I had a 2004 Kawasaki motorcycle that was stolen.So I have full coverage and a custom parts endorsement I pay extra for.The adjuster called and gave me a settlement amount of $5700.00 for the bike and $1700.00 for custom parts.So for the bike thats about right for the bluebook but I have a policy for custom parts that states parts in excess of $5000-6500.00.I sent them receipts for over $8000.00 and pictures of bike,but the adjust says that they don't pay out on custom parts that cost more than the motorcycle value.When I added the custom parts I was told that if you paid for $6500.00 you were covered for that amount and in my police paper it says actual cash value.I understand the actual cash value but these parts are only three years old and I dont understand how $6500.00 goes down to $1700.00 when it would still cost the same today to replace.Can I decline there offer are is it a no win
Problem with Settlement Offer from Geico
- Thread starter cueman
- Start date
- 409
There is always room to negotiate in these cases. The claims rep will usually try to settle a claim with a "fair" offer, but that doesn't mean you have to accept it. You can negotiate for a higher settlement, but have information to back you up. Find out how much it would cost you to go out and buy those parts, used, of roughly the same age as the ones you had.
A good agent should be able to talk to claims for you as well, as long as you have some information they can use to show to give weight to your argument that the settlement should be higher.
A good agent should be able to talk to claims for you as well, as long as you have some information they can use to show to give weight to your argument that the settlement should be higher.
You would have to read the policy and the endorsement to get a better understanding of what is at play here.
Actual cash value = depreciated value, basically what you can get the parts for at a good garage sale (not literally, but you get the idea). This is not replacement cost, which would be the cost to replace them new, and would be unusual on any sort of motorized vehicle policy (not unheard of, just unusual).
I'm guessing what you should have had was more of a stated value policy, were the value of the bike was predetermined. This usually required getting the bike appraised and then insuring it for that amount. I insure a number of heavily modified bikes and this is how I handle those.
Yes, you can always decline a settlement offer. You can usually renegotiate an accepted settlement offer. You can also go to court if you feel the settlement isn't fair. Of course, that last step is drastic and insurance companies have a LOT more lawyers than you do.
Bottom line, did they send you a copy of the valuation report (shows how they valued the bike)? If so, go through that and figure out where their values come up short. Show proof of this and they will make the adjustments.
Dan
Actual cash value = depreciated value, basically what you can get the parts for at a good garage sale (not literally, but you get the idea). This is not replacement cost, which would be the cost to replace them new, and would be unusual on any sort of motorized vehicle policy (not unheard of, just unusual).
I'm guessing what you should have had was more of a stated value policy, were the value of the bike was predetermined. This usually required getting the bike appraised and then insuring it for that amount. I insure a number of heavily modified bikes and this is how I handle those.
Yes, you can always decline a settlement offer. You can usually renegotiate an accepted settlement offer. You can also go to court if you feel the settlement isn't fair. Of course, that last step is drastic and insurance companies have a LOT more lawyers than you do.
Bottom line, did they send you a copy of the valuation report (shows how they valued the bike)? If so, go through that and figure out where their values come up short. Show proof of this and they will make the adjustments.
Dan
avaloninsurance
Expert
- 64
Usually when you add customization it does not cover to replace the customized parts but instead offers you a depreciated amount for them. Unfortunately any type of motorized vehicle (or parts) tend to depreciate quickly. I would review your endorsement for the customized parts carefully to see what type of loss settlement they are covered for. If it says actual cash value you may be out of luck.
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