What you need to know about your motorcycle insurance claim
The answers to these frequently asked questions might be helpful in expanding your motorcycle insurance claims knowledge.
From Pikeville to Paducah, the Bluegrass State’s beautiful country roads are the perfect place for motorcycle enthusiasts. If you’re a rider, you know that Kentucky law mandates motorcyclists to carry insurance. Are you curious what Kentucky Farm Bureau (KFB) Insurance motorcycle insurance will cover, or what your financial responsibilities are should you get into a crash or damage your motorcycle? If so, the answers to these frequently asked questions might be helpful in expanding your motorcycle insurance claims knowledge.
Q. If injured in an accident, will my motorcycle policy pay for my medical expenses?
A. Typically, reasonable and necessary medical treatment is covered under the Personal Injury Protection (PIP) coverage. If you have chosen to purchase optional PIP coverage, your policy may provide benefits for the driver or passenger on your motorcycle, as well as any pedestrians struck by your vehicle.
Q. The accident wasn’t my fault. Do I still have to pay a deductible?
A. Regardless of fault, you'll pay a deductible for certain coverages. However, during the claim investigation, if the facts indicate there's a chance to recover the damages from the person responsible for the accident, KFB Insurance will attempt to recover them, including your deductible. If we aren't successful, you have the option of trying to recover the costs on your own.
A deductible is the dollar amount of the claim you are responsible to pay. For example, if you have a $500 deductible, you will be responsible for the first $500 of certain first party claims that you file and then KFB Insurance will pay the remainder. You choose the deductible on your policy when you purchase insurance. A higher deductible lowers the price of your premium.
Q. What if my motorcycle is totaled?
A. A motorcycle is considered a total loss if the estimated cost to repair exceeds 75% of its actual cash value (ACV). The decision whether to repair or declare a total loss is based on the type and extent of damage, age of the motorcycle, state law, and other factors. In order to make the determination, KFB Insurance will have to inspect the motorcycle. If your motorcycle is determined to be a total loss, you will be paid the actual cash value of the motorcycle as established by conducting a local market survey, less any applicable deductible.
Q. What if I disagree with the total loss value?
A. KFB Insurance will be glad to review any documentation you have to support the reason for disagreement. We will review the documentation for accuracy and applicability to the total loss vehicle. If the documentation is credible and it affects our assessment of the ACV, we will adjust our offer accordingly. If we remain in disagreement, our policy contract describes how an appraisal can be arranged to resolve the differences.
Q. What happens to a motorcycle after a total loss?
A. Typically, totaled motorcycles are sold at salvage auctions or to a licensed salvage dealer. KFB Insurance complies with the appropriate laws and regulations that require obtaining salvage titles or branding/marking the title. We obtain salvage at the conclusion of a total loss settlement and sell it through licensed salvage vendors. We do not directly sell vehicles determined to be a total loss to private individuals.
Q. Can I keep my motorcycle after a total loss?
A. In some instances, you may be able to purchase your motorcycle from KFB Insurance after a total loss. Your adjuster can provide information if you are interested.
Q. Will I still have to pay my loan or lease after a total loss?
A. After your motorcycle is declared a total loss, you may still owe money on your loan or lease if the actual cash value is less than what you owe. Purchasing loan/lease payoff coverage prior to an accident can provide financial security for you in case your motorcycle is declared a total loss.
Loan/lease payoff coverage, commonly called "gap" coverage, may pay the difference between the actual cash value of your vehicle and what you still owe on your loan or lease (less any deductible). Your claim adjuster can provide more details on this.
Q. If property is stolen from my insured motorcycle, is the loss covered by my motorcycle policy?
A. There are restrictions to coverage for certain types of equipment under the motorcycle policy. Other personal property items are typically covered under your homeowners policy. Please contact your KFB Insurance Claim Representative for additional information.
Q. What if the accident happened outside of Kentucky? Who will handle my claim?
A. If your accident happened outside of Kentucky, your claim will be assigned to an adjuster who is trained to help you. KFB Insurance will determine if your motorcycle needs to be inspected by an adjuster. We work with professional adjusters located across the country who are available to help when needed.
>> Have you heard the rumblings? KFB now insures motorcycles! For more information, click here.
*The above provides general claim information, but please keep in mind that every claim is different and must be considered in the context of the particular policy and any endorsements that you may have in place. Each policy has specific terms and conditions that detail your coverages. The following information is not intended to modify any of the terms or conditions in your individual policy.