E-bike Insurance: the Future is Now for Electric Bicycles and Scooters

It was a long-awaited development that served to "bring transportation in New Jersey into the 21st century," in the words of NJ State Senator Shirley Turner. The veteran legislator from Mercer County was referring to S-731, a bill (co-sponsored by Turner, and signed into law by Governor Phil Murphy in May 2019) that opened up public roads in the state to the legal operation of electric bicycles (e-bikes) and e-scooters.

For the growing number of Garden State residents who prefer to make local trips on an electrically powered or pedal-assisted two-wheeler, the news represented validation for a mode of transportation that had previously existed in a legal limbo between the regulations governing bicycle traffic and lower-speed motor vehicles (such as mopeds). The new legislation resolved the issue by creating two all-new classes of vehicles within the Title 39 statute — the low-speed electric bicycle and low-speed electric scooter — and in so doing, New Jersey joined more than a dozen other states and major cities that have embraced this increasingly popular, environmentally friendly and ultra-convenient way of getting around.

Hailed by the governor as a way to "encourage a true re-imagining of urban commuting," the bill also opened up NJ's cities to e-scooter and e-bike rental stations, available for one-way trips within designated zones, and operated by companies with names like Bird, Jump, and Lime. For private owners and operators of these low-speed electric vehicles, the amended statute removed the requirement to register them as motor vehicles — in the process lifting the mandate to carry insurance, although many riders are finding that insuring their e-bike or e-scooter is a smart and entirely affordable option.

What makes a bike an e-bike?

Under the new regulations, a low-speed electric bicycle is defined as "a two or three-wheeled vehicle with fully operable pedals and an electric motor of less than 750 watts," whose top speed on a paved surface "is less than 20 miles per hour." 

Under those same rules, a low-speed electric scooter is described as one with handlebars plus "a floorboard that can be stood upon by the operator," and which features an electric motor that can power the vehicle "with or without human propulsion, at a maximum speed of 19 miles per hour." The description does not apply to the sit-down type of electrically powered personal scooters for riders with disabilities or mobility issues, which have been allowed on select public roadways prior to the 2019 legislation.

The things that make e-bikes easy to buy and own also make them hard to insure under existing policies…so for frequent riders, it can be worth their while to look into a dedicated policy of coverage.

While some manufacturers have marketed e-bikes with power outputs of 1000 and even 1500 watts — vehicles that can reach speeds of between 35 to 40 mph — these higher speed models remain illegal on New Jersey roads, which allow low-speed bikes only on streets where the speed limit does not exceed 35 mph.

In addition, New Jersey's regulations allow for the use of two distinct classifications of e-bikes:

• Class One low speed electric bicycles are what is known as pedal-assist models — those in which the rider must be pedaling the bike in order for the boost of electric power to kick in, and in which the motor disengages when the vehicle reaches its 20 mph legal speed limit.   
• Class Two low speed electric bicycles are "throttle" type vehicles that can be fully powered by the motor, without the rider having to work the pedals — but again, only up to the legal speed limit of 20 mph.    

According to Michael L. Razze, both types of electric bikes have garnered praise for their convenience, accessibility, and environmentally friendly method of operation.

"For people who don't need to be hitting the major roadways to get to work, these bikes can be be an affordable alternative to commuting by public transportation," observes the president of the New Jersey-based Big I alliance of independent insurance agents. "They operate using clean energy, they help relieve traffic congestion, they provide exercise…and they're ideal for people who have difficulties in walking and pedaling long distances."

New rules for a changing road

While cities from coast to coast in the continental United States have embraced the arrival of these low-speed modes of urban transit, other municipalities (including New York City, home to the e-bike rental service Citi Bike) have continued to debate and design their own guidelines governing speed limits, power outputs, rights of way and safety regulations. Meanwhile, from Hoboken in the metropolitan north to Asbury Park along the shore, New Jersey's urban communities quickly welcomed the newly street legal vehicles to their streets, with the city of Elizabeth even putting e-scooters into circulation for police patrol duty. While public safety protocols in the wake of the Covid-19 pandemic served to temporarily put the brakes on the expansion of these municipal programs, the increase in privately owned e-bikes and scooters means that no matter where you reside in the Garden State, these vehicles are here and now in your neighborhood.

Under the amended Title 39 rules, both low speed electric bicycles and low speed electric scooters are regulated according to the laws governing the operation of manually powered bicycles, rather than the previous restrictions that classified them with gas-powered motor vehicles. This means that riders under the age of 17 are required to wear a helmet, and that the vehicles are allowed to be parked on sidewalks, provided they do not obstruct pedestrian traffic (the issue of being able to ride on sidewalks, boardwalks, or public trails is left to the discretion of the various local municipalities).

The reclassification also means that riders are not required to have a license, registration, or insurance — a factor that has lent a power boost to their popularity, although as Razze explains, there exist several compelling reasons for e-bike owners to consider purchasing coverage on their investment. 

E-bike insurance: affordable, available, and right for you

While it's possible to cover a low speed electric bicycle against theft, damage or liability under your existing homeowners or renters insurance, such policies are limited in scope — and in many cases, insurers may decline to provide coverage for such vehicles altogether, since they are not classified as motor vehicles under New Jersey law.

As Michael L. Razze observes, "the things that make e-bikes easy to buy and own also make them hard to insure under existing policies…so for frequent riders, it can be worth their while to look into a dedicated policy of coverage."

Among the numerous reasons to consider coverage for an electric bike is the fact that it's so much more than a traditional bicycle — more expensive, more complicated, faster, heavier, and consequently more vulnerable when it comes to issues of theft, damage and liability.

With many low speed models selling for between one to three thousand dollars (and some higher powered, high speed models going for well over $10,000), these sophisticated modes of personal transportation represent a piece of property worth protecting from the threat of theft or loss. At the same time, their relative speed and weight versus mechanical bicycles make them more of a risk for causing injury to someone else's person or property — making a good package of liability protection a sensible option for anyone taking to the roads in these newly street legal vehicles.

As to the question of how much e-bicycle insurance costs, a basic dedicated policy for a low speed bike can start as low as $100 per year, with a number of available deductible options, and a range of available coverages that include:

• Loss of vehicle (by theft, collision, vandalism, fire or accident)
• Damage (to frame, wheels, electrical or computerized components)
• Medical costs (for the insured party in case of biking accident)
• Liability (for third party injuries or property damage caused by insured)
• E-bike rental (as temporary replacement in case of accident)

You've got questions. Your Trusted Choice independent insurance agent has the answers. 

Electric bicycles and scooters are completely new players on New Jersey's roadscape — and while their time here is still in its infancy, your Trusted Choice insurance representative has the experience and expertise in all aspects of coverage for powered forms of transportation and the people who rely upon them.

If you're considering buying a dedicated insurance policy for an e-bike, ask yourself what the value of the vehicle was when purchased new; what it might be worth a few years down the road, and how much you depend upon it for work, school, or overall local travel. Think about the sort of deductible you'd be comfortable with, and whether your regular travels place the vehicle at greater risk of being damaged or stolen. Consider also whether you would ever transport or ship the bike to another state for reasons of recreational travel; whether you would allow a friend or family member to operate it, and whether you intend to insure the power source battery, computer panel, and add-on accessories like bags, racks, lights, or electronics upgrades.

Most important of all, make a date to consult your local Trusted Choice independent insurance agent about the advantages of e-bike insurance. Ask about Roadside Assistance, a valuable option for vehicles that often travel greater distances than standard mechanical bikes — and learn how taking that extra step of insuring your electric bicycle can represent the right way to travel, within the modern community of the 21st century.