Can I Keep My Motorcycle When the Insurance Company Totals It?

Yes. You can keep a totaled motorcycle if the insurance company declares it a total loss. The motorcycle is your property, and it is always your choice whether to keep it or not.

The insurance company will pay you for the total value of your motorcycle plus tax, less the salvage value. You can purchase the vehicle back for scrap value with a salvage title.

Many of our clients are attached to their motorcycles and want to keep them at any cost. We have had clients who know how to repair or rebuild motorcycles and clients who built a custom motorcycle and wanted to rebuild it.

Who Owns a Totaled Motorcycle After Insurance Pays for the Motorcycle?

Since the insurance company will pay you for your totaled motorcycle, the insurance company will own the motorcycle after they pay you for it.

The insurance company will pay you for your totaled motorcycle less the salvage value. A salvage company will pay you the salvage value. You must give the motorcycle title to the insurance or salvage company.

How to Buy Back Your Totaled Motorcycle

If you want to keep your motorcycle, you must buy it back for the salvage value from the insurance company (see below for how much it can cost).

Just tell the insurance company that you want to keep your totaled motorcycle. The insurance company will pay you for the damage to your motorcycle, less the salvage value. You will not be paid the salvage value. You will keep your motorcycle and get a salvage title.

How Much Will it Cost to Buy Back a Totaled Motorcycle?

The cost to buy back a totaled motorcycle is the salvage value, usually only a few hundred dollars. We usually see motorcycle salvage values ranging from $250 to $750.

But you don’t have actually to pay that money. You will just receive less money from the insurance company. The insurance company will pay you for the damage to your motorcycle, less the salvage value.

Example:

$7,500 motorcycle value before it was totaled
$500    motorcycle salvage value
$7,500 amount you receive if you do not keep your motorcycle
$7,000 amount you receive if you keep your motorcycle with a salvage title

If you’re in New York, read what you need to know about Salvage Branding and the New York Salvage Vehicle Examination Program.

If you want to repair your motorcycle, always use a qualified motorcycle repair shop unless you’re highly experienced.

Totaled Motorcycle Financed With a Bank Loan

If you financed your motorcycle by buying it with a bank loan, the bank will have a lien on your title.

The insurance company will pay off the bank loan and give you any excess amount. If the insurance company does not pay enough to pay off the bank loan, you must pay the difference to the bank.

You can keep a totaled motorcycle with a salvage title when a bank financed the motorcycle. You just have to pay the salvage value to your insurance company.

Why Will the Insurance Company Keep a Totaled Motorcycle?

When you have collision or comprehensive (fire and theft) coverage, and you make a claim for damage to your motorcycle, the insurance company will pay you for the damage.

If the insurance company determines that the damage will cost too much to repair, the insurance company will total the motorcycle, take possession of it, and sell it for salvage value.

When Is a Motorcycle Totaled?

In New York, a motorcycle will be totaled if the cost to repair is 75% or more of the motorcycle’s value.

Motorcycles are totaled by the insurance company in the vast majority of our motorcycle accident cases. We have even seen motorcycles totaled when there was almost no visible damage.

Often, the insurance company won’t even send an appraiser to the repair shop to inspect your motorcycle. They will call the shop and ask the shop to email photos of the motorcycle.

Our cases always involve an injury from a motorcycle accident. But just like a motorcycle can be totaled with little to no visible damage, a rider can be seriously injured even when the motorcycle has little to no visible damage. Even if you only had a minor injury from a motorcycle accident, call us!

Why Do Insurance Companies Total Motorcycles With Little Damage?

Because most motorcycles are worth considerably less than cars, the cost of repairing a motorcycle is proportionately more than repairing a car. Therefore, motorcycles are totaled more often than cars.

Often, the fork and/or frame is bent, or there is a crack in the motor or other parts, and the cost to repair the motorcycle is just too much compared to the value of the motorcycle.

The damage to the motorcycle in this photo doesn’t look too bad, but if you look closely at the photo, you can see cracks on the fairing and damage to the gas tank and handlebar. Not so visible was that the fork was bent. The motorcycle was totaled.

Is it a Good Idea to Keep a Totaled Motorcycle?

