What is Your Bike Worth?

What is Your Bike Worth?  Probably Less Than You Think.

May 14, 2014

We motorcyclists are a different breed.  For most of us our motorcycles are more than a mode of transportation; they are literally an extension of us.  Over time we modify and customize our bikes to make them unique.  When a negligent driver damages or destroys our bike they have not just damaged or destroyed a vehicle, they have damaged or destroyed part of us.  Our bikes can have value to us that are beyond market forces.  That value can come from the rides we have taken on them, how long they have been in the family, or any number of things.

However, to an insurance company, a defendant or a court, your motorcycle is only worth what the market says it is worth.  If your motorcycle is totaled the insurance company is only required to pay you the fair market value of your bike regardless of how much you owe on it or how much you think it is worth.

Fair market value is the amount that the motorcycle would sell for on the open market.  This should not to be confused with what you would ask for if you were to sell it.  It should also not be confused with what you owe on it or what you have invested in it.  These things are unimportant and often irrelevant in determining what your bike is worth.

The insurance companies will often look to the NADA guide to gauge the value of your motorcycle.  They will also look to see what similar motorcycles are selling for in your geographic area.  I often get complaints that the insurance company is not taking into consideration aftermarket items such as additional chrome in computing the value of a client’s motorcycle.  While extras and modifications can increase the value of a motorcycle, fair market value is not computed by taking what you paid for the bike and adding up all that you have invested in it.  If you add $2,000 worth of chrome to your bike that does not necessarily mean the bike is worth $2,000 more than before you added it.  The question is how much will it cost a buyer to go out and purchase another bike like it.  The answer to that question is usually less than the owner thinks.  Try going on Craigslist or EBay and seeing how much bikes like yours are selling for.  That is why I tell clients that if you want to put chrome on your motorcycle, do it because you like chrome, not because you want to add value to your bike.

So what can you do to protect your bike?  First and foremost, if you are financing your motorcycle consider gap insurance.  Gap insurance pays the difference of what the motorcycle is worth, and what you owe.  It keeps you from being "upside down" on your loan if your bike is totaled.  By way of example, let's say that you buy a bike for $15,000.  Two years down the road you owe $13,500 but the fair market value is now $11,000.  If you are in an accident and your bike is totaled, the insurance company is going to pay you $11,000.  That takes care of the defendant’s obligations with regard to your bike.  You will still owe $2,500 on a motorcycle that you do not own.  Trust me; those are painful payments to make.  However, if you bought gap insurance it would make up that $2,500 difference so that you would not owe further on the bike.

You can also insure your motorcycle for a certain amount, often called scheduled or stated value.  If you do that and your bike is totaled, the insurance company will pay that pre-set amount.  Take that $15,000 bike that you bought in the previous scenario.  You schedule the bike at $15,000.  The same two years go by and it is worth $11,000.  If you are in an accident and your bike is totaled the insurance company will pay you $15,000.  If you do not want to pay for a scheduled or stated value, many policies will offer specific protection for accessories, which guarantees that you will receive value for your accessories.  It does not protect you from the natural depreciation in value that all bikes experience over time.  If you do purchase coverage for accessories, make sure to save the receipts for any accessories that you purchase.

The bottom line is that the vast majority of us are riding with what is called an "actual cash value" policy (ACV).  If our motorcycle is totaled we will get the actual cash value of that motorcycle.  If you, as many of us do, see your motorcycle as something that you have a personal investment in and you want to protect that investment, then you need to make sure that you purchase more than just an ACV policy.  Otherwise, your investment is at mercy of the free market, and the free market will almost always determine that your motorcycle is worth less than what you think it is.

If you would like to see a video on this topic you may go to the following link:
http://www.youtube.com/watch?v=PCO2D6-VWOY

If you have any further questions or comments concerning this article or any other matters concerning your rights as a motorcyclist, please feel free to contact me at 1-800-321-8968 or at matt@motorcyclelawgroup.com
  Matt Danielson
McGrath & Danielson
Tom McGrath's Motorcycle Law Group
1-800-321-8968
Motorcyclelawgroup.com

