Why Should You Consider Velosurance to Insure Your Bike?
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- Опубліковано 29 сер 2018
- Video Transcription of the Live Interview with The Florida Bike Guy and Dave Williams, CEO of Velosurance
Jim: The short answer is so you don't have to pay for it twice. But we're gonna get a better answer from Dave, who is the co-founder and CEO of Velosurance. So Dave is joining us on the screen today, we're gonna talk all things bike insurance. And I think you're gonna find out, a lot of things are gonna pique your interest. So why don't you introduce yourself, Dave?
Dave: Good morning, everyone. Dave Williams. Insurance agency licensed in 48 states. And all we do is insure bicycles. We got into this because of the poor job that home owners' and renters' insurance do when they're covering high value bikes. When you're speaking to someone at a home owner's insurance company, they think a high valued bike is something that costs about $300. And as we all know, we're all pedaling bikes today that cost more than our first car.
Jim: Yeah, that's true. So give us an idea, I mean, I know you said you were in 47 states. How many policy orders do you have in Florida?
Dave: In the 3,500 to 4,000 dollar, I'm sorry, in the 3,500 to 4,000 range.
Jim: Okay. And what is the, so I know Velosurance, you're backed by another company called Markel. Who is Markel and how strong are they in the insurance world?
Dave: Markel, it's Markel American Insurance Company founded in 1933. They are an A rated US insurance company, AM Best rated, and they're in the 35 to 40 billion, that's billion with a B, range of capital reserves.
Jim: All right. So I wanted us to talk about what everybody wants to hear about. So you've got a bike that costs 1,000 or 3,000 or 5,000 dollars, whatever it might be. I think a lot of people are under the impression that their home owners' insurance is going to cover them if they have some type of a claim on their bike. Tell us the difference between what a home owners' insurance will cover and what Velosurance would cover for the same incident.
Dave: Okay, let's talk about a $4,000 bike that is five years old. Velosurance insures that bike for its MSRP replacement cost , $5,000 if that's what it costs to replace the bike, subject to whatever deductible the client chooses, that's how much money they would receive from us, no argument.
Jim: So your bike gets, you run over the bike in the garage, it falls of the rack, you run into a parked car, you got no one to sue, but you know, it was your own mistake. You had a $4,000 bike, you got a $200 deductible. So you're gonna give them a check for $3,800, is that correct?
Dave: Yes, if you're looking at a damaged bike and that damage was caused by an accident, it's covered.
Jim: Okay.
Dave: No argument at all. We don't depreciate the bike value, the bike always remains at replacement cost for us.
Jim: Okay.
Dave: Whereas if you're dealing with a home owners' insurance company, the bike is subject to depreciation. Probably something like 10% the first year and 5% every year after that. So at that point, you have a 30% depreciation factor on a $4,000 bike. So you're losing about $1,250 bucks off of the $4,000 bike. So now you're down to 2,750 and you've got $1,000 deductible on your home owners' insurance, if it's as low as that. So now you're down to $1,750 reimbursement from your home owners' insurance company to go out and replace a $4,000 bike.
Jim: Okay. Go ahead.
Dave: Oh, I'm sorry. Our concept is that we want our clients to take as little money out of their pocket to replace the bike if the worst were to happen.
Jim: So what is the difference in terms of the types of claims? 'Cause home owners', they cover only certain types of claims, and Velo is much broader, from what I understand.
Dave: Just as I said a little bit ago, if you're looking at a damaged bike and that damage was caused by an accident, it's covered. And you could write a book about how you could damage a bike. And depending on who your home owners' insurance company is, the bike might be covered for fire and theft at home. So unless your bike is gonna spontaneously combust, you're down to theft from your house.
Jim: Okay. Yeah, I just had a comment, hey, Tracy, I had a comment from Tracy online saying that she is, she's insured with Velosurance and she had an issue with, her seat post screw broke going up a mountain headed towards Arizona. And she used your roadside assistance for that claim.
Dave: Yeah, it's, the roadside assistance stranded cyclist coverage is $10 bucks a year, which is cheaper than a pair of socks, and you can use it five times a year. So it really comes down to, if you did use it five times a year, it really comes down to two bucks a time. Everyone who uses it is happy, very happy with it.
Jim: So let's talk about for a minute, I don't know that I've gotten the complete answer from what I was looking at. So home owners' insu
Jim, thank you for this interview.
Thanks a lot for this video. Great information, normally overlooked. 👍
Thanks for posting this video 😊
Would be cool if they actually did roadside assistance again.
I'm more interested in the roadside assistance, which I opted for and have for my 2nd time with Velosurance. I have a 70+lb electric fat bike and I can't walk very well. due to a handicap. If I'm out on the bike trail 20 miles from home and I have an electrical or mechanical issue and I call for roadside assistance and some pizza-faced kid shows up in a beat up Ford Tempo with jumper cables, that just ain't gonna work. I need to know a professional bicycle vehicle with a trained bicycle mechanic is going to show up OR at the very least, a vehicle shows up that is equipped to handle such a bike and get me home. I've actually called the roadside assistance and asked them exactly that and while they said they could handle it, they sounded unsure. I would pay extra to get this kind of emergency service.
will we get the money back if its stolen from open garage but everything is recorded on cctv?
ridiculous prices. I got a quote on my $2400.00 e bike and it was more than twice what I pay for full coverage on my Motorcycle.
I've done some research on their prices and it's pretty equal to the risk of cars and motorcycles. Here's one Statistic in the United States bicycles are 30 times more likely to be stolen then cars and 18 times more likely to be stolen than motorcycles
@@mawarco7399 that’s because most people either don’t lock them or use a cheap POS lock.
Where I live (in the middle of the desert) almost no bicycles are stolen. 90% of bikes are stolen in the large urban areas.
Bicycle insurance companies need to factor that in like Auto insurers do.