What to do? Bike recently "totalled".

[runskirideparkcity]

Just trying to get input on what to do here. r1100rt 1996 was recently declared "totalled" by insurance company, and they are ready to hand over a check for just under 5000.

1. How can I figure out what the bike was really worth? (Real sales and offerings, not just blue book.)

2. They offered the opportunity to keep the bike and take $500 less.

What should I do? Damage is cosmetic, except for a handle bar.

Suggestions, please.

[Tasker]

Are you saying that your insurance company will pay you around $4,500 and let you keep your RT?

 

If so, I'd bite on that deal.

[StuGotz]

Take the "keep the bike" deal and run...

 

Most ins companies don't do that.

[keithb]

If the damage is just cosmetic take the deal and the bike. That is a no brainer.

[11101110]

take the 4500 and the bike. There has to be at least 500 in useable parts.

[Tony_K]

I'll pony up the 5 bills and take that poor beaten wreck of your hands

[T__]

Just trying to get input on what to do here. r1100rt 1996 was recently declared "totalled" by insurance company, and they are ready to hand over a check for just under 5000.

1. How can I figure out what the bike was really worth? (Real sales and offerings, not just blue book.)

2. They offered the opportunity to keep the bike and take $500 less.

What should I do? Damage is cosmetic, except for a handle bar.

Suggestions, please.

 

Deb, I’ve been there & done that.. The first insurance offer is usually a low ball & in most cases the offer will increase if you hold out for a while.. Their best interest is to get you to take the low offer & get on with business..

 

In my case the first offer was on the low side & they kept trying to assure me it was a good & fair deal.. I said I wouldn’t accept that offer as similar bikes were selling in the paper, dealers, & on E-Bay for more money.. They finally wanted to get me paid & out of their books so asked me what I thought was fair.. I said I really didn’t know but would do some research & get back to them.. I did the research & quoted the insurance company many possible like bikes with like mileage & at significant more money than they were offering..

Bottom line here is: they seemed to like one of my possible solutions.. That was to call a couple of BMW dealers & get the price that they would sell a like bike for & get the price they would buy a similar used bike for.. ---What we agreed on was a split the difference between what the dealers would offer for & what they would sell a like bike for.. I was fairly happy with the pay-out & they seemed to be content to get it off their books..

 

After the deal was worked out I asked what the deal was on,, who/when the bike would be picked up by the salvage company & how much the salvage company was paying.. They said the bike was going to salvage for $300.00.. I said I would go the $300.00 & that way they wouldn’t have to deal with the salvage end of it.. It turns out that under Michigan law the owner has first rights at salvage rights anyway..

 

Twisty

[upflying]

Retaining possession of a totalled vehicle also means you get a salvage title. Salvaged vehicles could be difficult to insure and raise red flags if you try to sell it later. Extra work at DMV may occur as salvaged vehicles may need VIN verifications and lamp/brake/safety tests. Finally a salvaged title vehicle will always be worth less than a vehicle with a clean title. Some states allow salvage title washing. This often occurred with "Katrina" cars.

[motoguy128]

Look at it this way. You can get a new bike with the $4500, and just got a beater bike for $500 to play with.

 

I wonder how the old RT would look as a roadster/cafe racer? It has a great chassis and motor to start with.

 

After a lot of sanding and a little bondo, scratches plastics can easily be repainted. I did it once with a CBR600 I low sided at 40mph. Have a body shop do the painting and you might be suprised with the results. A bright yellow might hide some imperfections.

[T__]

Retaining possession of a totalled vehicle also means you get a salvage title. Salvaged vehicles could be difficult to insure and raise red flags if you try to sell it later. Extra work at DMV may occur as salvaged vehicles may need VIN verifications and lamp/brake/safety tests. Finally a salvaged title vehicle will always be worth less than a vehicle with a clean title. Some states allow salvage title washing. This often occurred with "Katrina" cars.

Bob, that could be incorrect.. It depends on the state & the motorcycle’s age…In Michigan anything over 7 years old doesn’t get a salvage or scarp title but instead retains the original title with nothing added to reflect a damaged vehicle..

 

Even in some states with a salvage rules sometimes the original owner can retain the original title.. Probably depends on state law & insurance company follow through..

 

Twisty

[Fugu]

Back up the train here.

 

Issue #1 is what is the bike worth. This is not book value. You need to take the initiative and find comparable bikes for sale in your market area (or outside your market area if need be). Use a representative sample of those bikes, adjusted for accessories and mileage if need be to determine a fair price for your bike. Print out the 5 closest ones, sit down w/ the adjuster, educate them about the bikes (most don't know much about bikes unless you got a "bike adjuster")- basically you need to give them the info to justify a higher price than $5000.

 

THEN accept that amount that you've negotiated less $500 for the salvage. You might be able to negotiate on the salvage buy back as well because the salvor will charge the insurance company auction fees, etc.

 

They are guessing it goes for $500 at auction, but if it's a week until the next one, they will lose a week's storage and the auction's fees, not to mention the storage currently accruing on the bike as it sits, so counter offer on the salvage buy back, tell them you know they are incurring these fees. Worst they say is no and you buy it for $500.

 

 

States determine what happens w/ salvage titles. In many, the adjuster is legally bound to report the total loss. You will get a title branded salvage in many states, in some you can submit the fixed bike to an inspection and get either a clean title or a reconstruct title. If this damage is cosmetic, you may have a good shot at a clean one after a tech inspection.

