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Cycle insurance costs | How much should you expect to pay?

Unlike car or motorbike insurance, Bicycle insurance is not a legal requirement on UK roads. As a result, cyclists may view specialist insurance as an unnecessary additional expense, especially given the rise in living costs tightening everybody’s belts. Bicycle insurance protects you from many cycling eventualities, including accessory or bike theft, malicious or accidental damage, hiring a replacement bicycle, public liability and more.

Although bicycle insurance would be an additional cost, you will be saving money by cycling in the first place and protecting yourself against potentially much higher costs down the line. Reasonable yearly or monthly bicycle insurance payments help you avoid a costly cycling misfortune that you may not be able to afford.

In this article, we will cover the main costs to expect from a Cycle Insurance policy; these will depend on the value of your bike and the level of bicycle cover you choose. Then, we explain Cycle Insurance excess so you know exactly what you need to pay and why. Finally, for the money-saving cyclist, we explore ways in which you can reduce the costs of specialist bike insurance without compromising too much on coverage.

Cycle Insurance general costs

Despite the additional monthly outgoings, bicycle insurance may not be as expensive as you think. A cyclist with a £1,000 bicycle may expect to pay between £37.42 and £62.34 per year (or £3.94-£6.20 per month), depending on the level of excess cover you choose. Stolen bike cover, malicious or accidental damage cover and international cycling insurance cover for up to 30 consecutive days outside of the UK are all included in the standard ALA Cycle Insurance plan .

There are additional covers offered by ALA that will increase the cost of your bike insurance premium; these include:

  • Accessory Cover up to £500 or £900.
  • Cycle Hire Replacement Cover of up to £500 or £1,000.
  • Public Liability Cover of up to £1m or £2m.
  • Personal Injury Cover up to £10,000 or £25,000
  • Legal Expenses up to £25,000

If you use any of the additional covers listed above, you will also have to cover any amount that exceeds the agreed value in your bike insurance policy schedule. For example, if you hire a replacement electric bike costing £1,000, up to £500 will not be covered by your insurer in addition to your agreed excess. Other factors can affect the cost of your bicycle insurance premium, including whether you pay upfront or by monthly direct debit with interest and your agreed excess.

Cycle Insurance excess explained

Your cycling insurance excess is the agreed amount you will pay when submitting a Cycle Insurance claim. With ALA, you can choose between three levels of excess – £50, £150 and £250. The higher your agreed excess, the lower your bicycle insurance premium; however, you will be required to pay your excess if you need to make a claim. You should choose the level of excess that you can reasonably afford.

To decide on an appropriate level of excess, take 10% of the value of your bike. If your bike costs £2,500 or more, you may want to opt for £250 excess cover, and if your bike is worth £500 or less, £50 excess cover may be the best option.

Example A: A bicycle with a value of £500 would have a bicycle insurance premium of £37.77 per year or £3.97 per month with a £50 excess. Your premium would be the lowest with £250 excess cover (£22.67 per year or £2.64 per month) but making a claim may not be worth it for the value of your bike.

Example B: A more expensive bike with a value of £2,500 would have a bicycle insurance premium of £88.85 per year or £8.53 per month with a £250 excess. You will have to pay this higher excess if you make a claim; however, the lowest excess option (£50) would cost you (£148.06 per year or £13.94 per month). Sports bikes (exceeding £2,500) will have a high insurance premium, so a higher excess cover might be preferable for reducing this premium. However, you will have more to pay should you need to claim.

If you think you have a cycling accident and need to make a claim, but the average cost of repairs, replacement, or replacement hire is less than your agreed excess, you will be expected to pay for and handle it yourself. Having a low excess cover increases the number of scenarios that your bike insurance company may provide cover .

Reducing your Cycle Insurance costs

As we have explained, several factors affect the cost of your Cycle Insurance policy with ALA, including your agreed excess, whether you pay upfront or in monthly instalments, the value of your bike, your additional coverage and even where you live in the UK. Malicious or accidental damage and bicycle theft are more common in London, so it is more expensive to insure a bicycle.

Here are some ways that you can reduce your bicycle insurance costs as much as possible

  • Choose the maximum excess as you can afford should you ever need to make a claim.
  • Pay for your Cycle Insurance coverage upfront – this avoids the need for paying additional interest on your premium.
  • Only add the cover you need – if you don’t anticipate needing specific covers, for example, Public Liability insurance, don’t add them to your bicycle insurance policy. You may not need the upper limit for certain add-ons so make sure the limit you choose is relevant .
  • Consider a second-hand bicycle – if you haven’t already bought your bike, you may want to consider purchasing a second-hand bike from a VAT-registered cycle dealer to reduce the cost of your bike and your cycling insurance. You must ensure that your bike is in complete working order before insuring with ALA.

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