Cycling is a popular pastime for more than a third of Australians,1 and it’s easy to see why.
“First and foremost, cycling is fun,” explains Peter Bourke, Executive Officer of We Ride Australia, a cycling charity and advocacy group.
Bourke adds that many people are choosing bikes over cars. “Bikes can be a cheaper, more accessible option, and quite often a faster one for travelling around cities,” he says.
“Whether it’s for recreation, whether it’s for transport, whether it’s for family, there are so many reasons to ride, and that is why so many Australians are embracing it.”
If you’re one of those people, you may be thinking about bicycle insurance and whether you need it. Loss or damage to bikes is often covered by home insurance policies, but it may be helpful to understand the different insurance options available.
Is bicycle insurance worth it?
While you’re not legally required to have bicycle insurance in Australia,2 that doesn’t mean it isn’t worth considering.
For one thing, any bike can be a target of theft, and only 10% of stolen bikes are ever recovered.2 Between July 2022 and June 2023, police received over 37,000 reports of theft concerning bicycles and other sporting equipment.3
Another concern is accidents. The average bike crash costs a cyclist $3,036, mostly in the form of lost income, but there can also be expenses related to ambulances, medical treatment, alternative transport and bike repair.4
When deciding whether to take out bicycle insurance, CHOICE recommends considering the costs you may incur if your bike is stolen or involved in a crash and weighing that against the potential cost of insurance.2
How can I insure my bicycle?
“You don’t necessarily have to take out special insurance for your bike,” says Mervyn Hartley, Youi’s Head of Product for Home and Small Business.
Loss or damage to bikes may be covered as part of general home insurance policies.
For example, Youi’s Contents insurance and Buildings and Contents insurance policies cover loss or damage to bicycles, e-bikes and other personal transportation devices (PTDs) caused by an insured event at your premises, even if they’re left outside.5
These policies can include up to $20 million in legal liability for non-electric bikes too, which can be useful in cases where you may accidentally cause damage to someone else or their property.5
You can even add optional cover to your policy, Hartley adds.
“You could add Contents Accidental Loss or Damage to your policy, which is popular with people who want to insure personal items they use away from home, such as cameras, bicycles, expensive tech and jewellery,” he says.
Hartley notes that properly valuing your contents will go a long way to ensuring you’re appropriately covered, particularly if you have an expensive bike or lots of costly gear.
“Making a detailed inventory of the contents you want to cover, and their replacement costs can also help you avoid underinsurance,” says Hartley.
“Particularly expensive items worth $15,000 or more, like some road bikes, can be expressly listed on your policy, but be aware that this could increase the cost of your insurance.”
Who needs bicycle insurance?
As a first step, knowing the type of cyclist you are might help in understanding your potential insurance needs.
Periodic pedaller
If you only break out your bike or e-bike occasionally, you might be a casual rider.
Even if your bike spends most of its time at home, you may want to consider taking out home insurance that covers your bike, especially if you’re concerned about theft.2
Rush-hour rider
Part of the growing group of Aussies commuting on two wheels?6
If you rely on your bike to get to and from work, having insurance may help you get back on the road sooner in the event of theft or damage.2
Lycra lover
If you take every chance to break out the road bike, you’re probably one of the many Aussies who enjoy sports cycling.
Racing-road bikes can be worth tens of thousands of dollars.7 Insuring your bicycle may mean avoiding steep out-of-pocket costs if you need to repair or replace it if a claim is accepted after an insured event.2 Keep in mind that at Youi, we won’t cover loss or damage to a bicycle when it is being used for racing.
Trail trekker
With plenty of high-octane off-road paths around Australia, it’s not hard to see why mountain biking is a popular pastime.
While rocketing down a mountainside might be fun, it can put your bike at risk of damage. Optional home insurance can often include portable cover for specific items away from home which may help cover the costs of damage in an insured event.2
At Youi, you can even choose to add Contents Accidental Loss or Damage to your policy so that your prized bike is covered away from the home as well.
Tips for keeping your bike safe
Having your ride stolen or damaged can be inconvenient, upsetting and expensive. Luckily, a few simple steps can reduce the risk.
Bourke suggests getting the best bike lock you can afford and parking your bicycle in a secure location, such as one with security cameras. A garage or secure parking facility is ideal.
“If there’s not a secure bike cage, park it somewhere where there’s lots of public observation so it’s not hidden,” he says.
Keep photographs of your bike and details such as serial numbers on hand, as these can help identify your bike in cases of theft,8 and could also be useful when submitting an insurance claim.
“Having photographs, receipts and other proof of ownership could make your claims process faster and smoother” adds Hartley.
Finally, Victoria Police advise making sure you’re familiar with the cycling rules in your state or territory, wearing light-coloured or reflective clothing, and fitting front and rear lights to your bike.9
“And when you’re out there riding your bike, choose a familiar route to get to and from your location,” adds Bourke.
Ready to find out if Youi has the right insurance to cover your bicycle? Get started with a quote or give us a call.
1 Source: Cycling and Walking Australia and New Zealand – National Walking and Cycling Participation Survey, 2023
2 Source: CHOICE – How to buy the best bicycle insurance
3 Source: Australian Bureau of Statistics – Crime Victimisation, Australia, March 2024
4 Source: Bicycle Network – Bike Crash Experience Study, 2022
5 Available with Contents and Buildings and Contents policies. Limits and exclusions apply. See the PDS for full details.
6 Source: Bicycle Network – Bike counts show steady growth across Australia, June 2024
7 Source: Giant – Performance & racing road bikes
8 Source: Victoria Police – Bike theft
9 Source: Victoria Police – Pedestrians and cyclists
