Navigate the complexities of bicycle insurance with our essential tips, ensuring the right coverage for your budget and lifestyle.
May 8, 2023
4 Things to Remember When Buying Bicycle Insurance
So you've decided to insure your beloved bicycle, congratulations! While bicycle insurance protects your most prized possession and gives you peace of mind, purchasing insurance can be a daunting task.
Coverages, definitions, exclusions, penalties, premiums, terms and conditions - it can all start to make your head spin. There are many times in life when you look back and wonder whether or not you made the right choice, but only asking that question when it comes time to claim can leave you in a bind (and without your bike).
We understand that distinguishing between various bicycle and e-bike insurance policies can be a challenging task. To simplify the process, we created a comparison table highlighting the key differences. You may access it through this link - https://lp.sundaysinsurance.com/welcome.
Here are our top tips for choosing bicycle insurance that suits your budget, needs, and lifestyle.
1. Ensure the Coverage Matches Your Lifestyle
Someone who only uses their bicycle to commute will have very different insurance needs from someone who is a passionate racer and spends their time training for and competing in events.
If racing isn't your thing, selecting a pre-packaged bicycle insurance product that includes racing and event coverage would mean you're overinsured - ultimately causing you to pay more in premiums than you should.
Before purchasing bicycle insurance, here are some questions you should ask yourself to make sure your bicycle is covered for the way you ride:
Will you be traveling locally or overseas with your bicycle?
Do you own a car? If so, will you be transporting your bicycle on a bike rack?
Do you have pricey bicycle accessories, custom parts, or additional wheelsets?
Will you be competing in any races or events?
Will you want to cover more than one bicycle, and does your insurer offer multi-bike discounts?
2. Consider the Value, Not Just the Cost
Many cyclists are under the impression that their bicycle is sufficiently covered under their homeowners or renters insurance, but often this isn't the case. They only find out that their bicycle isn't properly covered once it's time to claim - and by that point, it's too late.
Before buying insurance - whether it's for your bicycle or anything else - it's important to shop around first, gathering quotes and comparing coverages and limitations.
While one type of insurance policy might initially seem cheaper, it's vital that you also consider what limitations are applied. There's not much point in saving on monthly premiums if, when it comes time to claim, you find out your bicycle isn't covered for its full value or against certain risks.
Here are some questions you can ask potential insurers so that you can fully understand the value of their product and whether it's right for you:
Is my bicycle covered for theft from as well as away from home?
Is my bicycle covered if I crash it?
Do you provide coverage for bicycles for their full value? Or do you depreciate my bicycle when it's time to claim?
Do you insure my bicycle for accidental and malicious damage?
Do you provide coverage for racing and events?
Do you provide coverage for traveling with my bicycle?
3. Understand What You're Paying (And Why)
Insurance is usually calculated on an annual basis then divided by twelve, which gives you your monthly premium amount. While, as a consumer, you're entitled to cancel your insurance any time, if you've paid an upfront premium, you may not get it back - even if you haven't claimed.
Along with upfront premiums, some insurers have inconsistent fee structures that are based on collective claims behavior, meaning that your premiums constantly fluctuate according to whether other customers are claiming or not.
By selecting a bicycle insurance policy that's customized to your lifestyle and bicycle, you can ensure that your premiums are not only consistent but personalized too.
At Sundays Insurance, we don't charge upfront premiums, and we won't penalize you if you cancel your policy - plus, if you take out a policy then change your mind within 14 days, we'll cancel your policy and return your premium. No questions asked (as long as you haven't claimed)*.
Here are some questions you can ask possible insurers to make sure that you understand exactly where your money is going:
Do you require an upfront minimum premium payment? Like $100?
Will I be penalized if I cancel my insurance?
Are my premiums calculated based on collective claims behavior or are they personalized to me and my bicycle?
4. Make Sure They're Financially Sound
You want to ensure you select an insurance company that would still be able to pay out if a large portion of their customers all claim at exactly the same time. After all, an insurance policy is only as strong as the company providing it.
Although it may seem unlikely that a company would have to field a huge amount of bicycle insurance claims at the same time, in the event of a natural disaster, for example, this unlikely scenario could become a reality.
All insurers should have information on their website about who their underwriter is.
If you can't find clear information on an insurance company's website about who their underwriter is and what their track record is, you should do further research to establish their credibility before handing over your hard-earned cash.
Why Choose Sundays Insurance?
Designed by cyclists, for cyclists
Our products aren't designed by nameless faces in suits - they're designed by cyclists (who sometimes wear suits) that have a deep understanding of the risks cyclists face.
We put our customers first
We don't do one-size-fits-all. That means no upfront premiums, inconsistent fee structures, or pre-packaged coverage plans. You can pay as little as $8 per month, every month, and you can also cancel your policy at any time without anypenalties.
Superfast claims settlement
We know how much cycling means to you. You can submit an online claim 24/7, and our expert team will work on it with one goal: To get you back on the saddle as fast as possible.
Trusted by the best in the business
Since 2017, we've been a global perks provider for Strava, one of the world's leading fitness tracking and social media apps. This partnership gives Strava Premium members access to insurance benefits at no additional cost.