Motorcycle vs. car accident with uninsured driver

[chickadee11]

What is the name of your state (only U.S. law)? WA

My husband was in an accident with a car 10 days ago. It was the uninsured car driver's fault as they turned left from the right lane with no signal and cut him off on his motorcycle. He came away from it with the worst thing being a cracked metatarsal resulting in bruising and needing crutches. Witnesses' written statements put the car at fault saying the couple was seen arguing and not paying attention, even the one at fault attested to the same thing. Their car was apparently pretty well damaged from the bike with the driver's side being smashed in and the front bumper torn off. His bike doesn't look too bad, but I have no idea what the insides look like.

The claims adjuster is coming to assess his bike today. We have collision insurance on the bike but not uninsured motorist insurance, which sucks. Collision insurance has an $800 deductible. So if I understand correctly, collision insurance will cover any repairs needed for his bike after we pay $800? What if they total his bike? Will we just get a check for what it's worth?

I don't imagine it makes any sense to go after any money ($800 deductible) from the uninsured driver since they most likely don't have any money if they don't have insurance? Is it worth trying to do that if it comes to that?

 

[Zigner]

What is the name of your state (only U.S. law)? WA

My husband was in an accident with a car 10 days ago. It was the uninsured car driver's fault as they turned left from the right lane with no signal and cut him off on his motorcycle. He came away from it with the worst thing being a cracked metatarsal resulting in bruising and needing crutches. Witnesses' written statements put the car at fault saying the couple was seen arguing and not paying attention, even the one at fault attested to the same thing. Their car was apparently pretty well damaged from the bike with the driver's side being smashed in and the front bumper torn off. His bike doesn't look too bad, but I have no idea what the insides look like.

The claims adjuster is coming to assess his bike today. We have collision insurance on the bike but not uninsured motorist insurance, which sucks. Collision insurance has an $800 deductible. So if I understand correctly, collision insurance will cover any repairs needed for his bike after we pay $800? What if they total his bike? Will we just get a check for what it's worth?

I don't imagine it makes any sense to go after any money ($800 deductible) from the uninsured driver since they most likely don't have any money if they don't have insurance? Is it worth trying to do that if it comes to that?

If it's totaled, the owner will get a check from the insurance company for what it's worth, minus the $800 deductible.
We can't decide on the owner's behalf whether pursuing the $800 is worth it or not...

 

[chickadee11]

If it's totaled, the owner will get a check from the insurance company for what it's worth, minus the $800 deductible.
We can't decide on the owner's behalf whether pursuing the $800 is worth it or not...

Okay and I should also add that the bike is under a loan and that he has gap insurance. If it does get totaled, will they give him what is left on the loan for it (was $12,000 when he bought it, now down to about $10,000) or will they give money directly to the lien holder??

 

[Zigner]

Okay and I should also add that the bike is under a loan and that he has gap insurance. If it does get totaled, will they give him what is left on the loan for it (was $12,000 when he bought it, now down to about $10,000) or will they give money directly to the lien holder??

The check will likely be made out to both the policy holder and the insurance company. If he owes more than the bike is worth (likely), then the lienholder will get it all, plus whatever's left over for the GAP insurance to pay. If he owes less than the bike is worth (not likely), then he'll get whatever's left after the lienholder is paid in full.

 

[chickadee11]

The check will likely be made out to both the policy holder and the insurance company. If he owes more than the bike is worth (likely), then the lienholder will get it all, plus whatever's left over for the GAP insurance to pay. If he owes less than the bike is worth (not likely), then he'll get whatever's left after the lienholder is paid in full.

So the claims adjuster emailed my husband with numbers, but we are unsure of what it means. He will be calling him this morning to talk with him, but thought I might get some insight here. This is all that was sent:

Bike Value: 8893.43
Max repair: 5655.43
Cash out to you clean title: 5655.43-800.00deductible=4854.43

So does that mean if it is repaired, they would give him the $4854 in cash to do it, even though the bike is still with a lienholder? I assume this isn't for if it was totaled? If so, would be a different amount?

 

[Zigner]

So the claims adjuster emailed my husband with numbers, but we are unsure of what it means. He will be calling him this morning to talk with him, but thought I might get some insight here. This is all that was sent:

Bike Value: 8893.43
Max repair: 5655.43
Cash out to you clean title: 5655.43-800.00deductible=4854.43

So does that mean if it is repaired, they would give him the $4854 in cash to do it, even though the bike is still with a lienholder? I assume this isn't for if it was totaled? If so, would be a different amount?

Does he owe more on the bike than $8,893.43?
If he owes more than $8,893.43, then he will NOT get cash out of this. The lienholder will be paid with any money that is received, and the GAP insurance will cover the rest.

 

[chickadee11]

Does he owe more on the bike than $8,893.43?
If he owes more than $8,893.43, then he will NOT get cash out of this. The lienholder will be paid with any money that is received, and the GAP insurance will cover the rest.