Rarely. Unless you have an antique or highly collectible motorcycle with considerable value, keeping a totaled motorcycle won’t make sense.

Examples of Clients Who Wanted to Keep a Totaled Motorcycle

We had a client who was unhappy when the insurance company offered him $8,000 for his Harley Davidson with a Screaming Eagle package. He wanted to keep the motorcycle, but we checked with Harley Davidson and were told that his Screaming Eagle package was a dealer add-on and not collectible. We then got the insurance company to pay $13,000, so he decided to take the money.

We had another client, Manny, who built his own custom motorcycle that looked like a “Mad Max” motorcycle.

Manny wanted to purchase his totaled motorcycle with a salvage title and rebuild it because he spent hundreds of hours building it, but the insurance company only offered him $12,000. We paid for an estimate to build an identical custom motorcycle and got the insurance company to pay $28,000, which was much more than our client wanted.

Is It Worth It to Keep a Totaled Motorcycle?

Following are the cons or downsides you must consider if you decide to keep your totaled motorcycle after an accident.

Salvage Title

You will get a salvage title if you keep your motorcycle after the insurance company totals it.

A salvage title is stamped SALVAGE to be obvious to a buyer. A salvage title will significantly reduce the value of your motorcycle and affect your insurance.

Read about salvage titles at Edmunds.

Resale Value

A totaled motorcycle will have a lower resale value.

You wouldn’t want to buy a motorcycle with a salvage title for the same amount as a motorcycle with an unbranded title. So, don’t expect to sell your motorcycle for full value if the title is branded as salvage.

A salvage title will significantly reduce the value of your motorcycle because it tells prospective buyers that the motorcycle was severely damaged. In New York, it says that the damage was at least 75% of the motorcycle’s value before the accident.

Insurance With a Salvage Title

If you have a salvage title, your insurance premium will likely be higher. You may also have difficulty finding an insurance company to insure a motorcycle with a salvage title.

If you find an insurance company to insure a motorcycle with a salvage title, your insurer will probably only cover liability.

If the insurer only offers liability for a salvage motorcycle, you will not have collision coverage if the motorcycle is damaged, and you will not have comprehensive, which includes fire and theft coverage.

See our Ultimate Motorcycle Insurance Guide to learn about the different types of motorcycle insurance coverage.

Salvage Cost

You will have to pay the salvage value. But paying the salvage cost is not really a downside to buying a totaled motorcycle.

When an insurance company pays you for the loss of your motorcycle, you’re being paid for 100% of the motorcycle’s value in the condition it was in before being damaged.

Because you’re being paid 100% of the motorcycle’s value, the insurance company is entitled to take the motorcycle and sell it to recoup some of its money.

Paying the insurance company the salvage value for your totaled motorcycle is just paying the insurance company back for what they paid you. And you’re only buying it from the insurance company for what it’s worth.

The insurance company will deduct a few hundred dollars from the money they pay you for your totaled motorcycle. Most totaled motorcycles have a salvage value of $500-800. Whatever the salvage value is, your insurance company will deduct that from the money they pay you.

If you want to buy your totaled motorcycle, you will not be paid the salvage value. Therefore, your cost to buy your totaled motorcycle is the amount of the salvage value.

Open Recalls

If your motorcycle has a salvage title and your motorcycle has open recalls, the dealer may deny repairing the recall. This also applies to cars.

What Should I Do if I Don’t Have Collision Coverage and the Car’s Insurance Won’t Pay Enough for My Motorcycle?

If you were injured in a motorcycle accident in New York, we will represent you for free for your motorcycle damage claim. It may take longer to get the money for your motorcycle than if you had collision coverage, but we won’t charge you a legal fee, and we have been very successful getting full value from the other car’s insurance for our clients’ motorcycles, so you’re likely to get all your money back.

Note: We do not represent motorcyclists for motorcycle collision damage unless you were injured.

See why we highly recommend collision coverage for motorcycles. If you don’t have collision coverage on your motorcycle, you’ll probably find that the other driver’s insurance won’t pay you 100% of your motorcycle’s value.

Comments about How Can I Keep a Totaled Motorcycle After an Accident?

