Motorbike theft insurance claim

[Joe 23]

Hi forum
i had my motorbike stolen some months ago. I’ve reached an interim basis with the insurance company but I am not happy with the amount they are offering. The bike was less than 30 days old it was fully comprehensive cover. It cost £5200. The insurance company have offered to replace the bike (like for like)but I have already purchased new bike. They have offered me a sum of £4800 minus the £850 excess which totals £3950. I haven’t accepted this offer because after offering me a new bike which would have cost me £850 excess and they would have to pay the remainder £4350 why can’t they pay me this amount also?
many advice would very grateful as I need to pay back my credit card debt from original purchase (recover as much as possible

regards
joe

[des8]

What does your policy state regarding replacement following theft?
It would be helpful if you could post up a link to the policy wording

Generally insurers aim to replace bikes less than 12 months old with new like for like, and it is at their discretion to offer cash instead.
If they offer cash it will be the amount for which they could obtain the bike, which will be less than the normal retail price

[Joe 23]

Hi Des
i will upload the policy wording asap thanks.
would it be worth me calling them and asking why they have offered £400 less (for what reason) and is that in the policy?

[PallasAthena]

I agree with des8 .

The reason for the £400 difference (before Excess) will likely be that if they had replaced the bike themselves they could have done so at a cost of £4,800 because they would have bought it at trade prices.

Because you decided not to accept their offer to replace it themselves you paid £5,200 to buy it yourself. Insurers aren't obliged to reimburse you for the extra £400 you paid because the extra £400 isn't a result of the theft but a result of you not accepting the insurers offer to replace it themselves. It doesn't need to be specifically spelled out in the policy, it's a basic principle of insurance law, although they might have put it in the policy anyway.

Call them and see what they say but I expect that's what it will be..

[Joe 23]

Thank you for the response and I will update this post after I call them today

[Manxman]

This is probably too late for you, but when they offered to replace the 'bike, did they explain to you that if you opted for cash you'd get £400 less before they even deducted the excess? ie - did you realise you'd be worse off?

(None of my business, but why didn't you accept a new replacement?)

[Joe 23]

Hi Manxman
i already purchased a replacement bike that’s why I refused the original offer of replacement. They offered to pay the amount back minus the excess but didn’t give me the full figure during that call. I’ve since disputed the sun offered (£400 less) and today they agreed to pay this amount also.

[Joe 23]

PallasAthena
the underwriters have agreed to adding the £400 today (in their words because of the extras like security that was lost during the theft. It’s worked out well and I didn’t expect them to agree to this once I disputed the original sum they offered

[Joe 23]

Des8
i disputed the amount offered and they have agreed to add the £400 into offer. I didn’t expect this but it has worked out well after digging my heels in

[des8]

Well done