Insuring your bike

19 June 2016

Insuring your bike

In 2011, the Guardian reported* that in the previous year there'd been 115,147 bike thefts in the UK. This however, doesn't reflect the true number, as it's thought that only one in five is actually reported. 

Earlier this year we produced an article on bike security with some tips on how to prevent theft. We have a few pointers on how to make sure you have the correct cover in case you become a victim of bike theft.

How can I make sure my bike is insured?

Many household policies cover bikes under the contents section, but it's important to check. Unless you have worldwide, all risks insurance, cover is usually restricted to loss of or damage to your bike while it's kept in a locked building at your home. It's not covered while you're out and about.

If you require cover for your bike away from your home then it can be added under a separate section on your policy. By doing so, your bike and its accessories would be covered anywhere in the world, up to the value you insure it for.

Another thing to bear in mind is that there is often a limit applied to the total value of contents kept in your outbuildings. So if you have a particularly valuable bike, or more than one, you could find you aren't fully covered if it's stolen from home. Recently our client, who had cover for items in outbuildings of £3,000, found themselves out of pocket when their two stolen bikes came to £3,600 to replace. When you add pedal cycle cover to your policy, you can tell us how much it will cost to replace and avoid losing out in the event of a claim. 

Make sure you insure it for the correct value

During a recent analysis of our claims we identified that around 40% of bikes were not insured for their full replacement value

Most household policies provide cover on a 'new for old' basis so if you bought your bike in the sale, remember to insure it for what it would cost you to replace it at full value. 

We are now seeing more and more bikes with modifications and some entirely custom made. It's important to include these factors in the amount you insure it for, as well as accessories such as mudguards, lights and locks, to make sure you won't miss out on these if you need to make a claim. A recent claim showed that two keen cyclists had their £450 bikes correctly valued but had not taken the additional costs of accessories and modifications into account, which increased the cost of the claim by £250.

Ideally, keep receipts for the bike, especially if it's custom build. Then, a quick search will return the current day value and you can update us with the appropriate sum you need to insure the bike for.

Keeping your bike safe

  • Always lock your bike, even if you are only leaving it for a minute. Opportunists only need a few seconds, but the more secure it is, the less of a target it will be. 
  • Try to avoid leaving it unlocked in your garden and lock it to an object that can't be moved. Even if it's kept in the garage or shed at home it's best to attach it to something. 
  • Using a lock of gold 'Sold Secure' standard will be a strong deterrent, as well as locking in an area with CCTV and taking with you any parts that are quick to remove. 

Our Underwriting team is happy to advise you on insuring your bike, contact them on 0208 891 4013 to discuss your cover needs.

Categories: Employee Benefits & Healthcare