When an insurance company decides that your motorcycle is a total loss that means the cost to fix the bike is higher than the value of the bike or there is something mechanically wrong or a problem with the frame that would make the bike unsafe after repair.
The insurance company or the other person involved in the crash is responsible for the fair market or actual cash value of the bike, not the replacement value. Fair Market value is determined by looking at the make, model, year, miles and shape of the bike and comparing it to the bikes that are available in the regional market. The insurance company will run comps on other bikes in the market in an effort to determine the value of your motorcycle. Sometimes, there is room to negotiate with the insurance company, if you have recently put money into repair or upgrading the motorcycle, this is called betterment.
If you have motor vehicle insurance and the insurance company should put you a rental car. However, the insurance company will try to cut off the rental coverage a day or two after they deliver your check, so if the bike is your only means of transportation, you have to start looking for a replacement immediately.
If you ever have any questions about a motorcycle claim, you can reach out to our office.