If I don’t have a motorcycle license and have a motorcycle accident, can I get money for my injuries?

Yes, you can get money for your injuries if you didn’t have a motorcycle license.

If I don’t have a license and caused the motorcycle accident. Can I get money for my injuries?

The problem in this unusual motorcycle accident is that the motorcyclist caused the motorcycle accident.

The fact that the motorcyclist didn’t have a motorcycle license is not the problem. Even though he caused the motorcycle accident, if it wasn’t his motorcycle and depending upon other circumstances of the motorcycle accident, the rider can get money.

The Motorcyclist Didn’t Have a Motorcycle License But Also Caused The Motorcycle Accident

The mother of a New York motorcyclist posted a comment on our website stating that her son wanted to try out her motorcycle, and she allowed him to use it only in the driveway. The rear wheel of his motorcycle locked up, and he suffered a severe road rash injury. The skin was taken off the arm, and he has muscle exposed on his hand.

The Frightening Problem

1. Her insurance company told her that NYS No-Fault or PIP would not pay for his medical treatment, and he does not have health insurance. She is worried that he would get a bad infection without treatment.

The comment was posted on my article “Can I Get Money for Injuries If I Was Driving without a Motorcycle License?“.

Her insurance company is correct. New York State no-fault insurance will pay for medical treatment of injuries caused by the use of a car, but NY law prevents no-fault insurance from benefiting motorcyclists.

The Legal Problem

2. Another driver wasn’t at fault for causing his motorcycle accident, so who can he sue?

If his mother knew or should have known he was not competent to ride a motorcycle, we can get money for pain and suffering from his mother’s motorcycle insurance to compensate the motorcyclist for his injuries. He can use that money to pay his doctors to treat his injuries.

How can the injured motorcyclist get money from his mother’s motorcycle insurance?

There is a legal principle called “Negligent Entrustment,” which can allow the motorcyclist to be compensated for his injuries from his mother’s motorcycle insurance.

The common law legal principle of Negligent Entrustment is defined by the “Restatement Second of Torts” as:

“One who supplies, directly or through a third person, a chattel for the use of another whom the supplier knows or has reason to know to be likely, because of his or her youth, inexperience, or otherwise, to use it in a manner involving an unreasonable risk of physical harm to himself or herself or others whom the supplier should expect to share in or be endangered by its use, is subject to liability for physical harm resulting to them.”

My plain language interpretation puts it this way:

A person can be liable to pay for injuries if he or she provides, loans, or gives something to another person and either knows or should have known that the other person could use it in a way that could cause an injury.

In this motorcycle accident, a mother owned a motorcycle that she allowed her son to ride. She only allowed him to try it in the driveway because she didn’t believe he was experienced enough to ride it on the road.

The case of Perkins v County of Tompkins says that the owner of a motorcycle may be liable for negligent entrustment If the owner was negligent in giving it to someone he knew or should have known was not competent to operate it. Perkins v County of Tompkins, 160 A.D.3d 1189, 74 N.Y.S.3d 648, 2018 N.Y. Slip Op. 02530

Interestingly, the Perkins case also says that a person’s lack of a motorcycle operator’s license has to do only with the legal authority to operate the motorcycle and has nothing to do with whether the person was negligent.

Consequently, if his mother thought he was experienced in operating a motorcycle but didn’t allow him to ride it on the road only because he didn’t have a motorcycle license, he would not be able to get any money from his mother’s motorcycle insurance.

Comments

Every year at this time, we try to get the word out about how you can protect yourself from the financial consequences of a motorcycle accident.

If you believe in superstition, it might even prevent an accident. It might even be more effective than the flu shot. People often say, “You never need insurance when you have it”.

The corollary is if you don’t have insurance, you’ll probably need it.

What is it? Underinsured coverage. It’s optional coverage on your motorcycle insurance policy and pays you when you’re injured by a driver who has less insurance than you.

Don’t be one of those people who ask, “How can someone drive a car with only $25,000 insurance” (when that’s all you have).

You might be surprised to know that many injuries you may think are minor really are serious. You might think you’re lucky because you didn’t lose your leg or even break it. But what if you only have a torn meniscus in your knee?

