Arranging cover for bikes, an opportunity for brokers

Arranging cover for bikes, an opportunity for brokers | Insurance Business

Arranging cover for bikes, an opportunity for brokers
Brokers who are used to arranging car insurance for their clients might want to make sure their clients are also equipped with insurance for their bikes, a recent study has suggested.

According to a survey conducted by AMI, 20% of keen cyclists have bikes that are worth more than their car, but 28% of riders don’t have insurance for their bikes despite the huge investment they put in on their bikes and accessories. The bikes owned by those surveyed had an average value of $11,945.

The research, which polled 1,376 cyclists at the recent Lake Taupo Cycle Challenge, also found that 62% of cyclists were more worried about their bike getting stolen than being damaged, contrary to the claims made for bikes through AMI, said Kevin Hughes, EGM – consumer AIG.

“While more cyclists worry about their racing bike being stolen, the reality is that 67% of our claims for bikes are for damage - with crashes while road riding being by far the most common source for claims at 37%,” he said. “More often than you might think, people drive over their own bike (7% of claims) or forget to take it off the roof rack when they drive into the garage (6%).”

To meet the needs of bike owners, AMI has updated its advanced contents insurance with an optional add-on “bike cover” to provide policyholders with replacement value.

This means insured riders whose bikes crashed or were stolen from a secure building or inside a locked vehicle will receive a replacement bike with an equivalent value or a voucher to the value of the equivalent item from AMI.

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