Inexpensive insurance option for State Farm policyholders

[jeremy8000]

With my new ebike scheduled for delivery in a week, I was looking into insurance options and got quotes from velosurance and spokes insurance, ranging from $130-150 for a class 2 $1500 bike, not including liability, but including about $15 for roadside assistance. I'd read that car insurance and homeowner insurance policies were poor options, but figured I'd call my agent just to know for myself.

Turns out that an existing separate 'sports equipment' policy I have with them for some high value billiards equipment will cover it. The policy I have with them covers up to $10k, with covered items detailed by line-item, and I have just enough room under that will (confirmed with State Farm) fully cover my new ebike.

At $75 annually with only a $100 deductible, covering against theft and damage, it's a no-brainer to simply add it there (homeowners confirmed to provide a comfortable level of liability coverage).

Just wanted to share this for anyone else who uses State Farm, or might want to check with their provider to see if they provide a similar type of policy. In searching for insurance advice on the forum I hadn't seen anything positive about such as an option; if this is well known and I simply missed it, I apologize for what will have made this a pointless thread.

ORIGINAL EDIT

My apologies to everyone — I have now discovered that my agent misinformed me regarding that policy. There is a specific exclusion for bicycles.

Back to looking at velosurance and spokes, I guess...

UPDATE EDIT

Ok, so in further discussion with my agent, turns out that there is a cited exclusion for 'bicycles' under the policy, but agents are able to submit e-bikes for inclusion as an electric assist bicycle to the underwriter and have it approved. Just had mine added. For other State Farm-insured folks out there, the code for that policy is "FP-7940.2" and the 'common name is PERSONAL ARTICLES POLICY. Note that this does not extend any liability coverage (but, at least in my case, my homeowners policy extends coverage for that purpose).

​

 

[TMH]

Thanks for the scoop - worth checking into with USAA.

 

[Mulezen]

TMH...please post what you learn

 

[TMH]

TMH...please post what you learn

With USAA e-bikes would be covered under your standard homeowners insurance policy, subject to the deductible on that policy. I currently maintain a 1% deductible on my homeowners to keep premiums low. If I were to drop the deductible to $500, it would double my annual premiums.

USAA does offer a separately available "Valuable Personal Property" policy. It covers things like stamp & coin collections, camera equipment, guns, jewelry, etc. It does not cover electric bikes, so no help there.

Looks like the O.P. has found a valuable side benefit of having existing State Farm insurance coverage. Unfortunately when I have previously compared rates, State Farm can't compete with what I am getting through USAA.

 

[gkgeiger]

This is very interesting, we just cancelled our policy that covered our 4 E-bikes. It was over $600 and we decided to take our chances. We also have State Farm, I will be checking with my agent. Thanks,
Gene
Edit: Jeremy, what state do you live in? My agent doesn't know anything about this, they said things vary by state.

 

[jeremy8000]

@gkgeiger I'm in SC. If it helps, State Farm defines the 'Policy Type' as a "Personal Articles" policy, and the specific 'Class of Property' is defined as "Sports Equipment."

 

[gkgeiger]

Thanks, we will pursue this further.

 

[6zfshdb]

On a side note, roadside assistance mentioned by the OP, is also covered by some AAA membership plans.

 

[antboy]

With my new ebike scheduled for delivery in a week, I was looking into insurance options and got quotes from velosurance and spokes insurance, ranging from $130-150 for a class 2 $1500 bike, not including liability, but including about $15 for roadside assistance. I'd read that car insurance and homeowner insurance policies were poor options, but figured I'd call my agent just to know for myself.

Turns out that an existing separate 'sports equipment' policy I have with them for some high value billiards equipment will cover it. The policy I have with them covers up to $10k, with covered items detailed by line-item, and I have just enough room under that will (confirmed with State Farm) fully cover my new ebike.

Just wanted to share this for anyone else who uses State Farm, or might want to check with their provider to see if they provide a similar type of policy. In searching for insurance advice on the forum I hadn't seen anything positive about such as an option; if this is well known and I simply missed it, I apologize for what will have made this a pointless thread.

When I got my e-bike I was curious as well and did some searching here and elsewhere.

Found a thread here on EBR, mentioning that some homeowner policies will include e-bikes so it's worth calling.

Our home insurance includes our e-bikes under either "sports equipment" or "fitness equipment" (I forget which), including theft outside the home. We called back and spoke to a second person to double check this.

We're with TD here in Canada, for any other Canadians curious.

 

[jeremy8000]

Update - I need to have words with my agent. I pulled up the State Farm policy itself to get the 'code' on a request, and on reviewing it there's a specific exclusion for bikes.

My apologies to all on what turned out to be misinformation. I'll update the top post as well.

 

[Martinet]

That's a nice decision, but also re-check everything what agent does. Re-check on your own.

