Everything commuters need to buy for cycling to work is available through Cyclescheme. Not just a bike or an e-bike but also equipment such as clothing, luggage, lights and a lock. Everything but one: insurance.

You need cycle insurance in case your bike is stolen. And you need third-party liability insurance in case you’re involved in an incident and someone claims against you.

Insurance policies for theft vary widely. It’s tempting to go for the cheapest you can find on a price-comparison website. But if that insurance doesn’t cover the full replacement value of your bike or where you park it or how you use it, it’s a waste of money. Always read the terms and conditions to check that any policy meets your needs.

Cycle-specific policies generally offer higher-value and more comprehensive cover, along with useful add-ons such as breakdown recovery. That’s why they’re sometimes more expensive than putting your bike on your home and contents insurance. Good deals do exist on cycle-specific policies, however. Cyclescheme participants get an exclusive 10% discount and 14 days free insurance with Bikmo, as well as a 25% saving on e-bikes and 50% multi-bike savings.

What to look for with cycle insurance

Cost, of course. Only you can decide what is or isn’t a good deal for the insurance that you need. Most insurers have three or more tiers of cover: basic, better and best (although they won’t be called that). The more you pay, the more comprehensive the cover will be. ‘Best’ won’t necessarily be best for you. You might not need the additional benefits and, even if you do, it can be more cost effective to get basic cover with a specific add-on or to get insurance from two separate sources.

Here are the questions you need to consider when weighing up cycle insurance.

What is the value of the cover?

This is a sticking point for many home and contents policies: the price ceiling for insured bikes is low, often as little as a few hundred pounds. To increase that, you’ll have pay a premium. Even then, there will be a maximum value that may not meet the price of an expensive bike or e-bike. You can easily check these details because home and contents policies have a section specifically for pedal cycles. (Why? Bikes are high-risk items for theft – which is why you need the insurance!) Check that there’s no depreciation on your bike’s value in policy payouts. Your bike needs to be insured for its full replacement value, irrespective of wear and tear, so that you can replace it like for like if it’s stolen. Cycle-specific policies can always cover higher-value bikes. For example, Bikmo will insure multiple bikes up to the value of £35,000!

What is covered?

What incidents is the bike covered for? Just theft or also accidental damage and vandalism? Consider how extensive the cover is as well. Basic policies may cover only the bike itself. More comprehensive policies will cover accessories fitted to the bike, along with the clothing and helmet of the rider. Given the price of cycling gear these days, accessory and clothing cover is worth having. It’s standard with cycle-specific policies such as Bikmo’s.

Who is covered?

If only you will ride the bike, it’s fine if only the policy holder is covered. But if you’re insuring something like a family e-cargo bike that will be ridden by both parents, it makes sense for other – perhaps named – individuals to be covered.

What is the excess?

That’s the amount the insurance doesn’t pay out when you make a claim. You can get cheaper polices by choosing a higher excess. But then there’s no sense in making a claim if it’s less than – or not much more than – the excess. That’s not a big deal when you’re claiming for a stolen bike, but it matters a lot if you want to claim for damaged (or stolen) components, clothes or accessories.

Where does the cover apply?

Most bike thefts take place from the owner’s property – gardens, sheds, garages and so on. Insurance that’s only valid at home is by definition useless to a commuter, who will be parking up at work or in town. Policies that are valid away from the home generally specify that the bike must be in your possession, in a locked building or locked to an immovable object with good-quality lock (for example, one that’s rated Sold Secure Gold). Some cycle insurance polices are UK only, while others – like Bikmo’s – apply anywhere in the world.

How must you store the bike?

Any cycle insurance policy will cover your bike if it’s stored inside your house, behind a locked door. Most bikes aren’t. They’re parked in outbuildings such as garages, sheds or bike bunkers. See what the small print says about these places. A lock on the door of such outbuildings may be sufficient. Yet a locking point within an outbuilding – a wall or ground anchor, with a good attached – is worth having even if it’s not required. You don’t want to claim on your insurance unless you have to.

What cycling activities are covered?

Commuting to work by bike is covered by all cycle insurance policies, as is general utility and recreational use. Of course, you are free to use your Cyclescheme bike for whatever else you like. It may not be covered for off-road cycling and is unlikely to be covered for competition use. Cycle-specific policies will usually cover these scenarios, either as an add-on or with a higher tier policy.

What personal accident cover is there?

Damages to you rather than the bike. Basic policies, including many home and contents policies, won’t offer any accident cover – other than for fatal injuries that occur in the home. Bikmo’s highest level of insurance, called Plus, includes £25,000 personal accident cover when you’re out on your bike. It’s available through other cycle-specific policies as well.

Is there cover for legal expenses?

This is indispensable if you want to claim damages from someone in a civil case, as it enables you to get advice and then lawyer up. Maybe a driver runs over your bike. Maybe you come off after hitting a pothole the council should have repaired. Having this cover will help. It tends to be an add-on with home and contents polices, whereas cycle-specific polices are more likely to have it as standard. With Bikmo, for example, all polices provide £250,000 legal expenses cover. You can also get legal advice and assistance with membership of a cycling organisation such as British Cycling, Cycling UK or London Cycling Campaign.

Is there roadside recovery?

This isn’t like the AA and RAC; someone doesn’t turn up in a van and fix your bike. Instead, you and your broken bike get taxied home or to the nearest railway station. You won’t get this on a home and contents policy. You do get it with a cycle-specific policy like Bikmo’s or with the Environmental Transport Association’s Cycle Rescue service.

Third-party liability insurance

Like pedestrians, cyclists don’t have to have third-party liability insurance. That’s because both groups pose such a small risk to others. But a small risk doesn’t mean no risk. There was a well-publicised case in 2015 where a cyclist faced a claim of around £100,000 from a pedestrian he collided with – despite the cyclist riding through a green light and the pedestrian being on her phone. He didn’t have third-party liability insurance.

While that’s unlikely to happen to you, it’s important to protect yourself. Even a less severe incident – let’s say you were inattentive and crashed into a car, breaking its rear light – could cost you tens or hundreds of pounds.

Third-party liability insurance isn’t hugely expensive. It’s offered for free with full memberships of cycling organisations like British Cycling, Cycling UK and London Cycling Campaign. Public liability insurance for cycling (although not driving) is sometimes offered with home and contents policies as well. If you don’t have it from any of these source, make sure you buy cycle insurance that includes it. Bikmo’s Plus insurance (its top tier) includes £2m public liability insurance, as does the Environmental Transport Association’s.