Rider down
Road Captain
Joined: Dec 2010
Posts: 617
Likes: 19
From: Baltimore, MD
Disclaimer: I'm not a lawyer and I don't know exactly what the law is in CA. That said ...
If the bike isn't totaled ... when you settle with the other guy's insurance company, DO NOT forget the impact of "diminished value". They won't mention it and will argue they aren't liable for it, but they're wrong.
Diminished Value is the loss in value of the bike - simply because of the fact that it has now been in an accident - even if it has been repaired. Think about it this way ... there are 2 used bikes that are identical in every way EXCEPT one has been in an accident and repaired and the other has not. If they are the exact same price, which bike would you choose? Many people would not even consider buying the bike that had been in the accident. Others would reasonably expect to negotiate a much lower price for the damaged/repaired bike.
That difference in market value price of the repaired bike (even after repairs) is an economic loss to you. The other guy is obligated to make you whole on your economic loss. Even if you are not selling the bike now, you still have suffered a loss in the value of your asset. Because motorcycles are generally considered pleasure vehicles, the diminished market value of a damaged/repaired bike can be substantial ... arguably 20%-30% of the KBB.
When I got hit, I argued for it and got about 20% of the KBB for diminished value on my Fat Bob (in addition to the cost of repairs).
Current KBB on a "excellent condition" 2015 FLHTK is $22,470. Arguing for "diminished value" could mean as much as $4,500-$6,700 to you IN ADDITION to the full cost of repairs, clothing, bodily injury, etc.
A few things to consider:
http://zalma.com/blog/diminished-value-in-california/
http://diminishedvalueexpert.com/cal...-value-claims/
Hey, $5,000 is $5,000. You're taking a loss in value, so better in your pocket than in theirs. Good Luck.
If the bike isn't totaled ... when you settle with the other guy's insurance company, DO NOT forget the impact of "diminished value". They won't mention it and will argue they aren't liable for it, but they're wrong.
Diminished Value is the loss in value of the bike - simply because of the fact that it has now been in an accident - even if it has been repaired. Think about it this way ... there are 2 used bikes that are identical in every way EXCEPT one has been in an accident and repaired and the other has not. If they are the exact same price, which bike would you choose? Many people would not even consider buying the bike that had been in the accident. Others would reasonably expect to negotiate a much lower price for the damaged/repaired bike.
That difference in market value price of the repaired bike (even after repairs) is an economic loss to you. The other guy is obligated to make you whole on your economic loss. Even if you are not selling the bike now, you still have suffered a loss in the value of your asset. Because motorcycles are generally considered pleasure vehicles, the diminished market value of a damaged/repaired bike can be substantial ... arguably 20%-30% of the KBB.
When I got hit, I argued for it and got about 20% of the KBB for diminished value on my Fat Bob (in addition to the cost of repairs).
Current KBB on a "excellent condition" 2015 FLHTK is $22,470. Arguing for "diminished value" could mean as much as $4,500-$6,700 to you IN ADDITION to the full cost of repairs, clothing, bodily injury, etc.
A few things to consider:
- The insurance company may say they aren't liable for diminished value ... this is certainly true for 1st party claims (meaning YOUR insurance company doesn't have to compensate you) as it's usually in the policy. However, you don't have a policy contract with HIS insurance company. This is a 3rd party claim ... You are entitled under the law to recover economic damages from the guy who hit you (the guy they insure).
- It's up to you to demonstrate what the diminished value is ... look at KBB, what bikes are selling for, get a dealer to make you an offer for yours, etc. These are negotiating bullets for your gun.
- The amount you will receive is a negotiation between you and the insurance carrier.
- Do your research on CA law. The company I fought with said they didn't have to pay because it wasn't a valid claim in MD ... so, I sent them a copy of a MD Appellate Court case I found on the internet where the Court's decision said it was a valid claim. They conceded and paid me.
http://zalma.com/blog/diminished-value-in-california/
http://diminishedvalueexpert.com/cal...-value-claims/
Hey, $5,000 is $5,000. You're taking a loss in value, so better in your pocket than in theirs. Good Luck.
