The amount you owe on your bike is not typically taken into account when an insurance company is determining the actual cash value (ACV) of a totaled motorcycle (or any motor vehicle). If you owe more than what the vehicle is worth (and what you will receive from the insurance company) it is your responsibility to pay that to the financial institute your loan is through.

If you believe your bike is worth more than the $4500 that the insurance company has determined its ACV to be then you will need to show proof and negotiate for a higher amount. The ACV is generally calculating using pricing guides such as NADA, KBB, and local sales of the same model motorcycle in the same condition as yours was in before the accident.

When you settle with an insurance company for a monetary amount for your motorcycle that has declared a total loss, the bike then becomes their property so that they can sell it for salvage to recoup some of the monies they paid out to you in the settlement. If you wish to keep the bike you can normally have the salvage value of the motor vehicle deducted from your settlement amount, but the vehicle then will have a salvage title and be hard to get insurance on.

There is GAP insurance out there that pays the different between the actual cash value paid out in a total loss settlement and the amount a person still owes on a loan or lease. If you had this type of insurance on your bike then it would pay the lien holder the remaining $1900 that is still owed on your motorcycle loan after the $4500 settlement check was paid out.

We have partnered with industry leaders to help you find the best rate for motorcycle insurance.The easiest way to save on Motorcycle Insurance is to follow this link or call 1-800-936-0356 and speak with our partners at Safeco Insurance.