Insurance

General cycling advice ( NOT technical ! )
Tony1968
Posts: 43
Joined: 14 Dec 2007, 4:27pm

Insurance

Postby Tony1968 » 30 Jun 2011, 1:52pm

For the past few years I've relied on household insurance to cover bikes, with my Thorn covered as an individually declared item.

I'm considering changing my home insurance so may need to cover the bike separately. The CTC scheme and many similar competitors boast about new for old replacement which accounts for the high premiums. My bike's 7 years old. If it gets stolen I wouldn't expect a new one but would like the payout to cover its actual value so I can buy a similar used replacement. As a result I want to pay a premium calculated on its current value, not what they sell shiny new ones for these days...especially considering how much prices have increased. I don't think this is unreasonable, my motor insurer doesn't promise to replace my 12 year old car with a brand new one if it's stolen.

Also, my current policy basically specifies that I have to use an approved lock to attach to an immovable object. The CTC policy also states that if I park at a railway station, as I often do, that I must lock to an approved stand. One station I often use has no official cycle parking but it does have some very solid railings overlooked by CCTV. Not covered by CTC policy. Another has wobbly sheffield stands because thiefs/vandals have removed some of the bolts holding them down. OK under CTC policy. Another has nice lockers to keep the bike in. OK under CTC policy.....but when they're all full we have to lock to the outside. Probably not ok under CTC policy as not being used properly. I'm not sure who used to run the scheme but I used it many years ago and found I wasn't covered from 11PM-7AM so no early morning commutes or staying for last orders.

Can anyone recommend a sensible policy. One that allows me to use my bike for transport and as long as I do my best to secure it will cover for its current value? Quite happy to consider ones that come with home insurance as that's what I'm looking to change anyway.

g00se
Posts: 151
Joined: 16 Apr 2010, 3:50pm

Re: Insurance

Postby g00se » 30 Jun 2011, 2:40pm

You could check with the CTC's insurance company - I can't recall their name right now, but I've spoken to them (phone and email) and they've been very helpful.

it might be new for old, but you still provide an insurance value which the quote is based on. For custom bikes, they ask for a LBS to value the bike - so that might be the way to go for the price of a 'second-hand' tandem. They might be able to clear up the railings issue too.

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julk
Posts: 733
Joined: 5 Jan 2007, 8:17pm
Location: Dalkeith

Re: Insurance

Postby julk » 30 Jun 2011, 3:41pm

Have a look at M&S home insurance - 'contents away from home' gives me the cover I need.

blackbike
Posts: 2492
Joined: 11 Jul 2009, 3:21pm

Re: Insurance

Postby blackbike » 1 Jul 2011, 2:57am

I don't insure my bikes at all.

I've only had one stolen and that was in 1982 when bike locks were feeble.

Since then my bikes have become increasingly posh and although I live in Manchester I've been OK.

niggle
Posts: 3413
Joined: 11 Mar 2009, 10:29pm
Location: Cornwall, near England

Re: Insurance

Postby niggle » 1 Jul 2011, 8:20am

blackbike wrote:I don't insure my bikes at all.

I've only had one stolen and that was in 1982 when bike locks were feeble.

Since then my bikes have become increasingly posh and although I live in Manchester I've been OK.

And you have probably saved the cost of a few replacement bikes over that period of time by not insuring.

Car insurance is all about the high costs if something goes wrong, both in terms of liability to others, the compulsory 'third party' bit, and the potential cost of repairing or replacing your own vehicle, the non compulsory 'comprehensive' bit. A bike rider's third party liability risk is so small it is cheap to cover either via the CTC membership or household insurance, but OTOH the possible damage or loss of the bike can cost quite a lot relative to the actual value being covered.

I guess if you live in a high risk area where you know that bikes are regularly stolen you might consider the cover worthwhile but there are alternatives, such as getting an old MTB 'beater' to use for commuting that involves locking the bike at stations etc. My approach is to use my shop soiled £120 bargain Carrera Subway 8 for these sorts of duties, a bike which looks pretty low value as well as I never wash it and have let all the fasteners etc. go rusty.

OTOH if the OP has been commuting regularly with this bike for seven years without loss, showing an ability to keep it secure so the risk would seem relatively low, and could afford to buy a similar second hand replacement, then the value of the insurance is very questionable IMO. Perhaps, as I have heard suggested before, instead of paying insurance premiums, he could put the same amount of money away each month until he has saved up enough to replace the bike.

Tony1968
Posts: 43
Joined: 14 Dec 2007, 4:27pm

Re: Insurance

Postby Tony1968 » 1 Jul 2011, 9:56am

Blackbike and Niggle, self insure is an option I'm considering too.

It only adds about £25 to my home contents cover at the moment so I think it's worth having but I wouldn't want to throw away £150 every year on a policy based on new replacement value. In 7 years I've had a pair of front lights (SON twin setup, I reckon they thought it was some high power MTB system and the E6Z fried the battery they connected it to!), a broken mirror and a bar end stolen in two incidents so I don't worry too much.