If you injure your knee and have a torn meniscus, you’ll probably need arthroscopic surgery and could be out of work for 4-6 months from the time of your accident. But after surgery, your knee will never be back to what it was. You’ll continue to have some pain and limitations and won’t be able to do everything you used to. You might not be able to continue working in your current occupation, or you may need an early retirement. You may even need knee replacement surgery 10-20 years later. What will it do to your life when you’re in your 70s, 80s, and 90s if you make it?

So what are the chances that a driver will cause you to have an accident? What are the chances that you’ll be injured? It may be worth taking the chance rather than give up riding, but do you want to take the chance financially?

If you want to protect yourself financially, call your insurance company now and increase your underinsured coverage to at least $250,000, or the maximum your insurance company will sell you.

For more information, take a look at CagerProtection.com or call us, and we’ll be glad to give you free advice.

If you’re involved in an accident, even if another lawyer doesn’t think you have a case, call us immediately for a free consultation.

Buying a motorcycle? When you get a loan for a new or used motorcycle, everyone seems to know the bank requires you to have collision and comprehensive insurance in the event your motorcycle is damaged or totaled.

Does The Law Require Collision Insurance on a Motorcycle?

Did you know there is no law requiring you to have collision and comprehensive (fire and theft) insurance coverage? Not even if you get a loan to finance the purchase of your motorcycle or car.

So why do you need collision and comprehensive insurance coverage when you get a loan? It’s just the requirement of the bank to protect the money that they loaned you.

Is it Possible to Get a Loan Without Collision and Comprehensive Insurance Coverage?

It can happen. Sometimes people screw up, and sometimes, three people screw up (the bank, the motorcycle dealer & the buyer).

What Happens When You Don’t Have Collision Coverage?

When everyone makes a mistake, you lose. In almost every accident, the motorcycle is a total loss. We recently had two clients who found themselves owing a lot of money for motorcycles they no longer had.

One of our clients relied on the motorcycle dealer to get his insurance coverage, but the dealer only got him liability coverage. The bank apparently didn’t check, and neither did our client. Our client’s motorcycle was totaled in an accident, and he now owes the bank a lot of money.

Another client was told by a motorcycle salesperson he had to get insurance before taking the motorcycle. In front of the salesperson, he downloaded the Progressive app. Because he didn’t see the checkbox for collision and comprehensive, he only purchased the NYS minimum liability coverage. The loan was processed without the bank ever checking. After his motorcycle was totaled in an accident, he now owes $14,000 to the bank.

Types of Coverage in a Motorcycle Insurance Policy

• Liability (pays someone you injured because of your negligence)
• Collision (covers damage to your motorcycle from an accident)
• Comprehensive (covers fire & theft)
• Underinsured/Uninsured (pays you for your injuries when the car has less insurance than you)
• Medical Payments (pays you for medical expenses)
• Personal Injury Protection (PIP which is no-fault for pedestrians you injure)

See our New York Motorcycle Insurance Guide

What Insurance to Get

It’s always good to have collision and comprehensive coverage, but if you borrowed money from a commercial lender to buy your motorcycle, the lender requires it.

But don’t rely on the motorcycle dealer or the bank! Look at the list of coverages you purchased and verify you have collision coverage.

See more reasons in Should You Buy Collision Damage Coverage?

Buy as much Underinsured/Uninsured coverage as the insurance company will sell you (see CagerProtection.com).

Get a free motorcycle insurance coverage consultation from New York’s Motorcycle Accident Lawyers

Related Insurance Articles

• Is it No-Fault if I’m on a motorcycle and get hit by a car?
• Should You Buy Motorcycle Insurance from GEICO?
• Can a Motorcycle Injury be Covered When You Didn’t Have Health Insurance?
• Reimbursement for the Reduced Value of Your Motorcycle
• How Much Can a Motorcycle Shop Charge You for Storage Fees?
• Why are motorcyclists excluded from No-Fault coverage?
• What Should I Do About My Motorcycle Insurance during the Winter?
• No-Fault coverage is on my motorcycle policy, right?
• Getting assistance to stay in your home after a disabling motorcycle accident
• How to avoid financial risk when you cause an accident
• What the Possible New Uninsured/Underinsured Law Means to Motorcyclists

Why we got a $465,000 verdict for a knee injury; Why insurance companies sometimes refuse to pay; and How to avoid being at risk when you cause an accident

We obtained a $465,000 jury verdict at trial in Nassau County for a motorcyclist who had a knee injury with arthroscopic surgery to repair the meniscus. Our client was struck by a car turning left.  The driver had a $300,000 insurance policy.

