My 2023 Santa Cruz Bullit was stolen in 2026. I paid $11,000 for it new. I expected a check for at least $9,000. My insurance company sent me a check for $4,200. They applied three years of depreciation (which is brutal on e-bikes due to battery aging) and ignored the $2,000 in custom suspension I added. I learned the hard way that “Actual Cash Value” means “Garage Sale Price.”
Key Takeaways
- ACV is the Default: Most homeowners policies pay Actual Cash Value (Replacement Cost minus Depreciation). E-bikes depreciate like laptops, not like furniture.
- RCV is Better: “Replacement Cost Value” pays what it costs to buy a new bike of similar quality today.
- Agreed Value is Best: Specialty insurers use “Agreed Value.” You insure it for $10,000. If it’s stolen, they pay $10,000. No math, no arguments.
- Custom Parts: Standard policies ignore upgrades unless you specifically “scheduled” them. Agreed Value policies include the upgrades in the total sum.
The “Why” (Depreciation Curves)
E-bikes have batteries. Insurers view batteries as consumables.
“Loss settlement will be based on the Actual Cash Value at the time of loss, taking into consideration age, condition, and obsolescence.”
In 2026, a 3-year-old e-bike is considered “obsolete” tech.
The Investigation: The Math
I compared the payout on a 3-year-old $5,000 e-bike.
1. Standard Renters (ACV)
- Calculation: $5,000 new. 20% depreciation per year.
- Payout: $2,560.
2. Renters with “Replacement Cost” Endorsement
- Calculation: What does a comparable bike cost today? (Prices might have dropped).
- Payout: $4,500. (Better, but they might argue a cheaper model is “comparable”).
3. Specialty (Agreed Value)
- Calculation: You listed it for $5,000. You paid premiums on $5,000.
- Payout: $5,000. (Minus deductible).
Comparison Table
| Policy Type | Valuation Method | Est. Payout on $5k Bike (3 yrs old) |
| Standard ACV | Depreciated Value | ~$2,500 |
| Replacement Cost | Cost of New Equivalent | ~$4,500 |
| Agreed Value | Fixed Sum Insured | $5,000 |
Step-by-Step Action Plan
- Check Your Declarations Page: Look for “Loss Settlement: Replacement Cost.” If it says “Actual Cash Value,” call your agent and upgrade immediately.
- List Your Upgrades: If you add carbon wheels or a new fork, email your specialty insurer to increase your “Agreed Value.” You will pay a tiny bit more per month, but you are covered.
- Keep Original Parts: If you have an ACV policy, keep the stock parts. If the bike is stolen, you can’t claim the upgrades anyway, so you might as well have the spare parts to sell.
FAQ
Does Agreed Value cost more?
Yes, slightly. But the premium difference is negligible compared to the thousands you lose in depreciation.
What if the model is discontinued?
With Replacement Cost, they pay for the “closest available equivalent.” With Agreed Value, they just give you the cash.
[IMAGE: Graph showing the steep depreciation curve of an e-bike vs the flat line of Agreed Value coverage]