No matter whether you cycle frequently, professionally or leisurely, having Cycle insurance can protect you and your bike. If your bike is stolen or damaged, Cycle insurance will cover the cost of its repair or replacement. With around 77,000 bikes reported stolen last year, it has never been more important to consider Cycle insurance. How much you can claim depends on a number of factors, including the age of your bike and its value.
In this guide, we will explain how valuable of an asset Cycle insurance is, and the benefits involved. We will also explain how Cycle insurance is calculated, and how those with second hand bikes can make a successful claim.
Cycle insurance calculations
Cycle insurance premiums are calculated in a number of ways. They take into account the current value of your bike and the level of excess you’d like to take out. For an ALA Cycle insurance policy, the maximum value permitted for a bike is £6,000. Like with most insurance policies and claims, the more voluntary excess you pay, the cheaper your premium will be. ALA offers three excess amounts: £250, £150 and £50.
Coverage for theft and damage is provided as standard, but some insurance providers allow you to choose add-ons to fit your preferences. With ALA, add-ons include personal accident cover, theft or damage to accessories and cover for the cost of replacement cycle hire. If you cycle frequently or professionally, protecting your bicycle is incredibly important, so being able to protect yourself, your bike and your accessories can mean extra safety and cover if the worst happens.
If you have any concerns about how much your policy may cost, you can receive a quote on our website here. Simply tell us how much your bike is worth, whether you have proof of purchase and whether you want additional add-ons, and we’ll do the rest. You can read our full guide here.
Cycle insurance for second hand bikes
It is important to remember that Cycle insurance isn’t just provided for new bikes. If your bike is second-hand, there is nothing stopping you from taking out an insurance policy to protect it. You may be more inclined to insure your second-hand bike if it is of high value, if you are at high risk when cycling, if your bike is frequently used or if you tour with your bike.
Like with any bike, there are certain requirements that you must fulfil before insuring your second-hand bike. First of all, you must have proof of ownership, such as an invoice. You must also be aware of the current value of the bike and its frame number, which can usually be found stamped along the bottom bracket. The bike must also be in your possession and be in good working condition.
Here at ALA, we also advise that you check stolen bike records to make sure the bike you purchased wasn’t stolen, and that you take pictures of your bike to help with accidental damage claims. You can read our full guide concerning second-hand bike insurance here.
Cycle insurance and like for like replacement
Replacing your bike when it is stolen can cause unnecessary additional stress and financial strain. By opting for Cycle insurance, you can replace your bike with an equivalent or new bike at no significant cost. This is known as like for like replacement. An equivalent bike is usually the same age and model as the one that was stolen or damaged.
The age of your bike, however, can determine whether or not you receive a like for like replacement or ‘new for old.’ Bicycles under three years old will usually be replaced new for old, whereas bikes over three years old will be replaced like for like. In order to claim for a replacement bike, you must have the required proof of ownership, evidence of damage, a crime reference number and evidence of an approved bike lock. However, your claims procedure may differ depending on your policy agreements.
There are some exclusions to be aware of with like for like replacement. For example, ALA will not cover you for theft of your tyres unless damage has also occurred to the bike. We will also be unable to process your claim if you do not have a frame number, or if your bike was stolen from an insured location and there is no sign of violent or forced entry.
Whilst your bike is being replaced or repaired, we are fully aware of the negative impact this can have on your life. Some people depend on their bike to commute and carry out daily tasks. Therefore, we offer cycle replacement hire for a small additional premium. You can read our full guide concerning cycle hire and like for like replacement here.
Anyone can insure their bike, but it may be more beneficial for some people than others. If your bike is valuable, or you rely on it as your main form of transport, knowing you are covered against theft or damage could save you money and decrease any unnecessary stress. No matter whether your bike is new or older, Cycle insurance is an incredibly valuable asset to have.
If you are considering Cycle insurance, you can visit us on our website for a free quote. At ALA, all of our experts have extensive knowledge in Cycle insurance, providing expert and objective advice to help you find the best policy for you. To find out more, please visit us on our website here.