TL;DR:
Insure your bike for what it truly costs—this includes the original purchase price plus any upgrades and accessories. Velosurance doesn’t depreciate value over time, meaning you're reimbursed based on your declared worth at the time of loss
- Declare full replacement value
- Include your custom build cost
- Claims honor your original insured amount indefinitely
The correct amount to insure for is the cost to purchase the bike plus upgrades and accessories added to the bike after purchase. You can include and insure the cost of upgrades such as a GPS, pedals, wheelset, lights, locks, racks, panniers, and any other accessories that are cycling specific and attached to the bike. A helmet and other riding gear is automatically covered up to $500.
Build example: If you built the bike from the frame up the insured amount should be the cost of the frame and all of the build components and that total is your insured value. Unfortunately your time and labor to build the bike cannot be insured.
The concept of insurance is to reimburse you for the financial loss you might sustain for a damage repair or a total loss. You cannot insure for a future and unknown increase in bicycle purchase prices, only for your financial and verifiable loss.
The Velosurance issued policy does not depreciate the insured value of the bike based on the age of the bike.
Example:A bike that was purchased and insured for $5,000 five years ago becomes a total loss (think theft) would be reimbursed at $5,000 less the chosen policy deductible. In the case of a partial loss (think crash damage) the reimbursement for the repair, including labor, is paid at the retail bike shop repair cost, minus the policy deductible. No matter how old the bike becomes, a claim reimbursement is never depreciated.
To discuss insured values with a bicycle valuation expert call Velosurance @ 888-663-9948 or email support@velosurance.com
Key Takeaways
- Insure your bike for the full purchase price plus any upgrades or cycling-specific attachments like GPS, lights, racks, or panniers
- Helmet and riding gear are automatically covered up to $500, even if they weren't included in your bike's declared value
- If you built the bike yourself, include the cost of the frame and all components when determining your insured value—just not your labor
- Velosurance policies use “declared value,” meaning your bike is insured at that amount with no depreciation over time
- For accurate coverage (and fair claims), your insured value should reflect real, verifiable cost—even years after purchase
Frequently Asked Questions
- What is the correct amount to insure a bicycle for?
- The correct insured amount is the cost to purchase the bike plus the cost of all upgrades and cycling-specific accessories added to it, such as a GPS, pedals, wheelset, lights, locks, racks, and panniers. Helmet and other riding gear are automatically covered up to $500, so they do not need to be included in the declared value. The key principle is insuring for your actual, verifiable financial loss, not a speculative future value.
- How does Velosurance handle the value of a bicycle over time when paying a claim?
- A Velosurance policy does not depreciate the insured value of the bike based on its age. A bike purchased and insured for $5,000 five years ago that becomes a total loss is reimbursed at $5,000 less the chosen deductible. For a partial loss, the repair cost, including parts, labor, and shipping, is paid at full retail price minus the deductible. No depreciation is applied at any point during the life of the policy.
- How do you determine the insured value for a custom-built bicycle?
- The insured amount for a custom build is the total verifiable cost of the frame plus all individual components used in the build. Add up every part receipt to arrive at your declared value. Your time and labor assembling the bike cannot be insured, only the tangible, documented cost of the materials.
- What gets reimbursed in a partial loss, such as crash damage to the frame?
- For a partial loss, the policy reimburses the full retail bike shop repair cost, including parts, labor, shipping, and applicable taxes, minus the chosen deductible. As with total losses, no depreciation is applied, so the age of the bike does not reduce what you receive for a covered repair.