Introduction
You just paid $750 for your new bike, and you’re thinking about getting it insured. Is it worth it? What are the pros and cons of insuring your bike? How much does bike insurance cost? We’ll answer all of these questions and more in this guide to bike insurance.
What bike insurance covers
In some cases, bike insurance might be worth the cost. In particular, if you're not using your bike on a regular basis or you're not storing it in a secure area with CCTV or better security systems, you may want to invest in one of these.
You may also want to consider investing in one if you plan on adding expensive upgrades to your bike so that, if something does happen, you have the necessary protection for your assets.
On the other hand, for people who commute on their bikes every day and store them somewhere safe like a garage at night, cover isn't always necessary as there's less risk of damage incurred by thieves and vandals.
What bike insurance doesn’t cover
*In the event of your bike being stolen, damage or theft from a third party, the price for a replacement of your bike will not be covered by your bike insurance.
If you happen to have personal property in conjunction with your bike that can easily be replaced, such as a laptop, it's important to notify your provider and make sure that these items are covered by the policy.
*There is generally a higher premium for policies if there is an indication that you will use the bicycle every day. Insurers may also require evidence that you have permission to use the bicycle (like a written letter).
If you are only using the bicycle for leisure purposes like recreational rides through parks and trails then this may not apply to you.
Your deductible
A higher deductible means lower monthly premiums, but more out-of-pocket expense if you do need to file a claim. A lower deductible means the opposite; monthly premiums are higher, but less out-of-pocket expense if you do have to file a claim.
If you're not sure what level of risk aversion is right for you, some companies offer different levels of coverage with one price - the riskier option pays more in the event of an accident or theft, while the safer option pays less.
Ask your insurance company which is best for you! This could also depend on how often you use your bike (for example, if you live somewhere without many hills) and how expensive the bike is.
Another consideration is whether or not your bike will be kept indoors when not in use - this can help make up for the premium difference between indoor and outdoor storage options.
There's no definitive answer as to whether or not bike insurance is worth it, but I think that everyone should at least consider it before spending their hard-earned money on something they may never get a return on.
Premium prices for different levels of coverage
Premiums for bike insurance vary depending on what your policy includes. Below are the premiums for some different policies, ranging from minimum coverage to complete coverage.
In most cases, we recommend opting for a policy that has at least three months of comprehensive coverage and one month of third-party liability protection.
Cheapest - Liability only (2 cents/day)
Basic - Comprehensive Coverage (13 cents/day)
Ideal - Comprehensive Coverage with Optional Collision (21 cents/day)
Should you get it or skip it?
If you're a cyclist in the city and are worried about bike theft, one way to mitigate some of these risks is to buy a bike policy. Bike policies are specialized policies that cover the value of your bike and other bikes you ride (including those rented), any damages caused to your bike as well as any damage caused by you.
With a bike policy, if something happens to your ride due to theft or accidental damage, the policy pays for its fair market value, including replacing accessories such as lights or water bottles. Most policies will also pay for up to $2,500 in medical expenses should you be injured in an accident with someone else.
How to protect your bike without buying a policy
Protect your bike with locks that are heavy enough to deter thieves, but also easy for you to use. Consider using a tracker device on your bike - many companies offer these for around $30.
Document the serial number and any identifiable features of your bike so you can easily identify if the bike is stolen. Use an internet search engine to find out how much bikes like yours are selling for and buy one just below this price from a reputable seller.
This will discourage thieves from stealing your model since they know you'll be able to easily afford a replacement at market prices.
* Report any loss or theft of the bike within 24 hours, as police departments often operate under time restrictions when registering stolen goods found or uncovered in criminal investigations.
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