Bike Insurance - Is it Worth it?

Road cycling & upcoming rides
Tod511
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Joined: 19 Aug 2011, 20:27
Location: Queens Park

Postby Tod511 » 12 Dec 2011, 08:40

I have just invested a significant amount of money in my first carbon road bike – not as much as Dougie’s new born but a significant outlay nonetheless. I have only ridden the bike twice and already love the bike and am prepared to shower my wife with gifts for approving the “expense” (her words not mine).

Initially I had not given bike insurance too much thought until my very first ride. I was riding with the middies on December 4 (I normally ride with the 28’s but hey the new bike gave me confidence!!) when I hit a very large pot hole on the Grand Parade (a non-call from the front of the bunch I was about 4th row). My rear wheel ceased and I was forced to move out of the bunch and let them pass for fear of causing a pile up. I managed to stop and fearing the worst inspected the rear wheel. Luckily there was no damage the brakes had actual grabbed the rim causing the wheel not to turn. I loosened the brakes and tested the wheel to ensure it was still true and I breathed a huge sigh of relief when all was ok. The brake pads were running very close to the rim and I must have grabbed the breaks when I hit the pot hole and being a new bike they grabbed the rim – probably still wearing in and a bit stiff.

This experience caused me to research bike insurance a little further. I found a few online and Swann Insurance seemed to offer the best deal – about $280 per annum. However here is the issue. All bike insurers require a “Bicycle Inspection Report” to be completed by a bike shop if insurance is taken out more than 30 days from purchase. I purchased the bike just over 30 days ago from Cycling Express in Melbourne and the insurance companies are being very strict on enforcing the 30 day limit. The delay in riding the bike and considering the insurance came from a two week delay in delivery of the bike and a few parts from Wiggle to complete the bike ready to ride.

The ‘Bicycle Inspection Report” is akin to a pink slip required for a motor vehicle but without the detail. I contacted a number of bike shops to see if they would provide such a report (Swann Insurance provides the report they just need to fill it in). Basically the short answer from the retailers was as I had not purchased the bike from them they were not prepared to issue an inspection report. I don’t expect bike shops to provide this service for free I was prepared to pay for the report.

So, after that long winded background to events I need your help:
1. Do others have bike insurance – if so who with?
2. Is it worth it – what has been your experience?
3. Does anyone know a local bike retailer who is prepared to provide an inspection report?
4. Am I better off listing the bike on my home contents insurance which basically covers theft both inside and outside the home for about $65 per annum?

Any advice will be greatly appreciated.

Todd

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JoTheBuilder
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Postby JoTheBuilder » 12 Dec 2011, 12:43

I have insurance on my bike as part of my home and contents insurance policy. This is included under 'roaming' items, ie. out of the house. Similar to worn jewellery etc. As you have said I am covered for theft, fire etc. (can bikes burn?!). But I'll be honest, I am not sure I am covered for damage to the bike itself which is what I think you are referring to?

I also have insurance under Bicycle NSW which covers third party damage (as I understand it, if I hit a car I am covered for any damage inflicted on the car).

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jbcow
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Postby jbcow » 12 Dec 2011, 12:57

Hmmm, I've never gone down the bike insurance route, mainly for the reasons you outline. And this inspite of having 3 bikes stolen. An important question would be what the excess is as well. If for example you have an accident, you are most likely to be in the situation of replacing a part, not the whole bike. For eg when I did have insurance - moving bikes back from overseas - my rear deraulier was busted. Although it cost about $300 to replace, claiming on insurance wasn't really worth it after the excess was factored in.

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weiyun
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Postby weiyun » 12 Dec 2011, 16:24

No specific insurance here apart from regular home and contents insurance.

For me, I am not willing to cough up an annual $250-300 per bike year after year. Life is a risk, either you take it (self insured) or pay good money for others to take the risk and make a profit. So if you can't afford the risk of loss/damage or your livelihood depends on it, then insure it. If it's an optional equipment, then you may not need to. There's always the option of replacing it with a cheaper bike should it be involved in a low probability event and got damaged. Of course, if you are accident prone, then that's a another point of influence.

skyer
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Joined: 19 Aug 2011, 15:41

Postby skyer » 12 Dec 2011, 21:29

Friends of mine used cyclecover. These mates have a number of bikes, incl a wide range of wheels (very jealous of their collection). Apparently with, cycle cover there was no requirement to specify parts, or have huge amounts of detail, which means that when you upgrade you don't need to go through the paperwork.
It does require you to get home and contents from them, and was more expensive than other home and contents policies. (I didn't end up getting it because of the cost.. )
The mates of mine have actually claimed on their insurance, and were really positive about the claims process too.



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Nozzle
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Location: Summer Hill, NSW

Postby Nozzle » 13 Dec 2011, 19:00

I'm with Velosure. They seemed to have the best cover when i was looking. Here is my coverage:

Total sum insured: $2,000.00
Annual premium: $216.59
Monthly premium: $18.05
Excess: Accident $250 / Theft $350

This does not include my new wheels....

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weiyun
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Postby weiyun » 13 Dec 2011, 19:24


Hung
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Postby Hung » 14 Dec 2011, 09:38

I got a quote for my bike also
the premium is almost as much as my 2009 toyota kluger :(

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weiyun
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Postby weiyun » 14 Dec 2011, 11:10

Guess the premium reflects the risks.

Hung
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Postby Hung » 14 Dec 2011, 11:35


Hung
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Joined: 04 Mar 2010, 17:22
Location: kogarah bay

Postby Hung » 14 Dec 2011, 11:36


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weiyun
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Postby weiyun » 14 Dec 2011, 11:46

Needs no-claim bonus on bike insurance!

christian
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Postby christian » 14 Dec 2011, 12:37

I looked into this about 12 months ago, to add my bikes to my home contents insurance jacked up the premium cost by about $500, but that was for all my bikes. Even if I just insured the one I do chain up in random locations it was still a couple of hundred more. Realistically you only need to insure the bikes that you leave unattended, for me this is really just the bike I commute on. Given the replacement cost of it, probably around $1500 I didn't consider it worth while once you factor in the excess and premium increase. In my 19 years of riding around Sydney I have only had one bike stolen.

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mikesbytes
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Postby mikesbytes » 14 Dec 2011, 20:47

Or the other option is to commute on a crap bike


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