Should You Have Bicycle Insurance?

The FBI says there were 183,028 bicycles stolen in the United States in 2009. However, the National Bike Registry estimates the numbers are MUCH HIGHER and are closer to 1.5 million per year, because most bike thefts are not reported.

College campuses, such as those at the University of Florida in Gainesville, the University of Central Florida in Orlando, Florida State University in Tallahassee, and the University of South Florida have very high bike theft experience. Florida college students which bicycle must be extremely vigilant to trying to prevent the theft of their bicycles. According to the bike lock manufacturer, Kryptonite, the Top 10 Worst Cities for Bike Theft are:

  • New York, NY
  • Chicago, IL
  • Miami, FL
  • San Francisco, CA
  • Washington, DC
  • Boston
  • Austin, TX
  • Philadelphia, PA
  • Minneapolis, MN
  • Honolulu, HI

If your bicycle is stolen, is there any way for you to be reimbursed for this loss? Stolen bicycles may be covered under homeowners and renters insurance policies. This coverage could likely reimburse you, if your bike is stolen or damaged in a fire or natural disaster listed in your policy. There may likely be a deductible on the coverage. When you are buying your homeowners or renters insurance, keep in mind this difference in the way your bike loss may be valued.

Actual Cash Value

Actual cash value reimburses you for what the bicycle is actually worth given its age. A 5 year-old bicycle, for example, would be valued at the cost of a comparable bicycle minus 5 years depreciation.

Replacement Cost Coverage

Replacement cost coverage reimburses you for what it would cost to replace your 5 year-old bicycle with one of like kind and quality at current cost. Homeowners and renters insurance policies may also provide liability protection. This covers you for claims made by persons you may have caused harm to while riding your bicycle. If you injure another cyclist or pedestrian while riding and they bring a legal claim against you, you may be provided with an attorney to defend your rights, and you may be covered up to the liability limits of your policy.