Bike Insurance - Which Level Of Cover Do You Really Need?
With the announcement that the recent UK election on 6 May 2010 concluded in a hung parliament
, everyone is being that extra bit cautious with their finances. The GBP dropped in value after the announcement, a direct reflection of the lack of confidence of the country.Unfortunately, the low GBP value will have a knock on effect on businesses and whilst in some cases you may not notice it, in other instances you will and you may find that you have to pull your purse strings a little tighter than you would like.
One of the best ways to combat this is to look at what bills you already have setup and if you can lower them in any way, with bike insurance being a prime example.
When people look at bike insurance, more often than not they believe that they need Fully Comprehensive cover, which is completely understandable, as this level of covers provides the most protection to the policy holder.
But do you really need Fully Comprehensive bike insurance?
The highest level of cover may, in theory at least, seem the most sensible to take out and if money is no object, it definitely is. If you're trying to reduce your spending, however, then it's worthwhile taking a looking to see if you actually need the amount of cover that you are paying for.
The main benefit of taking out a Fully Comprehensive policy is that it covers you in almost all instances. Whether you're involved in an accident with another party and damage is caused to both riders as well as their bikes or you have your bike stolen from your home, on the assumption that the claim is valid, the insurance company will pay out.
Now, as insurance companies base their premiums on how much of a risk the policy holder poses, you need to look at yourself in this way and decide how much risk you believe you are of, for instance, being involved in an accident or having your bike stolen.
Start by looking at how often you use your bike, as if you only use it for a short commuting journey every day, perhaps no more than a 10 mile round trip, then you may be able to benefit from a lower priced insurance level.
Further to this, you should look at the time of day that you use the bike, as insurance companies believe that you are less likely that to be involved in an accident during off-peak times - which makes complete sense, as the less vehicles that there are on the road, the smaller chance there is of being involved in an accident.
Whether you need Fully Comprehensive bike insurance or not depends upon your individual circumstances. However, if you take a look at your riding habits and realise that you only ride your bike, for instance, off peak and for 10 miles each day, then it may be worthwhile looking at a policy that offers less cover and which generally has cheaper premiums.
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