Bicycle insurance: What’s the best of 2021?
If you have or plan to have a bike, whether for leisure, work or getting around the city, you know that there are risks such as theft and accidents. Therefore, it is important that you consider hiring bicycle insurance.
In today’s article, we will explain how it works, why it is important to have one and how much bike insurance costs. More than that, you will discover what to take into account when choosing the best bike insurance.
First, the most important
- Bicycle insurance ensures that you will have assistance in case of accidents and compensation if it is stolen.
- There are several types of insurance with varying coverage.
- To choose the best insurance for your bike you need to compare some factors.
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Hiring Guide: All About Bicycle Insurance
The bicycle is nowadays more than a means of leisure. Whether to practice a sport, go to work or even to earn a living, biking is increasingly present in our daily lives. And, precisely for that reason, it is subject to theft, damage and accidents.
So it is important to consider hiring bicycle insurance. In order for you to answer all your questions about this type of insurance, we have created this Hiring Guide.
Bicycle insurance: What is it and how does it work?
Bicycle insurance is similar to car and motorcycle insurance. It is a contract that you enter into with an insurance company. This contract guarantees that, in anticipated cases, you will be reimbursed or have technical assistance.
In the case of bicycle insurance, there are coverages for situations such as collision, theft, theft, damage to third parties, among others.
However, unlike auto insurance, for bicycle insurance the deductible is applied regardless of whether the claim is a total or partial loss. But it is still worth it, since in general, the deductible is usually 10% of the value of the bicycle.
In addition, depending on the insurance, the insurer often covers defects or damage to the bike that will then be reimbursed by the insurance.
Another feature of bicycle insurance is that it includes covers for new, used and electric bikes.
Who should take out bicycle insurance?
Of course, if you cycle only sporadically or on weekends, you might consider it not worth the investment in bicycle insurance.
If you do not want to invest in insurance like this, there is the option to bike in home insurance, which only cover thefts and thefts at home.
Anyway, bicycle insurance is recommended for everyone who uses this means of transport. But this insurance is especially valid for those who use the bike to move around the city daily and still use the bike to work.
After all, in the middle of traffic, you are not only more prone to theft but also to accidents.
If you are a professional cyclist and participate in mountain bike, speed and triathlon championships, bicycle insurance is also essential, mainly because bikes are the most expensive.
What are the types of bike insurance coverage?
The type of coverage for bicycle insurance varies from insurer to insurer. In general, the coverage common to all types of bicycle insurance is usually against assault.
The rest may or may not be covered and some are still considered as additional coverage. An example is the coverage of international scope, against personal accidents and theft of bike accessories.
But in general, there are at least three basic types of bicycle insurance coverage. Are they:
What does bike insurance not cover?
In addition to knowing in detail what bicycle insurance coverage is, it is important that you read the contract carefully to make sure you understand what are the coverages that are not included.
Simple theft is not covered by any bicycle insurance.
For example, simple theft is not covered by any bicycle insurance and, therefore, it is the main situation that ends up generating surprise for some policyholders.
Theft is characterized when your bike is taken without you being around. An example is when you leave your bicycle on the street to go to the bakery, for example.
But, in this case, as you cannot prove that your bike was taken by a bandit, it is a simple theft. This type of theft is not covered by any insurance company.
Qualified theft, which is covered in bicycle insurance, is one in which there is evidence that the bike was taken. An example is when your garage door is broken and your bike is taken.
In other words, for insurance to cover the theft of your bicycle, there must be material evidence that your bike was taken by the thief.
In addition, bike insurance will not cover thefts, even if they are qualified, if they are found that you have not taken the appropriate security measures, such as keeping the bike in the garage, with a padlock and locked door.
Thus, in order to be considered a qualified theft and then be reimbursed by the insurance company, there must be some kind of obstacle to prevent the bike from being stolen.
In addition, bicycle insurance will not cover damage due to natural wear and negligence of the insured.
What are the requirements for taking out bicycle insurance?
To take out bicycle insurance, the policyholder needs to adapt to some conditions required by the insurer. One of them, as we have seen, is the safety measures that must be adopted by the insured to protect the bike.
In addition, most policyholders also ask you to present the invoice (NF) that proves that the bike exists and that it is yours. The NF also serves to calculate the policy budget.
Insurers that do not require the NF, in general, adopt other procedures such as, for example, the prior inspection of the bike, which can be done in person or online.
Did you know that a prior assessment of your bike is done by the insurer?
This serves to assess the risk, considering the current market value for replacing your bicycle in case of theft, for example.
Therefore, it is necessary to check whether depreciation will be taken into account when taking out insurance. This is especially true if you have an older bike.
Another condition that you may encounter when hiring bicycle insurance is that some insurers stipulate a limit on the amount of the bike.
For example, some companies only insure bicycles that start at R $ 1.2 thousand. Most, however, only accept insuring bikes that start at R $ 3,000.
How much does bicycle insurance cost?
The amount of bicycle insurance will depend mainly on the type of coverage you choose to include in the policy.
But factors such as the type and price of the bike, in addition to the way of use and the people who use the bike can also interfere in the insurance price. Thus, the price of a bike insurance usually varies between 3% and 15% of the value of the bicycle.
Hiring Criteria: How to analyze bike insurance
Now that you understand how bicycle insurance works, the time has come to choose the best option for you.
For that, we recommend that you take into account some factors before signing the contract. Look:
- Insurer credibility
- Bike evaluation
- Franchise and POS
- Fine print
From here, you will see how to analyze each of these points.
The main point when choosing the best bicycle insurance is the insurance company. It is essential that you choose a company that has experience in the market and credibility with customers.
Each company will evaluate its bicycle differently. For example, some insurers will consider the value of the invoice, while other companies may use the value of the bike only at the time of indemnity.
The ideal is that you look for an insurance company that makes a previous moderation in the contracting to determine the amount that you will approve at the moment the coverage is activated.
Franchise and POS
In bicycle insurance, the insurer will indemnify the amount equivalent to 90% and 85% of the total insured.
That is, the rest will be your responsibility and is called the Insured’s Mandatory Participation (POS). The POS will focus on the total amount of the loss.
For example, if you held your bicycle for R $ 10,000 and the POS was 10%, this means that your indemnity will be a maximum of R $ 9,000.
The deductible is the minimum reduction of your indemnity. An example: If your bike costs R $ 3 thousand and is stolen, and the insurance deductible is R $ 500, you will receive R $ 2.5 thousand in compensation.
Another important factor that you should consider when hiring bicycle insurance is the coverage of the coverage. Today it is possible to find insurers that cover situations provided for in contracts that occur both and abroad.
Also note if your bike insurance includes covers for bike accessories. Some insurers offer this type of additional coverage that comes back in case of theft of some types of accessories.
Finally, before closing the contract, make sure that you read the fine print carefully.
This is because, not infrequently, this is where the most important information is located, for example, the fact that bicycle insurance does not cover simple theft or theft of unprotected bikes.
Bicycle insurance guarantees that you will have a new bike in case of theft and can even reimburse you in case of damages and accidents.
But to choose the best plan, you must consider the insurer’s reputation, the deductible amount and the coverages that are actually included in the contract.