A buyer's guide to the best bicycle and e-bike insurance

Theft

Theft is one of the biggest concerns for bike owners. According to FBI data, approximately 190,000 bikes are stolen annually in the United States, which averages about one every 2.5 minutes. However, other estimates suggest that the number could be as high as 2 million bikes stolen each year in the U.S. and Canada combined, or one every 30 seconds. Unfortunately, the recovery rate for stolen bikes is disheartening, with less than 5% of stolen bikes ever returned to their owners.

According to Project 529 Garage, 80% of cyclists in the U.S. have had at least one bike stolen. Most thefts occur at the owner's residence, with 54% of reported cases taking place there—whether inside the house or within the property, such as the garage, yard, or shed. Other common locations include workplaces, schools, and public bike parking areas.

Not all bicycle insurance policies cover theft equally. Some policies impose geographical or time restrictions, such as not covering your bike after daylight hours or limiting how long it can be locked outside. These limitations are rarely mentioned in advertising materials, so it's important to read the policy language carefully and ask the agent for clarification to avoid surprises later.

At Velosurance, theft coverage is comprehensive. Our policy covers theft from home, as well as when the bike is locked to a bike rack or another immovable object, at any time of day without restrictions. We don’t require a specific type of lock, but we recommend researching and using a reliable one. All types of theft are covered, including damage during transport by an airline or shipping company, or while being transported by private means, either inside a vehicle or on a bike rack attached to it.

Theft of Parts and Accessories

Accessories play a significant role in making a bike uniquely yours. Whether functional or aesthetic, items like bells, lights, computers, and power meters enhance your riding experience. While some accessories are inexpensive, others—like high-end bike computers or power meters—can cost over $1,000.

Many bike insurance policies do not cover accessories at all, or only in the case of a total loss, such as if the entire bike is stolen. Velosurance, however, offers coverage for the loss of parts and accessories independent of the bike itself. If just your wheels or a bike computer is stolen while your bike is locked up, they will be covered under your policy, subject to your chosen deductible.

Crash Coverage

Crashes are a common concern among cyclists, especially those new to the sport or riding in busy environments. Even experienced riders can crash due to factors like speed, misjudging turns, or unexpected obstacles. While crashes can be frustrating and painful, they also offer valuable learning opportunities for improving riding skills and understanding equipment better.

When reviewing crash coverage, pay close attention to the policy language. Some policies only cover crashes that meet specific conditions, such as hitting a road hazard or colliding with another rider or vehicle. If you crash while cornering at speed, your claim might be denied if the cause doesn’t match the specified conditions.

Velosurance offers comprehensive crash coverage with no restrictions on the cause or conditions of the crash. Our policy also includes coverage for riding apparel, such as kits, helmets, shoes, gloves, and sunglasses, with reimbursement up to $500. Spare parts like spare wheelsets are also covered, with a limit of $500 per loss and a cumulative limit of $1,000 for the entire policy term.

Accidental Damage

Crashing isn't the only way to damage your bike. Accidents can happen even when you're not riding. For example, a bike can fall off a car rack or be damaged when backing into it. These incidents can result in significant repair costs, especially if the damage is severe.

Accidental damage coverage is another area where it's crucial to understand the terms of your policy. Some policies only cover damage resulting from crashes, leaving other types of accidental damage uncovered. If your bike is damaged due to a garage mishap, your claim could be denied.

Velosurance provides coverage for any type of accidental damage, including crashes, garage mishaps, and damage caused by backing into the bike. If your bike is damaged in an accident, defined as an event that happens unexpectedly and unintentionally, it is covered.

Medical Coverage

With rising healthcare costs, health insurance companies are increasingly shifting financial responsibilities onto their clients. Deductibles for individual or self-funded plans can reach as high as $6,500 per person or $13,000 for a family annually, along with additional expenses like co-insurance.

Co-insurance refers to the percentage of the medical bill you must pay after meeting your deductible. These rates can range from zero to as high as 40%. Your plan may also have a separate emergency room deductible.

Given these complexities, it's advisable to understand the potential costs involved in the event of a hospital stay due to a bike accident. Optional medical payments coverage, also known as gap insurance, is offered by specialty bike insurance. This coverage helps bridge the gap between what you owe and what your health insurance pays. It is particularly useful for those with high-deductible health plans or limited coverage options.

