The Bicycle insurance market has grown in recent years and there are now 27 Bicycle insurance policies available to consumers. However, under scrutiny, Defaqto discovered that Bicycle insurance products perform poorly. Defaqto rated 27 policies from 17 different providers but only two policies from one insurer received a 5 Star Rating. Seven policies received a 4 Star Rating, whilst one in 10 policies (3) received only a 1 Star Rating. Defaqto also found that nearly a third (30%) of Bicycle insurance policies provide less than £2m of public liability cover, with 7% not including any cover for this at all.
In order to rate policies fairly, Defaqto employs a team of insurance experts to establish minimum ‘core’ criteria for each type of insurance. This is based on many years of experience within the insurance industry and these experts consider what cover the consumer really needs with each product. For example, there must be an acceptable level of Public Liability cover for a product to qualify for a 5 Star Rating.
The Star Ratings provide consumers and financial advisers with an unbiased and transparent assessment of the products and policies in the market from Defaqto experts. Based on facts not opinions, Defaqto Star Ratings provide consumers with an expert benchmark so that they can see at a glance how products and policies compare.
Brian Brown, Head of Insight at Defaqto, comments: “As cycling has grown in popularity, there are more insurance products available on the market for consumers to choose from than ever before. Generally, more competition is good for product development, but our research has shown that insurers still have some way to go with these products to give consumers the cover they really need.
“Our Star Ratings are designed to help consumers make an informed choice about insurance based on the level of cover they need. When selecting a product, potential policyholders need to be aware of what is and isn’t covered and assess whether a policy is right for them. While a 5 Star Rating policy may be right for one policyholder, another may find that a 1 or 2 Star Rating Policy is adequate for their needs. We are really pleased to launch these new ratings to give consumers an independent rating they can trust.”
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