Need bicycle insurance? Here’s everything you need to know

Bicycle insurance is not compulsory, but it is useful. If you are thinking about buying it but wondering if it’s worth it, read this article.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Female friends enjoying a vacation.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

You don’t need bicycle insurance to ride on UK roads, but it is useful for a number of different reasons. This article tells you all you need to know.

Who needs it?

You should think about getting your bicycle insured if you fall into any of the following categories:

  • Your bicycle is expensive to replace – A specialist bicycle can cost as much as £12,000, so buying one is a big financial commitment.

  • You rely on your bicycle – If you use your bicycle to get to work, college or school on a daily basis, then its absence would be immediately missed. In addition, it’s a sad fact that you are more likely to be in an accident, purely because you spend more time on the road.

  • You are a keen cyclist – If you use your bicycle to participate in events such as triathlons or races, then it is worth getting insurance cover.

Is it worth it?

Unfortunately, bicycle theft is extremely common, especially if you live in a major town or city. In addition, while most accidents on the road involving cyclists are thankfully not fatal, equipment damage is also a common problem.

It is therefore worth insuring your bicycle against damage and theft at the very least.

Where can I get bicycle insurance?

You can get this type of insurance through two main sources:

  • Your home and contents insurance
  • A specific bicycle insurance policy

Using your home and contents insurance tends to be best for non-specialist bicycles that are used every day. This is because there will be a maximum claim amount per item which is unlikely to cover a high-end specialist model.

If you have home and contents insurance, check your policy to make sure you have the right level of cover. Things to look out for include the excess if your bicycle is stolen. This could be as much as £100. This might not seem much, but if your bike is worth £150 then it’s a bit pointless.

If you are a cycling enthusiast, then you need to seriously consider specialist insurance. Many insurers provide this, including British Cycling which offers discounted cover.

What type of cover do I need?

You should insure your bicycle against theft and damage.

Bear in mind that most insurance companies expect you to secure your bicycle at all times. Make sure you have a secure area to store your bike while you are at home.

If your bicycle is stolen, you may not be covered for any loss if your bike was not properly secured when the theft took place. If you break the law and cause an accident, you may not be covered for any subsequent damage to your bicycle.

How much does it cost?

This will depend on the replacement cost of your bicycle. As a rule of thumb, bicycle insurance should cost no more than 10% of the cost of your bicycle.

So, if your bicycle costs £600, insurance should cost no more than £60.

Take home

Bicycle insurance is worth it, but you will also need to take responsibility.

Invest in a good bicycle lock. Most cycle thieves are opportunists, so the best deterrent is to make your bicycle difficult to steal.

Take responsibility while on the road. Take care while cycling and have consideration for other road users. This will help prevent accidents.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »