Your homeowners insurance will cover certain bike-related problems, like theft or vandalism. But if you’re not a homeowner, you can find coverage in other places, such as renters insurance, condo insurance or even a standalone bike insurance policy. Pedal along as we examine the numerous spokes of bicycle insurance.
How Are Bicycles Insured?
Bicycles are typically insured under the personal property section of a homeowners insurance, condo insurance or renters insurance policy.
Theft and vandalism
If your bike is stolen or vandalized, you are covered under your home, renters or condo insurance policy. The claim amount depends on if you chose replacement cost or actual cash value (ACV) coverage. Replacement cost will pay for a new bike of a similar model. ACV pays only for the depreciated value of your bike.
An insurance deductible will apply in cases of theft or vandalism. The deductible is the amount that is deducted from an insurance claim check. For example, if your bike is worth $1,000 and you have a $500 deductible, you will get a $500 claim check ($1,000 – $500 = $500).
If your bike is damaged, how it’s covered by your home, condo insurance or renters insurance depends on the situation. Here’s a look at how a few scenarios might be covered:
- Your bike is damaged in a car accident while you are transporting it. Your home, condo or renters insurance policy will cover you, up to your policy limits and your deductible will apply.
- Another driver crashes into your bike. If another driver crashes into your bike, you can file a claim against their liability car insurance.
- Your bike is destroyed in a house fire. Fire is a problem covered by your home, renters and condo insurance. The cost to replace your bike will be covered, up to your policy limits, and your deductible will apply.
- You crash your bike. If you crash into an object like a tree or car, you typically won’t be covered under a home, condo or renters insurance policy for the bike damage.
If you are injured in a bike accident, you may be covered, depending on the scenario:
- A driver crashes into you. Your medical expenses can be covered under the driver’s liability car insurance. If the driver is uninsured, your health insurance can cover your medical bills. You may also have coverage under the personal injury protection (PIP) portion of your car insurance policy, depending on your state.
- You crash into an object. If you hit an object like a tree or car, your health insurance will cover your medical expenses.
Injury to others
If you accidentally crash into someone and cause injuries, their medical expenses can be covered under the liability portion of your home, condo or renters insurance policy.
Property damage to others
If you crash into someone else’s property and cause damage, such as denting a car, the liability portion of your home, condo or renters insurance may cover the property damage.
When Do I Need Separate Bicycle Insurance?
The Insurance Information Institute suggests that if you own an expensive bike, you should ask about an add-on to homeowners or renters insurance, known as an endorsement, that allows you to schedule personal property. This boosts your coverage. You also can explore a standalone bike insurance policy.
Bike insurance policies usually provide broader and deeper coverage than homeowners or renters insurance policies do. For example, Markel says one of its bike insurance policies covers things like crash damage, roadside assistance, spare parts and replacement-bike rentals, whereas a typical homeowners or renters insurance does not.
Trusted Choice, a network of independent insurance agents, says you should look into standalone bike insurance if:
- You spent a lot of money on your bike. An everyday bike might cost roughly $200 to $700, while a specialty bike can go for more than $1,000.
- You frequently ride off-road, potentially placing your bike at greater risk.
- You compete at cycling events.
- You own a bike that’s been specially designed, upgraded or modified.
- You lack homeowners or renters insurance.
How Much Does Bike Insurance Cost?
You can find a standalone bike insurance policy for about $100 to $300 a year.
Markel and another bike insurer, Veloinsurance, say their annual premiums start at $100. Markel’s average bicycle insurance policy costs $250 to $300 a year.
Should You File a Claim if Your Bike Is Stolen or Damaged?
If your bicycle claim is less than or only slightly more than your insurance deductible, you may not want to file a claim. For example, if your bike was worth $600 before it was destroyed but your homeowners policy has a $500 deductible, it doesn’t make financial sense to file an insurance claim. A claim is likely to increase your home insurance premium, and you would only get $100 from your insurance company.
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