Motorcycle accidents can have devastating outcomes – for both you and your bike. Road rash on the engine bar and saddle bags, cracked fairings, a broken clutch lever – the list of damage can be extensive and expensive. If another motorist caused the accident, hopefully their insurance policy includes enough property damage insurance to cover the cost of repairs.
Unfortunately, insurance policies in Pennsylvania and New Jersey often only provide $5,000 property damage coverage, which barely pays for towing, storage, and diagnostics to determine the full extent of damage. Additionally, most motorcycle owners invest thousands of dollars upgrading and customizing their bikes, from engine modifications to cosmetics, or both, that increase the bike’s value. All of which can be problematic in being fully compensated for the value of your bike following an accident and when you want to sell.
Just like cars, computer data services such as CarFax, Equifax, and AutoCheck maintain forever records documenting that your bike was damaged in an accident, along with the details. Anyone can easily acquire these records online for free or a small fee. Unfortunately, if you want to trade in or sell your bike, its value will be less due to this “blemished” history.
Even if the bike is repaired perfectly, it still has a blemished history, and buyers do not expect to pay the same price for a bike that was in an accident versus one that was not. Oftentimes, a dealership may not want the bike at all. Legally, this is known as “diminution in value,” or, more commonly, “diminished value.”
Fortunately, both Pennsylvania and New Jersey allow motorcycle owners to file diminished value claims. You are legally entitled to recover not only the cost of repairs, but also the current difference of what your bike is worth – retail value, not wholesale – with the blemish.
For instance, if your bike needs $3,000 worth of repairs, but is now worth $3,000 less due to its blemished history than a similar bike with no accident history, then you are entitled to $6,000 total property damage compensation. Unfortunately, no insurance company will ever offer you the diminished value voluntarily. This, and several other reasons, make obtaining diminished value challenging without legal representation, which I will dive further into in upcoming articles in this series.
Ride safe and keep it on two wheels!
If you or a loved one have been injured in a motorcycle accident, contact Brad S. Tabakin, Esq. at Bikers Have Rights today. For a free consultation, call 215-525-1616 or 877-333-0300 or contact us online. Located in Plymouth Meeting, Pennsylvania, we serve injured bikers in Pennsylvania and New Jersey.