Laka bicycle insurance offers cyclists something different from other insurers. Unlike old-fashioned insurers who charge a flat fee and can be reluctant to eat into their profits to pay out claims, Laka is an optimistic company who are motivated to settle them. Their unique collective model means they work with the customer, not against them.
Laka turns the insurance industry on its head by settling claims on behalf of the customer when they happen. Then, at the end of each month, it asks all of its customers to cover their contribution by splitting these costs between them. There’s a cap on the maximum amount that you can be billed each month, so overpaying isn't something to worry about.
(Image credit: Future)
The cost per month varies depending on how many claims Laka has received. So, in theory, if there were no claims in a given month, its customers wouldn’t pay anything. Laka is so confident that you’ll like its insurance, that it’s offering 30 days of free cover to Cycling Weekly readers - full details at the bottom of the page. Or head to Laka to get yourself a quote and claim the offer.
“We don’t ask our customers for any money upfront. Because we can’t predict the future, we can’t possibly know how many claims we might have in a month. Why do we still live in a world where insurance companies take my money upfront?” asks Tobi Taupitz, CEO and co-founder of Laka.
That means that rather than a big insurer pocketing the excess cash when there are fewer claims than anticipated or being reluctant to eat into its profits to pay out, Laka’s entire policyholder community benefits if there are fewer claims. Being part of the Laka community means committing to look after yourself and your stuff for the sake of the group.
How does Laka work?
80 per cent of all monthly payments by policyholders go into the collective pot (fixing, replacing, helping), with the remaining 20 per cent going back into Laka to keep their wheels spinning.
“That means, ironically, the more claims we settle, the more revenue we generate as a company,” says Taupitz. “That’s completely the opposite from insurance companies, who take your money first and the more claims they pay out, the less stays with them. Whereas insurance companies make more money when acting against their customers, we make more money when acting in our customers’ best interests.”
(Image credit: Future)
And Laka’s claims service is second-to-none, with a five-star rating. Laka has been voted ‘Best Cycling Insurance Provider’ at the Insurance Choice Awards for the last 4 years running. Its team of bike nerds and mechanics understands bikes and normally agrees a claim in a day. Laka doesn’t believe in contracts tying you down, so you can pause or cancel a policy at any time. There’s also no excess, and no depreciation on the value of your gear.
“I was in a crash recently while on the way to a cycling event. My race bike was completely written off and I was devastated as it was my pride and joy. I submitted my claim to Laka two hours after it happened and within a couple of hours they had been back in touch to let me know they were going to help and cover the bike,” attests Jake Vita, a road racer from East Sussex.
What’s covered?
Laka, named incidentally after the Hawaiian goddess of prosperity and hula dancing, offers comprehensive coverage for your bike and gear.. It includes theft, accidental damage, third-party loss (caused by an airline or courier for example), non-professional races and triathlons, and worldwide travel for 120 consecutive days. What’s more, Laka provides £200 emergency cash to make life easier after an accident or theft, as well as legal assistance if you’re pursuing a personal injury case that wasn’t your fault.
It’s not just your bike either, Laka covers computers, helmets, clothing and a whole range of other cycle-related equipment, up to a total of £2,000 - you just need to add them onto your policy. You can read more in Laka’s cover details here.
Often people don’t realise the risk they could be taking when relying on home contents insurance to cover their bike and gear. In fact, you could find you’re uncovered every time your bike leaves the house, with many insurers only covering bikes when they’re stored at home or not in use. it’s definitely worth checking the fine print of your policy. What’s more, many people forget that making a home insurance claim can often come with a hefty excess, push up annual premiums and also impact your no claims bonus.
Having a policy that’s specifically tailored for cyclists and geared to the actual use of the bike and travel away from home, will ensure that you and your bike and other equipment are adequately covered if anything does happen. With no unexpected additional costs.
30 days free cover for Cycling Weekly readers
Laka is offering Cycling Weekly readers 30 days of free bicycle insurance. Just use the code ‘CYCLINGWEEKLY30’ when registering at Laka.co/cyclingweekly.
The offer is available for new policy holders only and ends on 31st August 2022. For full T&Cs visit laka.co.uk/offerterms.
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Paul started writing for Cycling Weekly in 2015, covering cycling tech, new bikes and product testing. Since then, he’s reviewed hundreds of bikes and thousands of other pieces of cycling equipment for the magazine and the Cycling Weekly website.
He’s been cycling for a lot longer than that though and his travels by bike have taken him all around Europe and to California. He’s been riding gravel since before gravel bikes existed too, riding a cyclocross bike through the Chilterns and along the South Downs.
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