Bike Insurance

[Sparky731]

Received a quote from State Farm for a Personal Articles Policy. $600/yr for $8,600 total invoiced cost of 2 bikes. Agent says he has quoted many but sold zero. No deductible. Reimbursement for accident damages @ 100% of repair cost. 100% theft reimbursement to invoiced purchase cost no matter the age of the bikes. Can be purchased any time during the life of the bicycle. Accident liability costs covered by homeowner's policy. Theft coverage under homeowner's policy is 1/2 of 1% of policy value, minus deductible. Ex: $1,000 reimbursement under a $400,000 homeowner policy with $1,000 deductible.

 

[GuruUno]

Received a quote from State Farm for a Personal Articles Policy. $600/yr for $8,600 total invoiced cost of 2 bikes. Agent says he has quoted many but sold zero. No deductible. Reimbursement for accident damages @ 100% of repair cost. 100% theft reimbursement to invoiced purchase cost no matter the age of the bikes. Can be purchased any time during the life of the bicycle. Accident liability costs covered by homeowner's policy. Theft coverage under homeowner's policy is 1/2 of 1% of policy value, minus deductible. Ex: $1,000 reimbursement under a $400,000 homeowner policy with $1,000 deductible.

Overpriced, reference Velosure to get a better quote/coverage

 

[ActionJackson]

Received a quote from State Farm for a Personal Articles Policy. $600/yr for $8,600 total invoiced cost of 2 bikes. Agent says he has quoted many but sold zero. No deductible. Reimbursement for accident damages @ 100% of repair cost. 100% theft reimbursement to invoiced purchase cost no matter the age of the bikes. Can be purchased any time during the life of the bicycle. Accident liability costs covered by homeowner's policy. Theft coverage under homeowner's policy is 1/2 of 1% of policy value, minus deductible. Ex: $1,000 reimbursement under a $400,000 homeowner policy with $1,000 deductible.

$300 a bike per year. That’s fair value I think considering the risk of property. What’s good about something like State Farm is that it can be a tax deductible expense whereas a bicycle only company would easily be questioned in an audit. My CPA wants me to move to a general insurance company vice bicycle specific for that exact reason.

 

[Elkman]

I have State Farm and with a Class III bike the rating is for a motorcycle per their guidelines. I was quoted $440 per year per e-bike from them last month.

I have only had one bike stolen and it was left chained to a street post. In the 51 years after that loss I have never left my bike unattended and I have never had one stolen.

 

[kahn]

Well, succumbing to neurosis, I added what folks term a cafe lock this very morning. It is by ABUS. It is obviously not top notch security but for the quick entry into a coffee shop and the quick use of their rest room, I'm hoping it is sufficient. I will only lock the bike where it is clearly visible to lots of patrons. It merely secures the wheel to prevent rolling/pedaling away. My only concern is that I remember I've secured it so that I don't damage the spokes. And obviously a thief could also damage the spokes/wheel by forcing it too hard. They have a number of models. This one has an add-on accessory chain that snaps into the left port in this picture. That would add another level of security.

It looks like this:

 

[TrailSeeker]

Received a quote from State Farm for a Personal Articles Policy.

I might have said this before, but that's a good idea to use state farm. I didn't know they would insure ebikes. I just signed up for velosurance and it's cheaper but I don't think it covers general theft except if you have it locked up properly (that might be standard though but I'm just saying - that's why it's important to lock it up properly).

 

[radomvam]

You guys have some serious insurance haha. I didn't even know that you can have insurance regarding a bike. I was thinking that this was possible only when we were talking about a car. A friend of mine has shown me this company called https://sundaysinsurance.co.uk/ where I was able to get one for my bike. I have an electric one because I'm sick of staying in the traffic, so getting this was a good decision. It wasn't cheap at all, but it's worth it. Now, I'm trying to convince all of my friends to get a bike, because the car should be used for long-distance only

 

[Sparky731]

I have State Farm and with a Class III bike the rating is for a motorcycle per their guidelines. I was quoted $440 per year per e-bike from them last month.

