Hitchcocks Forum

Please, is this right? I have just been in an RTC (no blame to me) and the four week old Gun Classic has been declared a class c. The insurance company will pay out but less twenty percent that was the VAT on the bike. So, I get £4000 rather than the 4699 paid. The other party has fully comp and admits liability. How is it that I am £700 out of pocket to replace the Gun? Am I being fooled into thinking that they can do this? If they can't, what can I do?

Try White Dalton solicitors: specialists in motorcycle claims and they've given me useful free advice in the past.

Not your fault, but see if you'r insurance goes up next year, bugger!
Marsh.

Sorry to hear that. I have a feeling that the insurer may be within their rights. The fact is that a bike loses value as soon as it's off the forecourt because some of the on-the-road price you paid is VAT. That is why when buying a new vehicle the dealer will try to sell you gap insurance cover ie to cover the difference between what you paid and what the insurer will offer you, based on replacement cost. In essence you are entitled to be in the position you were before the claim. This means that the insurer will assess the claim on the basis of what a similar bike would cost you. Clearly this would be less than what you paid because it wouldn't be a brand new unused bike. However, if you took out the additional cover (as most do) for uninsured loss, given that the third party has admitted liability (though he might change his mind as he shouldn't have admitted liability to you) you might be successful in lodging out-of-pocket costs against his insurer. This can be done through your insurer, though often they won't want to bother. By all means have a word with Dalton & Co, who will be able to offer you professional advice. Another option ight be to buy the bike back and repair it yourself, depending on the damage sustained and whether or not you want,or are able, to repair it. The fact that professional repair costs exceed the value of the bike don't necessarily mean that it is uneconomic to repar, though I suspect you won't want to pursue this course as it is such a new bike. Good luck; I hope it works out for you.