Unfortunately for us we’ve learned quite a bit about the types of bike insurance over the years. We’ve had our bike stolen and have been involved in a car accident that resulted in a bike being totaled. Luckily, no bodily injury was done. With these experiences we’ve learned to navigate the world of insurance and also have preventive tips to lessen the chance of needing insurance.
Bicycle Theft Prevention
First let’s discuss a few things that will help prevent needing to file a claim for bicycle insurance. Bicycle theft both inside and outside your home is a major issue here in the US. According to the latest FBI Crime Statistics Report, a bicycle is reported stolen every 2.8 minutes and almost everyday I see a story of a bicycle being stolen in my social media feed. Sometimes you simply can’t stop a thief but you can make it really hard by following these tips.
Bike Locks
Sure simply locking up a bicycle with a cable lock or cheap u-lock will deter the most basic of criminals but it’s like putting a bow on your bike for the well seasoned thieve. A simple bolt cutter will get through 99% of cable locks within a minute and your bike will be long gone before you realize anything is amiss. A better bet when securing your bicycle is a lock made of hardened steel. With this type of lock the thief will need an angle grinder or 10 hours to get through it.
Our recommendation – The Kryptonite New York Fahgettaboudit is now our go-to lock when securing our bikes at camp sites and other public areas. They are flexible like a cable, easy to attach, durable made from hardened steel and they’re very difficult to cut, even with an angle grinder. The lock is held together by a small shackle that’s also reinforced, with a four cylinder design that rivals the bigger U-locks. The chain is covered with a nylon fabric that keeps your frame from being scratched by the lock. Cons – This lock is heavy!
Backup recommendation – For $4.95 you can’t go wrong with this bicycle alarm. I would not expect it to be your first line of defense but if you’re in a public area and someone tries to take your bike, a loud alarm should help deter them or alert you to tampering.
Bicycle Safety
Another area where you might need bicycle insurance is from a bicycle crash. Studies show that most crashes happen for simple reasons. Here are some tips to remember when riding your bike.
- Ride in the direction of traffic.
- Stop at stop signs and obey traffic signals.
- Always assume that drivers don’t see you. Anticipate that they are going to make the wrong choice.
- Sidewalk riding often violates local law and can be unsafe.
- Use roads with bike lanes or bike paths when possible.
- Wear a helmet.
- Have lights on your bike to alert drivers to your presence.
- If you are involved in an accident follow these ten tips from Bikelaw.com
Bicycle Theft Insurance
Even with prevention you still need to understand bicycle insurance options and find the right coverage.
Insurance Terms
Premium – Your yearly fee for insurance.
Claim – Your request for payment in the event of theft or damage.
Deductible – The amount you have to pay on the claim before insurance kicks in.
Personal Liability – The legal fees and settlement your insurance pays someone else if you cause them injury or damage their property.
Actual cash value – Covers what the item is worth now, not what it was worth at the time you purchased it.
Replacement cost value – Pays out the amount it would cost to replace an insured item if you had to buy it again. Replacement cost value policies generally cost more than actual cash value policies.
Get the Best Bicycle Insurance
Most bicycles are covered as part your homeowners, renter, or condo insurance policy under the contents section of the policy, as long as your contents limit is enough to cover your bike, and as long as there is no exclusion on your policy about bicycles. If your bicycle is covered, it will usually be subject to a deductible. Then depending on your policy, your pay out might be based on actual cash value, meaning it will be depreciated from what you originally paid.
Like all insurance, every claim has the potential to raise your rates. If your deductible is greater than the value of your bike, you’ll get nothing. While claiming damage or theft may result in a pay out from insurance, it might also raise your premiums. That rate hike could be more costly than the original claim is worth. Bottom line – if the premium for the year + the deductible is greater than the value of your bike, you should not file a claim with your homeowners/renters insurance. But…
As cycling has become more popular and bike more expensive, it has created a niche insurance market. Companies like Velosurance and Markel sell insurance policies specifically for bicyclists. But do you really need another policy? That depends on what insurance you currently have and how much your bike is worth.
Velosurance CEO Dave Williams said the company’s basic policies cover damage to or the loss of a bike. Customers can also purchase medical payments (up to $10,000) or liability coverage (up to $100,000) if they don’t already have them. Velosurance also offers some helpful extras that a homeowner’s policy would not cover like replacement bike rental , airline shipping coverage, coverage for your riding apparel and spare parts, and even roadside assistance.
The cost of custom bicycle insurance? I’ve tried to get quotes and I have to say it’s not the easiest thing to find out without competing loads of information. Markel seems to be the most transparent and they claim their average policy costs between $250 and $300 per year. In addition, USA Cycling, USA Triathlon and International Mountain Bicycling Association members benefit from an additional 10% discount off of their annual premium.
Questions To Ask Your Agent
#1 – How is the value of my bike calculated? Some use Actual Cash Value, the depreciated worth of your bike at the time of incident. Others will use the Replacement Value, what it would cost to replace regardless of depreciation. This is a HUGE difference. Know ahead of time which method your insurance uses.
#2 – What is my deductible? If your deductible is large, ask if increasing your premium will lower it.
#3 – Does the plan include any liability or injury coverage for me and/or others? Or does it only cover theft/damage to my bike? Liability insurance will increase your premium but can be the easiest way to protect yourself from a costly settlement if you’re found at fault.
Bicycle insurance isn’t for everyone but bicycle insurance can make a bad situation better when needed. Like all other insurance, it may also provide peace of mind when out on rides and while traveling.
Find our other cycling related tips and articles here.
Thanks for the tips, this is a good starting point for us. I have been meaning to look into proper insurance for our fleet of bikes for a while now as they’re barely covered under our home policy (a measly $1k, I believe).