You survived a motorcycle accident, but now the real headache begins — dealing with the insurance company. They want to pay as little as possible to fix your bike, and suddenly “fair market value” feels more like a joke. It’s enough to make you want to give up.
But don’t! There are strategies to negotiate with the insurance company to get a fair valuation.
In this blog, we’ll cover exactly what to do when the insurance company undervalues your damaged motorcycle.
Let’s get started!
Understanding Motorcycle Value
When insurance companies assess damage after an accident, their goal is to pay you the “fair market value” (FMV) of your motorcycle. Let’s discuss what that means and why it can sometimes lead to disputes.
Fair Market Value
In simple terms, FMV is the price your motorcycle would reasonably sell for on the open market before the accident occurred. It’s not about how much you paid for it originally, and it’s not about how much you personally think it’s worth.
Factors Affecting FMV
Several factors go into determining your motorcycle’s FMV.
- Make, Model, and Year: Obviously, a newer Harley-Davidson is going to inherently be worth more than a 20-year-old scooter.
- Mileage: The less it’s been ridden, the higher the value.
- Pre-Accident Condition: Dents, scratches, or prior damage bring the value down.
- Customization: Did you add expensive upgrades or unique paintwork? That should be factored into its worth.
- Regional Market: Motorcycle prices can slightly fluctuate depending on where you live.
Reasons Insurance Companies Undervalue Motorcycles
Unfortunately, it’s common for insurance companies to offer an initial valuation for your damaged motorcycle that’s disappointingly low. We see this not just with motorcycle accidents, but also in situations like an Uber car accident in Florida, where the insurer tries to minimize the payout.
There are a few reasons why this happens.
- Cost-Saving Measures: Insurance companies are businesses, and they always want to minimize payouts. Undervaluing property is one tactic to save money.
- Lack of Specialist Knowledge: The adjuster assigned to your case might not be well-versed in motorcycles. They may miss specific details or underestimate the impact of upgrades, leading to an unfair assessment.
- Depreciation: Insurance companies take depreciation into account, which is the natural decrease in value over time. This can be especially harsh on motorcycles, as they tend to depreciate faster than cars.
What to Do When the Valuation is Disputed
So, the insurance company just offered you a payout that feels like a slap in the face. What can you actually do about it? The good news is, you have options!
Documentation is Everything
If you suspect there might be a fight over the valuation, the best weapon you have is thorough documentation. Here’s what matters most.
- Pre-Accident Photos & Videos: Did you ever proudly snap pics or videos of your bike in its prime? Dig those up! They’re the most powerful evidence of its condition.
- Maintenance Records: A detailed service history shows you cared for the bike, increasing its value.
- Upgrade Receipts: Spent a fortune on those custom handlebars? Those receipts are now incredibly valuable.
Get an Independent Appraisal
It’s your right to get a second opinion on your motorcycle’s value. Find a reputable motorcycle shop or appraiser, and pay for a professional assessment. This gives you powerful ammunition to bring back to the insurance company.
Negotiation Time
Don’t just give up! Contact the adjuster, armed with your documentation and independent appraisal. Use resources like NADA guides or Kelley Blue Book to support your claim.
Be assertive, but polite. You might be surprised how often a well-prepared counterargument can lead to a higher offer.
The Appraisal Clause
Check your insurance policy carefully. Some include an “appraisal clause” that offers a way to resolve disputes. It usually involves both you and the insurance company choosing an appraiser. A third neutral appraiser may come in if there’s further disagreement, making the final decision binding.
Don’t Forget Deadlines
Insurance policies often have strict time limits for filing disputes. These deadlines can vary by state, so it’s crucial to check your policy or contact your insurer to find out the exact timeframe.
Don’t delay! If you miss the deadline, you may lose the right to challenge the valuation.
Compare Offers
If your own insurance company is giving you a hard time, don’t feel trapped. Get a hypothetical quote from a different insurer, as if you were considering switching coverage. This gives you an alternative number to bring to the negotiating table, increasing your leverage.
Sometimes, just knowing you have another option can make your original insurer more willing to play fair.
Be Persistent
Insurance companies often start with lowball offers, hoping you’ll get frustrated and just accept them. Don’t let that happen!
Stay polite but firm in your negotiations. Provide evidence, cite comparable sales, and be persistent in pushing back. The squeaky wheel often gets the grease, and your determination is key in ultimately getting a fair settlement.
What If You Can’t Reach an Agreement?
Sometimes, no matter how hard you try, you just can’t agree on a fair value with the insurance company. Here’s where you need to consider whether to escalate things.
Small Claims Court
If the disputed amount is relatively small, taking the insurer to small claims court might be an option. Be sure you understand the limits and procedures in your area.
Mediation
This involves a neutral third-party who helps you and the insurance company reach a solution you both agree on. Some states have programs specifically for insurance disputes.
Hiring an Attorney
For high-value motorcycles, complex situations, or if you feel the insurance company is acting in bad faith, a specialized attorney can be a lifesaver. An “Uber car lawyer” is actually a good starting point, since they are experienced in negotiating with insurance companies following accidents.
Wrap Up
Getting into a motorcycle accident is stressful enough, and then having to fight with the insurance company over the value of your bike makes it even worse. Remember, they often start with a lowball offer. Don’t take it as the final word.
By being prepared, knowing your rights, and not being afraid to push back, you have a much better chance of getting a fair settlement.