GEICO’s offer was $10,000 and increased to $20,000 before the trial. After the first part of the trial on negligence, the jury found the driver was 100% at fault. The claims representative then hinted he might be able to get $100,000 and told me they settle cases like this “all day for $35,000-$40,000”. The judge requested that I lower my demand so we could attempt a settlement, and I refused.

How can a case get so far as to reach a trial verdict in excess of the insurance policy and place the defendant at great personal financial risk?

The first mistake insurance companies make is steadfastly believing their driver’s version of the accident. Drivers often don’t want to believe they’re at fault and tell a biased story they believe will exonerate them.

In our case, the driver claimed to have correctly executed a textbook definition of how to make a left turn, and he blamed the motorcyclist for the accident. Claims representatives who are neither attorneys nor accident reconstruction experts believed his story, and they fought all the way; we never settled, and the case went to trial. We proved to the jury that the driver lied and never saw the motorcycle when he drove in front of it, as is the usual cause.

It is dangerous to try to avoid responsibility for an unintentional accident because it can expose you to personal liability above your insurance liability limit. Insurance is purchased to protect personal assets and income. The fear that premiums may go up is misguided, and they may not even be increased.

So how can someone prevent the insurance company from exposing them to a trial placing assets and income at risk? Simply tell the truth! If you didn’t see the motorcycle or another car, just tell that to the police and your insurance company.

Telling the truth will make life easier! You won’t have to testify at a deposition, and you won’t have to testify at a trial. It will also make your life financially safer.

If the insurance company knows the accident was the fault of their driver, they won’t argue liability and will negotiate the value of the injury caused. This increases the chance of a settlement instead of a trial. When a case is settled, the injured person must sign a release, releasing the defendants from personal liability, and all the money will come from the insurance company.

The second mistake which the insurance company made in this case was to seriously underestimate the long-term consequence of the injury. GEICO hired two orthopedic surgeons and a radiologist claiming that he did not have a meniscus tear and that the surgery was unnecessary. Insurance companies also steadfastly believe their doctors even though they have a substantial financial reason to misrepresent the facts.

Under the NYS Insurance Law, motorcycle operators and their passengers are not able to obtain no-fault insurance coverage, which pays for medical bills, lost income, and other expenses. However, there is a potential benefit to a motorcyclist who is hurt in a motorcycle accident and seeks to file a lawsuit for “pain and suffering.”

§ 5104(a) of the New York Insurance Law provides that when no-fault insurance is available, such as for an operator or passenger of a car, the injured person will not have a right to recover money for personal injuries unless that person has a serious injury.

§ 5102(d) of the New York Insurance Law defines what a “serious injury” is. Unfortunately, just in the last few years, New York courts have interpreted the law in a way to make it very difficult to prove an injury is serious, and the courts have dismissed many cases with injuries you would think are serious.

Even some injuries that a rational person or doctor would consider to be serious, such as a serious back injury; torn rotator cuff (shoulder); torn meniscus (knee), or any other torn ligament, have been ruled by the courts to not be serious enough under the no-fault law and those cases were dismissed.

The benefit to motorcycle riders and passengers is that since they are excluded from obtaining no-fault benefits when hurt in an accident, a motorcycle occupant does not have to prove that an injury is serious.

Thus, a lawsuit on behalf of a motorcyclist cannot be dismissed because the injury is not serious enough. As long as someone else was negligent in causing the accident, the motorcycle occupant will be able to recover money for pain and suffering, even for a scratch.

If your motorcycle insurance policy has a winter storage option, certain coverages may be eliminated or reduced, such as collision damage, liability, and SUM coverage.

SUM coverage is an acronym for Supplementary Uninsured/Underinsured Motorist coverage. This is insurance coverage that pays you when you are negligently injured by someone who fled the accident scene, has no insurance, or has less insurance than you.

