If you are a private individual purchasing or leasing a relatively costly e-bike and reside in or near Antwerp or Brussels, you will find yourself paying insurance premiums for theft or damage that can be up to 50% higher than usual.
Electric bicycles have soared in popularity, serving as an alternative means of commuting for many Flemish individuals. E-cargo bikes have gained traction in urban settings, while e-mountain bikes have become synonymous with adventurous weekend outings.
While basic models may range from €2,000 to €3,000, the price range for some models easily extends to €4,000 or even €6,000, with some even commanding prices of up to €9,000. Understandably, the demand for insurance coverage against material damage and theft has surged in tandem with these rising prices.
Quantifying bicycle thefts in Belgium, including their trends, proves challenging. Estimates vary, with figures ranging from approximately 30,000 to potentially 100,000 thefts annually. The actual statistics are muddied by underreporting, rendering a precise count elusive. Though a 2022 report by the traffic institute Vias suggested a decline or stagnation in theft rates over the past decade, it acknowledged a significant "dark number" of unreported incidents that remain absent from official records.
However, qualitative investigations conducted by the same institute reveal a shift in theft patterns. Notably, instances of theft involving lower-cost traditional bicycles have dwindled in recent years. Instead, organised theft rings concentrate their efforts on higher-end models, with this trend markedly pronounced in Antwerp and Brussels.
Heightened risk in cities
Peter Callant, CEO of insurance brokerage Callant, substantiated this shift in a recent VRT interview. Callant was an early pioneer in offering comprehensive bicycle insurance in Belgium since 2007. "We've seen a substantial rise in policies compared to five years ago, primarily due to the surge in expensive e-bikes on the streets,” Callant told VRT. This uptick in policies has inevitably led to an increase in theft claims, albeit not directly proportional—except in the cases of Antwerp and Brussels.
This trend has not escaped the notice of the VAB mobility organisation, which states that theft-related pay-outs in 2023 have already matched those for the entirety of 2021.
According to Callant, residents of Antwerp and Brussels pay premiums up to 50% higher for theft and property damage insurance due to the heightened risk of theft in these areas. This reflects the insurance industry's practice of using segmentation techniques to set premiums based on the policyholder's risk profile.
Crime statistics
The urban environment plays a pivotal role: the lack of secure indoor storage and increased outdoor usage results in a greater likelihood of leaving bikes exposed to theft.
Insurance companies evaluate these location-based theft statistics and overall crime data to determine premium costs. While this approach seemingly challenges the insurance principle of spreading risk, it does align with the notion of maintaining coverage mechanisms by adjusting premiums within reasonable bounds.
While this approach might appear profit driven, Callant counters this perspective. Bicycle insurance constitutes only 2% of their total revenue, making their focus on sustaining the market rather than maximising profits evident. The cautionary tale of the Netherlands, where mass thefts threatened insurance viability, serves as a lesson that Belgian insurers intend to avoid.
Leasing e-bikes through company plans circumvents this dynamic, as the larger contract volumes mitigate the risk of theft for these costly bicycles, rendering the policyholder's residence insignificant.
Reports of individuals struggling to secure theft insurance for e-bikes in Brussels have surfaced, however concrete evidence is scarce. Challenges might emerge when attempting to insure older e-bikes against theft, considering the rapid depreciation of these vehicles.
Insurance providers like VAB and Callant differentiate their offerings based on bike types. While VAB excludes racing bikes, mountain bikes, and speed pedelecs from coverage, Callant provides coverage for all bicycle types, albeit with higher premiums for riskier bikes such as racing models. Fragile materials and their susceptibility to theft contribute to these elevated premiums.
To reduce the risk of theft, cyclists are encouraged to take preventive measures. These include replacing stolen locks, avoiding leaving insured bikes unattended or visible, using approved locks, and refraining from parking e-bikes outdoors during night-time hours.
