could be in any state (and could actually be write offs too) they're the wrong size, and the only one that is the right size is in Colchester on a buyer collects only, and we're in Berkshire. SO basically we're forced to purchase a new bike but it would a significant down grade from the bike that DP had.

Our reasoning is that we didn't ask for DP to be hit by a car, nor for the bike to be a write off, so why should we be worse off as a result of someone else fault? The quote DP submitted is actually for a bike that is a slightly lesser spec anyway as DP is a bike nut and made several upgrades to the bike, so this 60% offer seems like a complete piss take.

Has anyone had any experience of dealing with this sort of claim? Do we have a leg to stand on?

HeirOfNothingInParticular Fri 07-Oct-16 19:15:18

I've no advice to offer, but the insurance company should be very grateful that your DH is only claiming for a bike and no personal injuries. A like for like would be the very least they could do

Dontyouopenthattrapdoor Fri 07-Oct-16 19:15:43

I can see why it's frustrating but surely it's no different to a car write off though? You don't get the price of a brand new equivalent car, you get the list price for a model of that age etc.

Glad your DH is ok.

greatbigwho Fri 07-Oct-16 19:15:53

What's the insurance policy say? I made sure to choose one that replaced with new of today's equivalent spec, even if that meant it'd be better that the old on. I'd pull the policy out and read the small print…

HeirOfNothingInParticular Fri 07-Oct-16 19:16:13

Sorry, should have said DP

BolshierAryaStark Fri 07-Oct-16 19:18:36

Just refuse & give your reasons why stating various upgrades etc. Not sure you'll get 100% but would expect more than 60% tbh.
I recently did a no fault claim on my car but my insurance company dealt with everything apart from the excess which was paid pretty promptly after I said I'd be appointing a solicitor if they hadn't settled it by a certain date & would obviously be passing on the costs to them...
Perhaps might be worth taking legal advice if you're going to be considerably out of pocket?

SoupDragon Fri 07-Oct-16 19:25:46

That is exactly what happens when a car is written off, even if it is not the driver's fault. They only get the current value of the car.

peasandquiet Fri 07-Oct-16 19:27:20

Who's insurer are you dealing with? Your home or the drivers vehicle insurance? House insurance will not be new for old with a bike unfortunately same with clothing, I'' going to presume your dealing with house insurer so in that case if you buy new then ask your home insurer to submit the diff between what they pay and the bike you buy as an uninsured loss along with your policy excess might not get it but worth a try. Another tip would be to ask your home insurer if they have a bike supplier. They may be able to get a better deal for you i.e. A better bike for the settlement money than if you go to a indie/high st shop.

wasonthelist Fri 07-Oct-16 19:28:10

greatbigwho
Op is claiming from the car driver and is therefore not party to the policy wording.

amicissimma Fri 07-Oct-16 19:28:25

My sympathies, OP. I have been in this situation.

Unfortunately you can only claim to be put back in the situation you were in before the accident, ie the owner of a 4-year-old bike, with 4 years' worth of wear and tear and parts maybe soon needing replacing and, as they say, 4 year old technology. You won't be put in a better position, ie the owner of a new bike.

It's worth keeping on at the insurance company for a bit more, specially if you can find a bike similar to your DP's for sale anywhere to tell them about, but I doubt you'll manage a great deal more.

Fizzer123 Fri 07-Oct-16 19:30:51

If you want this you need to make sure you buy a 'new for old' policy.

Superdinocharge Fri 07-Oct-16 19:33:52

The thing is if a car was a right of fire they wouldn't give you the price you paid new only the price it is worth at the time of the accident. So I can see their thinking. However, they surely have to replace like with like so can you ask them to source a replacement for you?

Toffeelatteplease Fri 07-Oct-16 19:33:55

if you have had upgrades to the bike are they documented? Can you evidence the extra spent on the bike?

if you can, your argument is actually this. their offer is not putting you back in the position you were in before the accident as whilst the bike they have listed is a direct replacement for the make it does not take into account the modifications and therefore they need to be upping their offer to take into account the modifications that you would need to make to the bike they have linked to.

It might work. Otherwise there is not a lot you can do.

sparechange Fri 07-Oct-16 19:37:52

Unfortunately this is what would happen with a car policy. You can buy gap insurance which covers the 'gap' between the payout and buying a new replacement but I'm not sure if you can get it for bikes?

