Ducati Sporting Club UK > General > Ducati Insurance - Questions and Answers! > Insurance renewal

[ducatisps]

So how do you value a modified bike? In my experience the modifications don't usually add a huge amount of value, if any to a bike. A very good example of a standard bike will usually sell for a premium. Pretty much every guide I've read suggests keeping all the standard parts and replacing them in the event of a sale.

So what is the formula for achieving a market value of a modified bike?

[NBs996]

But insurance is not about resale value, it's about replacement value, so I'd suggest you take the cost of the bike and add the value of the parts that have been added... after all, it's going to cost that same ammount to put the customer back to the same position as before a total loss incident, which is what insurance is about, right? But then you have to consider a lower cost of a potential claim by estimating what shiney bits might be recoverable from the vehicle.

Anyhow, how do you value a standard vehicle just by asking what make and model it is? I've never been asked what condition my bike/car is in, and that's usually the single factor that determines it's resale value.

Hang on, I'm thinking as I'm typing... and it's not quite black and white is it, so I'm going to shut up before I confuse myself!!!!

[Guido]

Baylissboy,

Have a look at Simon London's thread in the 'Insurance' section.

I used this method to good effect 2 weeks ago and saved £150 vs my premium last year and that was with declaring my Termi's and an 'INDESCRETION' with the Hedge Police

[baylissboy]

ducatisps

As NBs996 has stated,i'm not wanting to sell my bikes,so the market value is not of any concern! I would want to replace my bikes ie i would want the insurance company to put me back to pre-loss postion,which is what insurance is for,in my eyes,correct me if i'm wrong!! So therefore i would want a standard bike plus all the modified parts! Why do insurance companies not allow for this?

[ducatisps]

Baylissboy - The reason is that insurance companies usually settle claims (other than agreed value policies) is to say "what financial position were you in when you had the accident/theft etc?" The answer to the insurers is how much would the bike have sold for if it had been sold at the date of the loss.

If you look at many adverts modified bikes don't always sell for a premium. Sure there might be a small mark up if there are substantial modifications.

If you declare your modifications insurers will usually put a standard parts replacement condition on your policy which restricts cover to that of a standard bike.

I understand the dilemma - I am really interested to find out if there is a sustainable formula for valuing modified bikes.

NBs996 - usually you are asked what mileage and an engineer will inspect so a reasonably accurate valuation can be given. Servicing records are also sometimes asked for and any other evidence to back up a value. Just how many write offs have you had?!!

[Steve M]

like baylissboy says, the insurance copmpanies are quick to put up the cost when you declare the mods/extras. If you declare and are prepared to pay extra, then the company should also be prepared to pay out for those very parts for which THEY increased the insurance premium.
If they are not going to pay out, why increase the cost?

[NBs996]

Steve,
I think the premium is increased because a modified bike is probably a lot more attractive to a thief (although not quite as attractive as some premiums might suggest)

ducatisps,
I was talking about estimated value for the quote, not a payout! I've not had any writeoffs mate!! And I'd strongly contest any underwriter who tried to put me back to my "financial" position before an incident.... the position I'm in before any incident is a bike in the garage, not money in the bank!
I'm off to check that "small print"!!

Anyhow, this thread's being hyjacked, sorry baylissboy! Any luck with a quote yet?

[Steve M]

Originally posted by NBs996
Steve,
I think the premium is increased because a modified bike is probably a lot more attractive to a thief (although not quite as attractive as some premiums might suggest)

Good point and true on both counts

[baylissboy]

ducatisps

You are missing the point a little,if i were selling my bike i would remove most of the mods,sell the bike,sell the parts to retrieve some of the money that the bike owes me. If the bike were stolen i would be minus the bike & all the parts,so i wouldn't be in the same position as i was pre-theft! I would get "market value" for a similar standard bike,but i would have a short fall in the cost to return the "new" bike to the spec of the original bike,therefore the insurance company have not completed their side of the contract!
Don't get me wrong,i don't want to make money out of getting a bike stolen,i just want to be in the same position as i was before the act!!
The bike in question is a Foggy rep that with purchasing & modifying now owes me £30,000! I have seen standard bikes advertised for £10,000 in the press,so if that is "market value",i would be £20,000 in the red! Ok, i can't expect an insurance company to cover the depreication,but to return another bike back to the spec of the first bike is still going to be £10,000! The parts still cost the same now as i paid for them,so why won't they cover the parts? After all,i declared all the mods when they took my premium!!

NBs996

I've had a few quotes,i've got two options,pay £800 & get market value(Ducati insurance),or pay £1,200 & get an agreed value(Carole Nash). As this has never been about going for the cheapest quote Carole Nash looks like the best way to go!! I only want my bike insured properly,cost isn't the issue!!

[NBs996]

Right on the nose, BB!
Exactly what I was trying to say. (there's a reason I failed english at school!!)