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Crashed bike--need insurance opinions
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I used to laugh at people who (tried to) drive into their garage with their bike firmly attached to the roof of their automobile...

Now I'm part of that (select?) group. Yesterday, returning from a training ride, I destroyed my '98 QR TeQuilo. As I drove into the garage, the seat of the bike caught on the opened garage door, bending the top tube and down tube of the bike. Fortunately, damage to the car is non-existent and the roof rack only has minor damage that is easily and cheaply repairable.

I've looked at my homeowners insurance policy. It looks like I'm covered under my personal property clause. After my $1000 deductible (damn!), the insurance company will pay full replacement value (and won't "ding" me for depreciation).

My questions, in no particular order:
  • How does the insurance company determine "replacement value"? Should I do my homework ahead of time and research various prices on a NEW QR TeQuilo, just in case the insurance company tries to "low ball" me?
  • Can you think of any reason why the insurance company might try to deny my claim? For example, "negligence" due to my stupidity? I can't find "negligence" anywhere in the policy as a reason for disallowing a claim.
  • Will I suffer any consequences such as increased homeowner insurance premiums due to the fact that I'm making a claim?
  • Any other pitfalls that I should be aware of before making the call to my insurance company?


Anyone with any real-world experience or insurance industry insight who would like to help me out here is welcomed to contribute their $0.02. Your assistance might help others out there who will someday find themselves in my shoes. Thanks VERY much in advance. No need to tell me how much of a fool that I am--I'm painfully aware of that! :-)

G.S.
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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I can't help with the insurance. I just wanted to say that I'm sorry to hear that happened. That sucks. I'm a member of the club as well. I was just pissed that I didn't get the whole thing on video when I did it. It would be nice to be able to watch it and laugh at myself.
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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I'm not an insurance expert by any stretch, but I'd take a hard look at the 1k deductible. Also, cashing in now may be prohibitive for anything in the future. I think most companies can drop you after two claims.

Food for thought.
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Re: Crashed bike--need insurance opinions [kevins] [ In reply to ]
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Thanks for the reply, Kevin. I'm not sure what you mean by, "I'd take a hard look at the 1k deductible." Are you saying that I should REDUCE the deductible for future claims, or are you saying that the replacement value of the QR TeQuilo is not going to exceed my $1000 deductible? Any clarification you can offer is appreciated.

By the way, as I mentioned in my post, it looks as if the insurance company will cover the "replacement" value of the bike. I take this to mean that they would pay for a new QR TeQuilo, currently priced at around $1695 MSRP. At the end of the day, I'd love to get a check for $695 from my insurance company (replacement cost minus my deductible).
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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Sorry. I was commenting in aggregate that if (a)you are going to be responsible for the 1k deductible and (b) you can replace the bike yourself for 1.5k, given that this claim will up your premium and put you at risk down the road, if (c)you can afford to do so now, I would eat the cost myself.

I know nothing of your current financial situation, but I know a handful of people (all athletes with equipment damage/thefts) whose homeowners' policies were cancelled because they went tto the well. It sucks because this is why we pay for insurance, but at the same time as athletes we have gear that can be damaged or stolen. Insurance companies don't dig that.

Again, I know nothing of your situation. Just be judicious is where you take this. I'm 35 and will be training and competing for years to come. I will have bikes, kayaks, tents, whatever. All things being equal, that $500 from the insurance company could come back to haunt you.
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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It's true the Ins company will look at past claims and are likely to drop you after two, regardless of size of the claim. As you file claims, they figure you are more likely to file more claims, and will protect themselves. $695 is pretty small potatoes compared to why you really carry homeowners insurance, I wouldn't rock the boat myself.
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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I was told by my insurance agent that the bike is not covered under home owner's insurance if the bike is damaged only if it was lost during a fire or stolen. The only way that the bike is insured against damage is if you get a rider which is very expensive for bikes. So you may just want to ask your agent.
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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I'd personally guess you could replace the damaged parts of the bike (frame, seatpost and saddle, if I read correctly) for FAR less than $1000. I'd rather replace the broken parts than ding my insurance for it. I'm sure the rest of the bike is still very much in good condition.
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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I did exactly what you did (only I drove under the parking garage at Starbucks). My homeowner's policy had a $500 deductible, so I was a little more lucky.

I had my bike repaired rather than replaced (steel frame). Total repair cost, including full frame paint, tube replacement, stem, bars, fork, headset and all labor was about $1,400. The only question the insurance claims office asked was why wasn't I just getting a new bike. I told them what a new one would cost and they happily sent me a check for $900. I was tempted to just get a new frame, but I've been through too many trials and miles with my bike to just give it up.

I didn't even have to send them copies of the repair bills. They said just hold onto them in case one of the higher-up types wanted them later for audit purposes. I saved the repair invoices and photos of the damaged bike.

I would think that you would get a written quote from a QR dealer on the cost of a new bike. The insurer would want to see that before paying you.