I have only had one bike stolen and it was left chained to a street post. In the 51 years after that loss I have never left my bike unattended and I have never had one stolen.

Very interesting - the premium price. I also have a S. F. policy on my bikes. One is a C III. I should have gone for the lower motorcycle premium. Apparently the actuaries identity a higher theft risk for ebikes. Could have saved $160.

 

[Lauren116]

I also started to ride a bike, as I was tired of wasting my time in traffic jams every day. However, riding a bike isn't quite safe even if there are special bands for it, so I knew from the beginning that I need insurance for it and myself. I was very happy when I found a company which could cover both of them, I am talking about simplebikeinsurance.com which covers a lot more things, for example, transit and travel damage. I don't have any claims towards it.

 

[Pork Rind]

Overpriced, reference Velosure to get a better quote/coverage

My quote from State Farm was less than Velosure, with the additional upside being that I was also able to add a couple guitars that would be difficult to replace as well.

 

[fooferdoggie]

My quote from State Farm was less than Velosure, with the additional upside being that I was also able to add a couple guitars that would be difficult to replace as well.

but it wont pay for repairs if you crash your bike or roadside service of if your bike is stolen away from home.

 

[Pork Rind]

but it wont pay for repairs if you crash your bike or roadside service of if your bike is stolen away from home. my agent and the State Farm website.…

Per my agent and the SF website, they will pay for repairs. Tbh, though, I’m really only worried about theft.

We'll pay the cost to repair or replace your personal property, without deduction for depreciation up to the applicable limit.

 

[Sparky731]

Per my agent and the SF website, they will pay for repairs. Tbh, though, I’m really only worried about theft.

Agree. My SF policy provides global theft or repair coverage.

 

[Oyster]

Long time and avid cyclist here. I had a new bike stolen from me a couple of years ago and unfortunately, I didn’t have renters insurance at the time, which meant I had to fork out nearly $2k for a new bike. Lesson learned, I thought. Two years later, my new bike was also stolen. Fortunately, this time I did have renters insurance! So I made a claim for theft and after having to provide what felt like an unnecessary amount of information via physical mail, I was informed that (a) the maximum payout for a single item under my policy was $1,500 and (b) my deductible was $1,000. This meant a total payout of $500 for a $2,000 bike… so much for insurance.

My response was to build Oyster

Our mission is to democratize insurance by making insurance for valuable items (such as bikes) more accessible and affordable. Really interesting to read the responses in this thread. eBike regulation and insurance is an ever-evolving topic and one we monitor closely at Oyster. It's likely we will see a fully national move to the three-tiered classification of ebikes in the near future (most have currently adopted it). Mandatory insurance for ebikes? This is definitely possible as they continue to grow in popularity, especially for those over >750W. Currently, if the bike is >750W, it isn't legally allowed to be classed as an ebike.

We have no affiliation with them, but a great source of information is: https://www.peopleforbikes.org/topics/electric-bikes.

Happy to answer any questions!

 

[mschwett]

Long time and avid cyclist here. I had a new bike stolen from me a couple of years ago and unfortunately, I didn’t have renters insurance at the time, which meant I had to fork out nearly $2k for a new bike. Lesson learned, I thought. Two years later, my new bike was also stolen. Fortunately, this time I did have renters insurance! So I made a claim for theft and after having to provide what felt like an unnecessary amount of information via physical mail, I was informed that (a) the maximum payout for a single item under my policy was $1,500 and (b) my deductible was $1,000. This meant a total payout of $500 for a $2,000 bike… so much for insurance.

My response was to build Oyster

Our mission is to democratize insurance by making insurance for valuable items (such as bikes) more accessible and affordable. Really interesting to read the responses in this thread. eBike regulation and insurance is an ever-evolving topic and one we monitor closely at Oyster. It's likely we will see a fully national move to the three-tiered classification of ebikes in the near future (most have currently adopted it). Mandatory insurance for ebikes? This is definitely possible as they continue to grow in popularity, especially for those over >750W. Currently, if the bike is >750W, it isn't legally allowed to be classed as an ebike.

