Expert: Ron Cercone - 2/17/2009

Question
I'll try to keep this simple.  I bought a motorcycle -- full coverage insurance.  It was stolen and recovered.  When recovered the thieves had stripped it.  Insurance company paid claim for damages in three separate checks.  Took bike to shop (not lienholder's shop) for repairs.  Some repairs as set out in insurance estimate were unnecessary -- others not on estimate are very necessary (complete engine tune up, replace tires, etc.).  When repair shop called lienholder to ask them to come and sign insurance check, they have refused.  State that unless all repairs as set out in insurance estimate are done they will not approve repairs.  Lienholder also states that they have final say and approval of repairs.  Insurance company states that there is nothing they can do because they don't care if motorcycle is repaired or not.  I live in Texas.  Can lienholder dictate the repairs, etc.  They have been in constant contact with my insurance company demanding the checks, etc.  They have held up the repair of my motorcycle for over 5-1/2 months now.  I don't know what their rights are and what my rights are.  Can you give me any answers?

Answer
Hello Angee,

Did the insurance company "total" this motorcycle and you just decided to repair it? If so, then the all you can do to get more money from the insurer is to argue the valuation they placed on the bike. If the insurer "does not care if the bike is repaired or not", that indicates to me that they called it a total loss and you bought the salvage. If you are arguing the value on the bike, you can get detailed info on handling that kind of claim with a "Total Loss Automobile" report from www.uclaim.com. And as far as the Leinholder goes, if you pay off the amount owed, then they have no say in what happens to your bike.

On the other hand, if the settlement is based on a repair estimate for a repairable bike, then the insurer has to make a "supplemental" payment for items missed on the original repair estimate. You can use the Leinholder to help put pressure on the insurer to do a reinspection. Use the Leinholder as your ally, not your enemy.

The lienholder has a right not to sign off on the check until the repairs are done properly and according to the estimate. And what about the shop? They ought to be calling the insurer and harassing the heck out of the adjuster or manager to make a reinspection.

There has got to be more to your story if the insurer is not making a reinspection. If not, then make a complaint to your state insurance department. And file a small claim lawsuit against your insurer, if the amount of the missed repairs is under the small claims limit.