vcbul

Hi all,
Just looking for a bit of advice from anyone who's dealt with or knows anything about insurance after being hit by a car.
I got hit by a car about a month and a half ago and the driver was nice enough to stop, police came etc. So I've been dealing with her insurance company and I feel like they are being a bit unfair with the payout of my bike.
My 2016 road bike was worth about $4700 at the time of purchase, it was only three-four months old at the time of crash. My LBS have found a suitable 2017 model replacement at about the same cost, however the insurance company have found another bike similar to mine on bike exchange for $3200- however this bike is a clearance from $4500 because its a huge size and obviously hard to sell. Also, I rang up the shop that were advertising this bike and they said it had sold a few months ago and they just forgot to take down the add.
Firstly, I don't think its fair for the insurance company to value my bike at a clearance price (looks like almost wholesale) because its a bike in a size they can't sell. Secondly, this bike doesn't even exist. I questioned this and they claimed that the low price is due to depreciation, but I don't understand how a bike can depreciate by 33% in only three months??? If I accepted the $3200 they are prepared to give me, with what is currently available on the market, a replacement bike with be a serious downgrade to what I had, so I will be out of pocket about $1500 to get something of similar spec.
Anyone have any ideas on how to go about this? Am I being unreasonable or are they? Should I take this to the ombudsmen?
Any help would be appreciated.

Secret Squirrel

Have a shop price your bike out component by component. Itemize each part from frame to handlebar paint. Quote the labor of assembly and have them apply the deprciation to the total amount. piece by piece cost will be significantly higher than pre assembled. If they don't accept the shop quote then no harm done.

himespau 

Sorry to hear you got hit. No damage to you, personally?

FBinNY 

The insurance company is responsible for making you whole. That means that if they can find an equivalent replacement for your bike, they can give you that in lieu of cash.

However, equivalence implies more than similar. If this were a car, and it were the same model but a different color, then you'd have to accept it, but a bike is like shoes in that size is of the essence, so finding a larger frame doesn't count.

Tell then to actually find an equivalent bike, and make their check to the dealer, or give you the cash. If they move slowly, file a small claims case against the driver, since she's the one that owes you reparation fpr the damage, and the insurance company is responsible to making her whole for any loss. Once served with legal papers, they might be more pressed to end this, since it will cost them money to hire an atty for the driver to respond to the suit.

Another option is to hire an attorney to handle this, especially if there are unresolved medical issues which would also need to be settled.

BTW - do you own a car. In some states, your auto policy includes some coverage for ANY motor vehicle accident, even if you're not in your car. Your company won't pay for your bike in this situation, but they might be obligated to represent you in your claims against another driver. This can work for you because insurance companies often are more responsive when dealing among themselves, than they are to a claimant acting on his own behalf.

02Giant 

They can depreciate faster than that. I bought my Orbea new at the end of its model year for 50% off of list price.

king_boru

Probably a bad idea posting on a public forum to be honest. Seek legal advice from an attorney and keep your information confidential from the internet on open claims. This includes GoogleTweetFaceSpaceBook.

FBinNY 

The OP hasn't discussed any specifics of the event, or given away anything that anyone could use against him. As long as he limits the dialog to dealing with a recalcitrant insurance company, he's pretty safe.

However, getting the advice of an attorney may be his best option, though, if there's not much of an upside to the case, a contingency fee could eat into a settlement to where he's actually behind where he is now. So, a consult is good, but he has to be cautious about terms and expectations before actually retaining one.

Nubra 

A really good book about how to handle an Insurance company can be found in
Bicycling and the Law: Your Rights as a Cyclist

by Bob Mionske and Lance Armstrong
Published, Jun 28, 2007

Don't be put off by the co-author, Lance Armstrong. He just writes an introduction. Bob and he rode together for a period before Bob became a lawyer and bicycle advocate.

I actually contacted Bob Mionske, who now lives in Oregon, about a collision with a car and he gave me excellent information over the phone (while clearly stating that he was not giving me legal advice.)

Also excellent is Nolo Press book "Personal Injury". It has really good information on how to write to insurance companies.

Using these resources, and talking to two different lawyers on a "free consultation visit" I was able to win my case with the insurance company.

Definitly contact your insurance if you have a car. They will help you with an "underinsured" motorist, if there is a question of $ amount of coverage.

Good luck.

Nubra

Rowan

The think the OP is in Australia. If so, go straight to Consumer Affairs and the Insurance Ombudsman. Indicate that you are doing so in your next correspondence with the insurer.

