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FOUR TIPS TO RECOVER A FAIR PROPERTY DAMAGE
SETTLEMENT
 “The
repair estimate for your client’s bicycle is for
more than the value of my car.”
Insurance Adjusters have said this to me while,
I’m attempting to settle bicycle property damage
claims - due to their insured’s negligence.
Adjusters are skeptical of claims for expensive
bicycles.
Adjusters don’t want to overpay. Their
files are audited and they must justify a
decision to settle. So, here are four tips
to maximize your property damage settlement.
Tip 1: The general rule is
that you’re entitled to reasonable compensation
for damage to your bike and clothes, i.e. the
difference in the fair market value of the bike
immediately before and after the accident.
This formula is used when your bike is
“totaled”. Have an experienced mechanic
estimate if it’s cost effective to repair the
damaged bike or total it out. Photograph
the damage to support your claim.
I recently had a bike mechanic use a tool to
show the degree the frame was bent. I
photographed the measuring tool next to the bent
frame to prove the loss.
Now, compare the photos of your prized bike
just before the crash. Pull up e-bay
prices for similar bikes to prove the reasonable
market value before the crash (Your purchase
receipt helps set a watermark in negotiations.)
This is a reasonable method to validate your
claim.
Tip 2: Say your bike isn’t
totaled. The law allows you to “repair”
the bike, so it’s restored to the fair market
value as it existed immediately before the
accident. This includes the cost of parts and making
the repairs, i.e. labor.
Here, you’re usually fixing potato chipped
wheels, bent handle bars or paint damages, as
opposed to frame damage.
Tip 3: You can also recover
the “depreciation” in value of a damaged bike.
However, if the cost of repair is less than the
depreciated amount, you may only recover the
lesser sum – the repairs.
For example, if you’re unable to restore your
classic Masi or Colnago bike without using
genuine parts or paint without suffering a big
drop in value, then recovering the depreciated
amount is proper because it’s less than deeming
it a total loss. To economically bring the
bike back to it’s pre-crash condition, this may
require you to ship your bike to the factory to
paint or straighten the frame. Totaling
the bike would be wasteful, and a quick fix with
after market products won’t restore the value to
the condition immediately before the crash.
Thus, it makes sense to factor in depreciation
when calculating your damages so you are made
whole.
Tip 4: While your bike is
being repaired you’ve lost the “use” of it.
This loss is compensable during the time
“reasonably necessary” to repair the damage
caused by the accident. Insurance
adjusters may fight you on this “head of
damages”. They’re accustomed to paying for
the loss of use of a car, but not a bike.
So, analogize your loss of use to paying for a
Enterprise rental car; there’s not much
difference.
In case you have a race, you can rent a
comparable bike. Most shops rent bikes.
Just make sure you’re diligent in mitigating
your losses. Keep a log of when you’ve notified the
insurance company by phone (followed up by an
e-mail or fax) of your reasonable losses.
This starts the clock ticking for loss of use
since they now have notice to either pay for the
totaled bike or the repairs without delay…. or
suffer the “loss of use” cost to rent a
comparable bike. Then, factor in your
“loss of use” costs into your total property
damage settlement negotiations.
Conclusion:
There you have it, four tips to get
back on the road when your bicycle is damaged.
Ride Safe – Ride Strong!
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