What happens if your bike insurance claim is rejected?
Every cyclist hopes they will not need to make a bike insurance claim; however, a rejected claim can be a devastating blow. When you make a bike insurance claim, you will be required to pay the agreed excess before your claim request is handled, so it is important that your claim is approved.
Common reasons for bike insurance claims being rejected
To avoid a rejected claim, it is important to know the most common reasons bike insurance claims get denied. As you may expect, security-related issues are the most common, but there are other, less obvious reasons for losing your insurance cover.
- Not using an approved lock – your insurance claim will be rejected if you have not secured your bike with a Sold Secure lock that is appropriate for the value of your bike.
- Not locking your bike correctly – your insurance company will reject your claim if you fail to lock your bike correctly, if you fail to lock your bike to an immovable object or if you lock your bike to an object that your locked bike can be lifted over, e.g. a bollard.
- Leaving your bike in a public place for a long time – there is a high risk of bike theft if left near a train, coach or bus station or your permanent place of employment for more than 24hrs, so your Cycle Insurance claim with ALA will be rejected in this circumstance.
- No sign of forced entry into an insured location – an insured location includes your own (or family) home, a lockable room or a private, secure site. If there has been no sign of a forced entry into your insured location (aka, you left your home unlocked), your Cycle Insurance claim will be rejected. Your home insurance policy may also not cover this loss.
- Not providing proof of purchase – when claiming bike insurance online, you must be able to provide proof of purchase, such as a VAT receipt or an invoice from a registered bicycle seller.
- Misreading the policy – the policy documents state what is and is not covered. If you try to claim something that we do not cover, your claim request will be automatically rejected. ALA’s standard policy covers bike theft, malicious or accidental damage, and any incident occurring within 30 consecutive days outside the UK.
You must steer clear of making these common mistakes if you want to avoid the hefty cost of having to cover theft or damage to your bike in addition to your insurance premium.
IMPORTANT: if you are caught making a fraudulent claim – you falsify or exaggerate details of the claim, your claim will be automatically rejected. In addition, your insurance policy will be terminated, and you will not receive any reimbursement for your premium.
How to ensure that your bike insurance claim is successful?
So, we have looked at the common mistakes that may land you in an uncomfortable financial situation. Now, we look at the ways you can ensure that your claim does not get denied, should you be unfortunate enough to need to do so.
- Always use a Sold Secure approved lock – you also need to use a lock that is appropriate for the value of your bike. Sold Secure offers bicycle locks at four levels of security – Bronze, Silver, Gold and Diamond. We require that bicycles under £500 in value need a Bronze lock. Bikes under the value of £1,000 need a Silver lock. Bicycles over the value of £1,000 require a Gold lock.
- Make sure you lock your bike through the frame (and any quick-release wheel) to a secure object every time.
- Never leave your bicycle in public overnight – don’t risk a void claim by leaving your bike in public for extended periods.
- Understand what is not covered on your policy: read your IPID and policy wording here.
- Tyres aren’t covered unless your bike was damaged or stolen at the same time
- Wear and tear is not covered
- Bicycle scratches are not covered
- Theft or damage from an insured location without signs of forced entry
- Manufacturing faults covered by warranty
- Electrical faults
- Damage/theft arising from professional use: races, business, or trade
What If your claim rejection was unfair?
If you have followed all of the claims requirements and your claim is still rejected, you can appeal this decision. If you have any complaints about the handling of your claim, please first contact the Customer Services Director by emailing firstname.lastname@example.org or calling 03450744810.
When appealing, you need to provide your insurance policy number for the team to handle your complaint efficiently. The claim administrators will aim to deal with your complaint as quickly as possible and to the Financial Conduct Authority requirements. You will be issued a final response letter within four weeks of making a complaint. The maximum time that a complaint will be handled is eight weeks, and then you will be advised to contact the Financial Ombudsman Service, who may be able to offer compensation.
Read the policy wording for more information on the complaints procedure.