Whether you are a professional or a recreational bike rider, you know that safety is a priority. But how much do you know about bike insurance?
A separate, stand-alone bicycle insurance policy covers liability, theft, loss, damage, and in some cases even medical expenses that homeowners’ insurance policies often exclude.
At Sovereign Risk Solutions, we understand that your bicycle may be considered one of your favorite pieces of sporting equipment. Protect yourself, your bicycle and your hobby with a quick crash course (no pun intended!) on bicycle insurance.
- Homeowners’ insurance does not always cover bicycle theft
More than every three seconds a bicycle is reported stolen, according to the 2011 FBI Crime Statistics Report. Relying on homeowners’ insurance to cover bicycle theft is not recommended because coverage limits are low for sporting equipment, and a bicycle theft claim would increase premiums.
“Most people assume they are fully covered under their homeowners or renters’ policies…, so the cyclist may not receive the full value of the bicycle,” says Lauren Hernandez of Markel American Insurance Co.
Understanding your homeowners’ policy in order to determine whether or not a separate bicycle insurance is needed will prove useful in the unfortunate event that your bike is lost, stolen or damaged. Be sure to review your options with your agent. Scheduling your bike on your homeowners’ insurance is one way you can protect your bike.
- Even armed with the best lock, your bike is vulnerable to theft
While bike locks do deter thieves, it does not mean that a bike will not be stolen. Even with the best bike lock available on the market, they know how to make a bike disappear, especially if it’s a high-value bike.
Bicycle insurance can cover a bike anywhere at any time, giving cyclists peace of mind concerning the protection of their bike.
- Bike insurance is still needed even if your homeowners’ insurance covers the value of your bike
If you currently have a homeowners, renters or condo insurance policy, your coverage is subject to your deductible. Coverage is restricted if your homeowners’ insurance company writes a special coverage for the value of your bicycle. It covers just that: the value of your bicycle. There may still be exclusions on coverage or other limitations for stolen or damaged bikes.
Bicycle policies can ensure spare parts and apparel are covered. It can also provide coverage while racing. Policies can often be customized to fit a cyclist’s needs. Roadside assistance, including emergency transportation, is an option offered by some providers.
- It is a common misconception that bicycle insurance is expensive
The average bike insurance policy costs between $250 and $300 a year. However, some policies start at just $100. For a bike that is worth thousands of dollars, insurance expenses pale in comparison to the costs of a worst-case-scenario replacement or repair. No matter what terrain you enjoy cycling on, there is a policy right for you.
If you’re a member of certain bicycling associations like USA Cycling, you may qualify for discounts from your carrier. Some employers even offer have a work-bike program that pay employees that bike to work $20/month.
- You don’t have to be a professional cyclist to have bike insurance
Too many bikers assume they don’t “qualify” for or are somehow not “eligible” for bicycle insurance just because they do not compete or earn a living from cycling or triathlons. Others simple do not even realize there is such a thing as bicycle insurance. Even if you’re simply using your bike for an occasional commute or to run errands in the neighborhood to cut back on gas expenses, it would still be in your interest to insure your bicycle.
If you think about how much you have invested in your bike, you may be surprised at how much loss you face if your bike were to be stolen or damaged. And, just like the pros, regular and hobby cyclists share the same types of bicycle risk.
We encourage you to rethink how you protect your hobby of cycling and overall bike use by considering a bicycle insurance program that is right for you.
Please drop us a line to connect with an expert who can make sure you are adequately insuring your bicycle.