General Assembly Wrap Up

2014 Virginia General Assembly Wrap Up March 13, 2014   The regular session of the Virginia General Assembly has concluded.  We can of course expect a special session so that the two chambers can continue to fight over the budget and the impasse over Medicaid expansion.  However, as that is a topic not specific to motorcycles or motorcyclists, I will not wade into those waters. Motorcyclists had a pretty good year in 2014.  The Virginia Coalition of Motorcyclists (VCOM) had three main issues going into this session, two of which have become law which will go into effect as of July 1st, 2014.  If this were baseball we would be batting .667 and would qualify for the hall of fame.  Yes Mr. O’Reilly that is called spin. This year Virginia will get a new classification of motor vehicle called an autocycle.  Both HB 122 and its Senate companion SB 383 have been signed by the Governor.  Under this new law, an autocycle is defined as a three-wheeled motor vehicle that has a steering wheel, seating that does not require the operator to straddle or sit astride, and is manufactured to comply with federal safety requirements for motorcycles. The code also specifies that unless otherwise provided, an autocycle shall not be deemed to be a motorcycle.  The reason for this legislation was the rise in popularity of three-wheeled cars such as the T-Rex and Elio which until now have been considered motorcycles due to having three wheels.  The manufacturers of these vehicles do not want them to be considered automobiles because they would then have to meet the federal safety standards for automobiles.  We motorcyclists do not want them to be motorcycles because they will unfairly distort our crash statistics.  VCOM worked with Tanom, a company in Virginia which manufactures such vehicles, and with several state governmental agencies to create this new classification.  This new classification satisfies all parties.  Autocycles only have to meet the federal safety requirements for motorcycles so the manufactures are happy.  Likewise, when these three wheeled cars are involved in a crash which results in an injury or fatality, they will not be considered motorcycle injuries or fatalities.  I do not mean to sound indifferent about any injury or fatality, but the reality is that much of the laws that we see restricting motorcyclists are driven by crash data.  If the government is going to use such data to pass laws aimed at us, we should demand that the data at least be accurate. If you would like to read the full bill as enacted you may do so at the following link: http://lis.virginia.gov/cgi-bin/legp604.exe?141+ful+CHAP0053 The second bill to be signed by the Governor is HB 542 which concerns wearing masks in public.  It is a felony to wear a mask in public in the Commonwealth of Virginia except under certain circumstances.  This has historically been problematic for motorcyclists in Virginia who utilize cold weather gear, or who use a bandana to protect themselves from dust or sun.  Many were being pulled over and told to remove the protective coverings.  The code section now makes it clear that it is only a crime in Virginia to wear a mask in public with the intent to conceal one’s identity.   Covering one’s face for the purpose of staying warm or to protect one’s self from the elements will no longer put a motorcyclist at risk of facing prosecution. If you would like to read the full bill as enacted you may do so at the following link: http://lis.virginia.gov/cgi-bin/legp604.exe?141+ful+CHAP0167 Unfortunately, our third issue, which would have made it reckless driving to kill another motorist while committing a right of way violation, was defeated by the House Courts of Justice Committee.  Despite support from motorcyclists across Virginia, the Committee defeated the measure on a 9-13 vote.  Those who opposed the measure did so due to the fact that the bill made a traffic infraction a criminal offense without any change in the intent of the offender.  We argued that the court would still have the power to find the offender guilty of a simple infraction if the evidence supported such a finding.  We further explained that the main purposes of the bill was to force those who kill others on Virginia highways to come to court to answer for the charges, and to give courts more power to deal with such offenders appropriately.   Despite our best efforts the measure failed.  At least for now. VCOM will continue to monitor issues affecting motorcyclists in the Commonwealth.  If you have any concerns about such an issue please feel free to contact me.  Additionally, if you wish to support VCOM you may join and become a supporter at vcomonline.org   Matt Danielson McGrath & Danielson Tom McGrath's Motorcycle Law Group 1-800-321-8968 Motorcyclelawgroup.com

Injuries and Fatalities Down

Virginia Motorcycle Injuries and Fatalities Down in 2013

February 17, 2014 The preliminary motorcycle crash data for 2013 has been released by the Virginia Department of Motor Vehicles.  The news is good.  Motorcycle crashes, injuries, and fatalities are down dramatically from last year.  While this is very good news, it is a cause for some concern for 2014.  I will explain that in a moment.  First, let’s look at the data.

In 2013 there were 60 motorcycle crash fatalities compared to 77 in 2012.  That is a decrease of 22%.  Further, there were 571 crashes involving serious injury in 2013 compared to 846 in 2012.  That is a 32.5% decrease in motorcycle crashes involving serious injury.

The numbers become even starker when we look at total motorcycle related injury crashes over the last four years.  In 2010 there were 1,848 motorcycle related injury crashes compared to 1,875 in 2011 and 1,987 in 2012.  In 2013 there were 1,222 motorcycle related injury crashes.  Additionally, in each of the three previous years, motorcycle related injury crashes made up 4% of total injury crashes in Virginia.  In 2013 motorcycle related injury crashes made up 3% of total injury crashes in Virginia.

