Motorcycle insurance claims can come in many forms. Like a total loss claim for a vehicle, the insurance company will pay for a motorcycle based on its fair market value , or actual cash value ACV. Riders are encouraged to find out what a similar motorcycle could be sold for in the current market, using websites like CycleTrader. If an insurance company offers an amount similar to the comparable offers collected in research, riders are typically recommended to accept the offer. If not, riders may be able to negotiate the amount toward the ACV and meet the insurance company half-way.
This often happens with brand new bikes that are financed, with the rider still potentially owing on the loan if the balance exceeds the actual cash value. According to the International Risk Management Institute, the actual cash value is the replacement cost with depreciation. The Balance reports that the ACV is typically based on the fair market value, which is the price someone would pay for the bike if it were in good condition.
A number of other factors are also taken into account, including how the bike looks and how well it was maintained, along with its history, mileage, and local supply and demand. According to Rider. In states that do not require insurers to pay other fees, you may still have a legal claim.
Some insurers have been cited for failing to pay additional fees and allegedly shortchanging policyholders, even if state law does not always necessitate it. First, take your motorcycle to a repair shop that your insurance company lists as a preferred shop. Motorcycle accidents, sometimes more than car accidents , can result in significant damage.
In an accident in which a motorcycle was totaled, it is common for other personal items to be damaged in addition to the bike itself. If the items are not covered by your plan, your next course of action may be to find out if the other party involved in the accident should cover the cost of these items. Motorcycle accidents are often very dangerous for the rider because motorcycles do not offer the same protection as a car.
If you were in a motorcycle accident severe enough to total the vehicle, you likely suffered injuries. However, it is important to have the proper documentation in place to file claims for injury coverage following a total loss motorcycle accident.
If you say that you did not suffer injuries in the accident, but later find out that you in fact did, you could be denied benefits because you stated previously that you were not injured.
To ensure that you receive the benefits you deserve , you may want to see a doctor after an accident, so he or she can determine the state of your health, and provide documentation that may be needed for a claim later on. This can also include pictures as well as receipts for the motorcycle and its parts. Keeping documentation from your accident and after if you plan to make a total loss claim will help expedite the claim process and help ensure you get all of the compensation you deserve.
This will help you be able to prove that you incurred all of the fees and costs you claim. The Balance advises drivers to file total loss claims quickly.
They can take a long time to file, particularly if you must gather additional documentation. File your claim as soon as you possibly can. Some states require drivers to submit a total loss claim within 30 days after the accident in which a motorcycle is totaled, but it can take well over a month to finalize and close a total loss claim.
Acting quickly will help you get your compensation as soon as possible, better helping you to offset the cost of what can be an expensive incident. Trust me; those are painful payments to make. You can also insure your motorcycle for a certain amount, often called scheduled or stated value.
If you do that and your bike is totaled, the insurance company will pay that pre-set amount. If you do not want to pay for a scheduled or stated value, many policies will offer specific protection for accessories, which guarantees that you will receive value for your accessories. It does not protect you from the natural depreciation in value that all bikes experience over time. If you do purchase coverage for accessories, make sure to save the receipts for any accessories that you purchase.
If our motorcycle is totaled we will get the actual cash value of that motorcycle. If you, as many of us do, see your motorcycle as something that you have a personal investment in and you want to protect that investment, then you need to make sure that you purchase more than just an ACV policy. Otherwise, your investment is at mercy of the free market, and the free market will almost always determine that your motorcycle is worth less than what you think it is.
Learn more by watching the video below, or request a free insurance policy review for your motorcycle. Prepared Rider Kit Download Now. In general when repair costs exceed 50 to 75 percent or more of the vehicle's actual cash value ACV and insurer will normally total out a vehicle. Each insurance company has their own way of calculating ACV but typically it can include the blue book or NADA value, local comparable vehicle sales and their own internal information. If there is major structural damage to a vehicle that cannot be properly repaired or that makes it uneconomical to repair the vehicle then it typically is declared a total loss by an insurance provider.
If a scraped frame on a motorcycle means that the frame had to be replaced or go through extensive and expensive repairs then it may cause the motorcycle to be totaled out since it could be uneconomical for the insurance company involved to fix the bike. If your motorcycle has been in an accident that damaged the frame scraped, dented, etc then speak with the insurance adjuster working the claim to find out how the company determines when a vehicle is totaled out. You can also ask if according to their specific guidelines there are certain damages such as frame damage that automatically causes the insurer to find the vehicle a total loss.
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