Affordable transportation, freedom for the kids, or neighborhood nuisance? There are a wide range of opinions surrounding electric powered small vehicles like electric scooters and e-bikes. These zippy 2-wheeled vehicles are suddenly everywhere, and we all seem to be taking a crash course in how they can legally be used.
There’s more to this topic than legal considerations, though. It is just as important for electric scooter and e-bike riders – and parents of minors who ride – to understand how these vehicles are categorized for insurance purposes. What most people do not realize until it’s too late is that they or their children have no insurance protection at all when riding around town on a micro-mobility vehicle.
Powered Vehicle Exclusions in Homeowners Insurance Policies
Most standard homeowners insurance policies exclude powered vehicles unless they are used to service the property. A riding lawnmower is covered, for example. Electric scooters and e-bikes are not used to service the property in any way, and therefore are not covered by homeowners insurance. In fact, even the battery-powered ride-on vehicles for young children are excluded from most policies!
With the rise in electric scooters and e-bikes on our roads and sidewalks in Montgomery County, there has also been a significant increase in accidents and injuries involving these vehicles and pedestrians, cars, and other bikes. If the operator of the micro-mobility vehicle is at fault, they most likely do not have insurance coverage to protect them from a lawsuit. Some insurance carriers are beginning to address this important gap with e-bike insurance riders or small policies. While affordable, the policies offer very limited protection for an incident.
Whether you are riding a motor-assisted pedal bike to save gas on your daily commute, or you are the parent of a teenager who is enjoying extra freedom with an electric-powered bike, it’s crucial to know the risks involved and always ride responsibly.
Electric battery vehicles are not only a risk when being ridden. The large lithium-ion batteries used in e-bikes and electric scooters are vulnerable to overheating and impact damage, making them fire hazards. Only purchase reputable brands, unplug your battery once it is fully charged, and do not store your battery-powered vehicle inside unless the battery is cool. If you have been in an accident, and there is any chance that the battery got banged up, keep the vehicle outside and away from your house until you replace it. If a battery fire damages your property, homeowners insurance should cover the claim, but it will not cover the replacement value of the e-bike.
When A Powered Vehicle Needs an Auto Insurance Policy
Most e-bikes and electric scooters do not meet the criteria for requiring vehicle insurance. In order to be covered, the vehicle would need to be registered and listed as a motorcycle. This means annual registration renewal and operating with a license.
Some classes of electric motor scooters and bikes require registration, motorcycle insurance, and a license to operate. Motor scooters, best known under the Vespa brand name, are included in this class. Gas or electric motorized pedalcycles that can exceed 25 mph also require vehicle insurance. Vehicles in this class cannot be ridden on sidewalks or bike lanes. Whether a standard driver’s license or motorcycle license is required depends on the motor power.
E-bikes that are common for teenagers to ride typically max out at 20 mph and are not required to have vehicle insurance. These bikes can be ridden in bike lanes, and they are allowed on sidewalks outside of business districts. Because they fall in the gray area of not requiring vehicle insurance, and also not being covered by homeowners insurance, they come with a higher risk profile than most people understand.
PA Laws for E-Bikes and Electric Scooters
Pennsylvania’s Department of Transportation issued the PA Micro-mobility Information Sheet shown below. This guide is very useful for understanding what can be ridden, by whom, and where:
It is particularly important to note that children under age 16 should not be riding e-bikes. Additionally, there are limits to riding on sidewalks that are not always easy to figure out. A good rule of thumb is that if you are in a busy area of your town where there is the highest concentration of businesses, people, and traffic, stay off the sidewalks. Vehicle riders should also generally move out into the street when passing pedestrians on sidewalks. An electric scooter is the exception, as it should always be ridden on a sidewalk or off-road property.
When operating any type of micro-mobility vehicle:
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Always follow traffic laws
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Stop signs, red lights, and right of way rules apply to everyone equally
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Make sure you or your teens are proficient at handling an e-bike before riding it on public roadways
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Practice defensive skills and situational awareness to protect yourself from cars
New Jersey recently passed an e-bike law requiring a minimum age of 15 and a license to ride. Pennsylvania’s legislature is still leaving e-bike regulation up to local municipalities, but they are exploring a resolution to pursue deeper study on the vehicles.
Know the Risks and Ride Electric Vehicles in Safety
E-bikes and electric scooters can be a very efficient mode of transportation. Just like every mode of transportation, though, they come with risks. If you are currently riding an electric-powered 2-wheel vehicle, or your kids are riding one, find out if you have more financial exposure than you knew.
To review your e-bike insurance options, reach out to us at Smyrl Insurance. We will get a sense of how you are using the electric bike or scooter before exploring your options for insurance. We can also share important industry news about how liability, and even criminal, actions are being handled lately. Armed with information, you will be able to make the best decisions about safe and responsible e-bike operation in your household. At Smyrl Insurance, we educate, nurture, and empower our clients to know their risks and coverage in an ever-changing modern world. Contact us to review your homeowners, umbrella, vehicle, and other personal insurance options in Hatfield, Lansdale, Souderton, Harleysville, and throughout the region in Montgomery County and Bucks County, Pennsylvania.
