Velosurance

[MannyL358]

I saw this on Bike Rumor and was wondering if anyone here has bike insurance besides homeowners?

http://velosurance.com

They quoted me $368yrs for a $6k bike. I'm not sure if this is a reasonable quote...any input?

 

[bloodninja]

I saw this on Bike Rumor and was wondering if anyone here has bike insurance besides homeowners?

http://velosurance.com

They quoted me $368yrs for a $6k bike. I'm not sure if this is a reasonable quote...any input?

What coverages and deductible did you choose?

In general, your insurance premium will include the expected loss to the insurer due to claims and also a provision for the insurer's profit and expenses. This profit and expense provision is probably around 35%. So if the insurer estimates expected losses correctly and you are more or less an average customer with respect to riding safety and theft prevention, in the long run you are going to pay more to the insurer than you will get in the event of a claim. This is pretty obvious since insurance companies have to pay their employees, overhead, etc., and earn a profit.

So the point is that you'll be losing money long term on the deal, so you should only buy insurance if replacing your bike in the event of a crash/theft would cause you a great financial hardship.

That being said, bike insurance is a relatively new product so the insurance company may not be able to estimate their losses accurately yet since there's little historical data.

 

[Carson]

In other words...save your money and "self-insure", right?

 

[MannyL358]

What coverages and deductible did you choose?

In general, your insurance premium will include .....

Thnx for the info ...sounds like you're in or were in the insurance business. So this plan might make sense if the bike is new and you need the peace of mind that comes from knowing if you trash the frame in a crash it will be covered. Once the frame depreciates for a couple of years it probably won't make financial sense.

I have homeowners and my frame is covered under warranty for 3yrs by Ibis. The "Crash Damage" coverage was what made this interesting because it's a carbon frame and my riding style is somewhat of a risk taker.

Knock on wood, I haven't had any major crashes in a while but I think about it once in a blue. Watch, after having said that, I'll probably tumble down a rock face this week. Wait... I'm supposed to riding Sourlands Thursday. 😱

Here's the quote:

 

[bloodninja]

Thnx for the info ...sounds like you're in or was in the insurance business.

Yes, I'm the guy that makes the rates. 🙂

I looked at the quote and it doesn't seem unreasonable, but I'd still say if you could afford to replace your bike if it were totaled/stolen then don't bother with the insurance.