Summer is around the corner and great cycling weather is already here! For me, that’s meant – ride my cycle every chance I get.

Have you ever wondered what happens when a bicycle is stolen or damaged while on your car’s bike rack? Do you know if your insurance will cover possessions that are inside (or outside) of your car?

In many cases, a bicycle or bike rack will be covered, but there are circumstances in which your coverage may vary. Here are five common scenarios and the most important steps to take in each one:

• Your bike is damaged while it is secured to your vehicle
  • In most states, a claim can be filed under the personal property provision of your Homeowners’ or Renters’ insurance policy. If the policy includes a provision for replacement cost value coverage, the insurer will pay the replacement cost of the bicycle, less any deductible. However, if the policy provides for actual cash value coverage, the insurer will only pay the current depreciated value of the bicycle.
• A different vehicle damages your bike while it is secured to your vehicle:
  • If the liability of the other motorist is clear, then his or her insurer will pay the full actual cash value of the bicycle. If the motorist is uninsured, that same 100% actual cash value payment will be paid by the insurer of the owner of the vehicle to which the bike is attached. However, this payment occurs only if the owner has uninsured motorist coverage.
• A hit-and-run motorist damages your bike while it is attached to your vehicle:
  • This claim would be paid under the owner’s Homeowners’ or Renters’ policy. The replacement cost value would be paid, less the deductible.
• Another person’s bike is damaged while it is secured to your vehicle:
  • In this scenario, the liability portion of your Auto insurance will pay the actual cash value to the owner of the bike.
• A bike attached to your vehicle is stolen:
  • As long as an incident report is filed with the police, your Renters’ or Homeowners’ policy will pay the replacement cost value, less the deductible.

It is important to realize that the typical deductible in a Homeowners’ or Renters’ policy is commonly $250 or $500. In many instances where a claim is made under the provisions of such a policy, a relatively significant portion of the bike’s value will not be covered.

A “personal articles floater” can be purchased that specifically covers the full cost of repairs or the full replacement cost value if the bicycle is not repairable. If you have a very valuable bike, perhaps for racing, it can also be insured via its own policy.

So while you’re giving your bike a tune-up, be sure to also check and see if your current insurance policy covers bicycle theft and other damages.

Let us help you insure your bike or any other sports equipment you may have. Personal Article Floaters get very specific with enhanced coverage’s for a very affordable price. Plus, you have the opportunity of insuring that article for a proper amount of insurance which would be your basis for settlement if you did have the unfortunate claim. Contact us at info@BentonWhite.com or call our staff at 615.377.1212. We’ll do our best to insure your bike before you take it out this summer so you won’t have to worry about it!