How does fire and theft add on work | GTAMotorcycle.com

How does fire and theft add on work

Viper_05

Active member
I'm looking at insurance quotes and was interested in getting theft insurance.

Now my question is if i buy the bike for 3000 just because its a good deal and they have to get rid of it asap for personal reasons. When i get insurance they ask me the value of the bike or what i paid for it?

Say the bike is worth 6k but i only paid 3. Would i be able to claim the higher vlue? And they would just charge me accordingly based off the higher value?
 
It covers the bike for roughly what similar bikes are selling for. If you paid 3000 for a bike that normally sells for 6000, they give you 6000 if it disappears. It works the other way too, if you pay 7000 for a bike that normally sells for 6000, you have a hell of a fight on your hands to try to get more than 6000 out of them.
 
GG has laid it out for you

it is also possible to intentionally over-insure an asset
beyond book value

if you do something to increase the value
document it, indicate to insurer what has been done
they will ask for documentation and pics
then price or modify the policy accordingly

understanding of course that as value goes up
so do premiums
 
Make sure when they ask what you paid, you state it's worth $xxx. They say they record calls...they do.
 
If the insurance companies, wanted to pay out less, they'd just go and pull the records that people declared on the sales tax.
 
If the insurance companies, wanted to pay out less, they'd just go and pull the records that people declared on the sales tax.

Haha, they are required to pay you what it's worth, not what you paid. That would be a different type of coverage. Whether you were able to find it at a firesale price or whether you grossly overpaid isn't the insurance companies problem. They are supposed to get you back to where you were before the loss (i.e. a similar bike).

Insuring it for what you paid is a game full of moral hazard (eg. you buy a bike for $1000, prepare a sales receipt for $10,000 for a total outlay of $2300, then declare it stolen to pick up a $10,000 cheque). Hell, based on the stupidly overpriced motorcycle thread, you may be able to support your ridiculous price (eg. pick up an old sporty) if an investigation ever happened.
 
Haha, they are required to pay you what it's worth, not what you paid. That would be a different type of coverage. Whether you were able to find it at a firesale price or whether you grossly overpaid isn't the insurance companies problem. They are supposed to get you back to where you were before the loss (i.e. a similar bike). Insuring it for what you paid is a game full of moral hazard (eg. you buy a bike for $1000, prepare a sales receipt for $10,000 for a total outlay of $2300, then declare it stolen to pick up a $10,000 cheque). Hell, based on the stupidly overpriced motorcycle thread, you may be able to support your ridiculous price (eg. pick up an old sporty) if an investigation ever happened.
I was thinking more of how much fun it would be to look at the people's faces who went in and declared that they paid $1 for a bike, so that they only had to pay 13 cents in tax, as the insurance co. turned over the shiny dollar! It would be sad, but I'd also laugh my off.
 

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