Bicycle Insurance

One of the main reasons for the boom is the Government’s Cycle to Work scheme which allows consumers to buy a VAT-free bike out of their salary before it’s taxed. 26,000 vouchers had been redeemed by June 2009, compared to 35,750 throughout the whole of the previous year.

Cycling risks

But despite the growing popularity of the pushbike, only two per cent of regular cyclists are insured against accidents or bike theft, according to the CTC, the UK’s national cyclists’ organisation.

While the number of cycling deaths in the UK fell from 136 to 115 in 2008, the British Medical Association (BMA) estimates that there are 90,000 road-related cycling accidents and 100,000 off-road accidents every year – with many more going unreported.

On top of this, an estimated 300,000 bikes are stolen every year in the UK, with less than five per cent being returned to their owners.

Bicycle insurance

One of the main reasons that so few cyclists are covered is that unlike cars, bikes don’t legally require insurance.

However, insuring your bike can cover you against third party claims if you injure someone or damage their property, personal injury and theft.

Before buying specialist cover however, you should check to see if you're covered by your home contents insurance – particularly for third party liability.

Bike cover can usually be added to your home contents policy for an extra £10 to £15, and in most cases this is better value than standalone cover.

However, standalone cover – which starts from around £50 a year – is a better choice if you have an expensive bike as the cover will be more comprehensive.

What types of bicycle insurance are available?

Different kinds of bicycle insurance policies are available depending on the level of cover you want and how much you want to spend.

• Bicycle insurance with your home contents insurance – some home contents insurance policies include bicycle cover too or bikes can be added for an extra monthly fee. But check how much you're covered for and if the policy also covers personal injury and bike theft away from your home.



• Personal bicycle insurance – covers your bike with the option for public liability cover.



• Roadcare cover – if you only want third party liability.



• Roadside recovery – providing roadside assistance if you can’t complete your journey.

Bicycle insurance limitations

With the high number of annual bike thefts in the UK, you need to make sure that you get the right level of cover for your needs.

• Your level of cover – some policies only cover bikes up to a certain value so if you have an expensive bike, make sure it’s fully covered.



• New for old – watch out for insurers that will only replace your bicycle at a depreciated value.



• Where you live – if you live in a “high-risk” area you might have to pay a premium on your insurance.



• Race insurance – if you take part in bike races or triathlons, you might need to take out additional cover.



• Cover abroad – some policies include cover abroad so shop around if you like to take your bike abroad with you.

There are some specialist policies that are reasonably priced and come with appealing extras. The London Cycling Campaign, for instance, offers third party insurance, advice and a magazine for the annual membership price of £32.

Cycleguard also sells a variety of insurance products, which come with no excess on theft or damage claims and more than 5,000 cyclists covered. It also offers standalone ‘Roadcare’ cover for third party claims, roadside recovery, bicycle insurance for kids and Triathlon cover.