A bike shop in Stockton-on-Tees is reportedly unable to claim on its insurance after a second burglary in eight months, due to increased excess and premiums following the first break-in, according to a report from Road.cc.
Skinnergate Cycles was targeted in the early hours of April 12. CCTV footage shows a vehicle damaging the shop’s shutters, allowing thieves to enter and steal two electric bikes. One bike, valued at over £3,000, was recovered shortly after the theft, but the second, worth £4,000, remains missing. The break-in also caused significant damage to the premises.
This is the second break-in the shop has experienced in under a year. In August 2024, a group used a stolen van and power tools to gain access, resulting in an insurance claim of around £25,000 for the stolen and damaged bikes.
Following the first incident, the shop’s insurer raised the theft excess from £500 to £5,000 per claim, and the annual premium increased by £2,000. The business also had to invest over £2,000 in security upgrades. A quote from another insurer included a £10,000 excess. The building insurance renewal, expected soon, will likely account for both break-ins, further increasing costs.
Given these terms, the shop has decided not to make a claim for the latest break-in, opting instead to absorb the cost of the stolen bike and the property damage. Some losses, particularly those related to building damage, will not be covered by insurance.
The situation shows the financial pressure small businesses face when insurance claims lead to higher excesses, premiums and changes in coverage terms. For businesses like Skinnergate Cycles, the costs of insurance after repeated incidents may outweigh the benefits of making a claim, leaving them to shoulder significant financial losses.
Bike insurance in the UK typically covers theft, accidental damage, and third-party liability. Premiums range from £100 to £300 per year, depending on the bike’s value and coverage options. Policies may also include protection for personal accidents or third-party liabilities.
Cyclists must ensure they properly value their bike, including any upgrades, to avoid underinsuring it. Insurance providers may offer additional benefits, such as inflation protection or roadside assistance.
