Few of us ride bikes exactly as they come ‘off the shelf’. Many will upgrade parts like race wheels, some of us like to build our bikes up from parts. The intention here is to outline exactly how you should value your bicycle and insure it for the correct amount.
For most of our customers, the value of your bicycle is the price you paid for it, whether new or second hand, with zero depreciation.
It is a standard practice among our competitors to reduce the value of the bicycle once it is over three years old. We felt this didn’t reasonably consider the cost of replacement and was not in the best interest of our customers. As a result, we removed this restriction not long after launching.
The price you paid for your bike is the price we insure it for.
There are two exceptions to this designed to offer more flexibility and fairness to our customers, in line with our ‘common sense’ approach to insurance.
- Discounted Bicycles
Bicycles bought new but with a significant discount can be insured at their recommended retail value. This means a bicycle bought at the end of the season for a third off can be insured for the full price. This is to ensure in the event of loss or damage, a true equivalent can be found when the same bicycle with the same discount is unobtainable.
- Vintage or Antique Bicycles
Vintage or antique bikes may well have increased in value since they were purchased. These bicycles will need to be valued by somebody we can agree as suitably qualified, such as a specialist retailer, and the valuation must have been made in the last three years.
- Custom Bicycles
Although less common than it used to be, many of us still enjoy starting with a frame and building up bicycles to fit our specification from parts. The value of your bicycle, in this case, will be the sum of what you paid for the individual parts. If you have multiple sets of wheels, the pair you primarily use form part of the bicycle value, and any spares are listed as additional wheelsets.
We define an accessory as anything additional to the bicycle, which isn’t necessarily needed for riding, and which is not permanently fixed to the frame.
For example: a cycling computer, power meter, clip on TT bars or carbon bottle cages.
Accessories are not factored into the value of a bicycle but can be added to the policy to offer protection against accidental damage or theft which occurs alongside the bicycle, the first £250 of which is included as standard in our policy.
If you have a second pair of wheels (for example a set of deep, carbon racing wheels) then these can be added to the policy as an “additional wheelset”.
If you have upgraded components such as your wheels, stem or handlebars, these upgrades should be factored into the value of the bicycle. The original components, if kept as spares, can then be added to the policy as accessories. If the upgrades you have made are more significant than a few components and you are unsure about valuation, many good bicycle shops will offer a valuation service, and our team is here to help too.
It is important, I think, that Insurance companies continue to review and adjust their policy wording, and their cover. The bicycle insurance we offer is there to give competitive and enthusiast cyclists the confidence to race and ride, when and where they like. The most important requirement to providing that service is clarity in exactly what our policy offers, and how it works.
Underinsuring your bike
Our policies are designed and priced to cover your whole bicycle at once, so it is very important that you insure your bicycle for its full value. You cannot insure part of the value of your bicycle in order to reduce your premium. If you under-insure your bicycle, our claims handlers may apply a “proportional reduction” to your settlement.
What does this mean? If I insure my bicycle for £2000, but I actually paid £4000 for it, then I have underinsured my bike by 50%. Essentially, I have misrepresented the risk of the bike to the underwriter. If I have a crash and need to claim £1000 for a new wheelset, our claims handlers will apply a “proportional reduction” to the settlement amount. I have only insured 50% of the value of my bicycle, so I’ve only insured 50% of the value of my wheelset. Our claims handlers will reduce the settlement by 50%, and I will only receive £500 of their value back.
If you are unsure or need some clarity on this then please feel free to get in touch with the team.
Across three packages, our Bicycle Insurance covers your equipment when riding, racing or training worldwide.