I bet I could almost name the insurer, too... A**I, perhaps.

Depreciation may well be a factor in their minds. First off, if the bike was bought retail, there is the 10% GST that immediately comes off the price. And just like a car, anything new depreciates by a considerable amount immediately it is taken out the door.

WizardOfBoz

In the US, if the insurance company were being dicks, I'd call up, say "I bought my bike, new, for $4700. It was 4 months old when your client hit me and destroyed the bike. I've looked for, and cannot find, a used bike of the same model and year in my size. Even if I could, I doubt that it would be in pristine condition, as my bike was. I've found an equivalent replacement bike for the same price, $4700. No more than I paid, no less.

The choice is replace my bike for $4700, or I get my lawyer involved and I get my $4700 bike AND court costs. There is no alternative, there is no negotiation. It is either make me whole for $4700, or you deal with my lawyer."

Given that (I assume) you weren't hurt, they're very lucky. They could be paying 100s of 1000s of dollars for medical, on-going care, and compensatory damage expenses.

CliffordK

What happened to the old bike? Who has it? If it was a $4700 bike new, then it would have to be awfully battered to be worthless today. Keeping the old bike PLUS compensation may make up for some of the differences in quotes.

I agree with others. Size matters. Pointing to another ad for a bike that doesn't fit, and doesn't actually exist is meaningless. If they want to buy/build an identical (or better) bike, then they can do it. Not so much if they wish to downgrade you. And, if your bike was 5 years old, I might accept a used bike in compensation. But yours was < 1 year old, with full dealer's warranty. It should be replaced with an equivalent new bike under warranty.

indyfabz

Suddenly develop back pain and claim it was from the accident. See how fast they cough up the dough.

I-Like-To-Bike

Is lying about a false physical problem and finding a dishonest medical person to support the lie your unofficial wink-wink legal advice in dealing with a recalcitrant insurance company about a property damage claim?

OldTryGuy

bingo!!!!!!!!

indyfabz

No.

Up North

Your bike had $1,500.00 worth of upgrades did it not....I'm sure your bike store will help with that.

canadian deacon

It may be possible to sue the motorist in small claims court if the insurance company is unwilling to deal justly. This may be irrelevant if the maximum payout of small claims court is less than the cost to replace the bike.


I would have extensive photos of the damage and at least two quotes for cost to repair/replace.

CliffordK

Get caught lying, and that could be a quick way too get your entire claim denied.

The insurance companies will try to lowball you. Just stick with your claim for a virtually "new" bike. Do you have, or can you get a copy of the receipt? Your vendor may be able to reprint it if you're lucky.

Get the shop to write a brief note saying the 2017 is the equivalent replacement for the damaged 2016.

Fighting in court will be far more expensive for the insurance company than paying for a bike (which is cheap compared to totalling a new car), and is a valid "threat" if necessary. Even small claims court.

Camilo

Yea, it's the driver who is responsible for the damages, not the insurance company. The driver pays the insurance company to protect him/her from liability that he/she is responsible for. But ultimately it's the driver you are going after to make you whole.

indyfabz

Obviously. However, I got hit by a cab and the driver admitted fault right at the seen. He told me he not to call the police and that he would pay for the damage himself. I wasn't dumb enough to go that route, especially with a custom Bike Friday. So when his insurance company started giving me the run around for a few hundred bucks in repairs, I have them an ultimatum of pay up by the end of the week or get ready for legal action. I also reminded them that I could very well wake up with back pain the next morning. Got a call back within the hour. They were delivering the check to my house that day via...wait for it...bike messenger. True story. As an aside, the collision happened at an intersection not 50' from a police station yet it still took the cops 10 min. to show up.

Seattle Forrest

Cops would have arrived faster if you'd been hit not 50' from the doughnut shop...

philbob57

In the US, I'd recommend going to the state insurance commissioner. We've done that twice (car and bike), and we've gotten checks for the right amount within a week of the insurance company getting notified of our complaint. Australia has an insurance ombudsman? I'd say, 'Go there fast.'

Also, listing the loss component by component, at the retail cost of each component, can shake money loose from insurers. I did that once, too, for my beloved, stolen Atala Competezione.

exmechanic89

Totally agree with this post. If the insurance company wouldnt comply I would sue the driver in small claims court. Have done this in fact, though not about a bicycle.

fietsbob

You Needed to wait for the Police to document the incident..

Sangetsu

Your bike depreciated more than 33% as soon as you paid for it, just as many new cars would have. You are lucky they are giving you as much for it as they are.