Bicycle insurance

[Eddy Gordo]

Full comprehensive under household is a very good option.

[Help.Me.]

Specify the bike under All Risk section , if only under contents it is only cover for theft from a locked garage/ house hold with al the fine print stipulated in the policy wording............what ever your "need" is, put it in writing to your broker and get the answers in writing !!  

[Steven Knoetze (sk27)]

10 minutes ago, Help.Me. said:

Specify the bike under All Risk section , if only under contents it is only cover for theft from a locked garage/ house hold with al the fine print stipulated in the policy wording............what ever your "need" is, put it in writing to your broker and get the answers in writing !!  

Agreed, unless it is insured under all risk or "out and about" it will only be covered if stolen from your home. So mugging, off your car, etc, no cover. At least that is how I have been advised by my broker.

Under all risk my bike is insured for R85k and costs R274.14. Excess is 10% of claim, minimum of R100.

[ChrisF]

Also as part of my house and car insurance package.

 

Specified and listed separately.  Full comprehensive insurance, even when taking part in a race.

 

 

Helps that my broker is a tri-athlete, and we follow each others Strava.

[Matu]

I have been happy with jasure, few claims and no issues to pay up and quickly. From my watch to my dual sus shock giving up after a bump.

[Op1]

Im using Naked insurance that covers my bike for 60pm

[SiriS]

Naked does not insure e-bikes (stumped why not, just exclude the motor from claims, but whatever 🤷‍♂️).

57 minutes and counting for JaSure's bot to reply to my question, guess the bots are also tired after another year of lockdown. Anyone know if they insure e-bikes?

Thanks! 

[ChrisF]

Santam DO insure ebikes 👍👍

[ChrisF]

Following yet another "bike insurance" thread I got my annual email from my broker.

 

House, car etc all sorted .... but then we got talking about the Giant Trance E.  Its been 2 years since I bought it, and I wanted to confirm what value to insure it for.

 

Ended up going back to the dealer and getting a written quote.  I also included a screen grab from another dealer's website.

 

I paid R72k for the R80k bike on 17 February 2020.  To replace it now, I will need to put  almost R120k on the counter 

 

And YES, THAT is the value it should be insured for.

 

 

I certainly dont understand the logic behind it .... but this is how so many insurers deals with bicycles.

 

 

 

MORAL OF THE STORY .... if you insured your bike pre-gogga .... do yourself a favour and check in with your broker.  Bike prices went up stupidly crazy, and many may be horribly under insured.

[Steven Knoetze (sk27)]

14 hours ago, ChrisF said:

Following yet another "bike insurance" thread I got my annual email from my broker.

 

House, car etc all sorted .... but then we got talking about the Giant Trance E.  Its been 2 years since I bought it, and I wanted to confirm what value to insure it for.

 

Ended up going back to the dealer and getting a written quote.  I also included a screen grab from another dealer's website.

 

I paid R72k for the R80k bike on 17 February 2020.  To replace it now, I will need to put  almost R120k on the counter 

 

And YES, THAT is the value it should be insured for.

 

 

I certainly dont understand the logic behind it .... but this is how so many insurers deals with bicycles.

 

 

 

MORAL OF THE STORY .... if you insured your bike pre-gogga .... do yourself a favour and check in with your broker.  Bike prices went up stupidly crazy, and many may be horribly under insured.

So my understanding is that they will pay market related prices and not a new bikes price.
So even if you up it to R120k, they may do their due diligence and pay out only what the bike is actually worth.

So as an example, a 2013 VW Polo was bought for R200k and is currently valued at say R80k. You up the replacement value to R400k because that is what a new Polo costs. At claim time you will get the R80k less excesses. So essentially you inflate you premiums for no gain, people would do this all the time then to game the system. Insure a R80k vehicle for R400k and then have an "accident" and sit pretty afterwards......
How are bicycles different in the above scenario? Yes new prices went up and yes they command a higher price of the used market (perhaps) as they represent more bang for buck compared to new bikes now, but that hasn't made the R72k bicycle suddenly worth R120k surely.

I am genuinely asking to know, I understand this is replacement value, not being argumentative. 

[Jewbacca]

1 minute ago, Steven Knoetze (sk27) said:

So my understanding is that they will pay market related prices and not a new bikes price.
So even if you up it to R120k, they may do their due diligence and pay out only what the bike is actually worth.

So as an example, a 2013 VW Polo was bought for R200k and is currently valued at say R80k. You up the replacement value to R400k because that is what a new Polo costs. At claim time you will get the R80k less excesses. So essentially you inflate you premiums for no gain, people would do this all the time then to game the system. Insure a R80k vehicle for R400k and then have an "accident" and sit pretty afterwards......
How are bicycles different in the above scenario? Yes new prices went up and yes they command a higher price of the used market (perhaps) as they represent more bang for buck compared to new bikes now, but that hasn't made the R72k bicycle suddenly worth R120k surely.

