Post-accident insurance procedure

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So, something happened and your bike is badly damaged. The insurance company (yours or theirs) is involved.

What can you expect?

Insurance companies are obligated to get you back to pre-crash condition, or if the damage is bad enough total the bike and give you actual cash value (ACV) (not necessarily book value). Cosmetic damage alone can be enough to total a Ducati and bent steering stops, a gouged frame or gouged swingarm in particular can easily push the bike into a total loss.


Total loss thresholds vary by insurance company, but if the visible damage gets up to around 70% of the ACV the vehicle is in total loss territory. Above 80% is almost always a total loss.

Insurance companies usually determine value by comps (comparable vehicles currently for sale, usually by dealers and private parties). To be sure you are getting a fair settlement you can and should ask for and the comps the insurance company is using for your bike, to make sure they are truly comparable. Sometimes the company will pick the wrong comps - like using GT1000 models instead of your Sport 1000S, lumping both in as "sport classics" and potentially shorting you thousands of dollars. Call the sellers of those comps and verify the model, mileage, price and condition. You can also provide your own correct comps, preferably equipped as closely to your bike as possible. Mods are typically worth a lot less than retail replacement value, but they are usually worth something. Having receipts helps but isn't strictly necessary most of the time.

Insurers can deduct for pre-existing damage. If your bike is pristine this isn't an issue but if it is a beater you may get less for it than you think. Like many other parts of this process, valuations are negotiable, and comps (and Google) are your best friend. Bikes can be shipped anywhere in the country now, so feel free to go nationwide in your comps search.

Get an itemized price sheet for your bike's value. If any of your mods aren't there or you find other errors, address that before you get a check. If you aren't happy with what the insurance company wants to pay you for your mods on a total loss, sometimes you can remove them and put the stock parts back on before the bike is picked up by the salvage company... you did hold on to your stock parts, right?

Some insurance policies will cover your damaged riding gear as well (helmets, jackets, etc). If so, receipts will be very helpful. Other companies offer full replacement value on bikes up to a certain age, like two years. If you're filing claim against your policy, read it to be sure, or ask the other guy's insurance company in writing about this if they are paying the claim.

If the bike is totalled you will usually be given the option to retain the wreck and have the salvage value deducted from your check. The insurer will pay off any loan on the bike first so you will get the ACV less the loan balance less the salvage value. Some states require the insurance company to reimburse you for sales tax as well - this is significant money in higher-tax states like California (9.75% sales tax), especially on a newer bike.

The insurer will then notify the DMV that the vehicle is totalled. Procedures vary by state but in California the owner retaining salvage must go to the DMV within 10 days of the receipt of title and get it converted to a salvage certificate.

Salvage certificates cannot be used to register a vehicle until that wreck has been repaired and passed a state salvage inspection, usually performed by the CHP in California. CA also requires a completed brake and lamp inspection, receipts for all repairs done, some forms and a fee. It's kind of a pain and it takes a while.

Assuming everything passes, you get a new title that will have a brand on it somewhere, usually a "S" for prior salvage history. Repaired vehicles with branded titles are worth less than an identical bike with a clean title.

There is a market for cosmetically damaged salvage-certificate track bikes, and you don't need to convert the salvage certificate back to a title to use it on the track.

If you don't want to go through all this for purely cosmetic frame and swingarm damage you can talk to your adjuster about getting a cosmetic allowance for that specific damage, enough to touch up those areas and a little more money on top of that. You can thereby settle for less than a total and sometimes keep the clean title, but you will get less money - sometimes a lot less.

Whether all this is worth the hassle is up to you. Whatever you do, spend a few bucks and get a fully itemized professional crash estimate done by a Ducati specialist *before* you start negotiating so you know where you stand and how bad it is. Going in blind is a really bad idea and potentially very costly to you.

Lastly, remember that insurance companies make money by paying as little for claims as they think can get away with. Making sure you are properly compensated is up to you.