When bicycling, is there a specific type of insurance I need?
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Asked March 10, 2014
Even though a bicycle is part of your personal property, having a bicycle insurance policy will provide you with better protection than your home or renters insurance. In many ways, bicycle insurance is similar to car insurance because it covers you for liability, theft, and damages that would not be part of a standard home coverage.
Bicycle and Equipment insurance is a good idea if you cycle regularly, own an expensive bike or even take your bicycle along on extended trips. The policy includes your bikes and any tools or equipment you take with you on your excursions. For any serious cyclist, biking can be an expensive past time and protecting your investment should be an important part of the hobby.
Bicycle insurance provides you with liability insurance if you cause damage or injuries to someone else. This could be something like crashing into a mailbox, or even having an accident with another bike. Like car insurance, the policy will pay for repairs and medical attention as well as any litigation that arises from the incident, up to the limits of the policy.
When you buy bicycle insurance, make sure that you provide the insurer with an inventory of items you want to protect, including your travel gear, any bikes you want on the policy. Unless your insurance company knows what they are covering, you may find out that the policy is not sufficient when you suffer a loss, accident, theft or vandalism.
You also need to be careful that the limits on the policy are high enough. A policy with low limits could result in higher out of pocket costs. Similarly, be sure that the policy provides what is known as Full Replacement Value coverage. Some companies offer Actual Cash Value coverage by default, which pays a depreciated amount rather than the full cost of repair or replacement, and that, like low limits, could mean that you pay more out of your own pocket.
Answered March 10, 2014 by Anonymous