New Bikmo data shows rise in claims for bikes under £500 in 2021

Specialist cycling insurer Bikmo has released the 2021 data from its Open Project, with the insurer seeing claims rise by 8% as cycling continues to grow.

The data for 2021 also shows that 57% of claim payouts were for bikes and gear worth under £500.

This has seen a huge change from the previous year, in which the average payout band with the highest % of claims was £1001-£2500 with 32.76%. This shows that more new riders are taking to the roads, with entry-level or lower value bikes. This is also represented by the fact that commuter bikes (including e-bikes) were up significantly from 2020’s data.

Bikmo has also identified a rise in the number of claims being made for bikes at home. These made up for just 10% in 2019, 18% in 2020 and now sit at a quarter of claims for 2021.

Whilst claims for theft has continued to increase, up from 48.5% in 2020 to just under 53% in 2021 – accidental damage remains a significant reason for claims. The data also shows that 40% of claims in 2021 were for components, clothing and accessories rather than a full bike.

Last year also saw claims by month follow a fairly standard pattern of increasing in May through to November. This was markedly different during 2020, likely as a result of the pandemic and lower claims in the first half of the year. August saw the most claims in 2021, with 11% in just one month.

David George, CEO of Bikmo, said: “2021 was another huge year for cycling, as more people got out and experienced the convenience and joy of travelling by bike. Whether it’s for commuting or leisure, our aim is to protect riders and get them back on track when the worst happens.

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“As cycling continues to soar in popularity we will inevitably see thefts continue to rise as the dominant reason for cycle claims. However, with the increase in both long-life tracking technology such as the AirTag and electric bikes that can both power and store tracking devices, we hope the UK will follow the experience of the Netherlands where up to 80% of tracked bikes that are stolen are recovered.

“This will not only deter thieves but also reduce premiums for insured riders, enabling Bikmo to achieve our mission of protecting the world’s riders.”

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