Your Bike Was Mangled By a Car...Now What?

You are on your daily commute or your Saturday morning training ride when your worst nightmare becomes a reality and a negligent driver suddenly turns left in front of you.

Shortly after the impact you realize that with the exception of some road rash you are okay, but then you look around and see that your carbon fiber bike has been split into several pieces. How are you going to handle your property damage claim?

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The law in many states dictates that the at-fault motorist is obligated to put you back in the same position you were in prior to the crash. If the cost to repair your bike is greater than the market value, then the at-fault driver's insurance carrier is on the hook to pay you the market value of your bike. If the cost of the repairs is less than the market value, then the carrier must pay for the cost of repairs.

Dealing With Insurance

Over the past five years I have handled 100-plus property damage claims and the common thread is that most insurance adjusters are used to dealing with motor vehicle claims and either have no experience or minimal experience handling bicycle damage claims. Generally, the insurance adjuster does not know the difference between a Pinarello Prince and a Wal-Mart special.

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In order to recover your damages, you will need to do your homework and be prepared to educate the insurance adjuster. As a starting point, I almost always take the position that the bicycle is a total loss. A 15- to 20-pound bicycle is not designed to withstand the impact with a 4,000-plus pound vehicle.

In the above example, the carbon fiber frame broke into several pieces and was an obvious total. In many cases, the damages are not so obvious and may not manifest themselves until much later. The first time I was hit, I thought my bike was okay until 10 weeks post-accident when both fork legs snapped off about two inches below the fork crown. There were tiny microscopic cracks/fissures that were not visible to the naked eye.

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Most of my clients are surprised to learn that the insurance company is not obligated to buy them a brand new bike. Keep in mind that if your 1992 Ford Taurus is totaled in a car crash, the insurance company is not required to buy you a 2011 Ford Taurus, but rather, must pay you the market value of your 1992 Ford Taurus just prior to the crash. Market value is what a willing buyer will pay a willing seller in an arms-length transaction. Craigslist, eBay and a reputable bike shop can help you establish market value.

Collecting Evidence

It is important that you photograph all damages and bring your bike to a reputable bike shop for a thorough inspection and damage estimate. In cases where the bike is not an obvious total, most shops will provide you with a statement that says something like "because of the nature of the impact, the structural integrity of the bike has been compromised, making it unsafe to ride and it should be considered a total loss."

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In addition to the bicycle damage, you should document with photographs, receipts and website information the damages to and cost of all damaged accessories, including your helmet, glasses, clothing, shoes, etc. You should be compensated for anything that been torn, bloodied, scratched, etc. Even if the helmet appears okay, most helmet manufacturers recommend that it should be replaced if it has been involved in a crash. For accessories, the insurance company will often argue that they are entitled to depreciate the original cost. A 5-10 percent per year depreciation rate is generally fair.

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Keeping Your Damaged Bike

If the insurance company totals out your bike, they are entitled to take possession of it in return for a settlement check. My experience is that most insurance companies do not want to deal with collecting the damaged bike and will usually let you keep it. If the insurance company demands the damaged bike, you can usually negotiate to buy the totaled bike back from the insurance carrier for a nominal amount ($50 to $100).

Even if the bike is totaled, you will usually be able to salvage enough usable items (front derailleur, bottom bracket, hubs, brake callipers, bottle cages, etc.) to make it worth the $50 to $100 salvage value. Because of the potential for hidden damage to items like the frame, fork, bars, seat post, cranks and pedals, you should probably dispose of these items.

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Loss of Use Damages

In addition to compensating you for your property losses, you are also entitled to recover "loss of use" damages. Loss of use damages are similar to reimbursement for rental car expenses in a car vs. car situation and are recoverable regardless of whether you used your bike for business, commuting or simply for pleasure.

Furthermore, you do not have to actually rent a replacement bike in order to recover loss of use damages. Loss of use damages are recoverable for the time period reasonably for the repair or replacement of your bicycle. The reasonable time period usually runs from the time you supply the insurance adjuster with all of your documentation until the time the insurance adjuster pays you. Given that most insurance adjusters are not accustomed to dealing with bike damage claims, I have recovered loss of use damages for up to 12 weeks in some cases.

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Liability

Assuming that the car that hit you did not carry liability insurance, or that you were at fault for causing the accident claim, you may want to look to your own homeowner's insurance policy or renter's insurance policy for recovery.

The downside of this approach may be your high deductible and the effect that such a claim may have on your insurance rates. Unless you are dealing with a substantial loss, I do not recommend using your homeowner's insurance. An advantage of using your homeowner's/rental insurance is that such coverage generally pays for a brand new bicycle rather than the market value of your bicycle.

If you find yourself in the unfortunate position of having to make a property damage claim, do your homework and document all your damages so that you can properly educate the insurance adjuster and recover your damages. Ride safely!

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