Claim Problem-Insurance Company Low Ball Claim

Apr 11, 2016

  1. bradrcfii

    bradrcfii New Member

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    I had a total loss motorcycle accident. My insurance policy had named addon's to the bike including helmet, windshield and bags. The insurance company is paying for the helmet but not the bags and windshield. Said something about prorated. Additionally, they are not covering actual replacement costs for items like freight which is over $500.

    Additionally, they are categorizing as a "collision". It was gravel on the road and I thought it should be categorized as comprehensive. i did not hit anybody or anything.

    What can one do to fight a low ball claim offer?


  2. djs

    djs Super Moderator Moderator

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    This would normally be collision, similar to a car running into a ditch, which is also a collision accident.

    Generally (not always), comprehensive is things that happen while the vehicle is parked, such as theft, vandalism, flood damage, etc. When the vehicle is in motion and comes in contact with a stationary object, in this case, the ground, it is collision.

    Usually in the case of a collision accident, insurance companies pay to get you back to how things were before the accident. In regards to your windshield and bags, you did not have 'new' windshield and bags, you had used ones. The issue here is it is a total, not theft of the item. Valuations work a bit different when a 'total' valuation is calculated. Basically, if you bought the bike on the open market, what is the value of the bike with the bags and windshield versus what is the value of the bike without them? They should pay the amount of replacing the bike with them, but they don't add additional value on top of this.

    Why is freight an issue on a total? Can you not buy a similar bike locally? Freight is usually involved in new bike purchases, not buying a used one from the local dealer. I'm confused where this is coming from.

    If you feel the offer is a low ball, the paperwork they sent you should explain what to do. Usually it is simply proving that you can't buy a similar bike for what they offered (plus your deductible). This isn't what bikes are advertised for, but what you could negotiate a price down to if you were actually buying it. Settlement offers are usually based on actual similar sales with some adjustments made for mileage and condition and accessories, etc.

    djs, Apr 11, 2016