I may be the last one in Adelaide to realise this, but following a minor bingle with a car last week that caused me to call my insurance company re the repairs, I was advised that my policy no longer covers damage whilst my bike is 'in use' (ie., OK for theft or if it was damaged whilst NOT in use). They had clearly changed this cover since I last needed this support (Feb 2009). One might speculate that the interstate disasters in recent years (acknowledging their loss was FAR greater than mine) may have prompted these companies to minimise future liabilities through tampering with their policies. So my advice to AC members who think that the bike is insured for accidental damage, please check your current policy exclusion! I am now getting quote from that Cycle Cover Gold mob (http://www.cyclecover.com.au). Does anyone recommend them?
I think one member (currently overseas) recently succesfully claimed for a damaged bike via his RAA insurance, I think it was home and contents.
I was chatting with my agent for Velosure regarding the expensive lock needed.
Roadies would not carry such a lock, and they realise this.
They said that their concession to this, was if the bike was stolen from (as example) outside the coffee shop, whilst the bike was in view, of the insured, then they would still pay out for Theft.
I have not even found anyone selling such a lock at these high prices.
Here are the current stats on lock prices:
The locks Velosure currently approve are:
Ray, I have H&C with CGU and I specifically asked the question(earlier this year) am I covered for my bike as I commute daily...Their response was NO. They said bicycles in use are not covered against damage, my bike is covered against theft & damage at home or being transported.
New my bike was $2400.00 3years ago todays market value, maybe $1000.00 and here is an issue when insuring because Velosure and others only want to insure for market value and it does not take into account improvements since purchase...I am currently quizzing them on a few points.
Bicycle SA Insurance is only for you, not your bike, it covers your ambulance, some loss of income, damage to others and or their property not your bike. Still worth having as scratches and dents on vehicles can be costly to repair.
Correct Steven - Bike SA insurance is just for you & third party not your bike. The only exclusion is racing (as in a timed event but Dirty Wknd is still covered) But the third party element is definately important to make sure you are covered for this...if I am involved in a bingle with someone riding $10,000 worth of bling & am deemed at fault - I wanna be covered!
Thanks Steven. Good points. Here's another trap, we had obtained our H&C insurance through our Aust Central Credit Union (now People's Choice CU) as there were a few bonus's (like no excess) and the renewal came this week showing CGU as the insurer. However, on closer examination, the existing policy year (ie., the time of my incident) was through CUMIS, so I have had to find that PDS to see whether I might indeed be covered. Again this PDS was quite ambiguous as their list of contents' definitions had 'sporting equipment' as quite a separate item to 'bicycles, etc', whereas their accidental damage exclusion for 'in use' only refers to sporting goods (no mention of bicycles). Hence by their own definition list, this is different to bicycles. Hence I have spoken to them today and got their senior dude to get advice from their underwriting folks. So I am in dispute with them and this is likely heading to the ombudsman. Not optimistic, but when they disregard their own definitions to their advantage ........ what do they expect?
The clear message from both my discussions with H&C companies is "don't take as gospel what the front-line person on the phone might say to you about your coverage, or not, when you call." They seem just as confused about this as us!
Insurer's give you a 21 day free look at their PDS (Product Disclosure Statement) it is in the interest of the insured to fully read this before accepting a contract. If you are told incorrect informantion and I would assume most calls are recorded I would think they would be responsible for this. Changes in banks or credit unions insurers makes it very difficult for their insurance customers and the end of the day they are only the agent selling one's product.
An indication that advisable to get your question answered in writing before you sign up. But how many people would do that and how long before one gets an answer.
Ray, support you going to the ombudsman because the policy should be more clearly worded. Recent major angst about definition of flood and some people thinking they were covered because of poor wording. Perhaps it is time that cyclists went to the ombudsman, seeking that all policies were clearly worded when it comes to bicycle insurance.
Hey Steven Orr, I have CGU Home and contents cover, this time last year wrote off my bike. They asked if i was racing (no) and then wanted a $100 excess (no probs). They got 3 quotes for comparable bikes (same specs as my LBS gave them) then paid out on a new bike. about 4 weeks turnaround - that included Christmas. Happy as. Might depend on the TYPE of policy you have.
I have H&C through CGU via a credit union. I have asked the specific question of coverage for bikes in use.
I have been advised as long as it is not a race the bike is covered whilst in use.
It is not considered a sporting good and is covered under general contents.
Cheers Matt, In that our renewal through our CU is proposed to be with CGU, I checked their PDS over (and please do this for yourself as well).
Page 10: “Your contents include: …. Sporting equipment, unless it is being used.” and “Your contents do NOT include: …… pedal cycles while they are used for racing or pacemaking.”
Page 11. “Valuable items included in contents: …. Any one item, pair, set, collection or system of valuables or sporting equipment …. $3,000 (incl GST) per item…”
Page 30: “Valuable items we cover are listed below: ….. sporting equipment, unless it is being used.”
Page 60: However, their definition of Sporting Equipment is: “equipment designed to be used in a leisure activity that involves some element of physical activity or competition, excluding pedal cycles.”
So all the references to sporting equipment do NOT apply to pedal cycles, but pedal cycles are excluded if in racing/pacemaking. So there is no affirmation that pedal cycles are actually included at all. Yet more poor wording?
Reckon I am going to need a pace-maker after all of this!
'So there is no affirmation that pedal cycles are actually included at all.' you are spot on how I was initially reading it.
Thats why I asked to talk to someone senior, and they also called CGU whilst I was present.
However going on the 'plain English' theory one would also take a pedal cycle as being included as contents when not racing! ....if that makes sense.....
The way I read Ray's extract from the CGU PDS, pedal cycles are considered general contents so long as they are not being used for racing or pacemaking. They would also be covered while in use (unlike other general sporting equipment).
The next thing to check is to see if there are any geographic restrictions on where the contents is covered. Many policies will only cover general contents while it is at your home address. Some will have limited cover away from the home. To get coverage for items taken away from the home you will generally need them listed as specified portable valuables. This applies also to laptops, cameras, iphones etc.
Also check if the item is covered for "defined events" or "accidental cover". Defined events cover restricts you to a list of about 11 events - fire, flood, theft, storm, hit by space junk etc. Accidental cover will cover you if the item is accidentally damaged or misplaced. Generally if you list an item as a specified portable valuable item then it will have accidental coverage, but you need to check the wording.
Once again...please check your own personal policy. I have NOT read the CGU PDS in full and there may be other exclusions that I am not aware of which might make everything I have said here incorrect.