Protection for you and your bike - How useful is Bike Insurance?

Your beloved bike deserves the best protection! Find out why it makes sense to get your bike covered with Bike Insurance.

A good bike has its price. You've probably already noticed that when looking for your dream bike. For a comfortable Dutch bike, you may pay at least 600 euros. If you value more technology or a sporty bike such as a mountain bike, road bike, or trekking bike, you will quickly reach a purchase price of several thousand euros. It is all the more annoying if your new bike is stolen or damaged. Being able to buy a new bike out of your own pocket depends, of course, on your financial possibilities. But with Bike Insurance, you are on the safe side. 

Bicycle theft is widespread. Especially in large cities, the police record frequent thefts. The crime statistics in Berlin, for example, state around 30,000 bicycle thefts every year. In terms of population, Bremen leads the way with 875 stolen bicycles per 100,000 inhabitants. The police assume that the number of unreported cases is significantly higher. Bicycles that are not insured are often not even reported to the police. 

Some bicycle thefts are a unique opportunity for thieves. They see a lightly secured bike and take it because they need a means of transportation. Professional gangs of thieves specialise in picking secure locks within seconds and without attracting attention. They especially target new and high-quality bikes. Some thieves also supply themselves with good bicycle accessories and spare parts. The consequence for you is an expensive repair. 

Since bicycles generally don't have individual license plates, the detection rate for bicycle thefts is very low. In 2019, police solved just nine percent of all cases. Gangs of thieves often dismantle the bikes into individual parts and sell them. Your bike is then unrecognisable so you have little chance of getting your stolen bike back. 

Insure your bike and buy a new one

Insurance compensates you for the damage if your bike is stolen. For the first three years after purchase, you receive the value stated when the contract was concluded. If you insure a bike costing €3,500, the insurance company will pay exactly this amount in the first three years if the bike is stolen. It doesn't matter where the theft occurs. If you take the bike on vacation to Italy or Costa Rica, you also enjoy comprehensive protection thanks to the worldwide scope. Since the insurance coverage is valid around the clock, you will also receive compensation if your bike is stolen at night. From the fourth year on, the reimbursement is reduced annually. It adjusts to the decreasing value of the bicycle. An important prerequisite for payment by the insurance company is, of course, that your bicycle is locked with an independent lock at the time of the theft. You must also know the frame number; it is the only secure identifier for your bike. Therefore, you must provide it when you purchase insurance. Without a proper bike lock, you would make it too easy for thieves. Also, you must report the theft to the police. 

Even if only the saddle, a wheel, or the handlebars of your bike are stolen, you will receive compensation from the insurance company. If you have additional expensive bike parts, you should keep the invoices. This way you will always have a proof of purchase at hand. Your insurance will reimburse you for all stolen parts that are permanently attached to the bicycle and are necessary for its use. A child seat or panniers, for example, are not included. 

Premium protection with Bicycle Comprehensive Insurance/Vollkasko 

In addition to the theft insurance, you have the option of taking out comprehensive insurance for your bike. It will reimburse you for the repair costs in the following cases:

  • Crash and accident damage
  • Damage caused by storms, hail, lightning, floods, landslides, or avalanches
  • Damage caused by fire and explosion
  • Damage in the event of an accident to the means of transport
  • Damage due to vandalism
  • Damage due to an operating error
  • Wear and tear of tires and hoses as well as brakes
  • Damage caused by production, construction, and material defects occurring after the warranty period
  • Bonus of 50 € for an annual bike inspection

With Luko, you have the possibility to choose the Vollkasko add-on to the theft insurance. This way you only pay a slightly higher premium for all-round protection. 

Home insurance or special insurance for the bike?

You can insure your bike against theft in different ways. Some Home Contents Insurance policies already include bicycle theft. Others offer it as an additional benefit. As a rule, however, the Home Contents Insurance only covers theft in the event of burglary. This means you can only submit a claim if your bike is stolen from your locked basement or garage. For a theft in front of your local pub, or at your workplace or school, you usually do not receive any money from a Home Contents coverage. 

Home Contents Insurance usually covers all bicycles in the household. However, the amount of reimbursement depends on the sum insured. Most insurers will reimburse bicycles up to one to five percent of the agreed sum insured. So whether you get the total replacement value of your bike depends on the total value of your household. Occasionally, theft protection may be limited by a night clause. In this case, you will only receive replacement for your stolen bike if it is stolen between 6 am and 10 pm.

Special bike insurance, therefore, goes way beyond that of a Home Contents Insurance policy. With Home Contents Insurance, there may be a risk of underinsurance. If it turns out that the value of your entire household is significantly higher than the insured amount, the insurer will reduce the reimbursement for any damage. If your bicycle is stolen during a burglary, the compensation is reduced by the percentage of the underinsurance. Only a separate bike insurance policy can offer you complete and secure protection. 

Is it worth buying my own insurance for my bike?

Deciding if a comprehensive coverage is worthwhile depends on what Bike Insurance will cost. If you only own an old, simple bike, it's probably not worth taking out a policy. Over time, Bike Insurance could cost more than the bike is worth. The minimum premium charged by most insurers is around €5 a month, or about €60 a year. For a bike that might only be worth €200, you can forgo taking out the insurance. At the latest in the fourth insurance year, the insurance would be more expensive. 

It is different if you own an expensive new bike. A good racing bike costs between €4,000 and €6,000. For a special model you even pay more than €10,000. The situation is similar with a high-quality mountain bike. Even a good trekking bike costs between €2,000 and €4,000. Insurance premiums depend on the purchase price. For a €2,000 bike, you'll pay between six and seven euros a month. Even for Vollkasko insurance, the monthly premium remains under ten euros. In this case, it is worth taking out insurance. If you consider the benefits that this protection offers you, you can save a lot of money in the long run. 

Theft Insurance for a €6,000 bike costs about €30 a month, or around €360 a year. All-round protection with Vollkasko cover costs less than €40 per month. Especially for such an expensive bike, it makes sense to take out bicycle insurance with Vollkasko cover. This not only protects you from a high loss in the event of theft, but also keeps your bike in good condition at a low cost.