Specialist Insurance Brings Assurance for New Generation of Riders

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New bicycle owners are bringing a surge in the number of Australians turning to specialist bicycle insurance, driven largely by the adoption of e-bikes and improved availability of high-end bikes.

The typically higher value of electric bikes, the way families are embracing them into their day-to-day lives and the targetting of e-bikes by thieves are all contributing to the growing number of owners insuring their bikes – not to mention the steeply climbing rates of bicycle theft in this country in recent years.

That growth will get a further boost by another phenomenon of the e-bike market – the number of people they introducing to cycling for the first time, according to a business development officer in the bike insurance sector.

Velosure’s Jayden Kennedy said many new e-bike owners are initially unaware of how prone bicycles – and particularly e-bikes – are to theft.

While some learn the hard way, almost all new owners soon realise how much bikes are targetted by thieves, and Velosure is predicting the shift to bike-specific insurance will further accelerate as a result.

In response, the company is gearing up its operations in Australia and is looking to partner with many more bike stores to raise awareness and adoption of bicycle coverage.

Jayden has become Velosure’s first team member dedicated full-time to its New Bike Day program, which introduces new bike owners to tailored bicycle insurance by offering an initial fee-free 30-day coverage.

Participation in the program brings a range of benefits for stores, including future business for repairs or bike replacement, and further incentive for long-term relationships between shops and their customers, as the changing bike market also brings a sizeable increase in the conversion rate of New Bike Day promotions to ongoing insurance policies.

Jayden said while the conversion rate has hovered around 20 to 30% in recent years, it has now climbed to close to 50%.

Lock Promotion

Through Jayden’s new role, Velosure is also stepping up its collaborations for instore lock promotions.

For much of its 15 years in Australia, Velosure has published a list of recommended bike locks, regularly updated as new product enters the market.

In conjunction with the list, featured on www.velosure.com.au, the company provides participating stores with labelling to identify locks included among the recommendations.

It’s all about educating bike owners about the importance of a high-quality lock and the models providing the greatest security.

Those collaborations are available to any interested retailer and now Velosure is looking to team up with wholesalers to further expand the program.

“Velosure has a lot of resources and that enables us to adapt to any customer or bike store requirement – no matter how big or small it is.”

“We’ve worked with hundreds of retailers in the past to shine a spotlight on the approved locks in their displays and we’re extending the offer to distributors,” Jayden said.

“We can supply whatever the supplier wants to display on the locks, whether it’s a small sticker an instore card or some other distinctive labelling.”

High Emphasis on Flexibility

That flexibility is a feature of Velosure’s services to store, wholesalers and bicycle owners.

“There’s no one size fits all with our partnerships. Velosure has a lot of resources and that enables us to adapt to any customer or bike store requirement – no matter how big or small it is,” Jayden said.

“Velosure is a cycling-specific insurance run by cyclists, with upwards of 30 years in the industry.”

That’s one of the key benefits of opting for bicycle specific insurance, rather than coverage through general home and contents insurance.

There’s also the ability to specifically tailor the insurance to a customer’s needs, such as provisions for travelling and racing.

Insurance Designed by Cyclists for Cyclists

“Velosure is a cycling-specific insurance run by cyclists, with upwards of 30 years in the industry,” Jayden explained.

“We’ve come from the cycling industry in one form or another and we fully appreciate the motivations and needs of stores and riders.

“We’ve all experienced a bike crash, the theft of a bike or driving into a garage with our brand-new bike still on the roof of the car.

“When claims are made, we’re not just paying cash settlements, we’re working with stores to get people back riding, to repair or replace bikes for customers.

“The stronger our relationships with bike stores, the more work we can send their way.”

He said the Velosure team’s bike industry backgrounds also gave it greater insight to trends in the industry, including the influence of e-bikes and electric cargo bikes.

“While we still have a large component of traditional customers who recognise the value of insurance for their high-end road bikes, we’re experiencing an influx of everyday commuters who have very practical reasons for insuring their bikes.

“They see their new cargo bike or e-bike as a very functional tool that needs to be protected, to get to work or drop the kids at school. They view insurance for their bike in the same way they expect to insure their car or home.”

There’s also recognition that electric bikes are being specifically targetted by thieves, who believe they can sell them more easily.

While a high-end road bike, with the potential to fetch a decent resale price, can be difficult to ride around without being noticed, any electric bike can attract a reasonable price – irrespective of the brand.

And the pedal assistance – removing the exertion and need for fitness – means they tend to appeal more to the ratbag element.

“Also, riding around on a stolen e-bike is a lot more discreet than riding a stolen motorcycle,” Jayden added.

Avoid Depreciation

The New Bike promotion not only gives customers the opportunity to try before they buy bicycle insurance, it can also ensure their bike or trike continues to be insured for the price they paid.

Bikes and trikes insured from the day that are purchased are excluded from the usual depreciation that applies once a bike is more than two years old.

“That’s another benefit to providing the service through stores,” Jayden said.

For further information about Velosure and its policies, contact Jayden Kennedy at jayden@velosure.com.au or visit www.velosure.com.au. Details about New Bike Day are also available at https://www.velosure.com.au/new-bike-day