Bicycle Insurance

[daniemare]

Need Advice

 

I have 3 bikes, all of +- equal replacement costs.  And after my recent ordeal with a stolen bicycle - which the police found after just 3 days - I am considering insurance.

 

Now, firstly, I do not want theft insurance from my house. I only want cover when our riding. This brings me to the advice I need.

 

As I can only ride 1 bike at a time, only 1 bike can be damaged or stolen at a time. Will it be possible to insurance against this risk only once, regardless of the bicycle involved? I have tried 2 companies (outsurance and cyclesure) and no luck. They basically insure you for each bicycle 3 times.

 

Now even if I accept the total insurance being a little more than an individual bike (it still does not make sense as it is 1 risk) I cannot accept that no insurance company can't facilitate this.

 

Any advice or direction

[Patchelicious]

Need Advice

 

I have 3 bikes, all of +- equal replacement costs. And after my recent ordeal with a stolen bicycle - which the police found after just 3 days - I am considering insurance.

 

Now, firstly, I do not want theft insurance from my house. I only want cover when our riding. This brings me to the advice I need.

 

As I can only ride 1 bike at a time, only 1 bike can be damaged or stolen at a time. Will it be possible to insurance against this risk only once, regardless of the bicycle involved? I have tried 2 companies (outsurance and cyclesure) and no luck. They basically insure you for each bicycle 3 times.

 

Now even if I accept the total insurance being a little more than an individual bike (it still does not make sense as it is 1 risk) I cannot accept that no insurance company can't facilitate this.

 

Any advice or direction

Usage Based Insurance, or UBI is what you are talking about.

 

It's still a very new concept in the personal lines space. We have actually built API tech and Apps that can support this, but you will struggle to find an off the shelf insurer product that factors this into their pricing. Uptake from the big insurers is slow, but they will come around one day.

 

There might be a product out there right now, but I haven't seen it. Perhaps chat to a broker and see if they can structure something for you.

[GmtbR]

Discovery Insure has this as an option:

 

11.4 | Estimated maximum loss

You may choose an Estimated maximum loss on the following categories or sub-categories, which you believe is the maximum loss that you may su er from a single claim event:

Cameras and media devices Firearms

Jewellery

Watches

Pedal cycles

For example, if you insure four watches each worth R30 000, R25 000, R20 000 and R20 000, the minimum Estimated maximum loss value that can be chosen is R55 000.

The sum insured will always be the sum of the two most expensive items in the category or sub-category.

 

They also have multi vehicle insurance option on cars, which means you can only drive one at a time and have to have trackers on them, but they will discount premiums.

 

 

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[Trance Dance]

I recently worked with an insurer on a new bicycle specific insurance product. One of the points I mentioned was discounted premiums on additional bikes as one can only ride one at a time. Hence reduced risk. The project has stalled but hopefully will come to market in the near future. Activity related rates and free cover for kids bikes as well.

[daniemare]

Thanks guys,

 

Funny side comment, I tried MiWay too, but they could not do insurance "my way", even though they preach that on their tag line

[Pieter1]

I’m with cyclesure. My bike is in a storage unit most of the time. I let them know which monts I’m going to be riding it and they increse the premium accordingly. Dont know if that helps your situation.

[Letum911]

I'm with Santam, they charge per bike (so not what you want). 

 

However what you are proposing is very interesting, and almost logical if one thinks about it. But my question is how do they know on which bike to increase the premium pro rata on a specific day? Or is an App the solution where you log in "I'm using X bike today"? My bikes differ by about R15k in value between the two, which translates into a R80.00 difference in monthly premium between the two. Meaning that should I choose my cheaper bike on a daily basis I will safe a fair amount if I only pay 50% of the premium on the other, however how do I do things if I decide to use the more expensive bike today?

 

*PS. The above are just from a point of interest. I work fairly closely with a few insurance companies and can always pitch the idea if I have all my own questions sorted. 

[HBO]

Discovery Insure has this as an option:

 

11.4 | Estimated maximum loss

You may choose an Estimated maximum loss on the following categories or sub-categories, which you believe is the maximum loss that you may su er from a single claim event:

Cameras and media devices Firearms

Jewellery

Watches

Pedal cycles

For example, if you insure four watches each worth R30 000, R25 000, R20 000 and R20 000, the minimum Estimated maximum loss value that can be chosen is R55 000.

The sum insured will always be the sum of the two most expensive items in the category or sub-category.

 

They also have multi vehicle insurance option on cars, which means you can only drive one at a time and have to have trackers on them, but they will discount premiums.

 

 

Sent from my iPhone using Tapatalk

This is correct. As far as I know Discovery are the only Insurer who has this option. Just note that you still have to specify all 3 bikes on the policy, but you choose the "Estimated Maximum Loss" option. You will then only pay for two most expensive bikes.

 

However, this is not available as a stand alone product, only as part of your personal policy which at least should include House hold contents of R 250 000. Just also take note that if the bikes get stolen from your house or got damaged whilst in the house, average is applicable whether it is specified or not.

 

I think Investec have something similar where you have automatic all risk cover for anything of up to R 50 000 without the need to specify anything. You need to bank with Investec and the sum's insured for contents and buildings is quite high.

