Protect yourself with these 4 Motorcycle Insurance Tips.
Posted June 27, 2014
Protect yourself with these 4 Motorcycle Insurance Tips:
1. What does “Total Loss mean” and how can that help you?
Depending on the state, an insurance carrier will deem the damaged motorcycle a “Total Loss” if the total repair costs exceed more then a pre-set percentage of the bike’s value. So for instance, in Florida the percentage is 80% – so if your bike’s total damage is estimated to cost 80% or more of the current value then the motorcycle insurance carrier owes you the actual cash value (ACV).
Check with your state DMV to know what your specific state’s percentage rule is. Be careful that your motorcycle repair shop estimates the repair fairly and that your insurance carrier doesn’t “nudge” the estimated repair costs at just lower then your state’s percentage rule.
2. OK, the Insurance company determines it’s a total loss and I want to keep my bike!
No problem, most insurance companies are happy to sell you the bike back at salvage value. You receive the full actual cash value (ACV) and they will receive the Salvage Value, which reduces their total cash out of pocket. However, be aware that your bike will now have a salvage title.
So what are the downsides of a salvage title? To list a few, resell value is always lower by a long shot, if you get the bike back on the road, motorcycle insurance companies will typically insure to a much lower value (if at all), financing companies typically won’t get involved with a Salvage bike and last – however, not least – in some states getting a salvage motorcycle past the required state inspection is a nightmare!
3. What happens if they can fix it?
Do I get new parts? Do they have to use OEM motorcycle parts? Well, this point can be a little subtle. The Insurance Carrier is only obligate to “Like kind and quality.” The upside is that most after market parts are high quality and won’t interfere with your bike’s ride. If your bike is used, the chances to get original manufacturer parts is low. However, if your main concern is to get the bike back up and riding the insurance company is required to “put you in the condition you were in” before the accident!
4. Should I use the recommended motorcycle mechanic or shop around for my own estimates?
It never hurts to get your own information, in fact it can help you while working everything out with your carrier. However, be aware that many carriers get preferential rates from their recommended motorcycle insurance repair shops and therefore it may be challenging to find a winning price. At Mach1 we offer an extremely high level of service at the best prices.
Keep on your toes and make sure you get your money’s worth when it comes to Motorcycle Insurance Repairs!
Give us a call if you have any questions at 949-642-3084.