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Bicycle Insurance Australia
Bicycles are covered in a broad sense by a home contents policy as it is a low cost personal item. However, there are limitations to relying on this coverage. As an example, if your bicycle is stolen away from your property you may not be able to claim the full amount. If your bicycle is involved in a road accident it is also not covered and you also have no liability insurance either. A bicycle policy is critical to ensure you are fully protected.
Who is a potential candidate?
Anyone who owns a bicycle can obtain a bicycle plan of some description. The main reason for this is that there is a good chance your bicycle may be stolen or damaged in the time that you own it. With an average of 1 in 10 bicycles stolen per year the odds are not in your favor (source bicycles.net.au). Even with advanced cycle locks, wheels are often stolen, as are saddles, brakes or any other part you can imagine. Home & contents protection will only cover you so far; bicycle cover may be able to give you peace of mind.
What typically does it cover?
It typically covers theft, accidental damage and vandalism. For newer bicycles you will usually get a new bicycle as a replacement. With older bicycles you are likely to get and an equivalent used bicycle of the same value. In the event of theft you should also be able to claim back costs of locks, accessories, and a limited number of modifications.
What typically does it not cover?
Professional racing bicycles are often of high value and often get damaged because of the amount of use they get. These bicycles are typically not covered as standard. To get that level of cover you would need to pay a much higher premium.
Bicycle insurance does not always include personal liability in the event of an accident so you should double check this part of your policy.
Additional coverage that policy holders might take out in this area
As stated earlier, your bicycles are covered to a degree by your home contents insurance so if you do not have one of those policies, consider getting one to cover your bicycle, and for that matter, all of your personal possessions.
If you are riding your bicycle only while you are on holiday then travel insurance will also give you a good degree of cover. This will also cover you for any medical, legal and compensation costs in the event of an accident.
In the event of an accident with an automobile, you are normally covered by the car's liability insurance. If you run into a pedestrian, however, you are liable and not all bicycle policies include personal liability protection.
What will it typically cost?
This product type is quite expensive relative to the cost of the item you are insuring but does differ massively between insurers. Some insurers have been known to discount bicycle insurance to a huge degree if you also opt for an additional home insurance policy. Typically, bicycle insurance amounts to around 10% of the value of the bicycle you are insuring. This amount can go down depending on your zip code and the age of your bicycle.
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