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Bicycle Depreciation and Insurance

(10 posts)
  • Started 8 years ago by rosscbrown
  • Latest reply from rosscbrown
  • This topic is not resolved

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  1. rosscbrown
    Member

    Looking for some thoughts around bicycle insurance. I've insured my 2013 Tricross with the same provider for the last three years. Days after getting the bike I had a significant incident resulting in a £800 claim. Since then I've not really been out on the bike since and would guess I've done <300 miles in the three years of ownership I've enjoyed.

    I see there has been a small increase over the three years from £12/mo to £14/mo (for £1200 bike, £500 accessories and £1m legal/liability). Moreover, I note that the bike will no-longer be covered by the 'New for old bikes - up to 3 yrs' endorsement meaning any payout (in a total loss) would be impacted by depreciation.

    Any idea what my bike would be worth today? There is some scuffing on the frame from the accident but is otherwise in perfect condition. I suspect the chain is still covered in the manufacturer's lubricant - it has been used that little?

    I'm worried that a total loss payout may only cover, say, £500 of residual value. At which point £160/yr looks pretty steep. More so the bike doesn't get beyond my front door again this year! No other insurance is currently covering it...

    I'm tempted to sell this maybe start over with the bike to work scheme - change of bike / change of mindset.

    Anyway, any input on the insurance point would be very much welcomed!

    Posted 8 years ago #

  2. LivM
    Member

    HMRC values for bike after 3 years in bike for work scheme is perhaps 18-25% of original value...

    http://www.bikeradar.com/gear/article/everything-you-need-to-know-about-the-cycle-to-work-scheme-18360/

    Posted 8 years ago #

  3. Roibeard
    Member

    Depends on the insurance - my household insurance provides new for old on the bicycles, which is ideal.

    However that just covers theft (and third party liability), whereas a cycle specific insurance might cover accidental damage or vandalism.

    Robert

    Posted 8 years ago #

  4. mercury1and2
    Member

    I did hear that the bike not matter what type halves in value after the first year then 10 percent every year after.

    Posted 8 years ago #

  5. unhurt
    Member

    I managed to get "new for old" on my Canondale Bad Boy - it was maybe four years old I think? But that was after some argument, and me insisting I wanted the same spec in a replacement. However, it wasn't my insurance but the driver's, and they only changed their tune after I sent them photos of two pretzeled cranks and the police & paramedic report on the incident, so I have a suspicion that they were motivated by a desire to stop me deciding that perhaps I WAS going to claim for personal injury too, rather than by my arguments...

    Posted 8 years ago #

  6. I were right about that saddle
    Member

    I did hear that the bike not matter what type halves in value after the first year then 10 percent every year after.

    Just dug out the receipt for the Scaffolding Bike (© gembo) and it's now worth £56.79 according to that formula. Sad face.

    Never wasted a penny insuring it.

    Posted 8 years ago #

  7. Morningsider
    Member

    £14 a month to insure an "average" bike (no offence - I've only ever owned average, or below, bikes). Seems a lot to me. The one time my commuter was nicked, it was replaced new for old on the house insurance - insuring the bike on contents insurance adds virtually noting to the cost. Obviously, this is of no use if you don't have to insure the contents of a house.

    Posted 8 years ago #

  8. sallyhinch
    Member

    Don't know anything about insuring or valuing bikes - but if insuring our car is anything to go by, it's worth remembering that left to their own devices, insurance companies will keep on putting your premiums up year on year. Always worth ringing them and finding out why a bike which is worth less is costing more to insure and then asking if they might want to reconsider their premium hike... it's amazing how they suddenly discover they can actually offer you a better price.

    That said, if you're not going to ride the bike, and you might feel more comfortable riding another bike, then I'd say sell it anyway

    Posted 8 years ago #

  9. gembo
    Member

    Jeez, you mention scaffolding poles' resemblance to bike tubing once and suddenly you are copyrighted

    Insurance is a scam whereby the providers charge you money against an eventuality which does not occur.

    If you tried to ensure against say the havoc a teenager wreaks upon your family the premium would be very high. Whereas taking out public liability insurance is cheap as chips as we are not yet a state of the USA

    Posted 8 years ago #

  10. rosscbrown
    Member

    The difficulty I have is that I don't have contents insurance (I live in a HMO flat, near impossible to find an insurance product suitable) so extending the policy to include the bike is a nonstarter for me.

    That said, I've got a quote from TSB to insure just the bike - £22/yr including £2m public liability. Only downside is that it covers just the bicycle, not accessories like lights and GPS.

    When I took out the first policy I was worried about total loss as a result of theft. £12/month and an approved lock was a much simpler proposition to me than multiple good locks etc.

    Posted 8 years ago #

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