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Written by:
Prachi Singh
Contributing Writer
Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.
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Reviewed by:
Laura Longero
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Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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State laws and insurance company guidelines differ regarding when a car or motorcycle is determined as a total loss. Typically, an insurer will total out a vehicle when repair costs exceed 50% to 75% (or more) of the vehicle’s actual cash value, or ACV.

Each insurance company has a way of calculating ACV, but typically it can include the blue book or NADA value, local comparable vehicle sales and internal information.

Key Highlights
  • An insurance company will consider a motorcycle totaled if the repair cost exceeds 50% to 75%.
  • Each insurance company calculates actual cash value, or ACV, differently.
  • If your motorcycle has been in an accident that damaged the frame, speak to your insurance adjuster.

How to handle a damaged motorcycle

Suppose there is major structural damage to a vehicle that cannot be properly repaired or that makes it uneconomical to repair the car. In that case, an insurance provider typically declares it a total loss.

If a scraped frame on a motorcycle means that the frame has to be replaced or go through extensive and expensive repairs, it may cause the bike to be totaled out since it could be uneconomical for the insurance company involved to fix the bike.

If your motorcycle has been in an accident that damaged the frame, speak with the insurance adjuster working the claim to determine how the company determines when a vehicle is totaled out.

You can also ask if, according to their specific guidelines, there are certain damages such as frame damage that automatically cause the insurer to find the vehicle a total loss.

When is a vehicle totaled by an insurance company?

State laws regulate when a vehicle should be totaled out by an insurance company and be found to be a salvage vehicle. Contact your state’s insurance regulatory body for consumer advice on this subject. They can give you information on your specific state’s laws.

Laura Longero

Ask the Insurance Expert

Laura Longero

Executive Editor

Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.

John McCormick

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John McCormick

Editorial Director

John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

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Leslie Kasperowicz

Executive Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

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Nupur Gambhir

Managing Editor

Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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Contributing Writer

Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.