Unfortunately there are situations which result in a motorbike being written-off or lost. This may be a result of theft, accident or as was seen in the east coast floods of early 2022, a motorcycle may be lost or damaged beyond repair in a natural disaster. If the motorbike is under finance, owners will need to take certain actions in regard to their motorbike loan when a bike is written-off.
As a quick guide for motorcycle owners facing this scenario, we’ve prepared this information in an easy to follow format of FAQs. It is important that the appropriate actions be taken so as not to risk the credit rating being impacted negatively.
Who should I contact first?
The insurance company that holds the policy on the bike should be the first call. When a bike is purchased with finance, the lender will require the borrower to also take out an insurance policy. The insurer will advise their individual processes for lodging an insurance claim.
What if I’ve lost my insurance policy paperwork?
Most insurers will not require policy holders to have their paperwork. They have your records and will typically go through some identity checks to validate you are the rightful policy holder. It is important to keep your details up to date with insurers.
How do I claim on the bike insurance?
The insurer will advise you of their processes to lodge an insurance claim. Many offer online claims services. During disasters there can be some delays due to the volume of claims. The Insurance Council may be able to assist with general enquiries also.
Will the insurance cover the gear I had in saddlebags?
The specific inclusions in an insurance policy will depend on what the policy holder agreed with the insurer when the policy was taken out. Contents in saddlebags may or may not be covered. Extras and options where were purchased at the same time as the bike and included in the motorbike loan may be included. Speak with the insurer.
How does the insurance get paid?
When a bike has finance owing on the loan, then the lender (loan balance) will need to be paid out from the insurance monies. The lender will have registered their claim on the PPSR. The insurer will usually arrange to pay what is owed directly to the lender. Any additional funds over and above what is owed is paid to the policy holder.
What do I do about my motorbike loan?
It is important that you contact your lender to advise what is happening. The lender has a claim over the bike. Jade Bike Loans is accredited with many lenders. If we arranged your loan you need to contact the bank or finance company rather than ourselves. However, if you are one of our customers, our team can answer any queries you may have.
Do I still need to make motorbike loan repayments?
Yes. Borrowers have an obligation to continue to meet their motorbike loan repayments even if the motorcycle is subject to an insurance claim. Unless alternative arrangements are made with the lender. In times of natural disasters and scenarios such as the COVID-19 crisis, banks and lenders offer loan assistance with deferment or pausing of repayments. Contact your lender to discuss the options available to you. Failing to make repayments where no other arrangements in place poses a risk of loan default and negative impacts on the credit profile.
Can I apply for a new motorbike loan before insurance is finalised?
Yes. You can start the process of replacing your lost bike with a new machine with a new motorbike loan while the claim is being processed. Speak with one of our Jade Bike Loan consultants to apply for a new loan and advise them of the circumstances with the existing loan and insurance claim. If you think you may receive funds through the insurance, you can use those funds to make additional payments on the Secured Bike Loan at a later date.
I rely on my bike for transport, how fast can I get a new bike loan to buy a new bike?
By sourcing your motorbike loan through Jade Bike Loans you are assured of a fast, streamlined process. Quick quotes, fast loan application approvals and we’ll assist with finalising settlement between our lender and your motorcycle dealer. Preparing your details and financials ahead of time can assist to expedite the process.
Will claiming the bike under insurance affect credit profile and rating?
Under normal circumstances, making an insurance claim on a bike under finance should not impact the individual’s credit rating. Ensuring the loan repayments continue to be made while the claim is being processed or agree to an arrangement with the lender to pause payments during the claim period can be important.
For the new motorbike loan, will I be offered the same rate of interest that I was offered for my current loan?
The new bike loan application will be assessed and quoted on your current circumstances and the interest rate currently available for motorbike loans. If your current loan was secured at a time when rates were higher than when you applied for the new loan there is a possibility the interest rate may be lower. If your financial situation has changed since the previous loan application, a different rate may apply. Refer to our Compare Rates chart for the current motorbike loan interest rates to use as a guide.
For a quote on a motorbike loan, contact Jade Bike Loans at 1300 000 003
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA ARE PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