Medical payments coverage can be purchased separately with a Velosurance policy, with limits ranging from $1,000 to $10,000. Consider your out-of-pocket costs when selecting this limit on your bicycle insurance policy.

Vehicle Contact Protection

Being involved in a collision with a car is one of the scariest scenarios for a cyclist. Whether you're riding on the road, commuting to work, or cycling early in the morning or late at night, the risk of being hit by a car is real. Vehicle Contact Protection (VCP), also known as Uninsured/Underinsured Motorist (UIM) coverage, can help reduce the financial burden of such an incident.

Velosurance offers optional VCP coverage, similar to UIM coverage in auto insurance. This coverage extends to medical expenses, physical therapy, mental health services, lost wages, and other costs incurred from a collision with an uninsured or underinsured motorist or a hit-and-run accident. It is essential if you frequently share the road with motor vehicles.

Liability

Liability coverage is crucial for cyclists who want to protect themselves from potential legal and financial consequences. It provides protection against personal financial loss in the event of a bike accident that causes injuries to others, property damage, or even fatalities. This coverage is especially important for cyclists who ride in busy urban areas, share the road with motor vehicles, or participate in races and organized events.

In today’s litigious society, liability coverage can offer peace of mind and financial protection against potential lawsuits. The decision to carry liability coverage depends on individual risk tolerance, riding habits, and the environment in which you ride. It’s advisable to assess your personal circumstances and consult with legal advisors or insurance professionals to determine the best coverage for your needs.

Velosurance offers liability coverage with limits starting at $10,000 and going up to $300,000. Those with an umbrella policy may find the $300,000 limit appealing, as it matches the underlying coverage requirements for most personal umbrella policies.

Racing Coverage

Racing is more than just a sport—it's a lifestyle for many cyclists. While exhilarating and rewarding, it comes with its own set of risks. Racing demands intense focus, and even a momentary lapse in awareness can lead to a crash. Whether you're participating in local events or competing at a higher level, having proper coverage is essential.

If your involvement in racing is limited to a few annual events, such as a charity ride or a triathlon, you may not need dedicated racing coverage. However, if you’re part of a local points series, climbing the ranks in a criterium, or competing in mountain biking or triathlons, racing coverage is a must. This coverage increases your premium but provides critical protection when the risk is highest.

Racing requires time, preparation, and financial commitment. Even at the amateur level, it’s full of ups and downs, and mishaps can derail your race day. Some specialty bicycle insurance policies offer event fee reimbursement if you can't participate due to injury, bike damage, or theft. Velosurance’s racing coverage activates when you select "competitive" usage during the quoting process, and it extends crash and damage clauses to all racing situations.

Full Coverage

Bicycles are depreciating assets, much like cars or appliances. However, unlike most consumer goods, high-end bikes are often highly personalized and difficult to replace. Cyclists who invest significant time and money in customizing their bikes may find it challenging to find an exact replacement if their bike is stolen or damaged.

Most insurance companies cover bicycles for actual cash value (ACV), which is based on the original cost minus depreciation. A standard depreciation rate of 10% per year is typical. For example, a $10,000 bike stolen in year three would be worth around $7,290, minus the deductible. This amount may not be enough to purchase a comparable bike, forcing you to downgrade or spend extra to make up the difference.

Velosurance offers full coverage for your bike at its declared and verifiable value, without depreciation. If your bike is stolen on day one or after several years of coverage, you’ll receive a check for its insured value minus your chosen deductible. When declaring the insured value, make sure to include all accessories attached to the bike, such as panniers, GPS devices, lights, and cameras. This ensures that your policy fully protects your investment.

Primary vs. Secondary Coverage

The distinction between primary and secondary coverage is a key factor when choosing a bike insurance policy. Primary coverage allows you to file a claim directly with your bike insurer, while secondary coverage requires you to file a claim with your homeowner’s policy first. This can be a disadvantage, especially if your homeowner’s policy has high deductibles or excludes certain types of claims.

Filing a claim on a homeowner’s policy for a stolen bike can lead to increased premiums or even policy non-renewal. Homeowner’s insurance is typically intended for catastrophic events, not for smaller claims like bike theft. As a result, it's often better to choose a policy that offers primary coverage for your bike.

