Originally Posted by
Koyote
I can easily afford to replace any of my bikes, so I don't feel a need for insurance.
This.
Unless insurance is like $1 a month it's probably not worth it, even for a really expensive bike.
It's a cost benefit analysis.
Let's say it's $10 a month.
Yes. If your bike is stolen the month after you get the insurance it costs you $10 to replace it because you have spent 1 month's premium payment.
But if you are spending $10 a month that's $120 a year. If you have a $600 bike you have paid as much insurance as you paid for the bike after 5 years.
If you have a $2000 bike...sure...the $600 in premiums after 5 years is better than spending $2000 out of pocket on a new bike. You theoretically save $1400 IF and ONLY if your bike is stolen / destroyed.
What is the real risk of that? If there is a 1% chance your bike might get stolen in 5 years then you are spending $600 to protect you against something that has a 99% chance of not happening. Is that worth it to you? This is a personal question. To some people that helps them sleep better at night and feel safer so yeah...it's worth it. If that seems like a waste to you, it's not worth it. The purpose of all insurance is NOT to protect against your losses. It's to help you feel more secure TODAY. That is what you are buying, is peace of mind. No matter if it's bike insurance, car insurance, home owner's insurance, cancer insurance, or what. Insurance buys you peace of mind knowing that you aren't one problem away from financial hardship. (Health insurance is a different animal because you are guaranteed to use it)
So you have to figure out what the odds of a bike being stolen are and how much you are willing to spend to make you feel better about the possibility of loss.
Think about how you treat your bike too. If it's a $500 bike maybe you leave it chained to a fence post, thus increasing the risk of theft. If it's a $2000 bike I'll bet you don't do that often, store it inside your locked house, and are rarely more than arm's length from it.
Disclaimer...I have never sold a bike insurance policy. I have no idea what they cost. My numbers are all made up for illustration purposes. If you can insure a bike for $1 a month, go for it. If it's $10 I think it's a highly questionable price.