Finding the best bicycle insurance policy
By Kate Saines
August might seem a like a calm, lazy and inoffensive time of year – but if you are a cyclist it's a time to be ultra-vigilant. Because this is the month bike thefts are at their peak, providing strong motivation to go out and buy bicycle insurance.
According to Ian Coull, household claims manager at Aviva, traditionally, during August, bike thefts increase by 25 per cent.
"More people," he explained, "take to the outdoors and make the most of the good weather. The average cost of replacing a bike is around £400."
Indeed the summer months in general provide ample opportunity for people to use their bikes as they ditch their car, make the most of the better weather and get some much-needed exercise.
And if you are a student, research suggests your bicycle – along with any gadgets, money and mobile phones – is the most popular target for thieves.
If you don't already own a bicycle insurance policy, then now is clearly the time to buy one. Whether you are a student about to head off to university with your bike, or a traveller planning to take your bicycle on holiday or you simply want to make your journey to work more environmentally friendly and healthy there are plenty of policies available to you.
Home Insurance
There are two ways you can insure your bike, either by covering it under your current home insurance policy or buying standalone bicycle insurance. Going via the home insurance route is much cheaper and therefore ideal if your bike is not valuable or you tend to use it infrequently.
Many insurers will include cover for bikes as standard under the personal possessions part of a policy, provided the bikes are kept in your home or a shed. Beware, however, as you will need to purchase additional cover to insure your bike when it is not in the home.
And don't just assume your bike is covered under your personal possessions cover. You should always check your policy if you are unsure. Even if you don't have any standard cover for bikes on your home insurance, pretty much every insurer will be happy to provide cover at an additional cost.
It's not that expensive, either, setting you back around £20 a year. Aviva bicycle cover can be added to a home policy for around £10 a year and will cover each of a family's bikes up to a chosen limit, from £300 to £2,500.
The problem with insuring your bike under your home insurance is that the cover is not incredibly comprehensive. And people often find claiming for the cost of a new bike following a theft of their old bike is difficult when they are insured via home insurance.
Paul Richardson, home insurance expert at NFU Mutual, explained that when covering a bike as part of the personal belongings section in your household insurance, unless the price is listed on the policy, the payout could be much lower than its true value.
"Good insurance," he explained, "is particularly important for people with bikes at the higher end of the market.
"Many such bikes can cost upwards of £1,000, especially when all the accessories are taken into account so it's essential insurers are informed properly in case of damage or theft."
He also said it was important cyclists checked that their insurance included securing their bike around the property or in external buildings.
Use the Myfinances.co.uk comparison tables to find the best deal on bicycle insurance
Standalone bike insurance
You will get a far more comprehensive policy by opting for standalone insurance. These specialist policies tend to be aimed at people who take their cycling seriously, particularly for those who cycle competitively and have valuable bikes.
A decent standalone policy will include cover for third party liability, which means you will be protected in case you cause an injury, accident or damage to another person or their property whilst on your bike. This is something you are unlikely to find in your home insurance policy.
Meanwhile, a specialist policy should also include cover for damage caused by an accident and cover for the cost of a replacement if your bike is stolen or damaged.
You can also purchase roadside recovery under these policies. This is much like the breakdown cover you purchase for your car, except it provides assistance should you run into trouble whilst out with your bike.
According to Moneysupermarket.com data, in June prices for a standalone bike insurance policy started from £56 a year. This is with a company called AUA, which covers you for theft, loss and accidental damage as well as up to £1million personal liability and £25,000 worth of legal expenses. Other companies which are prevalent in the specialist bike insurance world include Endsleigh and Cycleguard.
As with all insurance policies, however, it's a good idea to do lot of research into the types of policies available in order to secure the best deal. It's worth getting clued up on the different kinds of policies available and which will suit you. For example, you can purchase roadcare bicycle insurance which simply provides comprehensive liability cover.
This is ideal if you already have cover for the theft of your bike on your home insurance, but don't want to pay full price for a standalone policy purely to protect you against damage of your bike. Roadcare will provide cover simply for damage or injury. And if you plan to take your bike abroad, make sure your policy covers you whilst away and while your bicycle is in transit.
Read more: How to make a successful insurance claim
Look after your bike
Whatever policy you choose, all insurers will want to know you are taking good care of your bike and doing all you can to secure it. The annual British Crime Survey recorded 540,000 bike thefts in 2008/2009, which is a rise of 22 per cent on the previous year.
Meanwhile research by Aviva found while many cyclists take security seriously nearly two thirds of bike owners were taking unnecessary risks with their bicycle including leaving it unlocked and unattended whilst running errands.
Ian Coull, household claims manager at Aviva, said: "Insurers do expect your cycle to be properly secured – and that means locked to a fixed immovable object."
He suggests using a good quality D-lock, strong and complex enough to prevent thieves from cutting through, and to ensure it's secured around the wheel, frame and anchor to which it's attached.
Removing parts or accessories like the saddle and post or pumps and clip-less pedals will deter thieves tempted by easy-to-steal parts. And ensuring you always leave your bike in well-lit areas with CCTV will act as a deterrent.
Use the Myfinances.co.uk comparison tables to find the best deal on bicycle insurance
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