So, you’ve bought yourself a pedal cycle and been enjoying the benefits of ownership, when a friend stops you in your tracks by asking “how much did it cost to insure?”
If you’ve already done your homework, you’ll be able to answer with confidence, but if, like many, it’s something you’ve not considered, we’ll help you decide what’s best for you with a few facts.
Is your pedal cycle covered currently?
If you’ve got a Home insurance policy, you may have automatic cover in place but you’ll need to check your policy. Some Insurers will offer this kind of cover as standard, whereas others will add it by extension as an additional cover. It’s also worth checking whether Insurers want you to tell them specifically about your cycle’s details (make, model, specification, value) as some might make such a declaration a term and condition of cover. And whilst you’re checking terms and conditions, see if there are any other specific ones relating directly to your pedal cycle that you need to comply with.
Home or away?
Another important thing to check is where and when your pedal cycle is covered. If you’re using your pedal cycle daily for commuting, for example, you may be locking it up and leaving it in a place other than home, so you need to check whether it’s fully covered in such a situation: especially if that’s overnight. It’s also worth considering whether you can take your pedal cycle away from home when making a road trip. Many people like to off-road with their bikes (desert cycling) or cycle to a neighbouring territory (UAE to Oman, for example), so check your policy. Many specialist pedal cycle insurance policies offer such cover so this might make you consider purchasing a dedicated policy.
There are a number of factors you should consider when deciding which policy to choose but primarily, you should check:
- The risks covered, for example, malicious damage (vandalism), accidental damage, theft, off-road, etc.
- The policy operative limits (UAE only or abroad too)
- Item limit – if your pedal cycle is an expensive or specialist model, you should definitely consider purchasing a pedal cycle insurance as it offers wider coverage
How much your Insurer will pay you if you claim
You might assume that if your cycle is stolen or damaged beyond economical repair that you’ll get the cost to replace it with a new equivalent, but that’s not necessarily the case. Always check the policy to see whether it provides “new-for-old” cover. You should also see whether there are any conditions regarding depreciation as sometimes your settlement will be reduced according to the age of your cycle. One final point is to check whether you’ll be sent a replacement, similar cycle or given equivalent cash to replace it yourself.
How much you’ll need to pay your Insurer if you claim
Always check the excess mentioned in the policy. This is the amount of your contribution towards the cost of any claim you make. If it’s too high it might make you think twice about claiming, which defeats the object of the insurance! However, if you look for a lower excess through paying more premium (if your Insurer says this is possible), or if you decide to cover under your Home policy which typically has smaller excesses, your no claims discount could be affected resulting in a higher premium at next renewal, and indeed subsequent ones.
Your policy will undoubtedly contain a number of cover conditions, particularly when it comes to security. Always check your obligations to the Insurer as in the event of a claim, they are not obliged to pay you if you didn’t follow their rules.