All in all, it was a totally painless process. (insurance company was State Farm, by the way)
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Re: Crashed bike--need insurance opinions [TriBriGuy] [ In reply to ]
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I would NOT claim the bike in your situation. I however maintain a $10,000.00 rider for each of my bikes that I have - this is on top of my normal Homeowners (State Farm). Each bike cost me about $35.00 per year. The riders have a $0.00 deductable. If a bike is damaged, stolen, or otherwise lost I get $10k - and the claim will not alter my homeowners policy a bit. This did come in handy when I got hit by a car - the car owner had State Farm also - his claims guy offered to pay me $300.00 "The normal rate for a bicycle". I explained to him that I had a rider for 10k on this bike - State Farm could pay for it on "His policy or mine" but either way State Farm was going to pay for the bike. My agent got me a check for $10k - against the drivers policy. The basis was that I had paid myself to insure the bike for $10k...so it must be worth $10k - right?



But, for a frame where your deduct is less than half the value of the bike? I would not claim it. And another thing...if your bike is stolen from your car...it IS NOT covered under your car insurance. Get your bikes insured on their own...not on homeowners or presume your car insurance will cover it if it is in (on) your car.

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What if the Hokey Pokey is what it is all about?
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Re: Crashed bike--need insurance opinions [press] [ In reply to ]
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1. Replacement value doesn't necessarily mean a brand new bike. If the company can buy you a bike in the same condition or better that is the exact same in terms of year, make and componentry then they have the option of doing so. That being said, they would probably replace with a brand new bike because of the time involved trying to find a suitable replacement. Another example of this is a computer... If you have an Apple IIc and it burns up in a fire, you aren't getting a new Mac to replace it...

2. Stupidity isn't an exclusion in your policy. It was sudden and accidental and will probably be covered.

3. Yes your policy could be surcharged based on claims frequency or even cancelled.

Being an insurance agent myself, I have to agree with the others who said to suck it up and pay for it yourself. The homeowners industry is cracking down due to severe losses over the last several years and you'll be noticing it in your rising premiums. It doesn't help to have numerous small claims. I view my own homeowners policy as a catastrophe policy...which is why I carry a $1000 deductible myself. It keeps the premium down but at the same time it is there if I have a large loss.

My advice is call your agent. At least 10% of your premium is going into his pocket, so you have the right to call him or her and ask all of your questions. Coverages vary from state to state and company to company so he or she should be able to give you a definite answer. Be careful that your agent doesn't input the claim before you have a chance to make a decision. Most companies are now using a database called CLUE which will put the claim "on your record" even if you don't get paid anything for it... and yes in the future it could count against you.

Hope this helps!

Andy

'You'd be surprised how many people violate this simple principle every day of their lives and try to fit square pegs into round holes, ignoring the clear reality that Thinsg Are As They Are.'
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Re: Crashed bike--need insurance opinions [Andy] [ In reply to ]
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Andy...being as you are an agent - and NOT my agent...am I a fool to pay for all the riders on my bikes? Should I just let Homeowners cover them? I think I paid $350.00 to insure the fleet. 8 bikes total....about $35.00 per bike per year. $50.00 deductable if I remember right.

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What if the Hokey Pokey is what it is all about?
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Re: Crashed bike--need insurance opinions [Record9ti] [ In reply to ]
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It depends on if your rider gives you expanded coverage (it should and probably does!). One coverage that can be very valuable that the rider MAY provide is mysterious disappearance (meaning there is no evidence of theft, but your bike is GONE!) You should review the wording of that rider and compare it to the wording in your homeowners coverages for personal property. Also, you want to compare the cost of that rider ($35 per bike) versus the cost of each individual bike. I know you have a bunch of sweet bikes, but if any are getting to the point where there value has declined significantly from what they were once worth, you may want to drop that bike off the policy. Then ask yourself if you want to pay $35/year for the extra coverages the rider provides. Hope this makes sense and helps!

Andy

'You'd be surprised how many people violate this simple principle every day of their lives and try to fit square pegs into round holes, ignoring the clear reality that Thinsg Are As They Are.'
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Re: Crashed bike--need insurance opinions [Record9ti] [ In reply to ]
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Record9ti,

The coverage you described sounds ideal for anyone with even a halfway decent bike, but it also sounds awfully out of character for an insurance company to give you that kind of coverage. Did you have to do anything special to get that rider? How do they know your bike is worth $10k? What would prevent me from getting my $1500 bike insured for $10k, then wrecking it and using the check to buy a really sweet new bike (and some other cool gear to boot)? $35 seems awfully low for coverage that would result in a $10k check, especially for something as likely to be damaged/stolen as a high end bike.

If there really aren't any surpises in the details, I'd get this insurance tommorrow. I had a bike stolen earlier this year, and decided that after my dedictible the amount I'd get back from the insurance company wasn't worth filing a claim.

Lee
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Re: Crashed bike--need insurance opinions [lsilverman] [ In reply to ]
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They never did ask me to verify the actual value. I guess the figured that if I was willing to pay for the policy - they were willing to insure the bikes. My agent also knows that I tend to have costly toys ($35,000.00 home theater has its own policy too). With State Farm I have Homeowners, four cars, eight or nine bikes, jewelery coverage, and riders for electronics, flooding (water damamge is not covered in most homeowners policies I guess?).

