Electric Bike Insurance: What You Need To Know

Electric bikes are becoming increasingly popular, and as such, there is a growing need for insurance protection that is tailored to the specific needs of e-bike riders. While some companies offer standalone electric bike insurance policies, others provide add-on coverage to existing insurance plans. E-bike insurance typically covers theft, damage, and accidents, and can provide peace of mind for riders. The cost of insuring an electric bike varies depending on factors such as location and the class of the e-bike, with some companies offering discounts for bundling with other insurance policies.

Electric bike insurance companies

Electric bikes are a significant investment and are often targeted by thieves. It is important to insure them against theft and damage. Some home and contents insurance policies may cover e-bikes, but the coverage may be limited. For example, some insurers may not cover e-bikes if they are taken out of the home or damaged in an accident.

There are several companies that offer electric bike insurance, including:

• Velosure – Comprehensive coverage for e-bikes, including theft, damage, and personal injury. They also cover e-bikes during local and international travel and offer a range of additional cover options, such as racing and transportation on a bicycle rack.
• Sundays Insurance – Covers theft of your e-bike both at home and away, as well as accidental damage, including during transit and racing. They also offer automatic coverage for up to 90 days when travelling outside of Australia.
• Velosurance – Covers Class 1, 2, and 3 e-bikes with a maximum top speed of 28 mph. Their policies are customizable and intended to protect riders from various risks. They also offer worldwide coverage as an option.
• State Farm – Will cover e-bikes under a motorcycle/moped policy, including theft, property damage, injury, and uninsured motorists.

It is important to carefully review the terms and conditions of any insurance policy before purchasing, to ensure that your e-bike is adequately covered.

What electric bike insurance covers

Electric bike insurance covers a range of scenarios, depending on the provider and the type of policy you choose. Here are some of the common coverages offered by electric bike insurance providers:

Accidental Damage

This covers repairs or replacement of your electric bike if it is accidentally damaged or beyond repair. Some policies also cover damage that occurs while the bike is being transported in or on your vehicle, or during transit by airlines or courier services. For example, Velosurance covers accidental damage to electrically assisted Class 1, 2, and 3 bikes with a maximum assisted speed of 28 mph.

Theft and Loss

Theft and loss coverage is essential for electric bike owners, as these bikes can be attractive targets for thieves. This coverage will compensate you if your electric bike is stolen or lost, helping you replace it with a similar model.

Medical Payments

If you're injured in an accident while riding your electric bike, medical payments coverage can help pay for your medical bills up to the selected limit. This coverage is often optional and can provide peace of mind in case of unexpected injuries.

Liability Coverage

Liability coverage protects you if you are held liable for someone else's injuries or property damage while riding your electric bike. It can cover legal defence costs and pay for injuries or damage up to the policy limit. This coverage is especially important if you ride in busy areas or where the risk of accidents is higher.

Uninsured Motorist Coverage

Uninsured motorist coverage protects you if you are involved in an accident with a driver who does not have insurance or cannot be identified. This coverage can help pay for repairs or replacement of your electric bike, as well as any medical expenses you may incur.

Comprehensive Coverage

Comprehensive coverage offers protection against a wide range of risks, including vandalism, fire, weather-related incidents, and collisions with animals. It provides peace of mind by covering various scenarios beyond your control. Some providers, like Progressive, also offer additional coverage for accessories, customizations, and equipment.

It's important to carefully review the terms and conditions of any electric bike insurance policy before purchasing it to ensure you understand what is covered and what exclusions may apply.

How to choose the right electric bike insurance

Electric bikes, like any other vehicle, need to be insured to protect you from financial losses in case of theft, damage, or liability. When choosing the right electric bike insurance, there are several factors to consider. Firstly, you should evaluate your specific needs, such as the value of your bike, how often you ride it, and where you store it. Different insurance providers will offer varying levels of coverage, so it is essential to read the policy details carefully and understand the exclusions, limits, and excess amounts.

Look for insurers that provide flexible coverage options, allowing you to tailor the policy to your requirements. For instance, specialised insurance providers like Sundays Insurance, Laka, Bikmo, and Cycleplan offer customised coverage for e-bikes. Consider whether you need additional coverages, such as liability protection, uninsured motorist, and medical payments. If you plan to travel with your e-bike, check if your policy includes international coverage and for how long it is valid.

