Your Laka policy will be on a “new for old” basis. This means that if you have to claim we will replace your bicycle or accessories as new or with the nearest available, new, equivalent.
We won't apply depreciation to the value of your bike over time.
Remember that the collective will not pay out more than the insured value you’ve selected.
If you insure your bike for less than the new replacement cost then this means that you're not paying your fair share to the collective and so we may have to reduce the value of your claim. This is called underinsurance.
If you’ve chosen a sum insured for any item of your insured gear that is less than the cost of replacing that item as new at the time of your claim, we will proportionately reduce the value of your claim in line with the difference between the sum insured you have chosen and the new replacement value of the item of your insured gear at the time of your claim.
Tips to help you choose the appropriate insured value
- Insure your bike or accessories for the RRP as new, that way we know we’ll be able to replace your bike with a brand spanking new one
- If you have a custom bike, we suggest you insure it for what it would what it would cost to replace each individual component as new in today's market
- Remember that if you got your insured gear at a killer discount that the same discount might not be available when you come to make a claim. So if you choose to insure your gear for the discounted price you paid and not the RRP as new, that means you might be underinsured and we may not be able to replace your bike on a like for like basis
- If your bike or gear is a little older, then you may wish to insure it for what it would cost to replace today. If you choose to do this then when you come to claim we will do our best to replace your bike as new but remember that the collective will only ever pay out up to the sum insured you’ve selected
Remember, if you’re underinsured we may have to reduce your claim.
Things that people often forget to factor into the insured value of their bike
- Pedals (if they didn't come with your bike)
- Power meters
- Any other upgrades of parts you've made
As always, if you need help, contact us.