Our guide to insuring your bike and accessories, as well as third- party liability and personal injuries.
Every year, thousands of bicycles are stolen across the country. Regrettably, they're quite easy to take and far more difficult to recover.
Bikes may also be deadly, with over 12,000 bikers being hospitalized each year as a result of collisions. If you are hurt while riding, it may be a costly experience, especially if you have to miss work as a result.
This is where bike insurance could seem useful, but with a big list of limitations and the possibility that you're already insured for some situations under your existing policy, it's important to do your research to make sure it's worth it.
Do I need bicycle insurance?
Bicyclists are not required by law to have insurance. However, if you're thinking about getting a policy, the first thing you should think about is if you're currently protected by other forms of insurance.
Medicare, private health insurance, life insurance, and house and contents insurance, for example, can cover you in a variety of situations, from personal injury to home burglary.
Decide what you want coverage for and don't pay for what you don't need to prevent over-insuring yourself.
Does bike insurance cover ebikes?
All of the standalone bicycle insurance policies we looked at supported ebikes, with the majority requiring that the bike be a 'pedal assist' bicycle with a maximum power output of 300 watts.
Bicycles with an internal combustion engine or other forms of power aid are usually excluded (these may be considered mopeds and will require different cover).
Bike insurance can cover accidents sustained while riding a bike, but Medicare or private health insurance may already cover you.
1. What do you want cover for?
You
- For injuries incurred when using the bike?
- For loss of income if unable to work?
The bike for damage and theft
- When the bike is at home?
- When the bike is in use?
- When travelling or competing?
Third-party liability
- For injuries to third parties?
- For damage to property?
2. How much are you covered for under the policy?
- For the bike?
- For accessories?
- For personal injury and income loss?
- For third-party liabilities?
3. What are the exclusions?
4. What is the excess on claims?
What does bike insurance cover?
Different forms of bicycle insurance may provide cover for some, or all, of the following:
1. Cover against theft or damage
Bike thefts in Victoria surged by almost 10% from 2018 to 2019, setting a new high of 6923 bikes taken in a single year, according to Victorian crime data. If you want your two wheels to be protected in the event of theft, you'll have to take extra care of them.
Theft was not covered in several of the bike insurance policies we looked at because of frequent exclusions. Generally, unless the bike is stolen or destroyed in the same occurrence, any accessories such as tyres and wheels will not be covered.
Theft also often won't be covered if:
If your bike was stolen from your house, but there is no obvious proof of forced entry or removal of your bike, or if you were gone for longer than 60 days,
You didn't attach your bike frame to an immovable object with an authorized lock (whether you were out and about or at home). If you keep it at home, you can typically lock it up in the garage if all of the windows and doors are securely locked.
2. Cover for personal injuries and loss of income
Personal injury protection is frequently included in the range of bicycle insurance plans available, and some companies even provide it separately. However, it's important to understand what's on offer so you don't over-insure yourself.
If you need to go to the hospital in Australia, you may be treated for free thanks to Medicare. Medicare, on the other hand, will not cover the expense of an ambulance ride, as well as any dental or physiotherapy treatment that may be necessary as a result of your injuries. If you have private health insurance, some of the expenditures not covered by Medicare may be reimbursed by your provider, depending on your policy.
Many bicycle insurance policies exclude charges that are covered entirely or partially by Medicare, as well as any costs that may be covered by your private health insurance, if you have it.
Loss-of-income coverage is maybe a more beneficial component of certain bike insurers' coverage. Be aware that a bicycle insurer may only pay expenses related to lost income that are not covered by other insurance policies, such as compulsory third-party coverage for vehicles, statutory benefits, or income protection coverage, which is often included as an option with life insurance policies through your superannuation.
Furthermore, if you primarily commute by bike, several states and territories (such as Queensland and the ACT) offer workers' compensation coverage for your commute to and from work. In places where workers' compensation does not cover this (such as WA, Tasmania, and South Australia), your union membership will usually cover it.
3. Cover for third-party liability
Collisions involving bikers and pedestrians do happen, but according to data, they aren't widespread.
According to a research conducted by the Monash University Accident Research Centre, 12 persons came to emergency rooms and 38 people were admitted to hospitals in Victoria for pedestrian injuries sustained as a result of being struck by a bicycle in 2015–16.
These figures reflect a relatively tiny percentage of pedestrian injuries, with motor vehicle crashes accounting for the vast majority.
However, the danger still exists, so if you only need coverage for third-party property and personal harm (similar to a car's green slip), Cycling Australia and Velosure provide standalone third-party liability insurance.
I have a cheap bike – is insurance worth it?
It's up to you to decide how much danger you're willing to take. Given the fact that only 10% of stolen motorcycles are ever found, you may feel that insuring your pricey bike is worthwhile.
Calculate how much you'll pay in insurance over the life of your bike (say, seven to ten years) vs the cost of your new bike to see if it's worth it.
If your new bike costs $700 and your annual insurance is $150, you'll likely wind up spending more for insurance than it would cost to replace your bike. In this instance, you could be better off'self-insuring' by setting aside funds in a separate savings account to cover the cost of replacing your bike if it is destroyed or stolen.
However, it's worth looking into how much it would cost to add your bike as movable belongings to your house insurance, since this may be considerably less expensive than buying separate coverage.
It's also vital to realize that you won't be insured for legal liability if you don't buy insurance. While portable contents insurance will protect you for legal liability while you're away from home, make sure you check your policy document to ensure there are no limitations that apply while you're riding your bike.
Standalone bicycle insurance providers
Some providers offering standalone policies include:
- Velosure
- Sundays Insurance
- Bikesure
- Wiggle
- Real Insurance
Bicycle cover with your home insurance
While your home contents insurance should cover your bicycle while it is at home, it may create a gap in coverage when you're out and about.
As an optional extra, several insurers provide portable protection for particular objects away from home, which may be a cost-effective choice.
Some optional extra bicycle insurance policies may also cover any third-party legal duties, albeit this coverage may not apply if you are competing in a race.
Alternative insurance providers
Rider insurance is commonly included with membership in a bike organization such as Bicycle Network, Cycling Australia, or your state's local cycling organisation, and covers costs related with personal injuries, third-party legal responsibility, and, in some situations, income protection. Members of Cycling Australia also receive a 10% discount on stand-alone Velosure bike insurance.
Income protection insurance (for when you're injured and can't work) is frequently available through your superannuation fund or on life insurance contracts. This is available as a stand-alone package from several bike insurers. Some states and territories' workers' compensation plans, as well as some union memberships, cover your commute to and from work.
