Anyone ever went through a total loss replacement clause in your insurance? I'll call the insurance company Monday but trying to understand how it works and how it works on a bike financed with HDFS.

Do they just cut you a check for the total cost to purchase a new replacement and then it's on you to pay off the lean and use the remainder against the replacement bike? I assume I would have to go through the finance process with HDFS again. What if they don't offer the same terms (% rate, etc) anymore. Am I just hosed or does HDFS work with people in this type of scenario?

I'm trying to figure out what my best COA is. The cost to fix my bike is closing in on the threshold for totaling it out. It was a new bike, less then 2 months old with only 4k miles on it. Harley is doing the work and will be replacing the frame and entire front end. They are also replacing any damaged parts, no painting or buffing. If it's damaged it's replaced.

My biggest concern was with the stigma of a wrecked "new" bike, but now with them replacing the frame and entire front end, it will basically be a parts swap from one frame to another so I'm not quite as worried about any safety aspect anymore.

Just trying to figure out which route works best for me from a financial aspect. The only benefit to totaling the bike is I can get a 2017 but I may not be able to get the same loan term and % rate because they don't offer it anymore or for 2017 model.

Thanks,

Robert

 

I wrecked my bike on December 15th, 2015. I had it financed with HDFS. The insurance company said it was around $9600 damage. The bike was taken to the dealer after the wreck. The dealer said it was over $15,000 damage. The insurance company then said it was totaled. They covered up to $1500 of the mods that I did to the bike. It was a 2015 Breakout with about 9500 miles on it (I bought it used in March 2015). They valued the bike at $18,500 with my extras. They paid off my loan and cut me a check for a about $2000.
The end of December I went to another dealer in town and bought a 2016 Breakout. New loan. I got a better rate because it was new and my credit score went up a little that year. Financed it for less interest and less months.

 

I am pretty sure no insurance Co will write a check for a brand new replacement motorcycle. Your wrecked bike has miles and depeciation. You get a check for its current value. Your lender is paid off and you get the rest, assuming you have equity and are not upside down.

 

They'll establish a value for the bike, less any deductible you may have, pay off your loan, and you will get the rest. If you opt to buy a new bike, you ŕeapply for credit, new loan, new terms.

 

nope, not so. if you buy a new bike and insure with progressive, they have an option for 'new bike replacement'. during the first year, if your bike is totaled, they will replace it with a new bike. no depreciation, acv, etc. after the first year, then it goes to actual cash value.

now how the process works, I dunno.

 

I just did this last month. If you don't get new bike bonus above you might have a similar experience as me:

-I got market value (2012). My insurance, Progressive, hires a 3rd party (per law) appraiser to tell them the value of the bike. The appraiser looks at year, miles, mods, condition and then compare it against other equivalent motorcycles for sale in the nearby area. So if there's a 16 FLHTK for sale nearby with 1000 miles selling for $20k and another 16 FLHTK nearby with 8000 miles selling for $15k, you'd get around $17k. (I made up those numbers, I have no idea what they're going for)

-First, in my case, I had to "sell" the bike to the insurance company. They gave me essentially a bill of sale to sign. You'll need to know who is on the title and lien. If there is someone else besides you, they'll need to sign as well.

-Second, the insurance company paid off my credit union before me. I simply received whatever was left over. If you are upside down on the loan you will most likely have to pay off HDFS.

-Thrice...thirdly: Aftermarket parts. Know your coverage! I paid a little extra to cover aftermarket parts. My plan included safety gear--I got a new helmet! I also recovered all my aftermarket stuff valued at MSRP, not depreciated market value.

-After thoughts. If you don't like the deal, you may be able to keep the bike and get some some cash from the insurance co. Be careful. Your bike will be insanely depreciated. So even if you drop $10k to fix it, if you go to trade it in later or sell it, you may get a dismal amount.

 

I should trade in for a new bike every year.

 

Find out if the dealership rebuilds the bike, will it come with a new title to match the new frame? You don't want to get stuck with a salvage or rebuilt title...

 

This is why I really miss Grundy on my bike. I had my hotrods and Big Dog insured with them. The bike insurance cost me $140 a year, full coverage, with an agreed upon value of $14,000 (It was a 2001). The reason I had that number so high was that was what I had in it about 10 years ago. You insure on an agreed amount and that amount never goes down. They pay that amount on a total no questions asked. Unfortunately they would not insure newer Harleys when I traded in a few months ago. It's the way all insurance should be. Like life insurance you're insuring on an amount, not the bike. Otherwise my life insurance would be down to about the cost of a 6 pack of beer at this point. Somehow Grundy manages to do it, at less cost and still stay in business.

 

Probably get MSRP $ for a new model year bike, less any deductible instead of a depreciated value. (You can opt to have a deductible for this coverage). I don't imagine the process after that is any different than for cash value based coverage. Loan gets paid off, You use then what's left to buy the new bike, just like insuring based on cash value. New loan based on terms at the time of purchase, etc.....