Insuring your bike: the basics

Your bike may be one of your most cherished and most valuable assets. Whether you use it for road cycling or mountain biking, it’s only natural that you'd want it covered for potential damage, theft and other unexpected events. So here’s some information on how you can ensure your bike is protected under your contents insurance.

Do I need cover for my bike?

Insurance can cover you against the unexpected costs of sudden, unforeseen and unintended damage or loss, and from specific events, such as burglary, fire, flood and natural disaster. It’s important to check your policy documents and ensure you’re covered for any specific items you value.

Your insurance may also protect you against legal liability. If you accidentally damage someone else’s property, like riding into a car having lost control of your bike, and you are held legally liable for the damage, your contents insurance policy may cover some of the cost. At AA Insurance, we cover you up to $2 million if you accidentally damage someone else’s property and are legally liable. Before purchasing insurance, it’s important to look closely at the policy wording and understand what’s included and what’s excluded.

Is my bike covered under my contents policy?

You may be surprised to learn that leisure equipment such as bicycles may already be included in your contents insurance cover. Most contents insurance policies cover all your belongings up to a certain amount – your sum insured – without you needing to specify the value of each item. Your sum insured is the total amount your contents are covered for, so it’s important to update it regularly.

Some categories of contents have adjustable limits, which is the highest amount your insurer will pay for each category of items, for a single event. For AA Insurance customers, these include bicycles.

  • If you hold a Contents Insurance policy with us, the adjustable event limit for the combined value of your bicycles is $5,000. If the combined value of your bicycles is more than $5,000, remember to increase your adjustable event limit in the 'Update your policy' section on your My AA Insurance online account or get in touch. If you choose not to adjust the limit, the maximum we will pay for loss or damage to your bikes for one event is $5,000.

  • If you have a Limited Contents policy with us, the adjustable event limit for bicycles is $2,500. Limited Contents provides cover against burglary, fire, storm, flood or natural disaster, so it won’t cover you if you lose your bicycle or accidentally damage it.

Some insurance policies also cover you when you’re travelling around New Zealand, so, if something happens to your bicycle when you’re away from home, you’ll be able to claim for it under your contents insurance policy. If you’re using your bike for racing of any kind, it’s worth noting that you may not be covered by your contents insurance for loss or liability arising during the event. As always, it pays to check the details of your cover with your insurer to make sure you’re adequately insured for your needs.

What specific policy benefits should I look for?

It’s important to ensure your policy provides coverage for the things of concern to you. 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. Be sure to consider any exclusions that apply to your cover. For AA Insurance customers, these are listed in the 'What you are not covered for' section of our policy documents.

What should I consider when insuring my bike?

Just like your car’s insurance, you should consider insuring your bike 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 New Zealand. If it’s a specialist bike, then it could be worth considering getting a valuation.

Determining your replacement value may also help you decide the type of insurance you choose for your bike. Different insurance companies offer different kinds of cover. For example, if the combined value of your bikes is $5,000 or less, then they’re automatically covered by an AA Insurance Contents Insurance Policy. If you have a Limited Contents Insurance Policy and the combined value of your bicycles exceeds the $2,500 adjustable policy limit, you will need to increase your level of cover to their replacement value (if they're stolen or damaged by a flood, storm, fire or natural disaster). 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 buy online. Our policies cover bikes, along with your other cherished belongings. If you need to increase your level of cover or your adjustable event limit, don’t hesitate to contact us.

Any questions?

Now’s a great time to review your insurance. We recommend checking your details are up to date and ensuring the policy and cover you’ve chosen is right for you and your insurance needs.

If you have any questions about your insurance, need to update your AA Insurance policies or would like a quote, don’t hesitate to contact us. We’re open from 8am to 8pm weekdays and from 8am to 6pm weekends and public holidays.

This blog provides general information only and is not intended to be a recommendation or personalised financial advice. Excesses, terms, conditions, limits and exclusions apply to AA Insurance Limited’s policies. Please check the policy wording for details of cover. The provision of cover is subject to the underwriting criteria that apply at the time.

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