Bicycle insurance products fail to give cyclists enough cover

25 February 2019
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With thieves increasingly targeting bikes, it is a good idea to get insurance to give yourself financial protection if yours is stolen.

However, even though the bicycle insurance market is growing, the level of cover remains low, according to ratings and data firm Defaqto.

Defaqto, well known for rating a range of financial products, has launched ratings for bicycle insurance.

But the firm has found that these products perform poorly when placed under scrutiny.

Its experts look at policies, terms and conditions and rate them on a scale of one to five based on the quality and comprehensiveness of the features and benefits they provide.

A one star rating indicates a basic product, with a low level of features and benefits, while a five star product provides one of the highest quality offerings in the market.

After analysing the whole bicycle insurance market it found that the level of cover available was low, with the most common product rating for bicycle insurance policies being a three star. 

Defaqto rated 27 policies from 17 different providers but only two policies from one insurer received a five star rating. Seven policies received a four star rating, whilst one in 10 policies received a one star rating.

It also found that nearly a third (30%) of bicycle insurance policies provide less than £2 million of public liability cover, with 7% not including any cover for this at all.

Defaqto says insurers need to improve bicycle insurance to give consumers more cover.

Brian Brown, head of insight at Defaqto, comments: “As cycling has grown in popularity, there are more insurance products available on the market for consumers to choose from than ever before.

"Generally, more competition is good for product development, but our research has shown that insurers still have some way to go with these products to give consumers the cover they really need.

“Our star ratings are designed to help consumers make an informed choice about insurance based on the level of cover they need. When selecting a product, potential policyholders need to be aware of what is and isn’t covered and assess whether a policy is right for them.

"While a five star rating policy may be right for one policyholder, another may find that a one or two star rating policy is adequate for their needs.”

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