bike insurance - a rip off?
Discussion
My son has recently moved to Uni at a nearby city so his bikes are no longer covered by our all inclusive house policy. He has been looking at stand alone bike insurance. The main bike he wants to insure is a decent 4 year old mountain bike which when new cost around £2100, current value £900 (as valued by local bike Coop for insurance purposes), similar spec new bike retails at around £2700.
The policies he has been looking at will not give him the agreed value in cash in the event of a total loss, but will pay towards a replacement at a specific dealer. In the event that his bike was stolen, his current circumstances (poor student) wouldn't allow him to fork out for a new bike but he would be looking to source a similar second hand bike to his own but he can't find a policy which would simply give him a cheque for the agreed value, and the specific dealers named by the insurance company don't sell second hand bikes. This doesn't seem right to me and maybe we've missed something in the interpretation of the policies.
Can anyone confirm whether this is indeed becoming the norm or are there decent policies out there which would give him the cash to replace the bike as he sees fit in the event of a total loss?
The policies he has been looking at will not give him the agreed value in cash in the event of a total loss, but will pay towards a replacement at a specific dealer. In the event that his bike was stolen, his current circumstances (poor student) wouldn't allow him to fork out for a new bike but he would be looking to source a similar second hand bike to his own but he can't find a policy which would simply give him a cheque for the agreed value, and the specific dealers named by the insurance company don't sell second hand bikes. This doesn't seem right to me and maybe we've missed something in the interpretation of the policies.
Can anyone confirm whether this is indeed becoming the norm or are there decent policies out there which would give him the cash to replace the bike as he sees fit in the event of a total loss?
Presumably he's taking other stuff with him that also won't be covered on your contents insurance any longer? Assuming that's the case, would it not make sense for him to take out a contents policy of his own which includes bike cover?
From what I can see, most bike insurance policies - especially if you have expensive bikes - are horrifically expensive.
From what I can see, most bike insurance policies - especially if you have expensive bikes - are horrifically expensive.
He has taken 3 bikes away with him:
1. His mountain bike which, as it is big travel full suspension, he will only use for serious playing trips and will be locked in the flat the rest of the time.
2. A road bike, this is on old (but very good) one of mine form the eighties which he uses for training and again this will only be taken out to use and kept secure in the flat the rest of the time.
3. A single speed town bike which we built up specifically for him using daily. It has some nice components on it but we deliberately made it look pretty rough so it could be left chained up all day.
He has flat insurance which gives some cover, but he really wants a policy which will allow him to replace the mountain bike if it gets stolen. One of his friends bikes got nicked from his roofrack last week while they were out on a trip and his insurance wouldn't cover it and this is what my son is trying to guard against.
1. His mountain bike which, as it is big travel full suspension, he will only use for serious playing trips and will be locked in the flat the rest of the time.
2. A road bike, this is on old (but very good) one of mine form the eighties which he uses for training and again this will only be taken out to use and kept secure in the flat the rest of the time.
3. A single speed town bike which we built up specifically for him using daily. It has some nice components on it but we deliberately made it look pretty rough so it could be left chained up all day.
He has flat insurance which gives some cover, but he really wants a policy which will allow him to replace the mountain bike if it gets stolen. One of his friends bikes got nicked from his roofrack last week while they were out on a trip and his insurance wouldn't cover it and this is what my son is trying to guard against.
I seem to recall normal contents insurance was quite tricky for when you were in halls. Endsliegh or similar offered all sorts of policies for contents, IT equipment etc. After the 1st year when we were in a student house share we could get a normal home contents policy.
As above, if the bike is going to be used regularly for nipping around at University then I’d probably spend the premium on a good lock and something simple and 2nd hand to leave in the communal areas.
If it is only going to be used for specific mountain biking then I’d be trying to work out how to keep it secure and out of the way in my room or depending how nearby home is, leave it there still on your contents and pick it back up as and when I needed it.
Bike theft and vandalism was fairly common when I was there and that wasn’t even a particularly metropolitan campus.
As above, if the bike is going to be used regularly for nipping around at University then I’d probably spend the premium on a good lock and something simple and 2nd hand to leave in the communal areas.
