Hire purchase + insurance

[izzy.uan]

Hi guys,

 

just wondering.. heard from a certain bike shop that any bike currently under hire purchase, renewal of insurance must be done only at the bike shop.

 

If we were to get our own insurance agent & policy, that particular insurance will be considered invalid & your money will be wasted.

 

The thing is, is this statement true..? if it isn't, can they be reported..?

 

And i've been asking around, some have never even heard of this policy..

 

Im also wondering, if a shop claim to have this policy, what will happen if we go against them..? Will they be angry and tow our bikes for no reason..? haha..

 

Could someone please shed some light regarding this issue..?

[rohan]

I don't think their 'policy' can be enforced. I settled my own inspection and insurance from 2nd year onwards.

 

Sent from my GT-I9300

[izzy.uan]

well, just wondering if anybody else have the same issue..? if its not a written law, i think nobody should follow as everyone knows that bike shops get a certain percentage of the insurance money..

[Hydher]

sounds dodgy. i hate hire purchase. fyi most often the price dun differ much

[swat_]

Go ahead renew on ur own. its way cheaper..

 

Sent from my GT-N7000 using Tapatalk 2

[haoKR]

diff shops has their own set of rulezz..

[izzy.uan]

sounds dodgy. i hate hire purchase. fyi most often the price dun differ much

 

well, i've heard of others spending at least $100 more on insurance when they're under hire purchase..

[Heathx]

So if say i'm paying instalment 2yrs starting aug 2012, $200 per instalment, then my insurance also start aug 2012.

 

In august 2013, if i renew insurance with the motorshop, means my instalment go up?

 

But if i do my own instalment, then i'll need to pay additional to the company on top of the $200 instalment to the motordiam.

 

The only difference is doing own insurance is cheaper?

 

Is this how it works?

[haoKR]

y installment will go up,u already sign on that 1st day this amount,n how long already. so wont change

[izzy.uan]

Heathx, i think you're confused.. Im also getting confused.. haha

 

Lets put the installments aside.. If you're under hire purchase, let's say your bike shop qoute $600 for third party under an insurer of their choice..

But if you were to outsource on your own, you might get about $450 for third party on another company if you were to go direct.

 

Anyways, when you get a bike, the first year insurance is already totalled in. The subsequent years, you have to pay flat full rate on the insurer's quotation. The installments you're paying monthy have already include your 1st year insurance..

 

So put it this way, on the anniversary of your bike, you have to pay full insurance amount + your monthly installment.