We have no affiliation with them, but a great source of information is: https://www.peopleforbikes.org/topics/electric-bikes.

Happy to answer any questions!

ouch! renters' insurance varies a lot, i know of many cases where eBikes and scooters have been covered, no questions asked. great reminder to look carefully at your policy, and ask them about specific items if there's any doubt.

 

[Oyster]

I know I am posting a lot but I am new to this bike. So for two Creo Turbo SL Expert EVO's, my insurance company that handles ALL my homeowners, car, motorhome etc wants $1400.00 a year to ensure both bikes for theft with a zero deductible.

Is that outrageous?

I did a quote with a bike insurance company called Simple Bike Insurance". Besides theft they cover damage and a few other things. They want $1235.00 a year.
Any thoughts? Anywhere else I should look?

Thanks

I'm curious. What did you end up doing David? Hope that everything worked out!

 

[GuruUno]

Bicycle insurance to protect all cyclists | Velosurance

Protect your bicycle or e-bike against theft and accidental damage with bicycle insurance. Medical, liability and vehicle contact coverages are also available.

velosurance.com

 

[Oyster]

Bicycle insurance to protect all cyclists | Velosurance

Protect your bicycle or e-bike against theft and accidental damage with bicycle insurance. Medical, liability and vehicle contact coverages are also available.

velosurance.com

Thanks, GuruUno. I am confident Oyster's policies can match, if not beat, Velosurance. Game on!

 

[mogulman]

Thanks for this post. I was thinking I needed to add my new Vado 5.0 SL to my insurance. Checked with my homeowners and Velo. I have 2 bikes.. a 2020 Reign E+1 that is already on my homeowners policy. For homeowners, the total is about $320/year for both bikes. For Veloinsurance the total would be about $600/year. Ended up going with Homeowners /Amica.

 

[m@Robertson]

Thanks for this post. I was thinking I needed to add my new Vado 5.0 SL to my insurance. Checked with my homeowners and Velo. I have 2 bikes.. a 2020 Reign E+1 that is already on my homeowners policy. For homeowners, the total is about $320/year for both bikes. For Veloinsurance the total would be about $600/year. Ended up going with Homeowners /Amica.

You want to make sure the homeowners policy covers the ebike anywhere it is at, that it has an acceptable deductible, and the valuation basis of the policy is not Actual Cash Value, which, quickly translated into layman's terms, means they will depreciate the bike at time of loss. Typically that depreciation is severe and, coupled to your deductible, results in a very small payout relative to the purchase price. Also you want an opinion from an underwriter in writing (an email with headers intact is good enough) - not an agent - that your ebikes are actually covered. Underwriters words in writing obligate the company (and really they are the only ones qualified to interpret the policy on esoteric items often as not). Agents are salesmen and you would likely have to sue the agent's Errors & Omissions (malpractice) policy to recover if the insurance company denies a claim on what they tell you is an uncovered motorized vehicle. I didn't make this scenario up I've seen it happen. And as you can probably tell I'm in this business.

The Markel policies (of which Velosurance is one agent of many) cover the bike for any use, at any location, so long as its locked up to something substantial. the payout basis is something called Stated Amount - which strictly speaking in the contract, defines the premium charged and not the amount paid out to the customer. However after talking to the principal at Velosurance after reading the Markel policy, I came out of it confident that Markel was treating the Stated Value as if it was an Agreed Value - the latter is what the consumer expects it to be which is a guaranteed payout amount set at time of policy issuance.

@Oyster if you want to beat Markel/Velosurance, copy their policy form but write it on an Agreed Value basis. I'm covering two cargo/commuter bikes with values stated that total about $12-14,000 for the pair and I'm paying about $42 per month. Physical damage only. I might be persuaded to buy Liability coverage if available at reasonable cost but my feelings on that subject are the Liability is highly likely to be on the auto side - the one that hits the cyclist. I'm chiefly concerned with coverage if a cargo bike locked up outside a shop meets a crook with an angle grinder and a pickup truck.