[daniemare]

I'm with Santam, they charge per bike (so not what you want). 

 

However what you are proposing is very interesting, and almost logical if one thinks about it. But my question is how do they know on which bike to increase the premium pro rata on a specific day? Or is an App the solution where you log in "I'm using X bike today"? My bikes differ by about R15k in value between the two, which translates into a R80.00 difference in monthly premium between the two. Meaning that should I choose my cheaper bike on a daily basis I will safe a fair amount if I only pay 50% of the premium on the other, however how do I do things if I decide to use the more expensive bike today?

 

*PS. The above are just from a point of interest. I work fairly closely with a few insurance companies and can always pitch the idea if I have all my own questions sorted. 

I honestly do not mind that they based the premium of the value of the most expensive bike

 

I would have thought something like this (example numbers):

3 Bikes @ Replacement Values (with individual insurance premiums) of R25,000 (150) , R40,000 (200) and R60,000 (250)

 

Now, I would expect that the R250 to drop slightly, but then you pay some fee for this approach, lets say R10 per bike.

 

So total insurance @ R250 instead R500pm

[Patchelicious]

I'm with Santam, they charge per bike (so not what you want).

 

However what you are proposing is very interesting, and almost logical if one thinks about it. But my question is how do they know on which bike to increase the premium pro rata on a specific day? Or is an App the solution where you log in "I'm using X bike today"? My bikes differ by about R15k in value between the two, which translates into a R80.00 difference in monthly premium between the two. Meaning that should I choose my cheaper bike on a daily basis I will safe a fair amount if I only pay 50% of the premium on the other, however how do I do things if I decide to use the more expensive bike today?

 

*PS. The above are just from a point of interest. I work fairly closely with a few insurance companies and can always pitch the idea if I have all my own questions sorted.

The how is very interesting as is the tech that supports it. I will gladly tell you about it on a ride, but I'm reluctant to post my IP on this forum

[lechatnoir]

I'm with Santam, they charge per bike (so not what you want). 

 

However what you are proposing is very interesting, and almost logical if one thinks about it. But my question is how do they know on which bike to increase the premium pro rata on a specific day? Or is an App the solution where you log in "I'm using X bike today"? My bikes differ by about R15k in value between the two, which translates into a R80.00 difference in monthly premium between the two. Meaning that should I choose my cheaper bike on a daily basis I will safe a fair amount if I only pay 50% of the premium on the other, however how do I do things if I decide to use the more expensive bike today?

 

*PS. The above are just from a point of interest. I work fairly closely with a few insurance companies and can always pitch the idea if I have all my own questions sorted. 

 

Also with Santam, and my my camera gear on their 'first loss' option. each item is listed and valued, but since i don't take it all out the house everytime, i've put only 2/3 of the value in the first loss bucket. claims will only be paid to that amount. the balance of the value was added to household contents.

 

I asked if the same could be applied to bikes as I only ride one at a time, but no... they don't do first loss on bikes. If Disco do, i need to investigate and get a quote

[daniemare]

There is a lot of things in insurance that does not make sense to me, a mere mortal when it comes to these things. Other than the bike thing, I also do not get:

 

1 - Why my car is still "valued" at a number that exceeds what I actually paid for the damn thing 4 years ago (yes I know I can elect trade, but still)?

 

2 - Why so few companies (Discovery I am looking at you) cannot exclude theft cover from household content insurance. Never say never, but the likelihood of my bed, sofa and dining room table will get stolen is almost zero (considering where I live).

[bmw1za]

I dont know if this is quite the same... but i have the same dilemma in terms of training wheels and race wheels. 

 

My luck i always damage the set that just so happens to Not be covered (Sigh). But paying on 2 sets is just not logical (ish) . I can only ride on one set at any one time . 

[WR 1.0]

There is a lot of things in insurance that does not make sense to me, a mere mortal when it comes to these things. Other than the bike thing, I also do not get:

 

1 - Why my car is still "valued" at a number that exceeds what I actually paid for the damn thing 4 years ago (yes I know I can elect trade, but still)?

 

2 - Why so few companies (Discovery I am looking at you) cannot exclude theft cover from household content insurance. Never say never, but the likelihood of my bed, sofa and dining room table will get stolen is almost zero (considering where I live).

Some insurers will offer fire and storm cover for your contents (excluding theft).

[WR 1.0]

This is correct. As far as I know Discovery are the only Insurer who has this option. Just note that you still have to specify all 3 bikes on the policy, but you choose the "Estimated Maximum Loss" option. You will then only pay for two most expensive bikes.

 

However, this is not available as a stand alone product, only as part of your personal policy which at least should include House hold contents of R 250 000. Just also take note that if the bikes get stolen from your house or got damaged whilst in the house, average is applicable whether it is specified or not.

 

I think Investec have something similar where you have automatic all risk cover for anything of up to R 50 000 without the need to specify anything. You need to bank with Investec and the sum's insured for contents and buildings is quite high.

Hollard has a specified value option for bicycles as part of their new EASY policy offering. You would need to have contents cover though. You can then decide whether to specify all your bikes individually or bicycles to the value of X.

[AllAboutRides]

I pay R800 for an S_works epic....insured for R140k

 

This feels like a rip off, don’t even pay that for my bakkie