I have had 3 incidents over the years, where checking the policy paid off:
1. My son's bike was stolen from his off campus house; because it was not a dorm, the agent said it was not covered. I did not read the policy that way, so I told the agent to get lost, I would handle the claim myself. The company agreed it was covered and their rep implied the agent would get a bonus if there were no claims.

2. & 3. Involved replacement cost policies. 2. Was an old 2 piece video camera taken in a break in. The insurance co. Wanted to deduct depreciation. I got back at them by insisting I wanted a replacement. Since 2 piece equipment was then only available as professional equipment the negotiations level escalated.

3. Involved a small apartment building. After being hardballed by the insurer, we hired a independence adjuster. He got us the replacement cost of plaster walls [much more than sheetrock].

The magic words in dealing with insurers are "bad faith" which potentially opens them up to punitive damages.

 

[jeremy8000]

I spoke with the agent this afternoon. She is aware of the exclusion and believes that she can file to have it added as an exception with the motor differentiating it enough to qualify, and has successfully had electric scooters added to - and claims covered by - that policy type in the past. She's running it through to see if she can get it added, and supposed to get back to me tomorrow. If she confirms it, I'll feel comfortable with an email from her State Farm email address specifically committing to the coverage in spite of the listed exclusion, as an "exception to the exception," otherwise will go with another provider for a policy.

Not getting my hopes up, but I've dealt with her for years, and that office for over 35 years, and they're good people - always had my back with claims. In either event, I'll know in advance if my bike's arrival.

Hoping to be able to edit that too post once more...

 

[FlatSix911]

With USAA e-bikes would be covered under your standard homeowners insurance policy, subject to the deductible on that policy. I currently maintain a 1% deductible on my homeowners to keep premiums low. If I were to drop the deductible to $500, it would double my annual premiums.

USAA does offer a separately available "Valuable Personal Property" policy. It covers things like stamp & coin collections, camera equipment, guns, jewelry, etc. It does not cover electric bikes, so no help there.

Looks like the O.P. has found a valuable side benefit of having existing State Farm insurance coverage. Unfortunately when I have previously compared rates, State Farm can't compete with what I am getting through USAA.

I have been a USSA member for 30+ years and they have covered all claims related to bicycles under my homeowners policy without question.
No need for special VPP coverage or the like with regard to EBikes.

 

[6zfshdb]

That's a nice decision, but also re-check everything what agent does. Re-check on your own.

The last time I dealt with an insurance agent, he tried to sell me Tupperware. That was 35 years ago. Ever since then, I've dealt directly with the company.

 

[jeremy8000]

Ok, so in further discussion with my agent, turns out that there is a cited exclusion for 'bicycles' under the policy, but agents are able to submit e-bikes for inclusion as an electric assist bicycle to the underwriter and have it approved. Just had mine added. For other State Farm-insured folks out there, the code for that policy is "FP-7940.2" and the 'common name is PERSONAL ARTICLES POLICY. Note that this does not extend any liability coverage (but, at least in my case, my homeowners policy extends coverage for that purpose).

 

[FlatSix911]

Does the Personal Articles Policy add additional cost with State Farm?

 

[jeremy8000]

It is, but it's very affordable if you aren't concerned about having liability coverage separate from your homeowners, or about things like race fee reimbursement, etc. In chatting with the agent, it wouldn't cover a DIY ebike, but any standard class 1 or 2 should definitely be no issue. Not sure about a class 3.

I've had a $75/year policy that provides for up to $10,000 coverage on, but each item to be covered has to be itemized and submitted so it's not a 'blanket' for gear (I originally picked it up for some valuable pool cues, so adding the ebike literally isn't costing me a penny extra.

 

[gkgeiger]

We just insured our 4 Ebikes with SF for $7 a hundred in value for a year.

 

[Over50]

I insure most of my e-bikes with Velosurance. I got way too much run around with USAA. I was told something different by each person I spoke with. A year and a half ago I dropped USAA for Farm Bureau. The Farm Bureau agent looked at my Velosurance policy and felt I had better coverage for non-theft related incidents like a collision with a motor vehicle. This was the sticking point for USAA as well. Since the majority of my e-bike mileage is commuting, I figured damage related to collision with a vehicle, pedestrian, dog... is probably more likely than theft. Homeowners, from everything I was told, was not going to cover collision-related claims particularly if I was at fault. It might cover theft or falling off of my Subaru whilst in transport. I say might, because I was initially told by USAA that it would not be covered under homeowners because it has a motor. Hence the frustration with USAA - because I was told different things by different representatives and the company could never really get its story straight. So I didn't want to leave it to chance and fine print and I've stuck with Velosurance to cover theft, collision, damage from other accidents, liability and roadside and some medical.

 

[jeremy8000]

I'm sure it varies from one provider to another, and indeed one policy to another (especially in different states). In at least some cases, as with mine, the homeowners policy provides individual liability insurance that extends beyond the home.

The most effective solution would be to simply purchase an umbrella policy, but with my anticipated riding style and travel paths it would seem excessive.