The one time I did need to use the police was when I was hit by a car - I was on a Softride Power V - full Record, Corima wheels, Carbon X bars etc. etc....estimates were at about $8000.00 for the bike. I took the $10k pay off and that included medical bills (ambulance and all) and PI "damages". State Farm's rep told me they thought they were getting off easy as I was not going after more PI damages.

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What if the Hokey Pokey is what it is all about?
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Re: Crashed bike--need insurance opinions [Record9ti] [ In reply to ]
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Sounds like a call to my insurance company is in order! State Farm may get themselves a new customer based on the experience you had. Thanks for the details!

Lee
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Re: Crashed bike--need insurance opinions [lsilverman] [ In reply to ]
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Make sure you have a good agent. This is a little OT but proves my point. I recently purchased an engagement ring and called my "good Neighbor" agent to purchase a jewelry rider for the ring. I paid for the policy and thought that all was well. After the ring was stolen by some plumbers working in my fiance's house, I confidently called my agent to file a claim and get a replacement. Turns out, they don't want to cover the policy because the ring is no longer mine--- I gave it to my fiance (imagine that-- giving an engagement ring away!!!). Any way, after many testy phone conversations-- I think they have finally agreed to cover the policy that I paid for--- My point is-- my agent could have told me that I needed to put my fiance's name on the policy and there wouldn't have been a question about it, or he could have admitted making a mistake and I wouldn't have been stressed for the last 3 weeks worrying about it. Make sure you trust your agent because insurance companies love to find loopholes to not pay out on policies. I am so fed up with my agent that I will be transferring my car and homeowner's policies to another agent or another company. The "good neighbors " weren't there when I needed them (after paying premiums for over 20 years), and they became the "it's out of my hands" people. Sorry for the rant-- just trying to keep others from having to deal with what I'm going through.
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Re: Crashed bike--need insurance opinions [chainring711] [ In reply to ]
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That is bullshit - thanks for the rant...good tip there.

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What if the Hokey Pokey is what it is all about?
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Re: Crashed bike--need insurance opinions [chainring711] [ In reply to ]
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chainring,

First off I'll say that it sucks you had to go through that situation. Your agent should have told you about it. That is why agents have Errors and Omissions insurance. If they screw up, they have their own insurance that can cover you for your loss if you were told it was covered and it wasn't. Truthfully, the guy probably made and honest mistake. Nobody's perfect and I'm sure he feels sorry that you had to go through this hassle. That is (hopefully!!!), assuming he tried to help you get the situation rectified. Also, reputable insurance companies are not "looking for loopholes" to try to screw you. They will follow the policy language that is filed and approved by the state insurance department. If they paid every single claim without verifying that it was a covered loss, nobody would be able to afford the cost of insurance and fraud would be rampant. I understand that you are upset and had a crappy situation. Don't hold it against the entire industry. Sounds like things are working out for you and I'm glad for that.

Andy

'You'd be surprised how many people violate this simple principle every day of their lives and try to fit square pegs into round holes, ignoring the clear reality that Thinsg Are As They Are.'
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Re: Crashed bike--need insurance opinions [Andy] [ In reply to ]
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I think Andy works for State Farm....

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What if the Hokey Pokey is what it is all about?
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Re: Crashed bike--need insurance opinions [Andy] [ In reply to ]
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Reputable individuals don't look for loopholes either. Receiving $10,000 for a $1500 bike is unethical.

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Re: Crashed bike--need insurance opinions [Record9ti] [ In reply to ]
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LOL, you cracked me up with that one. No, I'm not a good neighbor...

Andy

'You'd be surprised how many people violate this simple principle every day of their lives and try to fit square pegs into round holes, ignoring the clear reality that Thinsg Are As They Are.'
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Re: Crashed bike--need insurance opinions [Andy] [ In reply to ]
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Andy--

Sounds like I should have been dealing with you. I'm sure there are good agents and not-so good ones, and unfortunately I am dealing with the latter. You make a good point about covering claims, but in this case, after reading the policy, at no place did it state that the ring had to be in my posession and the policy was not good when I gave/loaned it to my fiance. I think it is pretty obvious what an engagement ring is for, and the agent (and his staff) should have been aware of this. The claims people told me that "case law" states that I gave it away, and they don't have to cover my loss. It all depends on how you define a gift/promise etc. It's just frustrating when you do the correct thing and it blows up in your face.

Could the agent have made an honest mistake-- Sure-- and while I might be upset I could understand that-- but he took no strides to represent me with the claims people, nor ever admitted that the office didn't write the policy correctly.

I have actually only talked to the guy once-- the day after I was told that it most likely wouldn't be covered. He was of no use and told me that I had no recourse.

Again sorry about the rant--- I don't hold it against the industry -- just the good neighborly people--- who have been everything but "there" for me.
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