Bicycle Insurance

pgiesin

 I just received this link from USA Cycling regarding bicycle insurance. Do a quick quote it seems that the policy runs between $300-400 a year. I started reading through the coverage and like most policies it is quite complicated. I am wondering if any one in the Haus has taken a look at it. 

Any lawyer-type folks willing to read through the coverage and putting it in laymen terms?

Pete

Paul Hough

Wow...$300-400 per year!! Even with a $4K new bike I think this is very expensive. Suppose you total your bike, are they going to pay replacement value or depreciated value? If they do the latter as with cars, then they are laughing all the way to the bank.

David R

@Paul good question.  A couple years ago I asked my insurance company about insuring my mountain bike.  They wanted to charge me 3,000.00 a year.  After I got up off the floor from laughing so hard I asked her if she was serious, she said yes.  So that was the end of my attempts to ever insure a bike.  Now I just make sure it is never out of my sight.  When I stop to get water on the road I carry it into the store with me.  I usually get a strange look from the clerk but they never say anything.  Of course, they could just be looking at my spandex shorts. 

kurshing

One easy thing to consider doing is to add it to your homeowner's policy. It WILL increase the premium, but it shouldn't be nearly as dramatic as that $300 premium.

The thing to remember, to take the insurance company's side for a moment, is that a bike is NOT really a 'good risk'.

pgiesin

@Stephen: After buying my new road bike last year, I asked my home owners insurance company (State Farm) about adding the bike and they said they had never heard of such a thing. The only thing they cover is if it is stolen from my house.

Nemo Brauch

For those kinda rates, I'd self insure. Pay yourself the $400/mo (put it in your piggy bank) and in 10 months you'll have enough to buy a new bike if something happens.

Scott Alexander

Travelers Renters Insurance (only $24/month) covers my bike if stolen from my apartment or if it's damaged/stolen while on/in my car. But not if it's just me and the bike out on the road.

Paul Hough

@ David - I've invested a lot of money in my bikes and I self insure. But even when I stop at a 7-11 on a long ride, I leave it outside...at the store window...with my eyes constantly pegged on it! I'm certain that if you have a $4K and up bike, they would want attempt to depreciate it if it were stolen. I've only been at this 4 years now, but that's $1200-$1600 in my pocket towards a new one if the worst happened. Self insurance almost always pays for itself when you look at insurance costs across the range of equipment you own, especially appliances. It is an extremely high-margin industry.