Timeline for How do insurance companies calculate cost of replacement, specifically for a bike?
Current License: CC BY-SA 3.0
9 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Oct 15, 2015 at 20:56 | vote | accept | pjshap | ||
| Oct 15, 2015 at 20:56 | answer | added | pjshap | timeline score: 3 | |
| Oct 12, 2015 at 15:50 | comment | added | pjshap | Yes, I was able to find the details of the model online. It has Shimano EF50, and linear-pull brakes. It seems like there is a similar model now made by the same company, which is about $350. I checked what $270 in 2006 would be now with inflation, and that's about $320. So I guess those numbers aren't as far off as I thought they'd be. I'll update when I talk to the insurance agent. | |
| Oct 12, 2015 at 14:46 | comment | added | user662852 | Do you recall or have documentation what component set your bicycle had (eg, Shimano Tiagra, Shimano Deore, Sram Rival; if it had a hydraulic brake system, etc)? Usually, the component set is a good shorthand for the price point of the bicycle, and consistent over time, and your equivalent replacement would be a bike from the same manufacturer with the same component set. | |
| Oct 12, 2015 at 1:45 | comment | added | keshlam | Ok, then it will be valued at what a bike of similar features, quality, age and and condition would cost. Not the cost of a new one, but the cost of giving you essentially what you had. | |
| Oct 11, 2015 at 23:22 | comment | added | pjshap | So, my insurance company states that "Actual cash value is replacement cost less depreciation," and there are options in the insurance policy to be insured for actual cash value or replacement cost. I chose replacement cost when I bought my policy, so I think this does not factor in depreciation. That is my understanding anyway. | |
| Oct 11, 2015 at 23:19 | comment | added | keshlam | Remember that the insurance company will probably depreciate for wear during normal use... they will value this at what it would cost to buy something equivalent of the same age, if you are lucky. | |
| Oct 11, 2015 at 22:49 | review | First posts | |||
| Oct 12, 2015 at 0:16 | |||||
| Oct 11, 2015 at 22:49 | history | asked | pjshap | CC BY-SA 3.0 |