Do you need bicycle insurance in Canada? How to protect your bike from theft

What is bicycle insurance in Canada?

Bicycle insurance protects your bike from theft, accidental damage, fire and vandalism. There are two primary ways to get bike insurance in Canada, either through a homeowners insurance policy or a stand-alone bicycle insurance policy. Let’s dig into how they differ and which one might be right for you based on your bicycle, budget, and any existing coverage you might have.

Home insurance

In most cases, your bike is covered under your home insurance policy as a personal item. This extends to tenant and condo insurance policies. However, as with all contents insurance coverage, there are limitations which vary by provider.

For example, under an RBC home insurance policy, each bike you own is covered up to a maximum of $1,000. Depending on the style of bike you ride, this may be more than enough coverage to repair or replace the bike. For example, if you filed a claim, you would pay the deductible upfront, say $500, then get the payout to replace the bicycle. 

Note: If your bike is valued at less than your home insurance deductible, it may not make sense to file a claim, and your home insurance premium will likely rise as a result. 

However, if you own a high-end bicycle, like an e-bike, racing bike or expensive mountain bike, a $1,000 coverage limit will not be enough. In this case, you can either increase the contents insurance on your home insurance policy or purchase standalone bike insurance. 

If you choose to increase your coverage limit, you will end up paying a little extra on your monthly premium. However, it will help you avoid paying out of pocket if you need to file a claim.  It's important to know that how you use your bike may affect whether you are eligible for coverage. It’s critical to speak with your insurer to understand what exclusions may apply.  

Remember, if you’re not happy with your current insurer’s coverage, don't be afraid to compare new home insurance quotes from other providers. You may just find the coverage you need at a lower price.

Standalone bicycle insurance 

If you own an expensive bike, are an avid racer, or want to avoid potential increases to your home insurance, a standalone bicycle insurance policy may be for you. This type of policy is offered by specialized insurers in Canada and covers you for theft, damage and third-party liability. 

Let’s say you entered a race and accidentally hit another cyclist, injuring them or damaging their bicycle. With third-party liability insurance, you would be covered for legal defence costs if they sue you. If they win in court, your insurance may cover their bicycle, any medical expenses, loss of income, and bike replacement costs, saving you from paying out of pocket. If you injure yourself while riding, you could also be covered for related medical expenses, depending on your chosen policy. 

An advantage of purchasing standalone bicycle insurance is that making a claim will not increase your home insurance premium. Most bike policies also have lower deductibles than home insurance, meaning there is more flexibility to file a claim without considering whether paying the deductible is worth it.

A few bicycle insurance companies in Canada include Cycling Canada, Pedal Power Insurance and Sundays Insurance.

How do I buy bicycle insurance in Canada?

To buy bicycle insurance in Canada, you can either increase the contents limits on your home insurance or purchase a standalone bike policy. For both options, you’ll need to itemize the bicycle, either with photos or receipts and submit them to your insurer of choice. If you’re working with your home insurance policy, simply call your provider and go over the details. If you opt for a third-party insurer, you can usually get an online quote, or they may direct you to one of their brokers on their website.

How much does bicycle insurance cost in Canada?

The cost of bicycle insurance depends on the insurer, the chosen policy and the value of your bike. Generally, a standalone bike policy costs about 3% to 4% of the bicycle value for basic coverage, but it can jump to 7% to 8% if you’re in competitive racing. 

Increasing your home contents insurance is usually affordable and will typically add about 1% to 4% of the bike's value to your annual premium. To find out how much you could be paying, compare personalized home insurance quotes today. 

How to protect your bicycle from theft

Ideally, you don’t have to worry about making a claim on your bicycle, but things can happen, so it pays to be prepared. Here are a few security tips to keep your bike safe: 

1. Bring your bike indoors overnight if possible. If not, lock it in a well-lit public area.
2. Always remember to lock your bike, even when it’s at home, in a garage or in a backyard shed, to deter potential thieves.
3. Lock your bike to something substantial, preferably metal, and secure it to the ground. A tree, or just general wood, can be cut.
4. Do your best to avoid older bike racks that only hold the bottom of your wheel. It’s best to secure both the body of your bike and the back tire.
5. Try to fill the space inside your lock as much as possible to make it harder for thieves to insert tools to pry it open.
6. If you lock up the back tire and frame, try using a cable lock to secure the front tire as well.
7. Use two different types of locks at the same time (e.g. a cable lock and a U-lock) to slow thieves down. Most thieves want a quick getaway and may not have the time or tools to break two kinds of locks. 
8. Secure or remove any “quick-release” parts on your bicycle. They’re nice to have but can make it easier for thieves to steal your bike.
9. Register your bike with the authorities in your area and on Project 529. Keeping a record of your bike can help make recovery easier. 

What to do if your bike is stolen

If your bicycle is stolen, the best thing to do is act quickly. Here are a few tips:

1. File a police report: Contact your local police station to report the bike missing. If you registered it on Project 529, update your bike status and check the platform regularly for updates. 
2. Put together your documents: You’ll need photos of the bike, receipts, and a serial number if available. 
3. Contact your insurance company: Reach out to your home insurance company or your bike insurer to file a claim. It’s best to do so as soon as you can.

The bottom line

As you enjoy the bike-riding season in Canada, it is important to protect your bicycle from the risks of theft, vandalism and accidental damage. In most cases, your bike is automatically covered by a home, condo or tenant insurance policy. However, limitations apply. To avoid coverage gaps, review your policy and consider increasing your contents insurance limits. If you own a high-end bicycle or are an avid racer, consider purchasing standalone bicycle insurance. Above all else, the best way to keep your bike safe this summer is to be proactive against theft and keep it locked. Happy riding!

Also read:

• Jewellery insurance: What you need to know to get coverage
• What is contents insurance (and when do you need it)?
• Does your home insurance cover power outages?