# Bike insurance.



## unnamedny (Aug 1, 2010)

Hello, I wanted to get an opinion on bike insurance. I came across Velosurance insurance company yesterday. I did a quote for a value of the bike of $3500. I was given the price of $17.5 per month with crash/breakdowns deductible of $100. It only covers bike, no medical or property damage. It also turned out that bike shop this insurance company works with is around the corner from where I live. 

I chatted with representative and got an answer to two major questions I had. 
First one was: Does it cover road crash? I've been told that if it occures, i need to take my bike (or whatever left of it) to authorized bike shop, they will estimate the damage, after deductible they are going to get a check. It was not clear to me If I would need a police report, but I think it's just plus.
Second one was: If something breaks, frame crack, wheel fail etc. I was told, it would be same procedure. 

Insurance will be issued in Brooklyn, NY. 
Please someone tell me if it worth it or not? 
Anyone had experience with bike insurance companies? 
Anyone had experience with this particular company? 
Any catches? 

Thank you.


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## JonTargaryen (Aug 25, 2013)

Does coverage includes theft? If not, I personally don't think it's worth it, just my opinion of course. If coverage does include theft, is it a difficult process to get the insurance company to honor the claim? Or would they say show me the cut lock like some lock manufacturers do (of course, the thief took the lock with him).

One more thing to consider is what are the chances of your road crashes (if they unfortunately occur) involving a automobile? I use my bike for commuting, and I think if I'm involved in an accident, chances are high that it's caused by an at-fault cager, in which case the cager's insurance would pay for repairing my bike.


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## Mr645 (Jun 14, 2013)

I would be interested in a $17 policy to cover crash damage or other damage caused while riding. I was getting quotes of $350 per year. I have no need for theft since I am either riding the bike or it's locked up in my home


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## unnamedny (Aug 1, 2010)

JonTargaryen said:


> Does coverage includes theft? If not, I personally don't think it's worth it, just my opinion of course. If coverage does include theft, is it a difficult process to get the insurance company to honor the claim? Or would they say show me the cut lock like some lock manufacturers do (of course, the thief took the lock with him).
> 
> One more thing to consider is what are the chances of your road crashes (if they unfortunately occur) involving a automobile? I use my bike for commuting, and I think if I'm involved in an accident, chances are high that it's caused by an at-fault cager, in which case the cager's insurance would pay for repairing my bike.


Yes it includes theft. 
Cances are high. since its new york city vehicle might not even claim responsible, if not just hit and run. I've done 5 boro tour 2 years ago, I witnessed 10 bikes folding right in front of me. Another day, kid on bmx bike run into me and I went over the bars. In addition other close calls too.


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## NJBiker72 (Jul 9, 2011)

I have crashed twice but on an aluminum bike. No real damage despite bad crashes. Had a mechanical failure on a carbon fiber bike, which Specialized more than covered the damage. 17.5 per month seems high for crash coverage alone especially with a 100 deductible unless you are racing crits.


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## unnamedny (Aug 1, 2010)

NJBiker72 said:


> I have crashed twice but on an aluminum bike. No real damage despite bad crashes. Had a mechanical failure on a carbon fiber bike, which Specialized more than covered the damage. 17.5 per month seems high for crash coverage alone especially with a 100 deductible unless you are racing crits.


It's crash and mechanical failures of the bike included, it does not just include the frame whole bike. I have wheels priced at around $900 dollars, if they fail I would only have to pay $100 extra. My mavic elite rear wheels cracked after 2 years of riding, because I'm a heavy rider and NYC roads are in very bad shape.


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## NJBiker72 (Jul 9, 2011)

unnamedny said:


> It's crash and mechanical failures of the bike included, it does not just include the frame whole bike. I have wheels priced at around $900 dollars, if they fail I would only have to pay $100 extra. My mavic elite rear wheels cracked after 2 years of riding, because I'm a heavy rider and NYC roads are in very bad shape.