Tourer
Joined: Aug 2007
Posts: 344
Likes: 8
From: Parker CO
This is good information! I hope however I never need to use it personally!
Disclaimer: I'm not a lawyer and I don't know exactly what the law is in CA. That said ...
If the bike isn't totaled ... when you settle with the other guy's insurance company, DO NOT forget the impact of "diminished value". They won't mention it and will argue they aren't liable for it, but they're wrong.
Diminished Value is the loss in value of the bike - simply because of the fact that it has now been in an accident - even if it has been repaired. Think about it this way ... there are 2 used bikes that are identical in every way EXCEPT one has been in an accident and repaired and the other has not. If they are the exact same price, which bike would you choose? Many people would not even consider buying the bike that had been in the accident. Others would reasonably expect to negotiate a much lower price for the damaged/repaired bike.
That difference in market value price of the repaired bike (even after repairs) is an economic loss to you. The other guy is obligated to make you whole on your economic loss. Even if you are not selling the bike now, you still have suffered a loss in the value of your asset. Because motorcycles are generally considered pleasure vehicles, the diminished market value of a damaged/repaired bike can be substantial ... arguably 20%-30% of the KBB.
When I got hit, I argued for it and got about 20% of the KBB for diminished value on my Fat Bob (in addition to the cost of repairs).
Current KBB on a "excellent condition" 2015 FLHTK is $22,470. Arguing for "diminished value" could mean as much as $4,500-$6,700 to you IN ADDITION to the full cost of repairs, clothing, bodily injury, etc.
A few things to consider:
http://zalma.com/blog/diminished-value-in-california/
http://diminishedvalueexpert.com/cal...-value-claims/
Hey, $5,000 is $5,000. You're taking a loss in value, so better in your pocket than in theirs. Good Luck.
If the bike isn't totaled ... when you settle with the other guy's insurance company, DO NOT forget the impact of "diminished value". They won't mention it and will argue they aren't liable for it, but they're wrong.
Diminished Value is the loss in value of the bike - simply because of the fact that it has now been in an accident - even if it has been repaired. Think about it this way ... there are 2 used bikes that are identical in every way EXCEPT one has been in an accident and repaired and the other has not. If they are the exact same price, which bike would you choose? Many people would not even consider buying the bike that had been in the accident. Others would reasonably expect to negotiate a much lower price for the damaged/repaired bike.
That difference in market value price of the repaired bike (even after repairs) is an economic loss to you. The other guy is obligated to make you whole on your economic loss. Even if you are not selling the bike now, you still have suffered a loss in the value of your asset. Because motorcycles are generally considered pleasure vehicles, the diminished market value of a damaged/repaired bike can be substantial ... arguably 20%-30% of the KBB.
When I got hit, I argued for it and got about 20% of the KBB for diminished value on my Fat Bob (in addition to the cost of repairs).
Current KBB on a "excellent condition" 2015 FLHTK is $22,470. Arguing for "diminished value" could mean as much as $4,500-$6,700 to you IN ADDITION to the full cost of repairs, clothing, bodily injury, etc.
A few things to consider:
- The insurance company may say they aren't liable for diminished value ... this is certainly true for 1st party claims (meaning YOUR insurance company doesn't have to compensate you) as it's usually in the policy. However, you don't have a policy contract with HIS insurance company. This is a 3rd party claim ... You are entitled under the law to recover economic damages from the guy who hit you (the guy they insure).
- It's up to you to demonstrate what the diminished value is ... look at KBB, what bikes are selling for, get a dealer to make you an offer for yours, etc. These are negotiating bullets for your gun.
- The amount you will receive is a negotiation between you and the insurance carrier.
- Do your research on CA law. The company I fought with said they didn't have to pay because it wasn't a valid claim in MD ... so, I sent them a copy of a MD Appellate Court case I found on the internet where the Court's decision said it was a valid claim. They conceded and paid me.
http://zalma.com/blog/diminished-value-in-california/
http://diminishedvalueexpert.com/cal...-value-claims/
Hey, $5,000 is $5,000. You're taking a loss in value, so better in your pocket than in theirs. Good Luck.
Road Captain
Joined: Mar 2016
Posts: 515
Likes: 90
From: Detroit
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