Now here comes the part that causes me concern.  People will look at this data and ask what it means.  I would hope that continued focus on training and education had something to do with these numbers.  However, crash data can vary from year to year based upon factors that have nothing to do with training, education or equipment.    For example, weather and gas prices can affect motorcycle crash data.  If one year is dry and warm and the next is cold and damp, we would expect to see fewer motorcycle crashes in the cold and damp year since fewer motorcycles are on the road.  When gas prices go up we see more motorcycles on the road as people opt for their most fuel efficient vehicle.

My concern is that such a significant drop in crashes, injuries, and fatalities has to be due in part to factors outside of the control of both motorcyclists and the government.  It is the latter group that concerns me the most.  In 2014 the uncontrollable factors could very well change and we could see a significant rise in motorcycle crashes.  Historically when that happens, our elected officials become eager to step in to take legislative action.  It is an inherent need on their part to take action even if that action will, in all reality, have no impact on motorcycle safety.

So what can we as motorcyclists do about this if some of what affects motorcycle crash data is outside of our control?  We can continue to focus on those things over which we do have control.  We can continue to pursue a strategy for motorcycle safety which focuses on crash avoidance.  We can continue to hone our skills both on our own and through the many quality motorcycle training courses that are available to us in Virginia.  We can also police ourselves.  If we as riders want to protect and preserve riding as we know it, then we need to step in when appropriate and  make sure that others understand that their reckless behavior not only has a potential impact on them, it has a potential impact on all of us.  If we do those things, we may not be able to erase the effect that outside forces have on motorcycle crash data, but we can certainly lessen the impact.

As always, if you have any questions or comments concerning anything that I have written please feel free to contact me.
  Matt Danielson
McGrath & Danielson
Tom McGrath's Motorcycle Law Group
1-800-321-8968
Motorcyclelawgroup.com

Second Annual Bikes on the Border

Reminder - Second Annual Bikes on the Border

February 9, 2014

I wanted to remind anyone who is interested that the Second Annual Bikes on the Border will be held from March 21 to 23, 2014 in Kings Mountain North Carolina.  The host hotel is the Holiday Inn Express Kings Mountain, NC at 100 Woodlake Pkwy., Kings Mountain, NC.  Room rates are $75.00.  Call 704-734-0014 for reservations.  A block of rooms has been set aside for the conference.

The Actual conference will be held on Saturday March 22nd at the H. Lawrence Patrick Conference Center at 909 E. King St., Kings Mountain, NC.  It is 1.8 miles from the host hotel.  Topics will include

- Federal legislation affecting motorcyclists.
- Lobbying 101 – A panel discussion on effective lobbying on both the state and federal level.
- Insurance law and how it affects motorcyclists.
- How to deal with toxic members in your motorcycle rights organization.
- A roundtable discussion among all attendees on issues of importance to motorcyclists in your state.

There is a $25.00 registration fee which includes a t-shirt and a ticket to the banquet Saturday night.  Walk-ins are welcome at the conference, but those who register will have guaranteed seating.  Additionally only registrants will receive banquet tickets and t-shirts.  You may register by check made payable to McGrath & Danielson, PO Box 5424, Richmond, VA 23220.  You may also register using PayPal at http://motorcyclelawgroup.com/bikes-on-the-border/

This year’s banquet will feature a silent auction and a 50/50 with all proceeds going to the Motorcycle Riders Foundation.  If you have items for the silent auction please contact Rob Griffin at rob@motorcyclelawgroup.com.

If you can make the conference, plan to arrive Friday evening for fellowship over a few beverages in the hospitality room.  Also plan to stay around Sunday morning for a guided tour of the Kings Mountain Battlefield Park.  You may also want to make a stop at the 40^th Annual CBA Swap Meet & Bike Show at the Metrolina Expo, 7100 Statesville Rd., Charlotte, NC 28269.  We look forward to another interesting and productive Bikes on the Border. 
  Matt Danielson
McGrath & Danielson
Tom McGrath's Motorcycle Law Group
1-800-321-8968
Motorcyclelawgroup.com

BioFuel Bill

Federal Bill of Interest to Motorcyclists

February 5, 2014

The Motorcycle Riders Foundation reports that the United States House of Representatives has passed a bill that would end a federal subsidy for biofuel blender pumps in rural areas. The measure passed by a vote of 251-166.  The Senate is expected to vote on the matter next week and there is little that those in support of the subsidies can do to reinstate the money. President Obama is expected to sign the legislation into law. Putting an end to these subsidies will likely result in less biofuel blender pumps in the market place and therefore less E-15 fuel.  As most of you know, E-15 is gasoline that is blended with 15% ethanol.  Obviously that is a 50% increase in ethanol over the standard E-10 that most of us are used to seeing and using.  There are questions regarding how E-15 will affect engines, especially smaller ones.  The Motorcycle Industry Counsel claims that E-15 could affect engine durability and deterioration.  Further, if your motorcycle is damaged by E-15, you have no legal recourse.   Passage of this bill should be welcome news to all motorcycle riders.   Matt Danielson McGrath & Danielson Tom McGrath's Motorcycle Law Group 1-800-321-8968 Motorcyclelawgroup.com