Your insurance company may simply charge an annual rate and factor in a discount because most motorcyclists don’t ride in the winter in NY. However, GEICO has two storage plans called Winter Storage Plan 1 and Winter Storage Plan 2.

A GEICO salesperson told me storage plans are now offered only to military and existing customers who had a storage plan and that information about the plans is no longer on their website. However, I found someone who copied from the GEICO website the following about Storage Plan 1: “We will remove all coverage from your policy with the exception of Comprehensive Coverage.” while with Winter Storage Plan 2, “All coverage remains on your policy.”

It is vital to know what coverage you have if your motorcycle is in storage. If you eliminate liability coverage, you will also lose your SUM or uninsured/underinsured coverage.

One of our clients says he had $100,000 SUM coverage until his bike was put in storage, and it was then reduced to the NYS minimum of $25,000 uninsured coverage with no underinsured coverage.

After his motorcycle was put in storage, a friend asked him to ride the friend’s motorcycle from his house to a garage where it was going to be stored. Unfortunately, while doing a favor, our client was in a motorcycle accident, hit by a car that fled the scene, and was never identified.

Our client had serious injuries with a value of approximately $500,000, but his friend’s motorcycle only had $25,000 uninsured coverage. If our client still had $100,000 uninsured coverage on his own insurance policy, he would have obtained $100,000 instead of $25,000.

If you have a winter storage plan on your insurance policy, make sure you understand what coverage remains and what coverage is reduced or eliminated before you ride anyone else’s motorcycle during the winter. It’s just when you don’t expect it that you’ll have a motorcycle accident.

Make sure you increase your SUM coverage in the spring to at least $250,000 or more if your insurance company sells more.

We recommend buying insurance from an independent insurance agent, which should eliminate a lot of problems in the event you are in an accident.

See our motorcycle insurance articles and
What Should I Do About My Motorcycle Insurance during the Winter?

Answering the question of is collision coverage worth buying depends on whether you cannot afford or do not want to afford to replace your motorcycle with your own money after an accident.

Note: Motorcycles are almost always totaled in an accident.

Collision damage coverage insures your motorcycle for the cost to repair your vehicle or replace it if it is totaled.

When you have collision coverage your own insurance company will pay for repairs to your motorcycle or car, less a deductible, regardless of who is at fault for the accident.

When the other driver is at fault, your insurance company will go after the other driver’s insurance company to get them to reimburse you for your deductible.

Tip to get your deductible back: When making a collision claim, request your insurance company to get your deductible from the other driver’s insurance company. Your insurance company will usually try, but they don’t always, so make sure to ask your claim rep, preferably in writing, to get your deductible reimbursed by the other driver’s insurance company.

How to Decide is Collision Coverage Worth Buying or Save the Cost

People who don’t have collision coverage are usually seeking to save the cost of the premium because their vehicle is not valuable enough to insure or because they don’t think they will be at fault for causing an accident and the other car’s insurance will pay.

It could make sense to eliminate collision coverage and “self-insure” yourself if the following applies to you:

1. The cost of collision coverage for three years is more than the value of your motorcycle or car, and it would be cheaper to buy another motorcycle or car.
2. You have more than one motorcycle or car and can do without it for a long time while fighting with the other driver’s insurance company.
3. You can financially afford the loss in the event another driver is not at fault for causing the accident, or the other driver’s insurance won’t pay you.

I had a friend who didn’t buy collision coverage. He called me to help him because one of his cars was parked and was hit by a car causing $80,000 of damage. The other car’s insurance only offered him $18,000. I charged him $2,500 to get the other car’s insurance to pay the claim.

I asked him why he didn’t buy collision coverage, and he said because he had 10 expensive cars, could only drive one at a time, and already saved $250,000 in collision coverage over the last 10 years without a loss. When he called me to help him, it gave me the idea to drop my collision coverage.

I was self-insured for collision damage for years by not buying collision coverage on my cars, although I have since gone back to buying collision coverage.

