With warmer weather on the horizon, you may think about ways to get outside and enjoy the sunshine. Maybe you’re thinking about cycling to work? Or you’re thinking about hitting the trails as your new hobby? If you answer yes to either of these, there are a few things you should know about choosing the right bicycle insurance. Unfortunately, bicycle theft has increased over the past few years, but that shouldn’t dissuade you. We discuss the types of bicycle insurance available and whether your home insurance covers bikes.
Bikes and Home Insurance: Does My Existing Policy Cover My Bicycle?
Yes. There are two kinds of bicycle insurance in Canada: home insurance and stand-alone bicycle insurance. Let’s explore how they differ and which one might be right for you based on your bicycle, your budget, and your existing coverage.
Home insurance
Most home, condo, and tenant insurance policies have limits on coverage for bicycles. Therefore, if you have one of these policies, there’s a good chance your bike will be covered against theft and damage. Home or tenant’s policies are meant to protect your personal property, and a bike is just that. However, there are some exclusions around this, so it is best to speak with your isure representative to clarify your coverage. Depending on your policy, each type of bicycle you own may be covered up to $1,000. However, you may need to pay a deductible, depending on the policy details.
The primary types of insurance available for cyclists are:
- Theft and damage coverage
- First-party personal injury coverage (protects you if you are involved in a crash)
- Third-party liability coverage (covers you for claims that are made against you if you cause a crash)
All three coverages are essential, but the amount of coverage that you need depends heavily on your circumstances. In any case, if your bike is damaged in, say, a house fire, or stolen out of your garage, you can claim with your home or renters’ insurance provider. When you are ready to buy bicycle insurance, you’ll need to itemize the bicycle (either with photos and receipts) and submit it to your insurer. If you take biking seriously and have a valuable bike, you may consider adding it as a scheduled personal property endorsement. This is similar to how you would insure other high-value items, like jewelry or art. In other words, this will result in a slight increase to your monthly premium.
Third-party bicycle insurance
If you are an avid cyclist who competes, you’ll want more tailored coverage. However, specialized bicycle insurers can provide this coverage. This type of third-party insurer can cover you for third-party liability and personal accidents. You can also receive coverage for legal defence costs if you crash into another cyclist during a race, especially if they decide to sue. If it goes to court and they win, your insurance can cover their bicycle, medical expenses, loss of income, and bike replacement, depending on your insurer. Generally, the annual membership cost for these policies ranges from $45 to $100. If you injure yourself while riding, depending on the chosen policy, you can receive coverage for dismemberment and even death. Your bicycle can also have coverage against all perils, including fire and theft.
Third-party bicycle insurance companies:
How much is bicycle insurance in Canada?
The amount you will have to pay will depend on the insurer and the policy you choose. For third-party insurers, the annual cost of basic coverage is approximately 3% to 4% of the bicycle’s value. However, it can jump to 7% or 8% if you’re in competitive racing.
What if my bicycle gets stolen?
If your bike is stolen, you can file a claim on your property insurance policy. Whether it is a home or tenant policy, you will follow a similar process when it comes to bikes and home insurance. However, please note that you will be responsible for paying the deductible outlined in your policy. If it’s stolen, follow these steps:
- Capture photos and take note of the date, time, and location.
- Report the incident to the police and your insurer.
- Check online to see if your bicycle has resurfaced for sale.
- If you find it online, be sure to report it to the authorities – they can assist you in recovering it. Register your bike with the authorities. Despite the 1% return rate in Toronto, it’s still worth it. AND it’s quick and easy to do.
Check your coverage
Many insurance companies place a limit on the coverage they provide for specific items, such as bicycles. This means that, regardless of how much you spend on your bike, insurance may only value it at a certain amount. To learn more about keeping your bicycle safe, check out our article on bicycle safety tips here.
Did you know: If your bike is worth $1,500 and your deductible is $1,000, you will receive $500 towards the cost of replacing your motorcycle? However, when it comes to bikes and home insurance, it’s possible your premium can increase if you submit a claim.
Be sure to shop around to find the right bicycle insurance that suits your bike and your individual needs. Please speak to one of our isure representatives to find out all the details. When speaking with one of our advisers, the more we understand about the value of your bike and its usage, the more comprehensive coverage we can offer you and your ride.
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