Bike insurance: Do you need it in case you hit a pedestrian?

I plan to start cycling to work every day after the social lockdown comes to an end. 

I’ve used my bike on-and-off  to commute for the past 15 years and over that time have witnessed plenty of bad driving, poor cycling and daft pedestrian behaviour. 

Now, I intend to start cycling all the time to avoid public transport. 

I was shocked, however, to read about the case of the man who faced more than £60,000 in costs and damages after he was in an accident with a woman who was crossing the road looking at her phone.

It seems that this man faced such hefty costs because he did not make a counter claim and he is now campaigning for a change in the law and advising other cyclists to get insurance.

If I do get cycling insurance, how much is it likely to cost me and what do I need to look for in the cover? Also, would other legal insurance taken out as a bolt-on with my car or home insurance policies cover me? LS

Will Kirkman of This is Money replies: The Government is urging more people to cycle and walk to work where possible and while the streets may be quiet at the moment, Britain may soon see a significant uptick in the number of bicycles on the road and pedestrians on pavements.

As anyone who has ever walked to work in a busy town or city will tell you, cyclists and pedestrians inevitably end up occupying a lot of the same spaces and in rare cases this can lead to accidents.

In total, some 130 people were seriously injured in accidents involving cyclists last year in the UK, and four were killed. 

More than 10 pedestrians suffer life threatening injuries every month when they are in a collision with people on bicycles.

It’s important to note that not all cases will be the cyclist’s fault – there are cases where a pedestrian’s actions lead to the collision and the cyclist cannot stop in time.

There have been some high profile cases, where  the cyclist was judged to be negligent. Following the jailing of a cyclist last year for killing a pedestrian, the Department for Transport announced an urgent review to see whether new laws should be brought in to cover dangerous cycling. A dangerous cycling Bill was introduced to the House of Lords earlier this year. 

These factors have reportedly lead to a significant spike in the number of cyclists taking out insurance, according to sports body British Cycling. 

While motorists are required to have third party insurance at the very least to be on the road, the same does not apply for cyclists. 

Usually, few cyclists opt to take out an insurance policy in case they are involved in a crash – they are more likely to do do so to protect their bike against theft – but this can prove costly if they do end up running into someone. 

When a cyclist is in collision with a pedestrian who was not looking where they were going, the courts can rule that both parties are equally to blame.

That means that both parties are liable to pay their own legal costs, which can often spiral into five-figure sums.

The cyclist may also have to pay compensation to the pedestrian, who is likely to come off worse from the encounter – potentially adding thousands more pounds to what they owe.

You can buy standalone cyclist’s insurance with public liability cover for around £40 a year, which protects your bike and in most cases would protect you for up to £1million in legal bills.

British Cycling offers free cover against legal bills of up to £15million for commuter cyclists who join the body – but if you’re not a member, might you already be covered by existing insurance on your car or home that comes with some form of bolt-on legal expenses cover?

We asked experts at Axa to talk you through your options.  

Carolyn Scott, home director, Axa Insurance, replies: Many home insurance policies offer public liability cover as long as you buy a policy that includes cover for the contents of your home. 

This may cover you if you’re legally liable to pay legal costs or compensation to a third party resulting from a claim brought for accidental death, injury or damage to another party’s property.

A cyclist seeking to rely on this cover should check the exact wording of their home contents policy as certain exclusions do apply. 

Cyclists should also check that the liability cover extends to personal liability for incidents away from the home rather than just liability that could arise in connection with ownership or occupation of the home.

The cover doesn’t extend to accidents caused by motorised vehicles. If the cyclist rides an electric bike, the home insurance policy would not be suitable and an alternative cycle cover should be sought. 

Home policies also exclude business-related activities. If the cyclist is paid to deliver food or other goods using their bicycle, for example, they need appropriate cover for that activity as the home insurance policy won’t respond in the event of an accident. 

The policy wording will provide the detail on any limits or exclusions that apply. In the event of an accident where the liability cover may be triggered, the cyclist should make contact with their home insurer without delay.

Whilst the cyclist may be happy that the personal liability cover offered by a home insurance is appropriate for their bicycle use, they should also check that the policy limits are suitable to give adequate cover for damage to the bicycle itself both at and away from home. 

In the event that the cover is not suitable, a specific cycle policy may be a better option.

To sum up, if the cyclist uses a non-motorised bicycle for leisure or to commute – and not for any business purpose – they simply need to check that their home contents policy includes personal liability cover and that there is adequate cover for the bike itself – and if the cover under the home policy is not suitable, check out some more specific cycle insurance options.