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Cycle insurance excess explained

30 June 2023

Written by Simon England

|  5 Minutes

Bicycle insurance is not a requirement in the UK, but it’s something that many choose to purchase. If you have an expensive bike that you use frequently, bicycle insurance may be worthwhile due to the everyday risks of cycling. If you like cycling abroad, you should also consider getting bike insurance with travel insurance policies.

Bicycle insurance cover for you and your bike can be paid yearly or monthly to suit your finances. ALA’s policy will cover the cost of repairs to your bike in the event of malicious or accidental damage or replacement in the event of theft/damage beyond repair – all you will pay is your agreed excess cover.

This article will cover what we mean by excess when it comes to your bicycle insurance policy. You will learn exactly what you need to pay in the event of a Cycle insurance claim with ALA.

What is insurance excess?

Most insurance policies require you to contribute towards paying your claim; this contribution is your agreed excess. An excess is an amount you pay in addition to your policy premium in the event of a claim. Your excess is an agreed value that cannot be changed during your policy. It ensures that you do not pay above a certain amount in the event of a successful claim; you can rest easy knowing that you can afford to pay towards your claim if something happens.

There are usually two types of excess insurance: compulsory and voluntary. Compulsory insurance excess is the minimum amount that you will have to pay in excess; for car or home insurance, this can vary depending on the asset value and other factors. However, this is not the case with ALA Cycle insurance .

The voluntary excess is an amount you choose to pay on top of the compulsory excess. It’s voluntary because you can choose to pay a higher amount. The higher your voluntary excess, the lower your insurance premium. If you choose to add no voluntary excess, you’ll have to pay a higher premium.

To get the most out of your bicycle insurance policy, select excess coverage that is affordable for you. Anticipate whether you will be able to afford to pay this excess at any point during your policy. Should you need to use your bicycle cover, you will be expected to pay the total excess.

If your incident is not covered by your bicycle insurance policy ; for example, if the cost of repairs is lower than the total excess, then you will be expected to handle and pay for the repairs.

ALA Cycle insurance excess

To make choosing a Cycle insurance policy simple, we offer three excess options, the lowest being £50; view this as the compulsory excess. Then, we offer an excess of £150 and £250; you can choose to pay an additional £100 or £200 towards your claims – view this as your voluntary excess. When choosing an insurance policy, select the excess amount that you can reasonably afford.

You will still have to pay your insurance premium, and this will depend on the value of your bike and the level of bike cover you choose.

If your bike is worth £1,000, the premium you will pay on the bike with a £50 excess and no additional cover will be £62 per year or £6.17 per month due to interest charges. Whereas, if the same bike with the same cover was insured with £250 excess, you would pay £3.90 per month, including interest, or £37 per year .


In the event of a claim, you will usually only have to pay your agreed excess cover; however, there are certain exceptions to this rule; for instance, if your claim exceeds the agreed cover in your policy, you will be required to cover any additional costs.

ALA offers optional add-ons, such as bike Accessory cover of up to £300 or up to £900. If you choose the lower option and your cycle accessories worth £500 are stolen, ALA will only cover the replacement of accessories worth up to £300 ; you will be expected to cover the rest.

The same applies to Cycle Hire Replacement (up to £500 or up to £1,000), Legal Expenses (up to £25,000), and Public Liability Cover (up to £1m or up to £2m). Choosing the upper limit for coverage will increase your insurance premium; however, this reduces the risk of having to pay out over your agreed excess in the event of an incident on your bike.

Choosing Cycle insurance with ALA

Choosing a policy with ALA is easy; as we have discussed, choose the excess cover that you can reasonably afford, the higher you can afford to set your excess, the more this will reduce your premium. The next stage is choosing your cover options. Certain coverage may be more beneficial for certain cyclists; for instance, commuters may want Cycle Hire Replacement and Public Liability Cover while leisure cyclists may want Accessory Cover, and Personal Accident Cover. Find out if you need bicycle insurance.

ALA offers accidental damage cover, malicious damage cover and theft protection. This coverage is extended to 30 consecutive days outside of the UK at no extra cost . Since we have generous coverage as standard, with plans starting at £21 per year, ALA is suitable for every budget. However, if you need more comprehensive insurance, we have you covered.

Frequently asked questions

Do you need bicycle insurance?

No, bicycle insurance, unlike car or motorbike insurance, , is not a legal requirement. But you may want Cycle Insurance if you have an expensive bike, you frequently cycle in a busy city or are at high risk of a personal accident.

What factors will affect the price of bike insurance?

The excess cover you choose, the additional insurance coverage and the value of your bike all affect your Cycle insurance premium. If you pay your yearly premium at once, it will be cheaper than by monthly instalments with additional interest payments.

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This article was written by our Founder & Managing Director.

Simon England

Simon has worked in the automotive and insurance industries for 40 years. He, alongside business partner and wife, Debra...