Is it worth insuring a new £4k bike and accessories?

andyh01

I'm looking at buying a £3k bike and accessories as my precious only bike and the most I've ever spent on a bike (the car cost less) I've worked within the insurance industry for plus 10 years so have an idea of how it works.
Quite a few years ago our house got flooded following the 2008 unprecedented rainfall in Sheffield, which understandably had an effect on future insurance premiums basically no-one else would touch us and the existing insurer applied a staggered 30% year on year increase for 3 years, adding 10% even when we moved house, (risk had changed as new house had flood history) it still followed us, we're now back to normal, however this has clouded my wife's opinion on house insurance (even though flood claims and underwriting strategy for them are different to theft) and she will only want to claim in the worse event of total or substantial loss, to the point of not claiming for a £3k ring that was specified and would've been a valid claim.

When I get the bike, the Mrs thinks I should get insurance mainly for theft as won't let me add to the house insurance, which is what I would've done. Separate bike quotes are like 10-20% of the bike value for the year and although on average bikes are considered easy target, in my case I think the bike be secure enough, either at home stored on drive down side of house behind locked boarded metal gates and locked to anchor point drilled into side of bay window. At work gold sold d lock and wire loop locked to bike rack in an improved security underground carpark, with roller shutter doors that requires access card and are near the security office that is manned. The office location is also out on it's own, unlike my previous office that was central location near train station and nearby the local drug rehab clinic.
The small concern is tailgating and the existing shutters are automatic open from the inside.
So... Is insurance worth it for theft cover for a fairly secured bike at about £250 for the year for a £4i bike?
Thanks Andy

barongreenback

Well if it gets nicked then yes. That’s the whole point of insurance. Cost vs benefit. Personally I choose to insure that risk. If you can afford to replace your 4K bike in the unlikely event that it gets stolen and you won’t be too upset about shelling out, then don’t buy the insurance.

Matthewfalle

you work in the industry so you are the SME so you should know.

andyh01

No I couldn't afford to replace in the unlikely event that it's stolen.
Yes I did use to work in commercial insurance and I guess my risk perception is somewhat tainted
I have dealt with plenty of occasions of repudiated, invalid and fraudulent claims as well personal experience. I have also dealt with plenty of valid claims as well questionable payouts. I've never had a bike stolen before but I also know that theres an unlikely small chance that I might need to call upon, may not even be in the 1st 2nd or even 3rd year of insurance, by which time I would've built up my own reserve funds.
If it was more like 5% of the value or added to home insurance it'll be more cost effective./value.

cougie

I only have my bike on the household insurance. Works out the cheapest.

david7m

AndyH01 wrote:

.............may not even be in the 1st 2nd or even 3rd year of insurance, by which time I would've built up my own reserve funds.
...................

How about if it gets stolen tomorrow? I'd at least add to home insurance if it allows bikes of that value (ours is limited to £2K).


Dave

Matthewfalle

AndyH01 wrote:

No I couldn't afford to replace in the unlikely event that it's stolen.
Yes I did use to work in commercial insurance and I guess my risk perception is somewhat tainted
I have dealt with plenty of occasions of repudiated, invalid and fraudulent claims as well personal experience. I have also dealt with plenty of valid claims as well questionable payouts. I've never had a bike stolen before but I also know that theres an unlikely small chance that I might need to call upon, may not even be in the 1st 2nd or even 3rd year of insurance, by which time I would've built up my own reserve funds.
If it was more like 5% of the value or added to home insurance it'll be more cost effective./value.

i refer to my previous post plus add the fact that only you know your personal circumstances so in this case you are the SME - no one here can help you.

earthvspace4XTuUWcX

I've owned bikes for 30+ years, never paid for insurance, never had one stolen. All the money I've saved would probably pay for a Colnago C60
We are all different, but personally, if I couldn't afford to replace a £3K bike then I wouldn't spend that much on a bike to begin with.

dee4life2005

xdoc wrote:

I've owned bikes for 30+ years, never paid for insurance, never had one stolen. All the money I've saved would probably pay for a Colnago C60

Sounds like a valid reason to N+1 to said bike

Do you get 3rd party liability cover through your household insurance when on the bike if the bike isn't specified, or when the "bike" add-on isn't applied? This could be obtained via a British Cycling Membership I think.

It sounds like your current process already minimises the "theft" risk ... never like to mention it, but having been in an accident myself, what about the accident risk - thinking more about the "exceeding ones talent" type here (or where nature makes an unexpected appearance on a country road), and writing the bike off and possibly needing physio and the like. You might only get the physio stuff with a dedicated cycle policy but by adding your bike to a household policy (which is usually far far cheaper) you'd have peace of mind that should something unexpected happen that you would be able to replace the bike at least. Seems sensible to have some form of full replacement insurance in place for a £3k bike, given that you say you couldn't afford to replace - it costs more than your car, I'm assuming that's insured fully comp (use that as an argument if need be ).

andyh01

Happy New Year all!
Thanks xdoc, that's kinda my thinking but sods law and all that.
To be valid it'll have be secured and reduced risk anyway..
To an extent and dependent on circumstances, 3rd party liability covered under the legal extension cover I have on house hold, likewise in the unlikely event that our dog creates a legal liability to us.

I agree I would look to add to home insurance as specified item however pointless paying the additional premium as Mrs wouldn't claim as to not affect home insurance as per previous flood claim, even though it's a different peril so won't effect it as much.

andyh01

The only serious accident I've had, T boned by car I was happy to deal with their insurer direct, however, they insisted I was represented so ended up going though no win no fee , my legal costs were billed separately to the third party so didn't come out of my settlement, although I believe the rules have now changed. It took 18+ months of wriggling though and my representative didn't have much of clue.
It terms of AD that's something I'm more comfortable to accept and why not looking for carbon etc.
Also as most of route is off road reduced risk well with traffic anyways.

redvision

As others have said, if you can't afford to replace any damaged bike then yes, get it insured. However, make sure you check the policy thoroughly. I have recently found out the hard way that even though certain policies claim to cover your bike during use away from the home, the insurance company find ways to wriggle out of it (in my case because I was riding the bike).

andyh01

Could you elaborate on the circumstance redvision?

redvision

AndyH01 wrote:

Could you elaborate on the circumstance redvision?

Sure, I took out a home insurance policy with a well known insurer as it bragged that it fully covered bikes up to 5k in and out of the house, away from home (within the uk) for any damage, including accidental.
A few days after my crash I contacted them but my claim was instantly dismissed as they said I was riding the bike. Apparently had I been pushing or carrying or even threw it off a cliff they would have covered it. But as I was actually riding it turns out it wasn't covered.

Only saving grace for me was it was my training bike and specialized have provided a heavily discounted replacement on their crash replacement scheme.

Moral of the story, get specific cover for the bike. Don't rely on home insurance, despite what the policy claims.

andyh01

Ah ok the "not whilst in use" exclusion, which can also be found in cycle specific policies.
Have just looked at AssetAssure or something theft for £3500, £250 accessories £500 excess for £115 approx for the year which is about half price of other quotes and a bit more worthwhile consideration, now if only I can get it half price again....