The motorcycle also has this retention restriction on it. We contacted the Illinois Division of Insurance to verify this fact. The representative of the Illinois Department of Financial and Professional Regulation, Division of Insurance stated that your motorcycle is covered under the retention law. This law means every titled vehicle in the state of Illinois. Motor homes, motor bikes, snow mobiles, wave runners, modular homes, automobiles, motorcycles, etc.

So you are not entitled to keep your motorcycle if it is deemed a total loss and in fact the law states that you cannot keep a vehicle except for in certain circumstances. When you do keep a vehicle if it falls into the exceptions allowed by law you normally will have to pay the insurer salvage value and thus buy back the vehicle from them after they have paid your for the total loss of your bike. Many insurance carriers will allow you to have the salvage value taken out of your settlement amount, as long as there is not a lien holder on the vehicle.

For information on this law you should know that in an effort to minimize automobile "chop shop" crime, the Illinois Vehicle Code does not permit you the right to retain the salvage once the insurance company has deemed your automobile a total loss. There are only two instances that you may be able to retain your vehicle: 1) if the vehicle has incurred only hail damage that does not affect the operational safety of the vehicle, or 2) if the vehicle is nine (9) model years of age or older.

Illinois Vehicle Code Section 1-217 (625 ILCS 5/1‑217) gives the definition used by the laws for a vehicle. Here it states that every device, in, upon or by which any person or property is or may be transported or drawn upon a highway or requiring a certificate of title under Section 3‑101(d) of this Code, except devices moved by human power, devices used exclusively upon stationary rails or tracks and snowmobiles as defined in the Snowmobile Registration and Safety Act.

So motorcycles fall into the IL VCS definition of a vehicle and thus motorcycles have restrictions on them if they are found to be a total loss just as automobiles.

Section 3‑117.1 of the IL Vehicle Code is titled when junking certificates or salvage certificates must be obtained and states in subsection (b) that an application for a salvage certificate shall be submitted to the Secretary of State in any of the following situations:

(1) When an insurance company makes a payment of damages on a total loss claim for a vehicle, the insurance company shall be deemed to be the owner of such vehicle and the vehicle shall be considered to be salvage except that ownership of (i) a vehicle that has incurred only hail damage that does not affect the operational safety of the vehicle or (ii) any vehicle 9 model years of age or older may, by agreement between the registered owner and the insurance company, be retained by the registered owner of such vehicle. The insurance company shall promptly deliver or mail within 20 days the certificate of title along with proper application and fee to the Secretary of State, and a salvage certificate shall be issued in the name of the insurance company.

If you want more information on the laws in Illinois regarding the retention of a vehicle after a total loss contact the IL Division of Insurance and/or speak with your insurance agent which insures your motorcycle.