My Rovals broke spokes. I got a set of custom built wheels. If the Mavics fail frequently get better wheels. Roads in NJ are not exactly great.


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## Dumbod (Dec 31, 2004)

You should do a search as this topic has been addressed frequently. Bike insurance is a bad idea for two reasons.

1) Check your home owners/renters insurance. It often covers loss through theft which is the only real issue. Mechanical failures would almost certainly be (i) covered by the warranty (ii) due to owner "misuse" and therefore uninsured or (iii) normal wear and tear and therefore uninsured.

2) Bike insurance is like a service contract on a TV. It's a profit center for the insurance company which means that, in the long run, you are certain to lose money. The only reason they would write a policy with a $350 premium on a $3500 would be if they expected to pay off about once every 20 years. You can do the math. Sure, the lucky (or unlucky depending on how you look at it) can make out but most of us just pay.


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## mdawkins (Feb 6, 2014)

I have experience with bicycle insurance companies, and personally have a policy with Velosurance Cycling Insurance Of course as an insurance company, their goal is to make money, but the same goes for EVERY for-profit business in the USA to be honest. I live in Brooklyn too so, as we know, bike theft here is very common. But, I would chose a stand alone bicycle policy over home/renters insurance policy any day. There are reasons to it: 
1) Velosurance as well as their underwriter Markel does not do depreciation of value on your bike. So a 4 year old $3,000 bike is stolen and a claim placed with the home insurance.Here’s the home insurance math: $3,000 x 30% depreciation = $2,100 loss minus deductible of $1,000 = $1,100 payment to replace a $3,000 bicycle. Out of pocket expense = $1,900
Velosurance math: $3,000 - $100 deductible = $2,900 payment. Out of pocket expense $100. That’s an $1,800 difference of out of pocket expense, or 9.7 years of insurance premiums at $186 a year.

2) About the price. If you think about, their prices are not so high and provide value. Here is what I mean. Consider a bike insured for $3,000 at an annual premium of $186. If the bike is stolen without Velosurance it will take 16 years & 2 months to recover from the theft. With a stand-alone policy and after a $300 deductible you will get a check for $2,700 and will be shopping for a new bike.

And the last but MOST IMPORTANT thing for me is : if your bike gets stolen from a grocery store, park, near a restaurant, anywhere where it is not your home, homeowners/renters insurance will not even talk to you, while a stand-alone bicycle insurance policy will cover you.


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## CHT (Mar 1, 2001)

I'm also considering this policy, for all the same reasons and one additional reason - race crash coverage. I race a lot, and it's really a questions of "when" not "if" I crash. The crash could be nothing or something major. I've been racing an older bike which has it's share of dings, slides, etc. This year I have a new bike, and think the crash coverage while racing is a worthwhile investment. I'm not sure I'll keep the coverage a few years out if I'm on the same bike, but for right now I'd rather not shell out another $x.xx if I snap my frame or wheels. I can afford it if it happens and I didn't have coverate, but for me the premium is a small price to pay for the protection and I would be much happier just paying a deductible.



mdawkins said:


> I have experience with bicycle insurance companies, and personally have a policy with Velosurance Cycling Insurance Of course as an insurance company, their goal is to make money, but the same goes for EVERY for-profit business in the USA to be honest. I live in Brooklyn too so, as we know, bike theft here is very common. But, I would chose a stand alone bicycle policy over home/renters insurance policy any day. There are reasons to it:
> 1) Velosurance as well as their underwriter Markel does not do depreciation of value on your bike. So a 4 year old $3,000 bike is stolen and a claim placed with the home insurance.Here’s the home insurance math: $3,000 x 30% depreciation = $2,100 loss minus deductible of $1,000 = $1,100 payment to replace a $3,000 bicycle. Out of pocket expense = $1,900
> Velosurance math: $3,000 - $100 deductible = $2,900 payment. Out of pocket expense $100. That’s an $1,800 difference of out of pocket expense, or 9.7 years of insurance premiums at $186 a year.
> 
> ...


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