by Hank123 » Tue May 19, 2009 02:39 am
Quick question: I own a motorcycle (no lienholder) and the bike was hit by a piece of metal pipe thrown up by another car on the highway last week. Spoke to the insurance company was told they were going to treat it as a comprehensive claim. They also told me that they don't have any adjusters who work with motorcycles and said to go get an estimate from a motorcycle shop. I told them that I could do that, but said I didn't need the shop to take care of most of the items that got dented and smashed because I could replace most of them myself, that there's only one item that I can't take care of because it needs painting.
The adjuster said that just providing a parts list for the items I can do myself, along with a written estimate for the part I cannot do, plus their inspection wouldn't suffice. She said they needed an estimate from a shop for the whole thing on top of the insurance inspection. She said to take the bike in, get the estimate, and submit everything to them, at which time they'll decide whether or not they'll pay out on it and went on to say that they'd make the check out to me and whichever repair shop I get the estimate from.
So I took the bike in for an estimate and they shop said they charge $200 to do any type of an estimate on a motorcycle. Called around and apparently this is common practice.
I don't want a repair estimate for labor when I just need parts (part of the reason that insurance rates are so high?), and I don't want to shell out $200 and have them decide not to pay it at all. I also cannot have it repaired immediately because my other bike is waiting on a new transmission and I can't be without transportation.
Am I correct in thinking that since there is no lienholder, they have to pay me directly and not make the check out to both myself and the shop?
I'm shocked that they would they go out of their way to ensure a much larger payout than just covering the parts that I'm willing to remove & install myself.
This is in California, by the way.
Thanks!
The adjuster said that just providing a parts list for the items I can do myself, along with a written estimate for the part I cannot do, plus their inspection wouldn't suffice. She said they needed an estimate from a shop for the whole thing on top of the insurance inspection. She said to take the bike in, get the estimate, and submit everything to them, at which time they'll decide whether or not they'll pay out on it and went on to say that they'd make the check out to me and whichever repair shop I get the estimate from.
So I took the bike in for an estimate and they shop said they charge $200 to do any type of an estimate on a motorcycle. Called around and apparently this is common practice.
I don't want a repair estimate for labor when I just need parts (part of the reason that insurance rates are so high?), and I don't want to shell out $200 and have them decide not to pay it at all. I also cannot have it repaired immediately because my other bike is waiting on a new transmission and I can't be without transportation.
Am I correct in thinking that since there is no lienholder, they have to pay me directly and not make the check out to both myself and the shop?
I'm shocked that they would they go out of their way to ensure a much larger payout than just covering the parts that I'm willing to remove & install myself.
This is in California, by the way.
Thanks!
Posted: Tue May 19, 2009 02:57 am Post Subject:
You are correct, the check should be made payable to you and just you if there is no lien holder... even if a shop was going to do the work. The adjuster only needs to read the opening paragraph of the policy to confirm this (that is, it states they will pay you. If there is no lien holder there is no where it states they need to include someone else in the transaction).
Motorcycles are tough as there are really no apprasiers that can write up the cost to repair them. Motorcycle shops don't want to write then up as they know they are not going to get the business and they are just investing their time and effort to do the work for other people.
Call your adjuster and tell them that every shop charges $200 for an estimate and see if they want to pay for this. If not, _they_ are going to need to find another way to determine the cost to repair the motorcycle. If they give you static tell them that you are going to do the work and that you can prepare an estimate to prove the amount of the loss. Proceed to add up all the parts, figure the time it's going to take you to repair the motorcycle and multiply the hours by $80. If the insurance company does not like it, then _they_ will then need to determine the repair cost that _they_ want to pay. You would of course just tell them how you are going to determine the cost to repair the bike... no need to actually do all that work. It's only to explain the situation so that a 5 year old can understand.
But keep in mind that there is no easy way for the insurance company to determine the repair cost as there are no computer systems that do this and all the parts costs need to be determined manually. I know Progressive writes a lot of motorcycle insurance... perhaps Lori knows how this can be done.
If I had the claim I'd pay the shop the $200 to write the estimate, issue the payment and move on to the next claim.
Posted: Tue May 19, 2009 04:30 am Post Subject:
In quite a few instances I’ve read in this board where the insurance company had insisted on putting both the owner and the bodyshop's name on the claim check even when there is no lienholder involved. Why is this done? Any explanation, Tcope!
Posted: Tue May 19, 2009 04:51 am Post Subject:
I think it's knee jerk reaction from an adjuster without much experience. It's very important for an insurance company to protect the lienholders interest. This is usually done by putting the repair shops name on the check. So adjuster just do it out of habit without knowing any better or not thinking.
Posted: Tue May 19, 2009 04:57 am Post Subject:
Thank you so much. I really appreciate the answer.
Of course, having the actual policy in hand would help. I never did receive it. Just the declarations page and a bunch of garbage filler pages on privacy info. I'll have to go by the insurance company in the morning and pick up a copy of the policy itself.
Posted: Tue May 19, 2009 07:30 am Post Subject:
Tcope,
When a lien gets over on the property, who would inform the insurer about it? Is it the responsiblity of the lienholder or the insured?
Posted: Tue May 19, 2009 10:43 am Post Subject:
It's the responsiblity of the insured/vehicle owner to notify their carrier that the insured vehicle no longer carriers a lein.
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