At fault and still compensated...WTH?

M

Merkid

Well-known member
My riding buddy downed his bike (Harley Sportster) last summer and now just settled with State Farm.

He was issued a cheque today for $6800 based on a repair estimate from a local Harley dealer.

He took a dirt road last September with excessive washboarding and fell over damaging the bike. He still has the bike and is piecing it together on his own. He figures, when done, he will pocket about $4500.

He was insured by State Farm who are notoriously difficult to deal with..

Can anyone figure how is it he got the money with an at fault accident?
 
It's the circumstances. He will not have to show receipts for the work as he is doing the repairs on his own and cashing in when done. ]

I don't think an auto insurer would allow that. but I could be wrong.
 
they probably wrote the bike off and he bought it back for a low price (by reducing the pay out) with a branded title, now hes fixing it himself.
i think a new tank from the dealer is $500 by itself...oem HD parts add up quickly.

im mid bobber project on a buddies bike... most the stuff on sportsters isnt needed for it to run anyway....the thing has no o2 sensors unless its 2010+, and unless its 2007+ its not even fuel injected.

if his is 07+ and needs a new rear fender let me know, ive got a black one ive been meaning to put up for sale for a while.
 
Yeah, if he got a payout, that's likely not his bike anymore. I doubt an insurer would issue 7k on a sporty considering they're about 11k new.

So harley says it'll be about that much to fix. He might have cut a deal with the insurer for the payout. INterested to find out what the details were.
 
Merkid said:
It's the circumstances. He will not have to show receipts for the work as he is doing the repairs on his own and cashing in when done. ]

I don't think an auto insurer would allow that. but I could be wrong.
Click to expand...

I have been in this exact same boat with State Farm before. I never completed the process, but while they will continue insuring you for liability, the paper value of the bike is ZERO until it has been assessed in some way. I think they wanted it appraised? I can't remember that part.
 
As others have pointed out, insurance pays regardless of fault. The penalty is generally a premium surcharge.
I have nothing but good things to say about SF though. My claim was remarkably painless. I didn't have collision protection but they proactively offered to submit it under comprehensive due to the specific circumstances. Their first cash offer was also more than fair so I didn't even attempt to negotiate. Within 3 days the claim was open and shut with the cheque in my hand and a smile on my face. Perhaps I just got lucky for a change or perhaps it has to do with the broker?
 
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