How to Use a Total Loss Motorcycle Value Calculator

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When the insurance company has told you your bike is a total loss, you may wonder how to use a total loss motorcycle value calculator in order to make sure you are getting a full and fair offer for your bike. Insurance companies generally use the motorcycle’s Actual Cash Value (ACV) method, which is the actual cost to replace the damaged motorcycle with a similar one, minus depreciation. You can use this same formula to determine how much compensation you should get.

If you or a loved one has been injured in a motorcycle accident due to the recklessness of another person, our Chicago motorcycle accident lawyers can help.

How to Use a Total Loss Motorcycle Value Calculator


What Is Full Market Value vs. Fair Market Value?

What is Fair Market Value for a Motorcycle Wreck Claim?

As with a totaled car, full market value refers to the highest price your motorcycle might fetch in the open market. On the other hand, Fair Market Value (FMV) is the price a competent buyer would willingly pay a competent seller, both having reasonable knowledge of all pertinent facts. Fair Market Value is a more accurate and realistic valuation.

What’s the Difference Between Actual Cash Value and Total Loss Value?

Actual Cash Value (ACV) represents the market value of your motorcycle, after deducting depreciation. On the other hand, Total Loss Value is the amount paid out when a vehicle is considered a “total loss” after an accident.

Example Total Loss Motorcycle Value Calculation

Let’s assume your motorcycle had a fair market value of $6,000 at the time of your wreck. If your motorcycle’s scrap value was $2,000 and would cost $5,000 to repair, then your motorcycle is “totaled.” It’s totaled because scrap value and cost of repair exceed its fair market value ($7,000 scrap and repair versus $6,000 fair value).

How Is the Value of the Totaled Motorcycle Determined?

When the insurance company declares a total loss, they determine its value using data from various sources like the National Automobile Dealers Association (NADA) or Kelley Blue Book. An insurance adjuster will also take into account the selling price of similar models in your area.

Any recent mods, upgrades, or improvements you have made that can be proven with receipts could positively impact actual cost value that the insurance company totals.

Lastly, the estimated cost of salvage is deducted from the total value, as the insurance company typically assumes ownership of the totaled bike.

How Much Is an Insurance Company Required to Pay Out for a Totaled Motorcycle?

Insurance companies’ payout amounts for totaled motorcycles are regulated by state insurance departments. The Illinois Department of Insurance oversees these operations. They ensure that insurance companies follow the Actual Cash Value method for calculating total loss payments.

What Is the Cutoff Value for Repair?

The cutoff value for repair refers to a threshold property damage amount set by many insurance companies, beyond which a vehicle is deemed a total loss. For instance, if repair costs exceed 70% of the vehicle’s pre-accident value, the insurance adjuster may consider the motorcycle totaled.

How Do I Know if I Am Being Offered a Fair Settlement?

To determine if you are being offered a fair settlement in a property damage claim, compare the insurance company’s valuation of significant damage with your motorcycle’s Fair Market Value. For instance, if similar models in your area are selling for $8,000 and your settlement offer values your bike at $6,000, you may want to negotiate.

Can the Repair Shop Install Used Aftermarket Parts to Repair My Motorcycle?

Yes, repair shops can install used parts to repair your motorcycle, given they are in good condition and compatible.

Can I Negotiate the Total Loss Value of My Motorcycle?

You can negotiate your motorcycle’s total loss value if you disagree with the insurance company’s valuation. Provide evidence like receipts for mods and upgrades or listings of similar models at higher prices to support your case, which may lead the insurance company to reconsider their initial offer.

Who Pays the Taxes and Transfer Fees for My New Motorcycle?

Insurance companies often cover taxes and transfer fees for a totaled motorcycle, but details can vary by policy. Always check your policy document or consult your insurance representative for accurate information.

What If I Owe More Than My Totaled Motorcycle is Worth?

Being “upside-down” on the remaining balance on your motorcycle loan means you owe more than the bike is worth. While it’s a tough situation, options like gap insurance or negotiating with lenders can help.

What Do I Do If I was Injured in a Bike Wreck?

If you have been injured in a bike wreck, some steps to take afterward would be to:

  • Seek immediate medical attention.
  • Inform your insurance company to initiate claim procedures.
  • Consult with a personal injury attorney to protect your rights.
  • Maintain a record of all medical documents and expense receipts.

What Factors Affect the Value of My Motorcycle?

What Factors Affect the Value of My Motorcycle?

The repair cost or replacement cost of your motorcycle can be influenced by:

  • Age and Mileage: Motorcycles depreciate over time, and higher mileage can significantly reduce their value.
  • Condition: The overall condition of your motorcycle, including mechanical and cosmetic aspects like scratches, dents, or mechanical issues can decrease the value.
  • Brand and Model: Certain motorcycle brands and models have higher resale values.
  • Modifications: Custom modifications can affect your motorcycle’s value both positively and negatively. Performance upgrades often enhance value, while unique paint jobs may lower it.
  • Market Demand: The value of your motorcycle model in the used market is influenced by its demand; higher demand typically leads to a higher value.
  • Maintenance Records: Well-maintained motorcycles with full service records often command higher prices.

How to File a Total Loss Insurance Claim for Motorcycles

Some steps include:

  • Contact your insurance provider to report the incident and begin the claim process.
  • Document the incident by taking photos of damages and noting important details to support your claim.
  • Gather all essential paperwork for your motorcycle, including details, receipts, and service records.
  • Get a professional mechanic to assess the damage to your motorcycle.
  • Negotiate with your insurance company to determine a fair settlement value.
  • To finalize the claim process, accept the settlement offer.

What Happens to My Motorcycle After a Total Loss Settlement?

In Illinois, the insurance company usually takes ownership of salvage title to the damaged motorcycle and sells it to a salvage yard for scrap value.

If I Keep the Salvage, Can I Still Ride My Motorcycle?

In Illinois, you can keep a salvage motorcycle if it passes inspection, gets a ‘rebuilt’ title, and is deemed roadworthy.

How Long Does the Total Loss Claim Process in Illinois Take?

The total loss claim process usually takes several weeks, depending on case complexity, information exchange speed, and settlement negotiations. Prompt communication with your insurer can help speed up the process.

How to Use a Total Loss Motorcycle Value Calculator
If you or a loved one has been injured in a motorcycle accident due to the recklessness of another person, our Chicago motorcycle accident lawyers can help.

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