My reasons for not buying collision coverage were as follows:

1. I had five cars and could only drive one at a time. The insurance company doesn’t offer a discount because I could only drive one at a time, so the cost-saving was substantial, and the risk/cost ratio was substantially reduced.
2. To keep my premium from being increased, I wouldn’t file a collision damage claim unless the damage was more than $3,000 or another person was injured, so for me, collision coverage was really catastrophic collision coverage. Never assume another person wasn’t injured unless no other car was involved. I’m a personal injury lawyer, so I can get a properly written release signed by the car’s occupants if they want to sign it.
3. If one of my cars was totaled, I could financially afford the loss.
4. If one of my cars was in an accident, I had other cars I could use. I also didn’t pay for rental coverage.
5. Since I am a personal injury lawyer, I could easily file a claim against the other car’s insurance or file a lawsuit if necessary to recover the money for the damage if the accident was the other driver’s fault. I had to file a claim against the other driver’s insurance in one accident. Interestingly, that driver was the partner of one of the largest corporate law firms in the world.

What is the Difference Between Collision Coverage vs Comprehensive Coverage

If purchase collision coverage, you may also buy comprehensive coverage. Comprehensive coverage will pay you in the event your motorcycle is stolen or damaged in a fire.

Is Comprehensive Coverage Worth Buying?

Yes. If you can’t afford to replace your motorcycle or scooter with your own money, comprehensive coverage is really necessary because motorcycles and scooters frequently get stolen.

Can You Buy Comprehensive Coverage Without Collision Coverage?

No. Comprehensive coverage is optional coverage only when you buy collision coverage.

What Will Happen After an Accident When I Don’t Have Collision Coverage?

The problem is that an insurance company only has an obligation or responsibility to its own customer. When you don’t have collision coverage, you’re not the customer. That means the other driver’s insurance company has no obligation or responsibility to you.

Consequently, you will likely find that the other driver’s insurance company will claim the accident was your fault. The other driver’s insurance company will offer you little to nothing, thus leaving you with a damaged, unusable or worthless motorcycle or car. This often happens even when it’s obviously 100% the fault of the other driver!

What Happened After an Accident When Our Client Didn’t Have Collision Coverage

Our client’s custom motorcycle was totaled when a car changed lanes and sideswiped the motorcycle. The motorcycle should have had collision coverage for a custom motorcycle which would have paid the entire amount that the owner wanted so it could be rebuilt or replaced. But he didn’t have collision coverage on his custom motorcycle.

See our Ultimate Motorcycle Insurance Guide to find out what kind of collision coverage you need for a custom motorcycle.

The driver’s car insurance offered only $8,000. But our client wanted at least $12,000.

This is how we got $28,000 for our client’s motorcycle.

We called a Harley Davidson dealer and asked if they would be willing and how much it would cost to write a detailed estimate for the dealer to build a duplicate custom motorcycle of our client’s custom motorcycle. We then had a flatbed truck bring his motorcycle to a Harley-Davidson dealer, and we paid the dealer to write the estimate.

Then we sent the estimate to the other driver’s insurance company. We were successful in obtaining $28,000 for our client.

We didn’t charge our client a legal fee to obtain the money for his motorcycle, so we sent him a check for $28,000!

Only the best motorcycle accident lawyers in New York don’t charge a legal fee for collision damage claims!

In another case, we obtained 100% of the damage to a totaled motorcycle where the insurance company claims representative for the other driver said the accident was 95% the fault of our client. It took two years of litigation in court to get the insurance company to understand why it was 100% the fault of their driver. During those two years, our client was not happy without his motorcycle. But he was happy when we finally got him 100% of the damage to his totaled motorcycle!

In yet another case, the insurance company claims representative thought their driver had 0% liability for causing the motorcycle accident, and they offered nothing. We were later awarded 80% liability against the other driver.

If you’re not hit in the rear, the insurance company claims representative for the other driver will likely argue that you’re partly or mostly at fault, and you will be without a motorcycle or car until your motorcycle accident lawyer can convince them.

Reasons Why Collision Coverage Is Worth Buying

Your Insurance Company Has a Contractual Obligation to You

When you’re covered by collision insurance, your insurance company has a contractual obligation to you.

