Bicycle insurance on your home insurance

Do I need bicycle insurance?

While not a legal requirement, the rising cost of bicycles makes insurance a great way to get financial peace of mind.

In the UK, the rate of bike theft is high. Crime Rate reports that around 49,000 to over 77,000 bikes are reported stolen annually.

When buying bicycle insurance, a key feature to look out for is 'new for old' replacement. This replaces a stolen or destroyed bike with a brand-new model of the same or equivalent specification. This type of cover means that even if your bike has depreciated in value, you should receive a new model, provided it was bought new and is typically less than three years old.

Getting the right cover can give commuters who use 'cycle to work' schemes peace of mind, ensuring they aren't left paying for a bike they can no longer use.

Is my bike covered by home insurance?

Many home insurance policies include basic bike cover as standard, but the 'single item limit' might not be enough to cover expensive bikes. The single item limit is the maximum amount you can claim for any one item, which is usually around £500 to £1,000.

It's worth checking if 'away from home' cover is included or needs to be added as an optional extra. This cover protects your bike when you're outside your home.

Does electric bike insurance cover my e-bike?

Yes, electrically assisted pedal cycles, known as EAPCs, can be insured. E-bike policies often provide cover for the expensive battery and motor, protecting these components against theft or accidental damage.

The bike must meet UK legal requirements to be eligible for standard e-bike insurance, though. That includes a 250W max power and a 15.5mph cut-off.

While not legally required to have insurance in the UK, it's highly recommended given the high value of e-bikes and their components.

How much does bicycle insurance cost?

The cost of bicycle insurance depends on a variety of factors, including:

• Bike value: The higher the cost to repair or replace your bike, the more expensive your premiums will be. Make sure your bike is insured for its full value; otherwise, you could end up losing out financially if you need to claim.
• Postcode: Local crime rates are taken into account when working out the cost of your insurance. Crime Rate reports that the current most risky cities for bicycle theft are Hackney, Southwark, and Islington, with crime rates of 3.91, 2.69, and 2.63 per 1,000 daytime population, respectively.
• Security level: Storing the bike in a secure location rather than leaving it outside can lower costs.

There are a few ways you can reduce premiums on your bicycle insurance.

• Use 'Sold Secure' rated locks: Insurance companies often mandate specific Sold Secure ratings (Silver or Gold) for bikes over a certain value. Using these reduces the chance of theft and therefore lowers premiums.
• Register the bike on the BikeRegister database: Marking your bike and adding it to the database makes it harder to sell on, discouraging thieves. It also increases the chance of recovery if your bike is stolen, as registered bikes are easier to track and return.
• Increase your voluntary excess: This is the amount you agree to pay towards a claim. Choosing a higher excess can lower your premiums, but always make sure the amount is affordable.
• Compare quotes: The best way to find the cheapest bike insurance deal is to shop around. Check what home contents insurance policies are available to you and what level of cover they can provide for your bicycle.

For more general home insurance tips, check out our seven steps to cheap home insurance.

How do I keep my bike safe?

To keep your bike safe, it's worth investing in good security measures. That might include locking your bike away in a secure garage or garden shed to protect it from theft or fitting an alarm to your bike.

When securing your bike, use a D-lock and a heavy-duty chain or cable lock. Using two different types of locks requires thieves to use different tools, making it harder to steal the bike.

You should fasten the frame and both wheels to an immovable, well-lit, and CCTV-covered object and position the lock off the ground to stop it from being smashed.

Ensuring your bike is safe and secure is worthwhile, especially if your bike is valuable. Fitting security devices can also help reduce the cost of insurance, as it lowers the risk of your bike being stolen.