QuestionHi, I recently purchased a used/new motorcycle; A 2008 Yamaha r6 w/2500 miles (as of stolen date), I did have full coverage & comprehensive as well. My concern is I paid $2,000 on paper but $6,000 total; How will the ACV (actual cash value) be determined? Does the purchase price set the limit for a payout?
Any input is greatly appreciated.
AnswerHello,
To answer your question as to what price they will pay, most insurance companies go by what is on paper and what you claimed to the state for sales tax .
There are many of us that have felt the state sales tax is unconstitutional because it is taxation without representation, but that is a different argument.
The flip side is that insurance companies know (probably because most of the employees do the same thing when buying a vehicle) about claiming the sale price lower than it really was.
If in the event they use the number you claimed for state sales tax, you have no recourse against them.
Now, there is a little known fact one can do to protect themself when purchasing auto insurance or anytime during the policy to cover after market add ons. I have never heard an agent offering me this coverage and have had to always request on my own. The only reason I even know about it, was because I saw so many people get screwed on repairing their stolen custom vans to find the insurance company would only pay for factory items and all customation was not included.
What I am refering to is an endorsement. The best way to describe the endorsement is this: when I put full coverage on my 99 Suburban, I added $4,000 value for the after market chrome whinch bumper, winch, and wheels. This cost mr an additional $90 per year. This is additional coverage over and beyond acv.
I crashed my suburban in January. The winch bumper was junk and pushed in 14". Normally the truck might have been totalled, but even if repaired, I would only get a used factory front bumper, but the endorsement changed the dynamics.
Since this bumper was no longer made and unavailable, the adjuster pulled a number out of the sky at $1,400 additional , I did not have much to work with. I could get something close with the the chrome brushguard for $3,000.
Instead, I actually found a place to straighten and rechrome everything and the price was about $2,500. Bottom line- with the endorsement, they are required to pay fully for the bumper.
What you could have done is had the reciepts for the customization on your bike, like seat, pipes etc. To cover the value of any customization, and the additional coverage would possibly make you whole.
As I said, I have never heard an agent offering a endorsement.
All you can do is wait and see how they will pay the loss, but if you only have $2,000 on paper they may not pay acv.
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