[gmdboston]

Insurance companies have several areas to consider when writing off a motorcycle. First and foremost they have very little data on parts pricing, flat rate hours and labor rates. Most adjusters have no way to get information on part pricing and labor time with out going through the dealership. There is no aftermarket source for body parts, wheels, tires etc. At least not from the insurance company stand point. They have to be concerned with liability in the future and with no large parts supplier to point a finger at the insurance company could be on the hook later on if there is a problem or you have another crash. That's why if there is any frame damage at all including minor scratches, they call for a frame replacement. With the price of frames ranging from $800 to $2500 and 10-20 hour labor at $75, they will total just about any bike with frame damage, including minor scratches.

Another driving force behind this is economics. During the busy Spring and Summer months salvage companies pay big money at auction for wrecked bikes. Argo and others like them will bid what I feel is stupid money for a pile of bolts. The wrecks are then either "flipped" for a profit quickly, or parted out. Often the most valuable part of the wreck is the paper work. (I think you can figure out why.) At this time of year the auction prices are so high that most insurance companies will only "write" up 60% of the value of the bike. For example, if you have a GSXR 750 that new is $10,000 and get hit with less that 5000 miles on it, the book value is around $8000. Sixty percent of $8000 is $4800. That means that if the repair estimate is at or even near $4800 they will send it to auction knowing that same bike will get about $3800-$4200. What the insurance company is afraid of is what is called a "Supplemental" claim. That is where the tech finds additional damage during the repair and asks the insurance company for more money. If the repair is at or near the "Write Off" figure, that can put the insurance company upside down on the bike. They don't want to pay $6000 to repair an $8000 bike that they could get $4000 for at auction and then payout $8000 to the owner and be done with it. The net loss then is about $4000 and they are done with the liability.

All of the adjusters that have worked with are thrilled that I can measure a chassis and guarantee no supplemental for the repair. If you crash a bike and want to get it repaired properly and completely the best way is to get it to a GMD Computrack shop. (I know it's a plug, but honestly, we are one of the only shops in the world that have the proper equipment to accurately measure a motorcycle chassis.) Dealerships have no measuring equipment what so ever. At best they have a tech with a tape measure that will compare some arbitrary points to another chassis on the sales floor. That's not meant to be shot a dealerships. But it is why there are so many supplementals and the insurance companies are wary of repairing so many sport bikes. Often the frame damage is not detected until the tech tries to install the belly pan and finds that the front wheel hits the body work.

As for the buy back, the laws vary from state to state. Some states require the owner to be offered the option. Some states do not allow it at all and require all motor vehicles that are "totaled" go through auction. Some states leave it up the consumer and the insurance company to work it out between them selves. Some states do not require the title to be labeled "totaled" or "Salvage", some do. All states do have some sort of re-inspection process for any motor vehicle that has a "Salvage" title. New York is very tough on salvage re-inspection. In some cases a re-inspected motor vehicle comes with a "Rebuilt" title. I have provided documentation for the re-inspection process for several customer. Either by repairing the chassis, or measuring the chassis and providing certification that there is no frame/swing arm/chassis alignment issues.

I hope that will help you.