How do I value my bike for cycle insurance?

When you insure a bicycle you'll often be asked its replacement value. If you're insuring a brand new bike you've just bought, it's straightforward because you'll have a receipt. However, that's not always the case with a secondhand bicycle.

The price of bikes seems to have rocketed over recent years which can make it tricky to keep tabs on market values, but it's important to get it right. Over-insure your bicycle and you'll be paying too much for your premium. Under-insure the same bike and not only will you be out of pocket if it gets pinched, but in the case of a claim for accidental damage, you may be penalised.

To further complicate matters, it's not just the retail price of bikes that changes from year to year - specifications change and models are discontinued.

Getting a valuation for my bicycle

If the bike you're looking to insure is discontinued, your local bike shop can point you towards the today's equivalent model. Don't forget to keep an eye on bike values as it's your responsibility to make sure your insured value is correct when your cycle insurance is up for renewal.

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Will my cycle insurer pay me enough money for my bike?

The insurance industry recently has its knuckles rapped by the financial watchdog, which found cases of insurers undervaluing items in order to reduce settlements.

Whether you are claiming for a stolen bicycle or a car that's been written off, if you think an insurance claim you've made has been undervalued, you can complain to their insurer and then to the Financial Ombudsman if the complaint is not resolved. However, how can you prevent it happening in the first place?

'New for old' cycle insurance? Check the small print

Some cycle insurance providers boast about replacing stolen bicycles on a new-for-old basis, but read the small print and you soon discover the promise falls short. If your bike is a few years old when stolen, you receive only a fraction of its insured value. Here at ETA cycle insurance, we don't think that's right and it's the reason we've never devalued bikes in that way - no matter their age.

Insurance firms taken to task

The Financial Conduct Authority (FCA) has warned insurance firms not to undervalue insured items when settling claims after it saw evidence of them offering settlements lower than a fair market value. In some cases, claims staff only increased that offer to the fair market price when a consumer complained.

Offering a price lower than fair market value is not allowed under financial regulations and the FCA is taking action against those firms that it has found breaking its rules.

Sheldon Mills, Executive Director, Consumers and Competition at the FCA, said: "Insurance firms should offer settlements at the fair market value. This is especially important now as people struggling with the cost of living will be hit in the pocket at precisely the time they can ill afford it."

Are all cycle insurance providers the same?

If you do a quick back-to-back comparison it can certainly seem that way, but the devil is in the detail. The differing ways that insurers interpret the term 'new for old' highlighted above is a good example, but there are others. For our part, we do all we can to offer a transparent and fair service - not only is the ETA judged to be the UK's most ethical provider by the Good Shopping Guide but we have an envious rating on Trustpilot.

The ethical choice

The ETA was established in 1990 as an ethical provider of green, reliable travel services. Over 30 years on, we continue to offer cycle insurance , breakdown cover and mobility scooter insurance while putting concern for the environment at the heart of all we do.

The Good Shopping Guide judges us to be the UK's most ethical provider.

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