I think he owes around $10,000 on it. So you are saying that the lienholder would get the $4854 and then the Gap insurance would cover up to the remainder of what the bike is worth ($8893, so another $4000), but then he'd still have to pay the additional $1000 or so that's left on the loan? But once it's repaired, he'll get it back with a clean title?

 

[Zigner]

I think he owes around $10,000 on it. So you are saying that the lienholder would get the $4854 and then the Gap insurance would cover up to the remainder of what the bike is worth ($8893, so another $4000), but then he'd still have to pay the additional $1000 or so that's left on the loan? But once it's repaired, he'll get it back with a clean title?

I'm saying that the lienholder would get the full value of the motorcycle ($8,893.43) from the insurance and then the GAP insurance would pay the rest until the lienholder is paid in full.
Your husband would have the option of paying whatever the difference is between the value of the bike and the estimated cost of repairs in order to get the bike back with a salvage title. That money would come out-of-pocket from your husband. Your husband is NOT going to get any cash out of this and will have to pay money out if he wants the bike.

 

[chickadee11]

I'm saying that the lienholder would get the full value of the motorcycle ($8,893.43) from the insurance and then the GAP insurance would pay the rest until the lienholder is paid in full.
Your husband would have the option of paying whatever the difference is between the value of the bike and the estimated cost of repairs in order to get the bike back with a salvage title. That money would come out-of-pocket from your husband. Your husband is NOT going to get any cash out of this and will have to pay money out if he wants the bike.

I'm sorry but this is confusing for me. So the lienholder gets the $8893 from the insurance and then the GAP pays the extra $1000 or so that is left on the loan? So what would he be paying for if it says there that the max repair is $5655 AND it says he gets cash and a CLEAN title, not a salvage one?

 

[Zigner]

I'm sorry but this is confusing for me. So the lienholder gets the $8893 from the insurance and then the GAP pays the extra $1000 or so that is left on the loan? So what would he be paying for if it says there that the max repair is $5655 AND it says he gets cash and a CLEAN title, not a salvage one?

Ask your insurance company to explain their lingo.

 

[adjusterjack]

So the claims adjuster emailed my husband with numbers, but we are unsure of what it means. He will be calling him this morning to talk with him, but thought I might get some insight here. This is all that was sent:

Bike Value: 8893.43
Max repair: 5655.43
Cash out to you clean title: 5655.43-800.00deductible=4854.43

So does that mean if it is repaired, they would give him the $4854 in cash to do it, even though the bike is still with a lienholder? I assume this isn't for if it was totaled? If so, would be a different amount?

The adjuster has determined that the cost of repair is less than the value of the bike so your husband is getting paid for the repairs. It's likely that he will get the check for $4854.43 before making the repairs.

The check is likely to be made out to him and the lender so he will have to deal with the lender about getting the money. The lender may want to hold the money until the bike is in the repair shop and then might pay the shop when the job is done.

GAP insurance doesn't apply.

Appears that the insurance company isn't going to file for a salvage title (good news).

 

[chickadee11]

The adjuster has determined that the cost of repair is less than the value of the bike so your husband is getting paid for the repairs. It's likely that he will get the check for $4854.43 before making the repairs.

The check is likely to be made out to him and the lender so he will have to deal with the lender about getting the money. The lender may want to hold the money until the bike is in the repair shop and then might pay the shop when the job is done.

GAP insurance doesn't apply.

Appears that the insurance company isn't going to file for a salvage title (good news).

Okay so this has NOTHING to do with paying off the loan? This is just them giving him the money for the repairs. Why doesn't the GAP insurance apply?

 

[Zigner]

Okay so this has NOTHING to do with paying off the loan? This is just them giving him the money for the repairs. Why doesn't the GAP insurance apply?

If adjusterjack is right (and I have no reason to believe he's not) then GAP doesn't apply because that only applies when the value of a totaled vehicle is less than what is left on the loan. So, let's say that the motorcycle was totaled...the insurance company is only going to pay the lienholder (the bank) the value of the vehicle, and the GAP coverage would pay the rest.

 

[chickadee11]

If adjusterjack is right (and I have no reason to believe he's not) then GAP doesn't apply because that only applies when the value of a totaled vehicle is less than what is left on the loan. So, let's say that the motorcycle was totaled...the insurance company is only going to pay the lienholder (the bank) the value of the vehicle, and the GAP coverage would pay the rest.

But if he does choose to total it instead of repair it, the value of the motorcycle IS less than what is left on the loan. Value is $8800 and loan left to pay is $10,000, so then GAP would kick in and pay it off, right?

 

[Zigner]

But if he does choose to total it instead of repair it, the value of the motorcycle IS less than what is left on the loan. Value is $8800 and loan left to pay is $10,000, so then GAP would kick in and pay it off, right?

He (your husband) doesn't get to choose to declare it a total loss.