Velosurance provides primary coverage for your bike, ensuring that claims don’t affect your insurance score or increase your homeowner’s insurance premium. This gives you greater flexibility and peace of mind, knowing that your bike is protected without impacting your other insurance policies.

E-Bike Coverage

The rise of e-bikes has been rapid, especially since the pandemic. In 2022, retail sales of e-bikes reached $1.3 billion, surpassing electric vehicle sales for the first time. E-bikes are popular for their accessibility, affordability, and environmental benefits, making them a great alternative to cars for daily commutes and recreational rides.

Despite their popularity, many conventional insurance providers are hesitant to cover e-bikes. This is partly due to the fact that e-bikes are often classified as motorized vehicles, which places them outside the scope of traditional home insurance. Additionally, the lack of federal regulations and the presence of low-quality e-bikes with unsafe batteries have made insurers cautious.

Velosurance offers coverage for e-bikes that meet Federal Class 1, 2, or 3 requirements. Liability coverage is also available for e-bikes, with limits up to $300,000. This ensures that e-bike owners have the same level of protection as traditional bike owners.

Recumbent, Folding, and Trike Coverage

Recumbent bikes, folding bikes, and trikes are popular among riders with physical limitations or those seeking comfort and versatility. These bikes are often used for commuting, running errands, or long-distance rides. Despite their growing popularity, many specialty bike insurers still fail to offer coverage for these types of bikes.

Velosurance covers recumbent bikes and both recumbent and upright trikes just like traditional bikes. Electrified versions of these bikes are also covered, provided they meet the Federal Class 1, 2, or 3 requirements. This ensures that all types of bikes are protected, regardless of their design or function.

International Coverage

Travel is a big part of the cycling lifestyle. Whether you're heading to a local trail or crossing borders, your bike often needs to be transported. Many cyclists rely on cars, trucks, or airlines to move their bikes, but this introduces new risks, such as damage during transit or loss.

Flying with a bike has become easier, with most airlines offering competitive fees for transporting bicycles. However, claims for lost or damaged bikes can be challenging, as airlines often limit compensation to $500 or less. Some policies have strict conditions, such as requiring you to secure the bike to the rack before driving, which can complicate claims.

Velosurance provides coverage for damage or loss sustained during transportation, whether by car, plane, or courier service. This includes coverage for bikes lost by an airline or a courier company like UPS or FedEx. For those traveling internationally, we offer optional Worldwide coverage to extend protection to any location around the globe.

Permissive Use

Sharing a bike with friends or family can be a fun and practical way to get more use out of it. However, not all bike insurance policies extend coverage in these situations. At Velosurance, we understand that bikes are meant to be shared, and our policy covers the bike even if a friend or family member uses it. This flexibility enhances the utility and enjoyment of your bike, giving you peace of mind knowing that it’s protected no matter who rides it.

What to Look Out For

Before purchasing a bicycle insurance policy, it's essential to read the policy document and research the company online. If the document isn't readily available, ask the provider for a copy. Policy documents can be dry, but they’re necessary to understand the terms and conditions of your coverage.

Key elements to look for include coverage limits, deductibles, coverage periods, exclusions, and the claim process. Understanding these details ensures that your policy meets your needs and provides adequate protection.

Velosurance believes in a straightforward and efficient claim process. We allow you to have your bike repaired with like-quality components at your preferred bike shop. As long as the damage is documented and a repair estimate is included with your claim, repairs don’t need pre-authorization. This streamlined process gets you back on the road quickly and with minimal hassle.

About Velosurance

Founded in 2012 by two passionate cyclists, Velosurance has set the standard for the best bicycle and e-bike insurance in America. The company continues to be owned and operated by cyclists who deeply understand the needs of the riding community. With over 30 years of combined experience in recreational insurance, Velosurance brings unparalleled expertise and quality of service to the market.

How We Do It

Not all bike insurance policies offer the same level of coverage. Sometimes, it takes a claim to discover what’s truly covered and to what extent. We believe that the policy issued by Velosurance is the most comprehensive and well-rounded option available for cyclists. Our approach is based on over a decade of experience and thousands of covered claims.