How to value your bike for insurance

Getting your bike’s value right is key to staying fully protected.  That’s why Bikmo has written this guide for Club members on how to value your bike. 

Underinsuring your bike could leave you out of pocket if its value isn’t kept up with rising prices.

That’s why Bikmo’s inflation protection automatically adjusts your coverage to help ensure your bike is insured for its true replacement value – so you’re more likely to be covered for the real cost of replacing your bike.

With Bikmo cycle insurance, you can ride stress-free, knowing you’re covered for whatever comes your way.

Keep reading to learn how to value your bike, protect it against rising costs and stay fully covered with Bikmo.

Member photo by Tracey Lawton

What is my bicycle worth?

No matter what type of bike you ride, Bikmo offers insurance options that can cover bikes of various ages, brands, models and upgrades. This also includes insurance for second-hand bikes.

To calculate your bike’s value, consider:

• Replacement value: Base your bike’s insured value on the cost of purchasing a like-for-like equivalent model today
• Expert assessment: Visit a local independent bike shop to get a professional opinion on its current value
• Add-on upgrades: Include the value of any customisations or upgrades you’ve made, such as a saddle or pedals

It’s crucial to get this right because the insured value sets your premium and becomes the maximum payout in the event of a claim.

Check out these examples for guidance.

What happens if my bike is underinsured?

Underinsurance happens when the amount you’ve insured your bike for is less than the cost of replacing it at the time you make a claim.

Here’s an example of underinsurance 👇

You bought a mountain bike for £2,500 a couple of years ago and insured it for that amount. 

Fast forward to today and due to rising costs and a surge in demand, that same bike would now cost around £3,000 to replace. 

If your bike is stolen or damaged and insured for only £2,500, you’ll face a £500 shortfall, leaving you unable to replace it with an equivalent model.

Why underinsurance is a common issue in cycle insurance?

Bike prices tend to rise due to inflation, market demand and advancements in technology.

If your coverage amount hasn’t kept pace with these changes, you risk being underinsured when you need to make a claim.

How to protect my bicycle’s value?

There are different options when it comes to protecting your bike’s insurance value:

• Bikmo’s inflation protection, which adjusts your coverage automatically each year
• Manually updating your bike’s insured value to match its like-for-like replacement cost

What is Bikmo’s inflation protection?

Our inflation protection – sometimes known as index linking – automatically adjusts your insured value to keep up with inflation. This update happens at renewal time, every 12 months.

This means your coverage will align more closely with the cost of replacing your bike today, not what it was worth when you first insured it. 

As we adjust your bike’s insured value each year to reflect inflation and current market prices, it’s important to note that this may lead to an increase in your premium.

The premium adjustment is based on the updated insured value, so if the value of your bike increases due to inflation or changes in market conditions, your premium could rise accordingly. 

Inflation protection is included as standard, but you can choose to opt-out each year when your policy renews.

When it’s time to renew, we’ll email you a new quote, which might include an adjustment for inflation protection. You’ll have 28 days from the email date to make any changes or opt-out. If you don’t make any changes, your policy will automatically renew and your premium and cover value may increase.

What are the benefits of Bikmo’s inflation protection?

• Avoid under insurance: Can help to ensure your bike is insured for its true replacement value
• Automatic adjustments: Updates your coverage without any effort on your part
• Financial peace of mind: Can contribute to minimising the risk of financial shortfalls in the event of a claim

Our protection helps guard against annual inflation, but it’s up to you to make sure your bike is insured for the right value upfront. That way, if you ever need to make a claim, you’re fully covered.

FAQs about insuring your bike

How can I check if my bike is insured for the right value?

Review your policy documents or contact us to confirm the insured value. If you’re unsure, reassess your bike’s current worth using the methods mentioned in this blog. Check out these examples for guidance.

How much does bike insurance cost?

Your premium is based on your bike’s insured value, coverage options and postcode. While costs may vary, inflation protection ensures you avoid costly gaps in coverage. Why not get a quick quote to find out? It only takes seconds.

What is index linking (inflation protection)?

Index linking is the process that automatically adjusts your insurance value to reflect inflation, helping to ensure your coverage matches current replacement costs. At Bikmo, we call this “inflation protection”. Our protection helps guard against annual inflation, but it’s up to you to make sure your bike is insured for the right value upfront.

What are the benefits of inflation protection?

IInflation protection can help you to avoid underinsurance. 

The value of bikes can rise over time and inflation protection helps to ensure your coverage stays sufficient to cover the current replacement cost of your bike.

Our protection helps guard against annual inflation, but it’s up to you to make sure your bike is insured for the right value upfront.

How will it affect my premium?

As your bike’s value increases, your premium may rise too. To ensure your cover keeps pace with inflation, we include inflation protection, or index linking, as standard. This automatically adjusts your insured value annually at renewal.

If your premium falls below our minimum threshold, it may not increase due to inflation protection. Similarly, if other pricing adjustments that year benefit you, your premium may stay the same.

Inflation protection is optional and you can choose to opt-out each year when your policy renews.

Before renewal, we’ll email you a new quote, which may include an adjustment for inflation protection. You’ll have 28 days to review the quote, make changes, or opt-out. If no changes are made, your policy will automatically renew with any adjustments to the premium and cover value applied.

What if I don’t want my sum insured to increase?

Inflation protection is included as standard, but you can choose to opt-out each year when your policy renews.

When it’s time to renew, we’ll email you a new quote, which might include an adjustment for inflation protection. You’ll have 28 days from the email date to make any changes or opt-out. If you don’t make any changes, your policy will automatically renew and your premium and cover value may increase.

Without inflation protection or regularly reviewing your bike’s insured value, you could end up underinsured if the replacement cost goes up and you haven’t updated your cover. If you need to make a claim, the payout might not cover the full replacement cost.

Inflation protection takes the guesswork out of keeping your insurance current; it automatically updates your coverage, so you can ride with confidence knowing you’re protected.

Ready to ride worry-free?

With Bikmo cycle insurance you can have peace of mind on all your rides that you, your bike and your kit are covered.

 

Published July 2025

 

For more about bikes, read Bikmo’s other blogs: 

• Why should I consider buying an e-bike?
• The best bike sheds from Bikmo’s perspective
• What are the benefits of cycle-specific insurance?