Insuring your bike: basics

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For many a Kiwi cyclist, your bike is probably one of your most cherished (and maybe even most valuable) assets. Whether it’s for road cycling or mountain biking, it’s only natural that you would want it covered for potential damage, theft and other unexpected events. So, we’ve put together some tips and advice on the best ways to protect your bike, under your contents insurance, which can help save you money and time.

Why do I need cover for my bike?

Insurance is designed to give you peace of mind should something unforeseen happen. Without insurance, you may need to pay for damage repairs or replacement out of your own pocket, because no matter how careful you are, you can’t control the outcome of an accident, theft or fire.

Then there’s the legal liability component of your policy, which covers the accidental damage you may cause to someone else’s property, like losing control of your bike and riding it into their car. Without insurance you’d need to foot the bill out of your own pocket. If you’re an AA Insurance customer, you’re covered up to $2million.

Is my bike covered under my contents policy?

In most cases, yes. Although it’s worth knowing that many policies will only cover bikes up to a certain limit and in certain circumstances. If your bike is over your policy’s unspecified item limit, you may want to consider specifying it to increase the level of cover.

If you’re an AA Insurance customer your bike is covered under your contents policy for up to $5,000 (excluding accessories), and up to $2,500 (excluding accessories) under your Limited Contents Insurance Policy. If your bike is worth more than this, you might want to consider increasing your level of cover.

As always, it pays to check the details of your cover with your insurer, to make sure you’re adequately insured.

What specific policy benefits should I look for?

It’s important to ensure your policy provides coverage for whatever your greatest concern is. Only you can decide if a policy is right for you, but common areas you may want to check with your insurer include cover for fire, theft and legal liability. It also pays to consider any exclusions that apply.

If you’re a cyclist who travels or races, then it’s worth noting that some contents policies offer no protection for bikes damaged while racing, or if it’s stolen under certain circumstances.

How much should I insure my bike for?

Just like your car’s insurance, your bike should be covered for its replacement value, or how much you’d need to pay to get the same bike back. You may like to factor in its age and condition, as well as the make and model if it’s not readily available in NZ. If it’s a specialist bike, then it’s worth considering getting a valuation.

Determining your replacement value may also help you decide the type of insurance you choose for your bike. Some insurance companies offer different levels of cover that cover you for different events with different limits. For example, if your bike is worth $5,000 or less, then it’s automatically covered by an AA Insurance Contents Insurance Policy, however, if you have a Limited Contents Insurance Policy you would need to increase your level of cover. It’s important to make sure your insurance policy suits your needs, so you can have peace of mind, knowing your bike is protected to its full value.

Can I buy or get a quote for insurance for my bike online?

Yes. AA Insurance’s contents insurance products cover bikes and are available for quote and purchase online. Our policies cover bikes, along with your other cherished belongings. If you need to increase your level of cover, our team is available over the phone or on Live Chat to discuss this with you.

How can I save on my insurance?

There are several ways you can reduce your premiums without skimping on cover, such as increasing your excess, excluding any optional benefits you don’t need, or making sure you’re receiving all the discounts you’re entitled to.

Some insurers offer a discount if you have more than one eligible policy with them (like our Multi Policy Discount). Having your policies with the one insurer also means that at claim time, you only need to deal with one insurer and with AA Insurance, you only pay one excess, if it’s for the one event.

It’s worth checking for any other discounts that may be on offer. For example, if you’re an AA Member, you can get exclusive discounts on insurance policies through AA Insurance by simply providing your personal AA Membership number when taking out or renewing eligible policies.

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