Bike Theft: How to insure your bike properly

You've decided to insure your bike? Great idea! We tell you how to protect it best.

Even if you equip your bike with a super secure lock, you are not safe from bike theft. There have always been gangs of thieves who specialise in taking bicycles. They act professionally to get your bike. The risk is especially high in big cities. In the hustle and bustle, passers-by don't notice when bikes are stolen. Thieves act so inconspicuously and quickly that they give the impression that they are simply unlocking the lock. 

It is even easier for bike thieves in lonely places and in the dark. At night and in secluded areas, they don't have to fear being caught stealing. 

Reliable protection against theft: Bicycle Insurance

The chance that the police will find your stolen bike is extremely small. On average, there are more than 300 bicycle thefts per 100,000 inhabitants in Germany every year. The police clearance rate is just nine percent. These figures only include the thefts reported to the police. You can assume that the theft of an uninsured bicycle will not even be reported to the police. In addition to their loss, the victims of theft would have to spend an immense amount of time filing a report with the police. Most theft victims prefer to save this time. 

It is difficult to protect yourself from someone stealing your bike. But you can insure yourself against financial loss. Insurance companies will reimburse you for the value of your bike so you can buy a new one, or at least one of equal value. If you want to protect your bike or its value with theft insurance, you have several options. You should compare them in order to secure optimal benefits at favourable premiums. 

Bicycle Theft and Home Contents Insurance

If you have your own Home Contents Insurance, it may cover the theft of your bike. The same applies if you still live in your parents' household and they have Home Contents Insurance. If the insurance policy includes bicycle theft, then it applies to all bicycles in the household. Whether and to what extent Home Contents Insurance will replace your stolen bicycle depends on the policy. Older insurance policies often include bicycle replacement. More recent contracts do not include this protection at all or only to a limited extent. You should, therefore, first check the policy to see whether your bicycle is already insured. 

The limited benefit of Home Contents Insurance applies only in the event of burglary. It will only replace your stolen bike if it is stolen from a locked basement or garage. So thieves have to break open a locked door to be able to steal the bike. Another limitation can be the night clause in the policy. Insurances with a night clause only pay the damage in case of theft between six o'clock in the morning and 10 o'clock in the evening. 

If you lend your bicycle and it is temporarily parked in your friend's basement or garage, their Home Contents Insurance can compensate you for damage caused by burglary. The insurance cover also applies to property belonging to others and borrowed property in your own household. The situation is different if you live in another household as a subtenant or in a shared flat. 

The amount of compensation for your stolen bike depends on the sum insured under your Home Contents Insurance. Most insurers pay a maximum amount between one and five percent of the agreed damage sum. You will only be reimbursed for the purchase price if the bicycle is relatively new. Deductions are common from an age of two or three years. In other words, the insurance company will pay you the current value of your bike up to a maximum of five percent of the sum insured. If the insurer checks the total value of your household goods and finds that you are underinsured, it will also deduct an amount from the reimbursement. You are underinsured if the sum insured is less than the value of your household goods. 

Many insurers offer Bicycle Theft Insurance as an add-on to Home Contents Insurance. In these cases, the insurance also pays if you leave the bike locked in public and it is stolen. As an add-on insurance, you usually agree on a reimbursement for your bicycle in the amount of the current value. The payment by the insurance is then independent of the sum insured of your Home Contents Insurance and a possible underinsurance. 

Individual Bicycle insurance for your bike

If you want to be on the safe side, you should take out special insurance for your bike. This is an especially good idea if you own a very expensive bike. You choose the purchase price of your new bike as the sum insured. In case of theft during the first three years after purchase, Luko will reimburse you for the original price. From the fourth year on, the reimbursement sum is adjusted to the current value. The prerequisite is, of course, that your bike is well locked. In addition to a possibly permanently installed bicycle lock, you should use an additional one for security. 

With a Theft Insurance, your bike is insured everywhere and around the clock. The insurance coverage applies worldwide and 24 hours a day. If someone steals only individual parts of your bike, for example your saddle or the rear wheel, the insurance will also replace the stolen parts. This applies to all parts that are firmly attached to the bike and are necessary for its use. Panniers attached to the luggage rack or a child seat, for example, are not included. 

Special features at Luko: You will also receive a replacement for your separate bike lock in case of theft. High quality and secure bike locks are not cheap. In this way, Luko honours your commitment to secure your bike. 

As an add-on, you can also take out Vollkasko insurance for your bike. This add-on also covers vandalism, for example. This protection is not automatically included in the theft insurance. Imagine someone steals your bike and crashes it or is involved in a traffic accident. The front wheel is bent, the fork is defective, and the expensive gears are damaged. After that, the thief simply puts the bike somewhere and the police find it. In this situation there is a theft, but you get your bike back. The theft insurance does not cover the damage to your bike. You get your bike back so there is no longer theft damage. The damage is due to vandalism. With Vollkasko Bicycle Insurance, you can have the damage repaired at the insurance company's expense. 

What is the cost of insurance against bicycle theft?

The insurance premium depends on the value of your bike. For the insurance of a bicycle that is no more than three years old and has a new price of €2,000, you pay less than seven euros a month. For a bike worth €1,000, the insurance premium is around five euros. If you opt for Vollkasko add-on, the premium is not even two euros higher. In return, you enjoy comprehensive insurance coverage. 

The Vollkasko insurance also covers damage caused by an accident or a fall. If you transport your bike on the bike rack of your car and have an accident, the insurance pays for the necessary repairs to the bike. Even wear and tear on brakes, tires, and inner tubes is an insured event under Vollkasko insurance. If you damage your bike due to an operating error or incorrect handling, the insurance also pays the repair costs. Often, construction or material defects only become apparent after the warranty period has expired. If this happens to you, your Vollkasko Bicycle Insurance will also pay the resulting costs. The insurance also covers risks due to fire, explosion, or storms. It pays for repairs or replacement if your bike is lost in a flood or landslide. Damage caused by lightning, hail, and storms are also included in the scope of insurance of the Bicycle Insurance with Vollkasko cover.

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