How much is my bike worth?
Let's cut to the chase. There are many different factors to consider when determining how to value a bicycle. These include its age, condition and any modifications you have made. Lot's of us like to upgrade our bikes, so pedals and power meters are usually the most forgotten!
For bike insurance, your bike is simply worth what it costs to replace new.
And if you bought your bike for the recommended retail price, this is what you should insure it for.
If you don't know the RRP of your bicycle, check out bicyclebluebook.com. You'll find an archive of bikes, from road bikes to mountain bikes, where you can check the RRP of your bike when it was released.
Blue Bicycle Book is mainly used for valuing bikes ready to be sold on the second hand marketplace. It'll give you a rough idea of how the value has changed over time.
But it can also be used as a guide to find out the RRP on most bicycles. If your bike isn't listed, you can contact us and we'll investigate for you.
Bicycle manufacturers sometimes increase the value of their bikes over time. For example a bike bought in 2019 for £3,000 might now cost £3,150 for the same model. In this case, you should insure your bike for the modern-day equivalent. This way you'll get a like for like replacement.
There are some other difficult situations where valuing your bike for bike insurance can be confusing. We've answered these below:
For vintage bike insurance
If your bike is older, or even vintage, the value to replace it might have increased. In this case you can insure it for what it would cost to replace now.
When we process claims for vintage bikes we try our best to replace your bike to how it was.
If we can't do this, we'll pay out the amount your bike is insured for.
Bikes bought at a discount
Everyone loves a deal. But when it comes to valuing your bike for your insurance policy, remember you might not be able to get the same deal again if you need to make a claim.
Therefore you should insure your bike for the recommended retail price (RRP). If you value your bike at the discounted price, you'll be at risk of being underinsured. The same goes for if you have a second-hand bike!
Starting with the bare bones, and building your own bike can be brilliant fun. Lots of us like to build bikes from scratch.
When it comes to valuing your custom bike for insurance, you should insure the bike for the value of the parts.
If you're able to store receipts this makes valuing your custom bike even easier.
Even without a receipt, you should be able to calculate the sum of the parts to total the insured value.
If you've added some accessories to your bike, like a bike lock, some lights, a bicycle computer for example, you should list these separately under 'accessories'. Accessories cover is a useful add-on to your bike insurance policy.
Again if you need help with valuing your bike's accessories you can contact us, we're here to help.
New pair of wheels? Changing up your saddle? Or even some new handlebars? Whatever your upgrade, add it to the value of your bike's RRP.
Make sure you include the value of your pedals! Lots of bikes come without pedals, so you might need to add the value of some replacement pedals onto the RRP.
Power meters are also sometimes forgotten. A power meter can cost anywhere from £200 right up to £1,000+. Adding this to your insured value is important if you want it replaced when claiming.
As an example, if your bike is worth £2,000 and your upgraded pair of wheels cost £500, you should insure your bike for £2,500.
If you need help with this, contact us.
Why does an insurance company need my bike's value?
Bicycle insurance quotes are based on the value of your bicycle. The more your bike costs to replace, the higher your quote will be from the insurance company.
With Laka, an accurate valuation of your bike helps us calculate how much you should pay into the collective each month.
When it comes to making a claim, you'll receive the value of your bicycle to replace it.
In a simple world, if a bike that was bought for £1,000 gets stolen, we'll buy the same bike again and offer it back to you. If the bike's not available, you'll get the cash. Easy.
How much do bicycles depreciate over time?
There are lots of factors that will make your bike depreciate faster. Things like age, condition, or rareness can increase or decrease your bikes value.
At Laka, we won't depreciate the value over time. Other insurance companies often depreciate, so make sure you read the details.
A Laka policy will be applied on a “new policy for old” basis. This means if you need to claim, you'll get the same parts back, but new!
And we definitely won't depreciate the value of your bike either. Your bike will keep it's value, whether you're with Laka for just a few months, or even years.
Underinsurance means insuring your gear for less than it's worth. When it comes to making a claim, we can only pay out the amount you are insured for.
That way we make sure that no cyclist in the collective can benefit unfairly.
If you need help understanding underinsurance, check out our FAQ.