Bill 1215 Being Heard Tomorrow

House Bill 1215 Being Heard Tomorrow January 27, 2014

We have learned today that House Bill 1215 is scheduled to be heard in the House Transportation Committee tomorrow morning at 8:30 a.m.  This bill makes it reckless driving when a person kills or seriously injures another person during the commission of most right of way violations.  Under current law a person who kills another or causes a serious injury faces a charge of failure to yield the right of way which carries only a fine.  HB 1215 not only gives the court the power to impose jail or suspend a license if appropriate, it forces the charged party to appear in court to answer for the charges rather than simply pre-pay the ticket.  You can read the full text at: http://lis.virginia.gov/cgi-bin/legp604.exe?141+ful+HB1215 Normally a bill would be assigned to a sub-committee before being heard but this one has been sent straight to the full Transportation Committee where the committee can send the bill to the full House, kill the bill, or re-refer it to the Courts of Justice Committee. There are several important aspects of this bill that should be shared with the committee members.   The bill does not carry a mandatory punishment but instead gives the court additional tools to fashion an appropriate punishment for someone who kills or seriously injures another on the highways. The bill forces someone who kills or seriously injures another on the highway to appear in court to answer charges rather than simply pre-pay a fine. The bill still allows the court to convict for the lesser included offense of improper driving when the court feels that the facts justify such a finding. If you have any questions or comments concerning this bill please feel free to contact me.

LOBBY DAY

Motorcycle Lobby Day

January 17, 2014

I want to remind everyone that this Monday is Motorcycle Lobby Day at the Virginia General Assembly.   This is a holiday so many people are off.  That morning, Virginia Coalition of Motorcyclists lobbyists, as well as members of other state motorcycle rights organizations, independent motorcyclists and any other interested people will go to the Virginia General Assembly to speak to the Delegates and Senators about upcoming legislation that affects motorcyclists in Virginia.

On Sunday January 19, from 12:00 p.m. until we get through, Virginia Coalition of Motorcyclists lobbyists will lead an informational meeting at the Four Points by Sheraton at 4700 South Laburnum Avenue, Richmond, VA 23231 to discuss this year's legislation affecting motorcyclists. We will also discuss how to talk to your legislators about these issues in case you have never done that.  Later that evening, attendees will enjoy a free homemade BBQ dinner.

On Monday the 20th, we leave the hotel at 8:00 a.m. sharp for our annual trip to the Capitol. After lobbying our legislators, we will head to Penny Lane Pub where Tom McGrath's Motorcycle Law Group takes everyone to lunch as a thank you for coming to support Virginia Motorcyclists.

This year we have numerous bills of interest to Virginia motorcyclists.  We have two bills to modify the definition of a motorcycle, and to create a new classification of motor vehicles called autocycles.   In recent years we have seen numerous three wheeled vehicles on the market which are, for all purposes, three wheeled cars.  They are controlled by a steering wheel as well as a foot controlled brake and throttle.  Yet under current Virginia law these vehicles are motorcycles.  There is legislation to make these vehicles autocycles and to further clarify the definition of a motorcycle. 

As always, there will be numerous bills submitted at the last minute which will negatively affect motorcycling.  As these bills are filed, we will be able to identify them and discuss them at lobby day so that we can convince the legislators why they are bad bills.  Those who have participated in Lobby Day in the past remember bills that we have killed such as the one that would have required proof of insurance before one person could sell another person a motorcycle, even if the person buying the motorcycle had no intention of putting the bike on the road.  We killed that one with the help of all of those who participated at Lobby Day.  A few years ago we also defeated a bill that would have prohibited children under eight from riding on a motorcycle as a passenger by pointing out that the law improperly infringed on the rights and responsibilities of parents.  Those at Lobby Day also pointed out the fact that in the prior ten years not a single child under eight was killed on a motorcycle.

I encourage everyone who can to join us.  It is a lot of fun, it is educational, and most importantly it shows the legislators that motorcyclists are a significant and active portion of the electorate.

For more information you can call VCOM at (800) 437-9434.  For Room Reservations call (804) 226-4300.  As the hotel accommodations were just secured, room blocks may not be available until after December 15.  We hope to see you at lobby day.

Matt Danielson
McGrath & Danielson
Tom McGrath's Motorcycle Law Group
1-800-321-8968
Motorcyclelawgroup.com