Auto Insurance Claims: insurance buy back of totaled motorcycle, salvage title, insurance payment

Question
I am currently waiting on the insurance company to declare my bike totaled. What can I expect the percentage of book value to be for this buy back and what kind of title can I expect to get when the damages tot he bike are all cosmetic?

Answer
Hi Charli,

A total loss is generally declared when the cost of repairs is more than 70% to 80% of the value of the vehicle. The type of damage does not matter.

In most states when a vehicle is totaled by an insurance company, the title must be surrendered. The insurance company will then apply for a salvage title through the state. If you are buying back the salvage from the insurance company they will then sign over the salvage title to you. You will then have to have the repairs completed and then take your vehicle to a state inspection facility so that they can inspect and certify the vehicle as roadworthy. You will normally pay a fee for this inspection of about $150.00. Once the vehicle is certified you can then apply to have the title put back in your name however, the title you receive will have a stamp on it that says "Salvage" or "Rebiult Salvage". This stamp will then cause the value of your bike to have a value that is only about 50% of the standard value of similar bikes without the salvage stamp.

As far as your insurance payment is concerned, insurance companies generally do not use book value. Instead they conduct a local market search to see what other bikes like yours are selling for. It's a good idea for you to do some research on your own to determine the approximate value of your bike before they make you an offer. That way you will know idf the offer is fair.

I hope this helps
Richard Hixenbaugh