Expert: Richard Hixenbaugh - 4/26/2009

Question
My husband was recently in an accident while on his motorcycle.  The accident was 100% the other driver's fault (reflected in police report).  The insurance company is wanting to total out his bike because the frame is slightly bent.  The cost of repairing the bike is less than 75% of the value of the bike, but the insurance company says that because the frame is bent, the bike is automatically totaled.  On top of this, we found out that the insurance adjustor (not our insurance) is the one who gets the salvage title and gets to decide who to sell it to.  This seems fishy to me.  Is it true that the bike must be totaled because the frame is bent, even if it can be replaced for less than 75% of the value of the bike?  What about the salvage title?  We are in North Carolina if that matters.  Thank you.

Answer
Hi Victoria,

Unfortunately, the decision to repair or total the bike is completely up to the insurance company. Although it is insurance industry practice to total vehicles at 75%, it is not a state law. Some insurance companies total vehicles at 50%. They have the right to total the vehicle even if it only has $1.00 in damage.

When they total the bike they are essentially buying the bike from you. So yes, you would be signing over the title to them. They will then apply for a salvage title in their name and they will then sell the salvage to a licensed salvage buyer.

I hope this helps
Richard Hixenbaugh