You are an eBike Owner – Do you need Insurance?

The eBike has changed the nature of the bicycle forever. It is now practical to commute for longer distances, over more challenging terrain and at higher speeds. eBikes are generally described within three different classes.

• Class 1 Electric Bicycle — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour.

• Class 2 Electric Bicycle — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that may provide assistance regardless of whether the rider is pedaling and is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour.

• Class 3 Electric Bicycle — A bicycle equipped with fully operable pedals and an electric motor of less than 750 watts that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour.

State and local laws use these classes to define where the bikes can be used and if a helmet is required.  Most laws treat eBikes in a similar fashion to bicycles with no specific requirements for operator licensing or vehicle registration. The laws clearly differentiate eBikes from mopeds and motorcycles.  Does this mean you do not need insurance for an eBike?

Homeowners Insurance 

Your homeowner’s insurance policy will generally have an exclusion for motor vehicles. There may be coverage for vehicles that are not licensed for road use and are used to service your premises or are designed to assist the handicapped.  Coverage may be present if the vehicle is designed solely for off premises use.

In the case of an eBike, it is not a premises service vehicle, and it is not designed and intended as an aid for a handicapped person. So, there is probably not going to be coverage from your homeowner’s policy if there is an accident that causes property damage or bodily injury. Given the higher weight and speed of an eBike the potential for serious injury and property damage should be considered.

Personal Auto Insurance

Your personal auto policy generally contains an exclusion for vehicles with fewer than 4 wheels or recreational vehicles. This clearly excludes coverage for an eBike. Personal auto policies may offer some coverage if the vehicle is used off road. Since many eBikes are used on the public streets, this would preclude coverage for these eBikes. Policies for motorcycles and mopeds may not be appropriate as those vehicles are required to be licensed. Most eBikes do not require registration. They may not fit the definitions within these policies.

Coverage Options

If the eBike is not covered by the standard auto and homeowners’ policy, what are your options?

There are endorsements that can be added to your auto policy to cover these exposures. The endorsements may require a description of the vehicles, and you must designate the limits of coverage for the insurance to be provided. The endorsement may be similar to a golf cart endorsement, so review the coverage carefully.

Some insurers are offering endorsements to their homeowners’ insurance to add this coverage. You need to carefully evaluate the language of these endorsements to see that the coverage offered is broad enough for your purposes. Many companies may offer property insurance, but keep the liability exclusuions.

In either case be sure the policy you endorse can be included in any umbrella liability policy you have in place. Some of these endorsements originated with toy type vehicles and the size, weight and speed of an eBike may create a loss that requires higher liability limits.

Standalone eBike insurance

Some eBike dealers offer standalone policies. While this may seem to be an easy option, the ability to increase the liability limits may not be available. Your umbrella insurer may not attach to this policy if the terms, conditions and insurer are not acceptable to the umbrella carrier.

The Driehaus Difference

It is important to discuss this type of risk with an insurance professional. We can craft your personal lines insurance program to cover this type of exposure. If you did not know that it was not covered, you would not ask for the coverage. The myth of only paying for what you need assumes that your knowledge of insurance products makes you an informed buyer. We want to be your insurance provider.

We want to be your insurance provider. Call us at 513-677-6860 or reach out via our website www.driehausins.com