What is My Bike Worth?
What is my bike worth? This is a very common question especially in insurance claims with motorcycles and powersport vehicles. You may feel your motorcycle is worth more or less than what it may be. The value of your vehicle is determined by a certain set of criteria. Vehicle age, mileage, condition, previous claims, modifications and visible appearance are all going to be contributing factors. (ACV) or actual cash value is a great base to use. Actual cash value is replacement cost minus depreciation. Depreciation can be complicated, but it is basically an agreed percentage that something loses value each year or what the market value of that item is at the time of loss. ACV is also usually based on original equipment manufacturers (OEM). Aftermarket replacements may alter the value of a motorcycle. If you replace an OEM part with an aftermarket part, that will be accounted for when calculating ACV as well as accessory coverage. ACV may also take into consideration market value. Fair market value is what the current market would pay for a motorcycle in good condition on the used market. The mechanical and visual condition of the vehicle also factor into determining fair market value.
The value of a motorcycle is usually taken from a source of information like Kelly Blue Book, N.A.D.A or Edmunds. These companies source data from multiple places. Companies that produce vehicle valuation like this use a centralized hub to keep the information organized and easily accessible. This makes it much easier to determine value. You can just go on their website, input some simple information and get a value in return. Add on accessories can make this a little more tricky. Not all accessories can be found on Kelly Blue Book or N.A.D.A. Custom made parts are additionally hard to value. Keeping records like receipts and pictures can help if the value ever needs to be determined for these parts. Be sure to check with your insurance carrier to see how and if they cover accessories. Replacement cost coverage may be available as an optional coverage, but it may have restrictions.
Valuation of custom-built and antique motorcycles are not usually done through ACV. These types of vehicles may need to be appraised individually by a highly qualified appraiser with many years of experience. High specialized adjusters can determine value with multiple methods for custom made motorcycles. Agreed value insurance is based on a set value that is agreed on by both the insured and insurance company. In an agreed value policy, if the covered vehicle is involved in a total loss, the insurance carrier will need to pay the value stated on the declaration page.
To help protect your investment, it is always good to keep good records, including receipts and recent pictures. If you don’t have receipts, going to a local dealership to do an inventory with pictures may be a good idea.