Yes. Bicycles really do need insurance. Although not really a legal requirement, have it in mind that it might be a good idea to purchase standalone insurance to cover your bicycle.
It is recommended that you consider investing in insurance for bicycles if you are looking to cover your bicycle against theft and accidental damage, or if you travel and race a lot and would want to find ways to cover your bicycle for every eventuality.
Most modern bikers prefer to rely on home insurance to safeguard their bicycles’ value. However, you need to realize that this approach has proved insufficient numerous times, especially for bicycle owners who have spent thousands of dollars on equipment, and their policy cannot cover the full costs of replacement when it gets damaged or stolen.
Owing to that, a good number of companies have chosen to focus primarily on selling bicycle insurance, entirely separate from home insurance. This allows cyclists with expensive equipment to get more extensive coverage. To find the best bicycle insurance, a good place to start is with a policy you may already have.
Your home, renters, or condo insurance policy covers your bicycle for certain problems, such as theft and vandalism, up to your policy limit.
Although most cyclists won’t need separate bicycle insurance, for some, it’s worth taking into consideration. If you own an expensive bicycle, your home, renters, or condo insurance policy may not be sufficient for your needs; for this, you can consider a standalone bicycle insurance policy.
Is Bicycle Insurance Really Necessary?
Not really! Aside from the fact that bicycle insurance is not a legal requirement in the United States, note that for most cyclists, the coverage provided by other insurance, such as homeowners’ or renters’ insurance, will be enough. However, obtaining a bicycle insurance policy may make sense for you under the following circumstances:
- You have invested a large chunk of money to purchase, upgrade or modify your bicycle. Although the average bicycle costs a few hundred dollars, have it in mind that a good number of enthusiasts don’t think twice about investing $5,000 to $10,000 for top-of-the-line bikes. If you have a very expensive model, you must consider purchasing comprehensive bicycle insurance.
- On regular basis, you ride off-road and want mountain bicycle insurance to cover you and your bicycle for damage and medical costs.
- You participate in stunt riding or partake in BMX competitions, and you want bicycle insurance to cover potential injuries or damage.
- You want bicycle insurance for a specialty bicycle that you had designed, upgraded, or modified.
- You don’t have a homeowner’s policy or renters insurance that could cover your bicycle against loss, damage, or theft.
- You don’t have health insurance to cover your injuries or hospitalization expenses if you are severely injured in a bicycle crash.
Have it in mind that a good number of bicycle owners want coverage year-round, while some only want 6-month bicycle insurance as they only ride during the warmer months.
How Much Does Bicycle Insurance Cost?
Bicycle insurance rates can be high, and it’s for good reason. Have in mind that you are much more prone to crash on a bicycle. Aside from that, bikes are much more prone to damage in a crash. Also, note that repairs for a $5,000 bicycle after a crash can quickly become outrageous.
And if you’re covered for bicycle theft, your premiums will be higher–bicycles are one of the most common targets of theft. However, bicycle insurance doesn’t have to be expensive. On average, prices range from $100 to $300 a year. The exact cost of your bicycle insurance will vary depending on certain critical factors. These factors include;
- Where you live and park your bicycle: Truth be told, where you live and where you park your bicycle overnight may affect your bicycle insurance premium. Note that urban neighborhoods tend to have higher rates of accidents, theft, and vandalism than rural areas, which means premiums may be higher.
- Your age and gender: Also note that your age and gender may also impact your bicycle insurance premium. Younger, less experienced drivers often pay more for bicycle insurance than older drivers.
- Value: Have it in mind that the value of the bicycle is the primary determinant when considering how much your bicycle insurance will cost.
Aside from the cost of purchase, you should not forget to include the value of any additional equipment or features you’ve added on, including tools, speedometers, and panniers. Always remember to keep all receipts to ensure you have the proper documentation, if it is ever needed for a claim.
- Type of bicycle: Also note that the type of bicycle you have will massively influence the amount of coverage you need and the final cost of the quote. Most often, this factor coupled with how you use the bicycle will determine your risks. According to experts, a stunt bicycle is seen as a bigger risk than a regular bicycle, and will definitely cost more to cover.
- Your use of the bicycle: You will be expected to let your agent know how and where you ride. Have it in mind that a bicycle used for commuting to work won’t cost as much to insure as a bicycle used on mountain trails. In addition, if you use your bicycle daily, you may want to consider getting higher coverage than if you only use it only during weekends.
- Depreciation: Just as with every other thing, the value of your bicycle depreciates over time. Even if it is your fiat time riding your brand-new, $11,000 SL4 Di2 out on the road, its value has already depreciated.
- Limits and deductibles: Note that paying higher deductibles for any insurance policy lowers your premium. Meanwhile, a high deductible increases your out-of-pocket costs in the event of a loss. Selecting a higher limit entails a higher premium, but better coverage if your bicycle is stolen or destroyed.
Standalone bicycle insurance policies are known to offer more comprehensive and deeper coverage than homeowners or renters’ insurance policies do. However, just as it was noted above, numerous factors will affect the cost of your bicycle insurance.
According to experts, you can expect to pay $250 to $300 per year. Also, since each bike is different when it comes to value, style, and use, it’s necessary you reach out to an independent insurance agent to help you determine your individual requirements and coverage.