Deciphering the wheel of cycle insurance

In the confusing world of insurance you can be guaranteed of one thing - your valuable bike will not be considered as an insurable item under a blanket household contents policy.

Bike only insurance is not an option in Australia.

In researching the information presented in this article a number of Australian insurance companies were canvassed. The general consensus from the companies was that if your bike is worth a thousand dollars or more you would need to nominate its value in a valuables listing as part of your household contents. An option which comes at a higher premium. You bike would then only be covered for accidental loss or theft.

Some insurers ask that you nominate specified contents that are portable valuables - items such as jewellery, video cameras, bicycles etc that are taken outside of the household. These contents are assessed as risks in addition to your normal household contents.

With some insurance companies you can choose the option of including an unspecified portable contents value, which will cover bicycles, but then you also take the risk of having a percentage value of your bicycle paid out and not the full value.

Covering the costs of damage while in use is not an option in 99% of the insurance companies questioned. That means if your bike is damage through an accident such as a bike crash, it is not covered. But if your bike was damaged when you were transporting it, say it was in a bike carrier at the rear of your car and another vehicle crashed into it, then it would be covered if you had taken out on of the additional options offered on your household contents.

Some of those insurers who do offer bicycle insurance, at a premium, also apply restrictions to the cover, such as locking/securing requirements.

If you travel overseas with your bike that opens a whole new can of worms with insurers and results in an increase in premium costs. In that instance your bike may have to be considered as a personal effect and restrictions may apply about cover offered.

A specialist cycle insurance company does offer a comprehensive bicycle insurance cover, which includes damage while in use, but you must take out a home contents policy with the company to take advantage of the cover.

If your bike is your pride and joy then taking out insurance against any possibility of loss, theft or damage is advisable. Just finding a policy that suits you and your personal and financial circumstances could be difficult.

Information supplied by: NRMA; Allianz ; QBE Insurance; RACQ; ANZ Insurance; Suncorp; Cyclecover.