Kiwi Cyclists Underinsured - Industry Expert

21 August 2015

Kiwi Cyclists Underinsured - Industry Expert

More than a million Kiwi cyclists may not be insured for theft and damage to their expensive cycle gear including bikes damaged during road rage incidents, according to a local industry expert.

A dramatic increase in the average investment in bicycles and accessories over the past decade has seen the cost of a quality bike rise to more than $10,000 for keen recreational racing and ‘weekend warrior’ cyclists.

However, traditional home and contents policies do not cover common events that could result in damage to, or loss of, expensive cycling equipment, says James McGhie, of Apex Insurance.

“Current home and contents policies do not cover loss of your bicycle due to damage while in use, theft if it occurs away from the home, and bikes are not covered if taken overseas,” says McGhie.

“That means if a cyclist damages their bike badly enough to write it off while commuting to work or racing on the weekend or even if it's pushed over during a road rage incident, it won’t be covered. And if it’s stolen while they are out and about, there will also be no replacement.”

The chance of damage to a bike in an accident is significant, with some highly skilled riders reaching speeds of up to 60km per hour, while theft is an extremely common occurrence, with hundreds of bicycles stolen from streets every year.

“It’s also becoming much more common for people to travel around New Zealand and internationally for cycling holidays and races, but your gear will not be covered from the moment you leave the house without specialist insurance,” says McGhie.

“With a typical top-of-the-line bike costing $7-$8000, and accessories on top of that around $1500-$2000, it’s a significant investment that most people would struggle to replace easily if something was to happen.”

McGhie estimates only a very small number of the 1.2 million Kiwi cyclists currently on the roads would have specifically insured their bicycles, with most relying on home and contents policies that are inadequate.

In response, Apex Insurance is introducing a new standalone insurance package specifically tailored for cycling enthusiasts.

The Bikesure policy is the first and only in New Zealand to offer cover for damage while racing and training, worldwide cover for damage, damage in transit, and damage to the bike while in use.

It will also include open air theft cover, so long as reasonable care is taken for the bike’s security by locking it and not leaving it unattended for long periods of time.

“The policy will offer replacement value on your bike at the agreed sum insured, and depreciation won’t apply for the first two years so long as the policy-holder is the first owner of the bicycle,” says McGhie.

The cover fills all the gaps left by a home and contents policy, says McGhie, and has also been taken up by well-known cyclists to look after their prize possessions.

Bikesure ambassador and professional cyclist Robbie McEwen, who is a three-time Green Jersey Winner in the Tour de France and a triple Olympian, says insuring a bike, no matter what level people ride at, offers peace of mind.

“My bike is worth approximately $30,000, so for it not to be insured while I travel and race would be a huge risk,” says McEwen.

“While most people wouldn’t have that much invested in their bicycle, there’s still always a chance something might go wrong, and it’s good to know you’ll be able to replace your bike immediately no matter where you are or what you were doing at the time.”

The Bikesure policy is now available in New Zealand. For more information, see www.bikesure.co.nz.

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