Bicycle insurance mistakes and misconceptions

My bicycle is covered by my homeowners/renters insurance

Your bicycle most likely will have some very limited coverage under your homeowners or renters policy, however, there are usually limits on the value of the bike and the types of losses that would not be covered, such as theft and damage away from the home. Most home insurance policies will not cover crashes or accidents, especially while racing, so if you wreck out on the road, in a race, or an organized ride you will be out of luck with the home insurance company.

Also, when you file a bicycle claim against your homeowner’s policy, you risk having your insurance rates increased or the policy cancelled. With a Velosurance cyclist policy you have the peace of mind and satisfaction knowing that your policy is built specifically for you and your bike, and claims will not affect your other insurance rates.

Bicycle insurance is expensive

Velosurance policies start at $100 a year and the cost to insure most bikes is pennies on the dollar when it comes to paying for a damaged or lost bike. Consider a bike in Miami, Florida, insured for $3,000 at an annual premium of $186.

If the bike is stolen without Velosurance it will take 16 years & 2 months to recover from the theft. Whereas with a Velosurance policy and after a $300 deductible the client receives a check for $2,700 and will be back riding within days of submitting the claim.

A good bike lock is enough to protect from theft

No matter how much you pay for a bike lock it is only a deterrent for a ½ way smart bike thief. According to the 2011 FBI Crime Statistics Report, a bicycle is stolen every 2.8 minutes, and that’s only the bike thefts that are reported. Bike thieves recognize high value bikes and target them for theft.

A Velosurance cyclist policy will cover your bike for theft and damage anywhere in the USA & Canada, including while being shipped or as airline luggage. Velosurance can extend the bike coverage world wide for a small extra premium.

My home insurance policy has a special bicycle "rider"

After 20 years in general insurance the founders of Velosurance never had a satisfied client when the client made a homeowner or renter insurance claim for a stolen or damaged bicycle. The home insurance policy, including the special “rider” added to the policy will protect the bike for Actual Cash Value (ACV), now while this sounds good it is not. Actual Cash Value means the price of the bike less depreciation and of course don’t forget the deductible and increase in home insurance rates because you made a bicycle claim.

So a 4 year old $3,000 bike is stolen and a claim placed with the home insurance.

Here’s the home insurance math:

$3,000 x 30% depreciation = $2,100 loss minus deductible of $1,000 = $1,100 payment to replace a $3,000 bicycle.

Out of pocket expense = $1,900

Here’s the Velosurance math: $3,000 - $100 deductible = $2,900 payment.

Out of pocket expense $100. That’s an $1,800 difference of out of pocket expense, or 9.7 years of Velosurance premiums at $186 a year.