Beautiful summer weather means spending more time outdoors, and what’s better than going for a long bike ride? From road bikes to expert models, there is an entire range of bikes available at all price points. The costlier the bike, the less likely its full value will be covered by your basic insurance policy. Is your bike adequately covered?
You purchased a bike for $17,000. You’re planning to go outside of the city with your bike, so you attach it to the roof of your car. What happens if your bike falls off the roof and is damaged from the impact? Are you covered?
Damages will be covered through your home insurance policy. That being said, as insurance policies have limits for bicycles, the settlement paid out by your insurer will not be enough to cover the full value of your bike.
To fully cover your investment, it is highly recommended that you add additional coverage to your insurance, which is called Personal articles floater. In general, this coverage protects specific higher-value items that you own. In the event of a claim, this insurance is used first. Don’t forget that your policy has a deductible, which is deducted from the amount of the settlement you receive.
If this same event were to occur, but with bikes belonging to your friends, they would make a claim for damages through their own insurers. They would then be entitled to exercise their right of subrogation against you. However, if your friends are not insured, your insurer will settle the claim, but through your civil liability coverage from your auto insurance policy. This is because the bikes do not belong to you and the damage was caused while you were driving your vehicle.
In this case, this is an accident that is part of the Direct Compensation Agreement, which is an agreement that helps determine the liability of all motorists involved in an accident. If you are not found to be liable, the damage to your bike will be eligible for coverage, once again, through your auto insurance policy, but with a limit of $3000. The same applies if it is your friend’s bike.
It should be noted, however, that in each insurance policy, there are certain general exclusions, such as damages during use, which are never covered. For example, if you take your road bike out for a ride and miss a turn, the damage caused to the bike will not be covered. However, your insurer will compensate you if these damages are caused due to a collision with a pedestrian, vehicle, or aircraft.
Contact your broker to obtain adequate coverage for your bike, so that you can take full advantage of your summer with peace of mind!
