Cyclists get first of its kind insurance

Richard Laycock 5 September 2017

Young man on bike

Australia gets its first peer-to-peer insurance policy, and it's for bike riders.

Friendsurance has launched its first product in Australia, Cashback Bike Insurance.

The peer-to-peer product offers bike riders an extra level of protection not normally covered by bicycle insurance policies.

"We wanted to create a bike insurance product that had the unique Friendsurance Cashback but also looked more like a comprehensive car insurance policy,” said CEO and managing director of Friendsurance Australia Perry Abbott.

Regular bike insurance generally only provides policyholders with cover for loss or damage to the bike. Friendsurance Cashback Bike Insurance provides cover for the rider and the bike itself. The policy also has a personal liability benefit.

When you take out cover with Friendsurance, you are placed into a group with up to nine other policyholders who are called your connections. You can either choose who is in your group or Friendsurance will assign your connections.

The major drawcard of the Cashback Bike Insurance is in its name: cashback. Policyholders are able to get a premium return of up to 40%, depending on the number of connections you have and the amount of claims made in a year.

“Insurance is social by nature – a group coming together to share risk – and we believe Friendsurance celebrates the social aspect of insurance," Abbott said.

While this is the first Friendsurance product to launch Down Under, it won't be the last.

"We have some good ideas for our next products and we really want to hear from customers about what they want. We really want to bring something more to insurance and let people experience the benefits of friends," said Abbott.

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