Does Insurance Cover Bike Theft or Damage?
Learn the steps you should take to keep your bicycle covered and get a quote from our friends at Liberty Mutual to protect your prized possessions today.
Bicycle insurance basics: does homeowners or renters insurance cover theft?
Yes — bike theft is covered by home or renters insurance — with a few caveats.
A bike falls under your personal property section of your home or renters policy and theft is a covered claim. However, depending on the value of your bike and your deductible, it might not make sense for you to file a claim.
Let’s outline the best practices for bike theft and your property insurance.
Key takeaways:Â
- You can get coverage for your bike through renters or homeowners insurance, or through a bike insurance-specific company if you're a competitive rider.Â
- A homeowners or renters insurance policy will cover a stolen bike under the personal property section of your policy.
- Extra coverage can be added on via endorsement for expensive bikes.Â
- A theft claim will likely not be covered if you did not secure your bike with a lock— this is considered negligent by insurance companies.Â
Do you need bike insurance?
If your bike is worth upwards of the $700 to $1,000 range, it might be a good idea to purchase extra bicycle insurance through your renters or homeowners policy. Items such as bicycles, jewelry, fine art and firearms face limited coverage due to their high value. These items face liability sub-limits — when an insurance company may restrict financial compensation for valuable items.
One workaround is an endorsement (sometimes called a rider). An insurance endorsement boosts the total coverage you have for a particular item. If you own an expensive bike, consider a scheduled personal property endorsement. This will require you to have the item appraised, but it's the best way to insure your property comprehensively.
A traditional bicycle insurance endorsement will only offer compensation if your bicycle is damaged in the event of a covered peril — like vandalism or theft.
If you use your bicycle for racing or competitions, consider a bike insurance-specific company such as Velosurance or Sundays Insurance. Your typical homeowners or renters insurance policy will not cover structural damage sustained while racing or competing.
| Sub-limit | Property | Limitations |
|---|---|---|
| $200 | Money, gold, coins | Â |
| $1,500 | Jewelry, watches, furs | Theft-only |
| $1,500 | Watercraft, trailers | Theft-only |
| $2,500 | Firearms | Â |
| $2,500 | Silverware | Â |
| $2,500 | Business property | On-premises |
| $500 | Business property | Off-premises |
| Varies | Electronics | Â |
| Varies | Bicycles | Â |
The Zebra's recommendation for bike insurance
How to file an insurance claim for bicycle theft
If your bike is damaged or stolen, follow these steps to start the process of recouping your losses. Learn more about how to file a renters claim.
Provide all the necessary information related to the theft, including a description of the bike, its location and the time at which the theft occurred. Request a copy of the police report for your and your insurance company’s records.
This could help streamline the claims process if parts were stolen from your bike, or if it was vandalized. This could include stolen wheels, pedals or even a damaged or stolen lock.
Call the claims department of your renters or homeowners company and begin filing an insurance claim. Your claims representative will walk you through the logistics.
Wait times vary by company and circumstance. Your payout will vary based on your bike and your policy — its value, your insurer's approach to reimbursing personal property losses and your deductible amount. The majority of unscheduled personal property is reimbursed on an actual cash value basis. Meaning, you are paid what your bike is worth today.Â
For example, if you bought your bike five years ago for $900, you would not get $900 if it were stolen today. You would get the current value of a five-year-old bike, minus your deductible. This is the drawback of actual cash value reimbursement. We recommend insuring your personal property coverage on a replacement cost basis. Replacement cost will give you the funds necessary to buy a new bike today. Replacement cost factors into your deductible.
Does renters insurance increase after a theft claim?
According to The Zebra's data, a renters insurance theft claim can raise your rate by about 25% — which makes theft the priciest type of claim to affect your premium. For example, the average policyholder is paying $246 in annual renters insurance premiums with no claims — this rate would increase by $62 after one theft claim and $73 after a second.Â
Renters insurance is generally affordable compared to other lines of insurance; it costs an average of $20 a month. Despite this, it never hurts to look for a cheaper rate, particularly in the aftermath of a settled claim.
We compared renters insurance premiums from some top companies to find the most affordable rate with a theft claim on your record. See the results below.
| Insurance Company | Rate After Theft Claim |
|---|---|
| Allstate | $380 |
| American Family | $360 |
| Farmers | $321 |
| Nationwide | $324 |
| Progressive | $346 |
| State Farm | $200 |
| Travelers | $342 |
| USAA | $258 |
The Zebra’s renters insurance data methodology
The renters insurance rates published in this guide are based on The Zebra’s annual analysis of average renters insurance premiums in every U.S. ZIP code. This data comes to us from Quadrant Information Services, which sources the latest approved rate filings across carriers in each state from S&P Global. Quadrant then uses an internal QA process to validate the information and build reports before the data is queried and analyzed by The Zebra.
These rates are based on a sample user profile: a single 30-year-old renter with an HO-4 renters policy living in a 1,000-square-foot apartment and carrying these coverage limits:
- $50,000 for personal property
- $100,000 for personal liability
- $5,000 for loss of use
- $1,000 for medical payments
- $500 deductible
To provide insight to renters on how specific personal factors (like age, location and coverage level) can affect your premium, this base profile is then adjusted for different factors commonly used by insurance companies. For more information, see our full data methodology.
We found that State Farm could be the cheapest option after a theft claim, with an average rate of just $17 per month. This company would be a good place to look first.
Frequently asked questions — Bike theft and insurance
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.