The insurance company for the other car does not have any obligation to you. The other car’s insurance company only has a contractual obligation to protect their driver.

Your Collision Claim Will Be Paid Fast

When you’re covered by your own collision insurance, you will be paid within days of your accident, even if the accident is your fault.

Your Collision Claim Will Be Paid in Full Regardless of Fault

When you’re covered by your own collision insurance, you will be paid the cost of repairs or the total damage plus sales tax, less a deductible, even if the accident is your fault.

If the accident is the fault of the other driver, your insurance company can seek to recover the deductible from the other insurance company and reimburse you.

Rental Car Coverage

If you had a motorcycle, it’s unlikely that you have rental coverage. If you have rental car coverage, your insurance company will pay for a rental car while your vehicle is being repaired or while you find a replacement if yours was totaled. If you don’t have rental car coverage when your car is damaged, the other insurance company may pay for a rental car but on their terms.

We recommend buying collision damage insurance and rental car coverage, which will eliminate a lot of problems in the event you are in an accident. There are three different types of collision damage coverage. Make sure you get the type you want, especially if you have a custom motorcycle. See our Motorcycle Insurance Guide.

See what you must know about collision coverage if you’re buying a motorcycle with a loan from a bank.

NYS law (11 NYCRR 216.0) regulates insurance company responsibilities regarding handling collision claims.

What’s More Important Than Collision Coverage?

The most important insurance coverage is underinsured coverage. Find out how much underinsured coverage you need.

If you had a motorcycle accident but didn’t have collision coverage, we will NOT charge you a fee for money we recover for damage to your motorcycle.

Comments About Is Collision Coverage Worth Buying for a Motorcycle?

If you ride or were previously injured in a motorcycle accident, don’t have health insurance, and still haven’t signed up for the Affordable Care Act (Obama Care), do it now!  Even if you don’t ride but don’t have health insurance, you should sign up for Obama care at https://nystateofhealth.ny.gov.

Motorcyclists and their passengers do NOT have No-Fault insurance coverage, which provides medical coverage for people injured in a car accident.  Therefore, if you ride and don’t have either health insurance, Medicaid, or Medicare, you have NO insurance coverage to pay for your medical treatment if you’re injured in a motorcycle accident.

People who have health insurance usually get it through a group plan at work.  For people who do not have access to a group plan, health insurance was available but so expensive it was unaffordable for most people.

The Affordable Care Act guarantees that all Americans, regardless of their health status or pre-existing conditions, will finally have access to affordable health insurance coverage.  That means if you need medical treatment for injuries you had in an earlier motorcycle accident, you can now have medical insurance to pay for your treatment!

Enrollment began on October 1, but if you didn’t sign up before Jan 1, you will still be able to apply before March 31, 2014, for the motorcycle accident next season.

There are different plans available at varying costs.  The cheaper plans will have higher out-of-pocket costs in the event you need to use your coverage.  Since the risk of a costly injury is substantially higher in a motorcycle accident, we advise taking the best plan to avoid expensive out-of-pocket costs.

For 2014, insurers are offering standardized insurance plans within tiers called bronze, silver, gold, and platinum at varying costs.  The cheaper plans will have higher out-of-pocket costs in the event you need to use your coverage.  Since the risk of a costly injury is substantially higher in a motorcycle accident, we advise taking the best plan to avoid expensive out-of-pocket costs.

Medicaid is available if you are under the age of 65 with an income of less than $15,856 for an individual or $32,499 for a family of four.  You may be eligible for financial assistance to purchase coverage through the exchange (Obama Care) if your income is less than $45,960 for an individual or $94,200 for a family of four.  If your income is higher, you can still purchase coverage without financial assistance.  If you do not purchase health insurance, you will be subject to a small penalty.

For more information about the Affordable Care Act (Obama Care), go to https://nystateofhealth.ny.gov.

Even if you have health insurance coverage, you may not have coverage for some injuries, or it may be very difficult to obtain treatment for some injuries, such as dental injuries and plastic surgery.  We can arrange treatment when you don’t have coverage or have difficulty finding a physician willing to treat you without being paid upfront.  For more information, see https://newyorkmotorcycleaccidentlawyer.com/preexisting-injury