Comparing cycle insurance and home insurance

Cycling is becoming increasingly popular in the UK. Statistics indicate that we are not only cycling more nowadays, but we are also cycling much longer distances than we did before 2020. In fact, in 2020 alone there was a bigger rise in cycling than in the previous 20 years combined.

Whether your travel habits have changed and you now cycle to work, or if you’re a passionate road cyclist who loves getting out on your two-wheeler as much as possible, cycling offers a wide range of benefits that are increasingly appealing in modern society.

However, there are several considerations you need to bear in mind before setting off on any journey. These include wearing the correct protective gear to keep you safe, as well as the potential for accidental damage or theft, and the financial implications of this. An excellent way to handle some of these concerns is to take out a cycle insurance policy.

In this article, we’ll discuss how cycle insurance is different to cycle cover on your home contents insurance, as there is often some confusion around this. We’ll also try and help you understand which policy may be best for you and explain what cycle insurance with ALA could do for you.

What is cycle insurance?

Cycle insurance is a standalone policy designed to offer robust protection in the event your bike is stolen and/or damaged. As standard, the policy will cover the cost of replacing your bikeanywhere in the UK or overseas, but additional covers are available to make this much more personalised and relevant to your lifestyle (more on this below).

How is it different to home insurance?

Many of us assume that our bikes will be covered on our home contents insurance, but this is not always the case. Bikes are not always included as standard in home insurance policies, and in many cases will be classed as an add-on that you have to pay more money on top of your policy to protect.

However, with this type of cover, your bike is usually only insured while it’s on your property. For example, if your bike is stolen from your home while it was secured, it will probably be covered by your contents insurance. If you are in an accident while out riding your bike, you are unlikely to get any kind of insurance pay out from your home insurance company unless they provide ‘pedal cover’.

Additionally, the value of a bike on a home insurance policy will be very limited. Many home insurers only cover bikes up to the value of £350-500, meaning you could be out of pocket if you have an expensive bike and need to make a claim.

If you use your bike a lot or have a top of the range model, you will find that a standalone cycle insurance policy is more worthwhile. Not only can this type of policy be personalised for your particular needs, but it will simply do much more for your bike than contents insurance.

For example, with ALA, worldwide coverageis included in your policy. This means you can take your bike with you on your travels abroad and enjoy peace of mind that it will still be protected on your insurance. Likewise, if you’re a commuter and leave your bike secured with an approved lock outside the office throughout the day, your cycle insurance will cover you if the bike is stolen.

Finally, your home insurance provider will only ever cover the bike—not you. If you are involved in an accident while out riding your bike, cycle insurance can provide much more support than home insurance, including:

• Coverage for accessories like your helmet and clothing
• Provision of a hire bike while yours is being repaired or replaced
• Financial compensation for serious injuries, permanent disablement or death
• Cover for legal costs and expenses
• Public liability cover for if you are involved in an incident on your bike and another person is has been affected.

Which policy is best for me?

If you already have home insurance, you may be wondering if it is worth taking out a cycle insurance policy. In some cases, you may spend less on a home contents insurance policy with ‘pedal cover’ if your bicycle is cheap and the cost of specialist insurance excess may end up costing you more than what your bike is worth.

However, cycle insurance offers you a wider scope and better quality of cover. You will benefit from cover outside of your home, including abroad. This is ideal for the cycling enthusiast and beginner alike, and is especially helpful if your gear is high-spec.

Cycle insurance with ALA

ALA Cycle Insurance is an excellent choice if you are passionate about keeping your bike safe. Unfortunately bike theft is common and road accidents do happen, and our policy is designed to help. It will protect you in the event of an accident while out and about, or if your bike is stolen while secured on your property or in a public area. Our cycling insurance covers bikes up to the value of £6,000—much more than what you would get on home insurance.

If your bike is less than three years old, we will replace it with a new-for-old alternative. If it is more than three years old, we will replace it with a like-for-like alternative. If you have a BMX, e-bike, road cycle or touring cycle, or you use your bike to commute, we’ve got a policy just for you.

As well as several types of cycle insurance, ALA offers a number of optional covers and a greater level of flexibility than you will find with contents insurance. Optional policy add-ons include personal accident cover, public liability, legal cover, accessory cover and cycle hire replacement. These covers as well as our policy exclusions and restrictions are detailed in our Insurance Product Information Document (IPID).

Getting a bicycle insurance quote couldn’t be easier. For more information about our policy or to discuss your options, contact a member of our team.