Maybe it would be better to submit the details as an itemised list. The frame might have been 4 years old, but if you can show the components are newer, you might be able to get them to split the payout for an older frame but new components, and maybe argue a bit more on top for labour and set up..?

I imagine you'll need to go back armed with facts and evidence rather than just not liking their offer

neonrainbow Fri 07-Oct-16 19:40:39

Yup you aren't entitled to a brand new bike to replace a 4 year old one. If you don't like it consult a solictor but you'll be told the same thing. If you've got paperwork to prove the upgrades then send it to them or take the bike to a bike shop to get a written quote of current market value with the additions. It still won't be anywhere near what you want.

NobodyKnows Fri 07-Oct-16 20:14:06

Intersting, and thank you for all the feed back.

Just to clarify we're claiming off the drivers insurance, not our home insurance. Because we have expensive bikes, we have a new for old policy in place which we pay a premium for, and if this had been DP's fault, we would happily claim off our own insurance.

We've submitted the upgrades etc, and actually put in a claim for about 20% less than it would be to replace each individual component (Purchasing a bike as a unit is much cheaper than building one up from scratch) and we've got this backed up by a letter from a bike shop.

Oh well, will see if we can get anywhere with the not actually being back in the original position by their offer.

I just find the whole thing so frustrating. It sucks that we're actually worse off for something that wasn't our fault, but thank you all I really appreciate your help. (DP however is still very grumpy and being fed biscuits and tea)

wasonthelist Fri 07-Oct-16 20:25:01

Don;t forget to claim for the loss of earnings arising from this, as well any other out of pocket expenses associated, DP will need a replacement helmet of course.

Woobeedoo Fri 07-Oct-16 20:45:52

We went through a bike insurance claim a number of years back - DH 2yr old made-to-order bike was stolen from our shed. Insurance agreed to pay but couldn't get their heads round custom pedals, brakes, etc etc, and offered a bog standard £200 bike from Halfords for a bike that cost nearly £1000.

In the end he agreed to speak to Halfords to price up a bike to his specification. He told them all the things his bike had and like you did, slightly downgraded their cost. Halfords totted it up to quite a lot of money. Halfords then got in touch with our insurance company and said they wouldn't build us a bike and none of their stock was suitable (they were strangely on our side!), however, they agreed to give us £800 of store vouchers.

We accepted them as we saw they had satnavs on special offer so we bought £800 worth, waited a few weeks until their sale was over and then sold them on eBay for a decent profit.

It was faffy and took a while but we then ended up with more than the cost of the bike that was stolen.

HereIAm20 Fri 07-Oct-16 20:50:20

Yes - the Driver's policy would basically pay to put you back in the position you would have been ie. the value of a 4 year old bike with the upgrades.

Even in situations where a car is written off that is the same but if you had, eg, recently had new tyres they would make a payment to cover those costs.

If you want to get the difference you should be able to submit a claim to your own insurer for the difference but only the amount you can't claim from the other insurance.

Meadows76 Fri 07-Oct-16 20:53:12

Are you serious? You expect to be given the value of a brand new bike to cover the loss of a 4 year old one?

Lokisglowstickofdestiny Fri 07-Oct-16 21:03:40

The insurer isn't trying to pull a fast one. Imagine it was your car that got written off by the other driver. The insurer will look at your 4 year old car and offer you it's current value, they wouldn't offer you the value of a new equivalent.

Imaginosity Fri 07-Oct-16 21:09:10

I work in motor claims. The company I work for would happily buy you the bike you need to keep you on side and happy - and to hopefully avoid your DH claiming personal injuries.

BombadierFritz Fri 07-Oct-16 21:11:46

just put in a personal injuries claim. they'll wish they had just settled on a new bike.

neonrainbow Fri 07-Oct-16 21:15:24

Oh yeah great idea let's make a fraudulent personal injury claim.

MinistryofRevenge Fri 07-Oct-16 21:21:56

It's not your insurance; it's the driver's insurance which is intended to cover his liability to you. The insurance company therefore can't dictate to you that you have to accept anything other than an exact like-for-like replacement. Obviously, you wouldn't be claiming more than you're entitled to, but it's probably worthwhile telling the insurer that you will settle for a bike of the exact specification, and are happy to accept a four year old one in perfect condition (assuming DH's bike was in perfect condition, otherwise commensurate condition). Let them find it for you, and deliver it to you - it's not your job to go searching for suitable second-hand bikes, it's their's. Given the hassle this would cause them, I wouldn't be at all surprised if they offer a new bike to get you off their backs.

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