If it is only going to be used for specific mountain biking then I’d be trying to work out how to keep it secure and out of the way in my room or depending how nearby home is, leave it there still on your contents and pick it back up as and when I needed it.
Bike theft and vandalism was fairly common when I was there and that wasn’t even a particularly metropolitan campus.
Usually, you get new for old up to 3 years old (frame age, not purchase date). You can pay extra on top of this after that period of cover ends to extend the new for old cover. I'd imagine they'd want a receipt of purchase for the new bike though rather than just paying out cash.
Either way, the bike is under £1,000 now and 4 years old so it will be expensive to insure and probably not worth it. I remember contents insurance being impossible to source in shared accommodation but if you could get that, it would be far more cost effective.
I use E&L for my bikes - you could always chat to them about it first? http://www.eandl.co.uk/cycle-insurance#why
Either way, the bike is under £1,000 now and 4 years old so it will be expensive to insure and probably not worth it. I remember contents insurance being impossible to source in shared accommodation but if you could get that, it would be far more cost effective.
I use E&L for my bikes - you could always chat to them about it first? http://www.eandl.co.uk/cycle-insurance#why
Looked at most of the cycle insurers trying to cover 2 mountain and 2 road bikes totalling about 5k.
Typical price was around £500pa for the 4 bikes but all of the insurers only covered the bikes for theft if they were secured with a gold standard lock to an immovable object and then don't cover theft of "accessories" unless the complete bike is stolen. Accessories basically covered every component fastened to the bike frame eg wheels handlebars etc.
So complete theft is unlikely unless they come with some serious bolt cutters therefore you're just going to come back to a stripped frame still secured to the immovable object and no chance of claiming for anything.
I've saved the £500 a year and just don't leave the bikes anywhere out of site that isn't secured.
Home insurance appears to be the only worthwhile way but a lot don't want to know if the bike is over £1k and we also had a claim for 2 bikes stolen from the garage a little while back so premiums are bit high (again about about £500 on top of just the home insurance), so some of the first years premium was spent on uprating the security at home instead.
Typical price was around £500pa for the 4 bikes but all of the insurers only covered the bikes for theft if they were secured with a gold standard lock to an immovable object and then don't cover theft of "accessories" unless the complete bike is stolen. Accessories basically covered every component fastened to the bike frame eg wheels handlebars etc.
So complete theft is unlikely unless they come with some serious bolt cutters therefore you're just going to come back to a stripped frame still secured to the immovable object and no chance of claiming for anything.
I've saved the £500 a year and just don't leave the bikes anywhere out of site that isn't secured.
Home insurance appears to be the only worthwhile way but a lot don't want to know if the bike is over £1k and we also had a claim for 2 bikes stolen from the garage a little while back so premiums are bit high (again about about £500 on top of just the home insurance), so some of the first years premium was spent on uprating the security at home instead.
I found Hiscox were the only people who would have a proper conversation about what my bikes were, and how they should be insured.
The really pricey one is only insured when it's inside the flat, but the rest would be paid out if they got stolen outside.
I move an SRM from bike to bike, so they agreed to insure that as a separate item, which given that it doubles the value of two of the bikes it goes on was vital.
The really pricey one is only insured when it's inside the flat, but the rest would be paid out if they got stolen outside.
I move an SRM from bike to bike, so they agreed to insure that as a separate item, which given that it doubles the value of two of the bikes it goes on was vital.
As the popularity of cycling has soared so has the average value of each cycle and also the number of thefts.
Unless the cycle is securely chained to an immobile object (a car does not count as this) then away from the home you are always taking a risk. Even if it is chained up you might come back to a stripped frame or find someone has simply cut through the lock. Of course Uni cities are rich pickings for cycles.
It may not be what your son wants to hear but the safest thing is to keep the really decent bike indoors when not in use and travel daily on a cycle you are prepared to lose.
Sad sign of the times
Unless the cycle is securely chained to an immobile object (a car does not count as this) then away from the home you are always taking a risk. Even if it is chained up you might come back to a stripped frame or find someone has simply cut through the lock. Of course Uni cities are rich pickings for cycles.
It may not be what your son wants to hear but the safest thing is to keep the really decent bike indoors when not in use and travel daily on a cycle you are prepared to lose.
Sad sign of the times
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