I also had a bike stolen in the 80's. A Rusty old Raleigh tourer attached to a friends nice new Galaxy with a cable lock. No idea why they left the good bike. Perhaps it was because he'd removed his battery lights but my dynamo ones were still attached, thus allowing a safe and legal ride home?

Tonyf33
Posts: 3926
Joined: 17 Nov 2007, 3:31pm
Location: Letchworth N.Herts

Re: Insurance

Postby Tonyf33 » 1 Jul 2011, 6:10pm

M&S have a £4K non specified cover for bikes (with options for outside the home) on their home contents, it also happens to b quite competitive from the last quotation I did for someone.

Tandem Man
Posts: 233
Joined: 22 Jun 2007, 9:14pm
Location: Wakefield,West Riding of Yorkshire

Re: Insurance

Postby Tandem Man » 1 Jul 2011, 10:00pm

Tonyf33 wrote:M&S have a £4K non specified cover for bikes (with options for outside the home) on their home contents, it also happens to b quite competitive from the last quotation I did for someone.


They don't stipulate particular locks either,rang and checked.

Had a bike related claim through them,excellent.

Ian
Ian From Wakefield

g00se
Posts: 151
Joined: 16 Apr 2010, 3:50pm

Re: Insurance

Postby g00se » 1 Jul 2011, 10:07pm

M&A sounds interesting. Any idea how they value custom builds?

Tonyf33
Posts: 3926
Joined: 17 Nov 2007, 3:31pm
Location: Letchworth N.Herts

Re: Insurance

Postby Tonyf33 » 2 Jul 2011, 4:35pm

g00se wrote:M&A sounds interesting. Any idea how they value custom builds?

Photograph all the parts and catalogue current new replacement value with links where you can buy. I'd say that would be a comprehensive definition if the policy is new for old or like for like.

DavidT
Posts: 1216
Joined: 13 Jan 2007, 2:05pm
Location: East Midlands (Originally from Devon)

Re: Insurance

Postby DavidT » 2 Jul 2011, 10:29pm

Tony1968 wrote: The CTC policy also states that if I park at a railway station, as I often do, that I must lock to an approved stand. One station I often use has no official cycle parking but it does have some very solid railings overlooked by CCTV. Not covered by CTC policy. Another has wobbly sheffield stands because thiefs/vandals have removed some of the bolts holding them down. OK under CTC policy. Another has nice lockers to keep the bike in. OK under CTC policy.....but when they're all full we have to lock to the outside. Probably not ok under CTC policy as not being used properly. I'm not sure who used to run the scheme but I used it many years ago and found I wasn't covered from 11PM-7AM so no early morning commutes or staying for last orders.




What a (sadly) great example of the pitfalls of bike specific insurance. Good grief. As has often been raised on here, read that small print :shock: ?

I gave up a few years ago and put my bikes on my house insurance. Far less specific. I doubt if the payout would be as good, but I came to realise that the ability to make a "legitimate" claim under the bike specific insurance would be nigh on impossible (in my case) - and I'm not paying anywhere near as much.

porky
Posts: 128
Joined: 14 May 2010, 1:06pm
Location: Birmingham

Re: Insurance

Postby porky » 12 Jul 2011, 1:11pm

+1 for M&S

Covers all the bikes we own (up to £4000 each) on a new for old basis with no awkward conditions regarding locks. Just take their cheapest contents quote and then add the "property away from the home" option. Their price is cheaper than some of the specialist cycle insurers with and fewer restrictions, so I am effectively getting home contents cover for free.
My car does 40 miles on a gallon of petrol, my bike will do that on a mug of tea and a slice of cake.

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iow
Posts: 400
Joined: 27 Jul 2010, 11:01am
Location: isle of wight

Re: Insurance

Postby iow » 12 Jul 2011, 1:48pm

porky wrote:+1 for M&S...
..no awkward conditions regarding locks.


go careful - just because the locking arrangements aren't 'conditions', doesn't mean they wouldn't hold you negligent for not locking the bike appropriately. thus avoiding a pay-out.
mark

porky
Posts: 128
Joined: 14 May 2010, 1:06pm
Location: Birmingham

Re: Insurance

Postby porky » 13 Jul 2011, 12:33pm

The policy wording is that you must take "all reasonable precautions" to safeguard your property.

I do realise that the definition of "reasonable" has kept lawyers employed for years.
My car does 40 miles on a gallon of petrol, my bike will do that on a mug of tea and a slice of cake.

g00se
Posts: 151
Joined: 16 Apr 2010, 3:50pm

Re: Insurance

Postby g00se » 13 Jul 2011, 4:27pm

Just wanted to add that I considered going from specific bike insurance to an extension of the household insurance. I checked the original home policy document and it looked fine. However, only on calling the company and asking for any specific bike rules, did they state the same kind of conditions (acceptable lock list, locked to an anchor point at home within a locked shed (with appropriate door lock); specific types of location when locked away from home etc.

So double check to make sure.