[Stir]

A search of complete ebay auctions for your bike indicates that sellers would not be willing to part with their 96 RTs for $5000. The auctions I saw had Buy it now prices of ~7,900, Another one sold for $6300 on ebay. It is a very nice bike with 40500 miles. How many miles did your bike have?

 

According to Kelly Blue Book, a dealer is going to want $5795 for that bike in good condition.

 

If it were me, I counter at $6000 or depending on the miles you had on the bike. I would use Buy it now prices from ebay and completed auction listings for your bike to back up your claim. I think $5000 may be too low. The purpose of insurance is to provide you with the ability to replace your loss. If the bike is salvaged, it value is quite a bit lower than a clean bike. That is because alot of insurance companies will not cover the bike.

 

M

[Fugu]

If it were me, I counter at $6000

 

Ebay prices can be good or bad. I'd use the 5 highest reasonable prices I could find anywhere -paper, ebay, online. Asking prices are fine and give you wiggle room. Given the numbers presented, no way I'd start as low as $6000. Should be easy to find for sale ads in the $7k range.

 

The purpose of insurance is to provide you with the ability to replace your loss.

 

This may seem like semantics, but it is not. The policy obligates them to pay the market value or actual cash value. This is not necessarily what it costs to replace your bike / car. Do not confuse auto policies with homeowner's policy replacement cost on your personal property.

 

For a vehicle, it is market value, and that may or may not be the cost to replace due to market issues (for example there are no bikes nearby for sale - they do not owe shipping you one from Timbuktu, they owe you what one would cost if available locally) This is a minor distinction in some cases, but in others is very important.

[wellcraft]

it never hurts to attempt to negotiate for more money from an insurance company. is it your insurance compnay you're dealing with or someone else's? i think it will be difficult to get retail value for your bike.= but you should at least get trade in value.

 

how much damage is done to your bike and what would have been the cost to repair it? you could probably part the bike out for well over the 500 it would cost you to buy the salvage rights from the insurance company.

[harleyjohn45]

Retaining possession of a totalled vehicle also means you get a salvage title. Salvaged vehicles could be difficult to insure and raise red flags if you try to sell it later. Extra work at DMV may occur as salvaged vehicles may need VIN verifications and lamp/brake/safety tests. Finally a salvaged title vehicle will always be worth less than a vehicle with a clean title. Some states allow salvage title washing. This often occurred with "Katrina" cars.

 

not necessarily so. a friend totaled a 1998 kawasaki vulcan of mine 2 years ago. they started this salvage crap, so i would not settle. i told them to keep their money, i didn't need it. well, they don't like open claims, so one of the higher ups called me and said what can we do to settle. i said i would settle right away, but they don't mess with my title. he said no problem, and i didn't have to deal with the dept of motor vehicles. i had the title in my hand, so there was no way they could take it from me.

 

i have two bikes with salvage titles, a 2001 ducati M-900 and a 2005 suzuki SV650S. believe me the dept of motor vehicles is a pain in the rear. i'm starting to learn the procedure, so its getting easier.

 

runskiri:

keep the bike by all means, i'll bet 1000.00 will have it all repaired and painted like new. i never rebuild a bike with frame damage, but if its only cosmetic it will rebuild quickly and easily.

 

my 2c

[Twisties]

What should I do?

 

A little off topic, but since I think all the un-important technical answers have already been given, and clearly the important thing is to get you back on a bike, perhaps this little hijack will be ok , and since you are in PC

 

... Get a new ride and join us August 11...

 

Link to Northern Utah Ride Saturday August 11 Thread

 

I think most of us don't know each other, I at least have never met anyone that's coming, so you'll fit right in. If you can't get a ride, you can borrow my cruiser that's for sale, really.

 

Jan

[Bullett]

Well, I'll offer up my cruiser as well if you both want to come on the ride.

[runskirideparkcity]

Hey, Twisty1...I took your advice. Started to do some research and asked insurer to do the same. They came back with $6400. BUT...they also said if I wanted the damaged bike, that their new "buy it from salvage" price was $1100. I think at this time, it's a take the money and run.

 

You guys are great for responding so rapidly and giving good advice!

 

Obviously, it is now time to look for a new bike. Or, a new used bike.

 

Thanks.

[runskirideparkcity]

RE: rides

 

The Park City Ducati shop has organized rides on Sundays. Anyone, any bike.

 

Thanks for the offer of lending a bike! I'll let you know!

[T__]

Hey, Twisty1...I took your advice. Started to do some research and asked insurer to do the same. They came back with $6400. BUT...they also said if I wanted the damaged bike, that their new "buy it from salvage" price was $1100. I think at this time, it's a take the money and run.

 

You guys are great for responding so rapidly and giving good advice!

 

Obviously, it is now time to look for a new bike. Or, a new used bike.

 

Thanks.

 

Deb, yes, that is a 2 edged sword.. Once they found out the bike was worth more they might have also found out the salvage rights were worth more..

 

I still wonder if they were just fishing on the salvage price to try & get you to go for it & give them $1100.00 for the remains..

 

If you want the old bike give them a bid of $600.00 or so.. If the bike is really going to salvage for $1100.00 then it will go.. If the bike is going to salvage for less & you have the high bid then it will probably go to you.. It will easier for them to just leave it with you than arrange to have it picked up.. If the bike is in a storage lot at the moment then remember there will be storage fees to add on also..

 

Twisty

[USAF1]

That's exactly what I did.....almost to the period. They ended up offering $2 grand more (total of $7k).. that was after I went thru a bunch of MOA mags and wrote up all the "97's" I could find.....and what they were being offered for. The salvage "buy-back" went from $1500 to $4000 of course.....I let them keep it.

 

Pat