Following a motorcycle accident, the destiny of a damaged bike depends on the insurance provider rather than the owner. The insurer must determine whether repairing the motorcycle is financially viable or compensating the owner for its fair market value makes more financial sense. This process can make motorcyclists feel dissatisfied that they might not receive sufficient compensation for their losses.
If the insurance company determines that the repair costs exceed the motorcycle's actual cash value, they may choose to reimburse the owner for the damaged bike.
Essentially, this results in the insurer taking ownership of the motorcycle, with the owner having the option to retain it by obtaining a salvage title and compensating the insurer for its salvage value.
Depending on your state, some insurance companies have an automatic total loss threshold when appraised damages reach 80 percent of the motorcycle's actual cash value, classifying it as totaled. As repairs begin, unforeseen hidden damages may surface, potentially escalating repair costs beyond the actual cash value.
While the expenses for repairing or replacing your motorcycle may not be as substantial as your medical bills, these costs should still factor into the overall assessment of your claim. By enlisting the services of an attorney, they can ensure to account for these costs in your demand for damages.