Owning and using a cycle has become increasingly popular and important, not just from an environmental perspective but also because cycling has incredible economic and mental/physical health benefits.
So, if you’re a keen and regular cyclist or someone who is new to the activity but think you will stick with it long-term (perhaps as a new method of commuting to work) then you could benefit from some cycle insurance.
In this guide, we will explain what cycle insurance is and how a bicycle insurance premium are calculated.
In the event of bicycle theft or accidental damage, either accidentally or maliciously, standalone cycle insurance will cover the expense of repairing or replacing it, up to the maximum amount chosen. With an optional extra like personal accident cover, it may also support you financially if you are hurt following an accident while out riding the insured bike. If your bike does need replacing, cycle insurance offers up to the value of your bike when you bought it, not at the time it was damaged or stolen; this means it covers the depreciation of your bike over time.
Your home contents insurance policy may provide coverage for your bicycle against theft or damage on your property, for a limited cover (often around £250). However, your cycle likely won’t be covered on your home insurance if it is stolen or damaged away from your property, but cycle insurance will.
When choosing your cycle insurance cover, a number of things will need to be taken into account. The first to consider is the bike’s value. The maximum value permitted for an ALA cycle insurance policy is £15,000. If your bike was bought new, you will need to base its value on undiscounted pricing at the RRP. If the bike was second-hand, you will need to provide an estimated current replacement value.
In the event of a claim, a standard compulsory excess applies, which varies with the bike’s value. For cycles purchased for £950 or below, a £50 excess is charged. For cycles purchased between £951-£1,875, a £75 excess applies. For cycles purchased between £1876-£15,000, a £100 excess will be charged.
A good bicycle insurance policy should be customisable and personalised for your specific needs, with more cover available for cyclists at a higher risk. With ALA cycle insurance, you will be offered coverage for theft of and/or damage to your cycle as standard. You can also upgrade your policy to include the following coverage options, for an additional premium:
· Personal accident cover will provide a financial payout if you are involved in an accident while riding the insured cycle that leads to the loss of a limb, loss of eyesight, permanent total disablement or death. We offer two levels of cover: £10,000 or £25,000.
· Cover for the theft of and/or damage to accessories, including those added or fixed to the cycle as well as those included in the manufacturer’s specification. We offer five levels of cover: £500, £750, £1,000, £1,500 and £2,000.
· Cover for the cost of replacement cycle hire, up to the amount specified in your schedule of insurance, from a recognised reputable dealer while you are waiting for your primary cycle to be repaired or replaced. Our cover provides a £500 maximum benefit.
· Public liability cover can be added to your policy, covering up to 1m or 2m in case you cause damage to property, such as a parked car, or harm another person while riding your bike.
· If you want to cover cycle racing, or commuting, you will need to select this cover when you get a quote, otherwise, your policy will only cover casual riding.
Other optional policy add-ons include legal expenses, cycle rescue, commuting cover, competing cover and worldwide cover for extra peace of mind regardless of how you use your bike.
It’s important to bear in mind that the more add-ons you include in your cycle insurance policy, the more expensive your premium will be. So, make sure to only purchase the add-ons you really need for your cycle.
In order for ALA to cover your bike, the proof of ownership must be provided by either yourself or a direct family member. ALA will also cover your bike in the event of theft while it is on loan to a direct family member over the age of 14, and under the age of 85. Finally, direct family members are also eligible for cycle rescue cover.
Coverage for bikes is not always included on a home insurance policy, and in many cases is considered an add-on leading to a higher premium. With this type of coverage, your bike will usually only be protected while it is on your property, meaning it will not be covered for theft and/or damage when you are using it away from home.
A specialist cycle insurance policy will not only be much more personalised to your needs and circumstances but will also provide a much more extensive level of cover. This is particularly beneficial if you have an expensive bike that would not be totally covered on your home contents insurance policy, or if you want to take your bike on holiday with you and need worldwide cover.
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