What Kind of Insurance Do You Need for Bike Touring?

25 Jun What Kind of Insurance Do You Need for Bike Touring?

Times use to be simpler, where you could just take off and hope for the best. Unfortunately, hoping for the best is a rather naive way to think, especially when you have so many things on the line when you are traveling by bike. Everyone goes out hoping for the best case scenario, but you just don’t know what will happen. That is why having appropriate insurance coverage is important to take care of you and your loved ones should anything happen. Here, I explore 5 types of insurance that you should consider having while you are on a bike tour.

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1. Medical Insurance

At minimum, one should have a general medical insurance when you are on a bike tour. You want to make sure that in the event that you get sick or injured on your bike tour, you have the coverage to keep you moving. In my opinion, you are most likely going to use this insurance option than any of the following insurance plans as we are all humans and are prone to getting sick once in a while. We will make mistakes and get scraped up, so having the proper medical insurance coverage will be key to keeping you moving without costing you further.

Depending on your country, your government may already provide you medical insurance coverage. If not, look to purchase something that will cover any problems that you may encounter. You’re looking to spend $300 to $500 per month. If you are traveling out of the country, find out the extent of your coverage if anything should happen. There may be some limitations if you are overseas.

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2. Life Insurance

This is an insurance policy you hope you would never need to use, but in the event that you do need it, your family will be taken care of while you’re no longer around. I would recommend getting a term life insurance policy which is fairly cheap given how much you will be covered for. I used to have a term life insurance policy for $275 per month, which was a million dollar policy. I have been paying for this policy for over 12 years because I used to ride a motorcycle and wanted to make sure my parents were taken care of. Due to cash flow, I have allowed the policy to lapse this year. Once I have steady income, I may reinstate this policy. Some term life insurance may require a health check up before the insurance coverage begins. The one I used to have is called Legal & General America which took over Banner Life.

Remember, your loved ones have supported you and your decisions, so having a life insurance policy should give them peace in mind in the event that you are no longer here for them.

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3. Homeowners & Renters Insurance

It is also a good idea to have a homeowner or renters insurance policy even if you are not traveling, but it is especially important that you have this type of insurance should your bike is stolen while you’re on the road. The only problem with such policy is that most folks opt for a lower annual premium, so when you do need to use it for any reason, you’ll need to pay a higher deductible. For example, when my road bike was stolen 2 years ago, if I wanted to have my homeowners policy recover it, I would have had to pay a $1000 deductible. This did not make sense as a new bike costs as much as the deductible, so I essentially bought another bike. Now if my bike cost over $1000, this would work out very well, but since most of my bikes are slightly over $1000, I purchased a policy rider for an additional $150 a year which will replace the bike without paying a deductible. This makes sense for a few years until you pay for a new bike. I stopped paying for my rider this year after having it for 1 year. It is good to know that you have options should your bike go missing. The company I’ve used for a few years now is State Farm. They’re not the best, but I’ve been with them since I purchased my house, and now I just have my auto and renter’s insurance policy with them.

4. Travel Insurance

This type of insurance is relatively new to me. It was not until I started reading about it on the Nomadic Matt site that I realized it is something I need to consider for my trip to Europe. The beauty of this insurance is that it covers all travel-related issues, like additional medical needs such as being airlifted out of a remote area. It also covers cancellations of flights or damaged equipment while you travel. This is rather convenient if you think about it. Things like missing or damaged baggage are covered, so that you can get things replaced.

Depending on the places you are traveling to, prices will vary. For example, my Europe trip for 3 months will cost $206 – $295, depending on if I choose the Standard or Explorer plans from World Nomads. It includes a very comprehensive list of events that it will cover. In case you’re wondering, I purchased the Standard plan for my Europe trip as bicycle touring was listed as an activity under the Standard Plan.

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5. Bike Insurance

The last type of insurance to consider is called bike insurance. This type of insurance policy covers things your homeowners or renters policy won’t cover. Anything related to damage or theft of your bicycle may be covered for these insurance policies. Companies like Velosurance, Markel, and Spoke Insurance provide coverage for your bike. Many of the coverages include roadside assistance, medical, and event coverage. Their policies are very similar to coverage you would get with auto insurance.

Most policies start at around $100 per year and goes up based on the coverage you pick. Not a bad idea if you’re always on your saddle. I have not considered purchasing a policy yet.

Final Thoughts

As you may have guessed, getting insurance is expensive when you never use it, but that one time when you do need it, you will be thankful that you have it. You don’t necessarily need to buy all 5 types of insurance policy, just get what makes sense for you. If you’re already paying for a homeowners policy, perhaps adding a rider is all you need. If you travel a lot, maybe all you need is just the travel insurance. First, examine what you need coverage for based on the activities that you partake in and buy the policies accordingly. You will be thankful you have it if you ever need it.