Health Fitness

Finance and insure an electric bike at the lowest price

The Research and Action Group of Daily Cyclists (Gracq) pleaded, this Wednesday, April 29, 2020, for supporting the cycling momentum born during confinement and so avoid massive recourse to the car once the restriction measures have been partially lifted.

To respect the social distancing required in the fight against the coronavirus, the National Security Council recommends favoring individual modes of transport as soon as the confinement is gradually lifted. “But without taking concrete and effective measures to promote active mobility, this recommendation will inevitably lead to a strong comeback of autosolism,” said the Gracq in a press release.

The association pleads for a more equitable redistribution of public space in favor of pedestrians and cyclists, “which must take place now, effectively” in order to avoid the return of traffic jams and a deterioration in the quality of traffic. air, she adds.

Do you want to build on this cycling momentum to get to work while avoiding public transport and possible traffic jams? Here is an overview of financing and insurance solutions.

1. Funding

For several years now, many banks have had a loan specifically intended for the financing of a two-wheeler. On average, it takes at least 2,000 euros for a correct electric-assisted bicycle (VAE). Beyond 2,700 euros, you will already be dealing with a high-end bike.

Currently, the lowest rate (0.99%) can be found with Axa and Belfius banks. However, the conditions are not the same. To obtain such a rate from Axa, you must borrow at least 2,500 euros while at Belfius this amount is reduced to 1,000 euros.

If you need to borrow a smaller amount, KBC offers financing for an amount from 500 euros (which is not the case with CBC). In this case, the loan rate rises to 1.09%. Does it make a big difference? Not really.

For example, to finance a bicycle at 3,000 euros over a period of 30 months with an APR at 0.99%, the monthly payment amounts to a hundred euros (101.28 euros precisely). Or a total amount to be reimbursed of 3,038.40 euros (including 38.40 euros of interest for this loan).

With an APR of 1.09%, this amount rises to 3,042.23 euros (i.e. a difference of 3.83 euros).

Bank loans intended to finance all kinds of new bicycles *

Bank Rate Quotity
loan
Amount
minimum
Axa Bank 0.99% 110% € 2,500
Belfius 0.99% 110% 1,000
CBC 1.09% 110% 2,500
KBC 1.09% 110% 500
Beobank 1.29% 120% 2,500
BNPPF 1.30% 110% 500
Crelan 1.42% 100% 1,000
Argenta 1.49% 100% 1,250
ING 1.80% 100% 1,300

Rate as of 04/29/2020

except Beobank which reserves its loan to finance an electric bicycle. Otherwise, all these banks do not necessarily offer the same loan quota.

The highest (120%) is found at Beobank. This means that the consumer can borrow more than the amount of the bike in order to have liquidity to finance, according to his needs, one or more insurances, equipment to increase his visibility or ensure better protection, a padlock, etc. Notethat there are two ways to soften the final bill of your investment .First , depending on your home, you can possibly benefit from a bonus

municipal, provincial or regional. Sometimes these bonuses, which range from 50 to 505 euros, are cumulative.Secondly , if you use your bike for commuting between home and work, your employer can reward you for every kilometer you cover. But this is absolutely not an obligation (unless a sectoral collective labor agreement decides otherwise). This bicycle allowance amounts to 24 cents per kilometer actually traveled (a declaration on honor is valid).

This is tax and social exempt.

“By cycling for example 20 km (round trip) to get to work (with an electric bike or a normal bike), you will receive an allowance of 4.80 euros per day”, according to the explanations of KBC. “Carried over to an average of 220 days per year of work, that gives you a total of 1,056 euros.”

2. Theft insurance

On average, more than 35,000 bicycles disappear each year in Belgium, on public roads or in the homes of owners! Therefore, do you absolutely need to take out theft insurance? Not necessarily! Let’s assume that your VAE is only used for travel between home and work and that you can park it in a secure place at your employer’s place. If a theft occurs at your home (including in the locked garden shed),you are covered by your home insurance

, “as long as the ‘theft’ guarantee is obviously part of your contract”, specifies Laurence Gijs, spokesperson for AG Insurance. This same insurance covers the theft of your bike on public roads if it takes place with violence.

on your person. On the other hand, if your bicycle is to be parked on the public road, it may be worth taking out additional insurance with “Theft” and / or “Material damage” cover. For example, AG Insurance offers the Top bike insurance which provides compensation in the event of material damage and / or theft (even partial) or vandalism of the bike and its accessories. The amount of the premium depends on the type of bike, its price and the desired guarantees. “For a bike worth 1,000 euros, the premium is 60 euros

and also includes assistance insurance (see elsewhere) “, according to Laurence Gijs.

On the side of Ethias, the insured has the choice between 4 covers via the insurance product “Ethias Bike & More”. “The prices of the Theft and Material Damage cover depend on a segmentation criterion which is the insured value”, according to Serge Jacobs, spokesperson for Ethias. To illustrate the price of these two guarantees, let’s take the example of a bicycle with electric assistance whose purchase value excluding VAT is 1,665 euros. In this case, the budget will be62.48 euros / year for Theft and 22.43 euros / year for Material Damage


.

We note that theft cover is the most subscribed (65% of cases), followed by assistance (57%).

Serge jacobs

spokesperson for Ethias At CBC, for an electric bike (up to 25 km / h) worth 2,000 euros, it takes about 85 euros / year

for comprehensive cover including theft and bicycle assistance (see elsewhere).

At AXA, “bike comfort +” insurance is a solution that covers all types of bicycles as well as their accessories in the event of an accident with material damage or theft. “Assistance in the event of breakdown or accident with on-site repair and / or replacement bike is acquired for the whole family”, specifies Chloé Tillieux, her spokesperson. With this insurer, it is also possible to opt for a “multi” cover which insures up to 5 bikes. “Convenient to cover all the bikes of the family within the same contract! For example, for a family with 4 bikes to insure, including 2 electric bikes worth 1,500 euros each, it takes around 192 euros / year

for the group. A cyclist safety option that protects the client or their entire family in the event of bodily injury or death is also possible. “

3. Liability insuranceIf the assistance of your bike does not exceed 25 km / h

, your civil liability (that is to say the damage that you could cause to third parties) is covered by your family civil liability. If you are not covered by such insurance, the victim can contact the Belgian Common Guarantee Fund directly. If the assistance of your bike reaches 45 km / h and that you are therefore equipped with a speed pedelec, thenyou must take out additional RC insurance such as “moped” . This assurance goes to 89.33 euros at the AP and at Belfius for the RC (and at 119.34 euros with legal assistance). On the other hand, at Argenta this corresponds to a “Motorcycle insurance” for which the annual premium is only36 euros

.

4. Assistance No one is safe from a breakdown or a puncture. If you are not already insured for breakdown assistance (see above as well as in the box below), additional assistance coverage may be worth it. For example, the price ofthe “Breakdown assistance in Belgium” cover at Ethias is flat-rate and equal to 20 euros / year

.

You may be covered without knowing it … Eneco customers
(for at least one year) benefit from free bicycle assistance in Europe. ING customers
, holders of a MasterCard Gold credit card (at 48 euros / year) also benefit from bicycle assistance within a radius of 50 km around their home. Belfius customers
, holder of a MasterCard Platinum credit card, also benefit from bicycle assistance in Europe. Axa policyholders in Personal Liability and Auto Liability

all benefit from assistance services in the event of immobilization of the bicycle in Belgium (and up to 30 km beyond our borders) following a breakdown, a puncture, a fall or an attempted theft.

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