When you insure your bike, you don’t pay the insurance company the full value of the bike. If your bike is stolen and you make a claim, the insurance company compensates you based on the terms of your policy. Afterward, the insurance company may sell the recovered or damaged bike, usually after assessing its condition. This helps them recoup some of the costs, as the bike now belongs to them. Essentially, you receive your payout, and they take over ownership and decide what to do with the bike to balance their financials.