I am genuinely asking to know, I understand this is replacement value, not being argumentative. 

I would guess that cars have 'book value' and an entire eco system based around years of finance, insurance and market.

Bikes are still relatively 'new' to the market and up until a few years ago were mostly 'low value' items. 

As prices increase and more and more people insure their bikes I'm pretty sure they will start capping/controlling the process.

Until they add bicycle T's and C's in this regard, keep your policy updated.

[Bub Marley]

5 minutes ago, Steven Knoetze (sk27) said:

So my understanding is that they will pay market related prices and not a new bikes price.
So even if you up it to R120k, they may do their due diligence and pay out only what the bike is actually worth.

So as an example, a 2013 VW Polo was bought for R200k and is currently valued at say R80k. You up the replacement value to R400k because that is what a new Polo costs. At claim time you will get the R80k less excesses. So essentially you inflate you premiums for no gain, people would do this all the time then to game the system. Insure a R80k vehicle for R400k and then have an "accident" and sit pretty afterwards......
How are bicycles different in the above scenario? Yes new prices went up and yes they command a higher price of the used market (perhaps) as they represent more bang for buck compared to new bikes now, but that hasn't made the R72k bicycle suddenly worth R120k surely.

I am genuinely asking to know, I understand this is replacement value, not being argumentative. 

Vehicles are insured for current retail value. Bicycles or any portable item which you used out side of the house are insured for current replacement value. Its just the way the policy is underwritten.

[Steven Knoetze (sk27)]

3 minutes ago, Jewbacca said:

I would guess that cars have 'book value' and an entire eco system based around years of finance, insurance and market.

Bikes are still relatively 'new' to the market and up until a few years ago were mostly 'low value' items. 

As prices increase and more and more people insure their bikes I'm pretty sure they will start capping/controlling the process.

Until they add bicycle T's and C's in this regard, keep your policy updated.

I was recently looking at trading my car in and at least 2 dealerships told me at the time that the whole "book/trade value" thing has fallen flat a few years ago with companies like WBC's who underpay relatively speaking. Its skewed the car market badly but that is a different thread altogether.

1 minute ago, Bub Marley said:

Vehicles are insured for current retail value. Bicycles or any portable item which you used out side of the house are insured for current replacement value. Its just the way the policy is underwritten.

Strange situation but understandable or at least I understand a bit more. It still seems like a crazy situation.

 

So the insurers see it more as a fixed non depreciating asset then, bundling it into electronics, jewelry, etc. Good luck to them, it will change very soon when they start forking out R100k claims for R20k bikes bought in 2015 based on current bike prices.
Suppose that is why bicycle insurance is so expensive, future proofing.

[WR 1.0]

30 minutes ago, Steven Knoetze (sk27) said:

So my understanding is that they will pay market related prices and not a new bikes price.
So even if you up it to R120k, they may do their due diligence and pay out only what the bike is actually worth.

So as an example, a 2013 VW Polo was bought for R200k and is currently valued at say R80k. You up the replacement value to R400k because that is what a new Polo costs. At claim time you will get the R80k less excesses. So essentially you inflate you premiums for no gain, people would do this all the time then to game the system. Insure a R80k vehicle for R400k and then have an "accident" and sit pretty afterwards......
How are bicycles different in the above scenario? Yes new prices went up and yes they command a higher price of the used market (perhaps) as they represent more bang for buck compared to new bikes now, but that hasn't made the R72k bicycle suddenly worth R120k surely.

I am genuinely asking to know, I understand this is replacement value, not being argumentative. 

Your bicycles are usually specified under the non motor section of the policy, where the "New for Old" principle apply. If your 30 year old Telefunken box tv breaks due to an Insured event , the insurer will replace with a new tv of same size - same for your bicycle. 

If your 20 year old Yeti 26r is stolen, you'll get a new 29'r (if your sum insured is correct).

Average on specified items are always contentious, as you select the value to insure for. Tecnically you can under insure knowing you will be replacing the stolen item with a second hand one. That would obviously also depend on whether the Insurer decides to Replace, Repair or pay cash

[ChrisF]

1 hour ago, Bub Marley said:

Vehicles are insured for current retail value. Bicycles or any portable item which you used out side of the house are insured for current replacement value. Its just the way the policy is underwritten.

 

Correct.

 

THIS is the key phrase in the policy - "current replacement value".

 

NOTE - some policies dont have this wording, so PLEASE check with your broker/insurer as to exactly which value applies.

 

 

For MY policy I would be wrong to insure it for the current second hand value.

 

PS - I include a quote from the LBS when communicating with the insurance, thus actual values for my bike.  I dont want uncomfortable questions if I ever need to claim.

 

 

@Steven Knoetze (sk27) YES, having insured cars since the 80's this approach for insuring bicycles is VERY strange to me .... 

Edited January 27, 2022 by ChrisF

[Dexter-morgan]

Just added my Silverback mountainbike on out and for R8,32, I am riding in the mornings with it, so R8,32 is well worth it.