Another critical factor is understanding the classification of your e-bike. In the United States, most states follow the Federal government's definition of an electric-powered bicycle, commonly referred to as the "3-Class" system. This classification is based on factors such as the motor's wattage, the maximum speed of the bike, and whether it is pedal-assist or throttle-assisted. Insurers like Velosurance use this classification to determine eligibility and coverage for different classes of e-bikes.

Finally, when choosing the right electric bike insurance, consider the cost. The price of insurance can vary depending on factors such as the bike's value, location, and the level of coverage you select. You can expect to pay an annual premium ranging from £100 to £300 for electric bike insurance. By carefully considering your needs, understanding the policy details, and comparing different insurers, you can select the most suitable electric bike insurance that provides you with peace of mind during your rides.

The cost of electric bike insurance

The cost of insuring an electric bike varies depending on several factors, including the value of the bike, the location of the owner, the level of coverage chosen, and the deductible amount.

E-bike insurance typically costs between $100 and $300 per year, but this can vary widely. For example, a user from a densely populated city reported paying a premium of $270 per year for their $6,000 e-bike, while another user from a smaller town mentioned paying only $125 per year for a $2,100 bike. Higher-value bikes, particularly long-range electric bikes, tend to attract higher premiums because they are more expensive to replace or repair. For instance, insuring a $3,000 e-bike might cost around $100 per year, while a user with a $9,000 e-bike reported paying a significantly higher premium.

The location of the owner also plays a significant role in determining the cost of e-bike insurance. Urban areas with higher theft rates generally incur higher premiums. For example, e-bike owners in cities like New York or San Francisco might pay more due to the increased risk of theft and vandalism.

The level of coverage chosen also affects the cost of insurance. Basic policies typically cover theft and damage, but additional options like liability and medical coverage can raise premiums. For instance, one user added medical coverage to their policy for an extra $78 per year, which covered $7,500 in medical expenses.

Some insurance companies, like Progressive, offer liability coverage for e-bikes starting as low as $75 per year. Velosurance, another insurance provider, offers the same coverage for electric bikes as they do for traditional bikes, and their policies do not depreciate the bike's value. State Farm, on the other hand, will cover an e-bike under a motorcycle/moped policy but will not provide full coverage, only liability. Their coverage includes theft, property damage, injury, uninsured motorists, and collision with a $500 deductible for around $32 per month.

Making a claim on your electric bike insurance

Electric bikes are a fun and eco-friendly way to get around, and if you're thinking of getting one, you should also consider getting it insured. While it might seem like an unnecessary cost, it can save you a lot of money and hassle in the long run.

When it comes to making a claim on your electric bike insurance, the process will vary depending on the insurance company and the type of claim you are making. Here are some general steps and guidelines to give you an idea of what to expect:

• Understand your policy: Before making a claim, carefully review your insurance policy to understand what is covered and what is not. For example, most insurance companies cover theft, accidental damage, and medical expenses, but only some include fire damage and spontaneous combustion of lithium-ion batteries. Knowing exactly what your policy covers will help you determine if your claim is valid.
• Gather information: In the event of an accident or incident involving your electric bike, be sure to document the details. Take photos of the damage, gather contact information from any witnesses, and make notes about the circumstances surrounding the event. If you are injured, keep records of all medical treatments and associated costs.
• Notify your insurance company promptly: Contact your insurance provider as soon as possible after the incident. They will likely have a dedicated claims line or an online portal where you can initiate the claims process. Have your policy number and other relevant information ready when you make the call.
• Provide necessary documentation: Your insurance company will likely request various documents to support your claim. This may include a police report if the incident involved theft or a collision, medical reports and bills if you are claiming for injuries, and repair estimates or receipts if your bike has been damaged.
• Follow up: After submitting your claim, stay in regular contact with your insurance company to check on the status. They may require additional information or clarification, so be prepared to provide further details as needed.
• Understand the claims payout process: If your claim is approved, your insurance company will inform you of the next steps in the claims payout process. This may include repairs or replacements for your electric bike, reimbursement for medical expenses, or compensation for a total loss. Ask your insurance provider about the methods and timing of the payout so you know what to expect.

While no one wants to think about making insurance claims, having a clear understanding of the process can provide peace of mind and help you navigate a potentially stressful situation with greater ease. Remember to carefully review your policy, document any incidents thoroughly, and stay in close communication with your insurance provider throughout the claims process.

Frequently asked questions