Summer Cycling Craze: What You Need to Know About E-Bikes
April 25, 2024
Motor-assisted electric bikes, or e-bikes, help riders get more of the health benefits of biking, pushing them to go farther than their pedal-only counterparts. This summer, we’ll help you understand e-bike offerings and their unique insurance considerations so you can select the ride that fits your needs while ensuring your liability exposures are properly handled.
Selecting an E-Bike
As the e-bike industry grows, many new options are hitting the market, from daily riders to high-end mountain bikes. Selecting a model that suits your specific needs can help you make the appropriate purchase and enjoy your e-bike for years. Here are some things to keep in mind when shopping for your new electric bike:
- Educate yourself on the different classes and models of e-bikes – Just like the "sport" or "turbo" edition of your favorite car brand, e-bikes are available in classes, styles and mobility levels. These classes can reach different speeds with varying levels of pedal assist, while some micro-mobility vehicles offer greater convenience by folding down into a minimalist footprint.
- Know your desired range – Do you plan on using your e-bike on holiday for long-distance recreational biking, or are you looking for a convenient option that lets your guests easily travel around your summer property? Depending on your answer, your range needs can vary greatly.
- Buy a top brand that suits your needs – As e-bikes become more popular, expect to see more offerings from names you know and trust, such as Porsche. No matter the price point, make sure any e-bikes you purchase are made from high-quality, tested materials. E-bikes pose unique risks not seen in conventional bicycles that poorly made or defective materials could exacerbate. Luckily, technology journalists review new e-bike models often, providing expert insight for riders of all levels.
- Test your bike before you buy it – Test ride different models before you make a final decision. Visiting a bike shop not only allows you to get a sense of how the bike feels but also lets you know what you can customize to create the perfect biking experience tailored to your unique needs.
Electric bicycles have many great features enabling you to become more active and offer convenience while traveling. However, you and your insurance advisor must take into account some unique risk exposures associated with e-bikes.
Insuring Your E-Bike
Most standard homeowners insurance policies provide liability protection for property damage and injuries from regular bicycle use. However, many insurance companies are taking steps to explicitly exclude e-bikes from their policies, classifying them as motorized land vehicles instead of personal property like standard bicycles. One popular home insurance carrier will only cover e-bikes if they are used to service the premises or assist people with disabilities. In contrast, another will only cover them as recreational vehicles if they're solely used on-premises.
Even if your homeowners insurance covers e-bikes, the total cost of repairs or bike replacement following a covered event — such as loss or theft — will likely be far less than your home deductible. For example, let's say your home is insured for $3.5 million, and your deductible is $10,000. After a garage fire, you attempt to file a claim on your destroyed e-bike. Because the electric bike costs only $7,500, below your deductible, you must pay the replacement costs yourself. However, securing a policy designed explicitly for e-bikes means you’ll have a lower deductible than your homeowners policy, making it easy to file a claim when a covered event occurs.
Checking with your insurance advisor to see if your homeowners policy provides liability coverage for e-bikes is essential for your health and the wellbeing of any guests who use them. E-bike riders are more than three times more likely to have an injury involving a collision with a pedestrian than pedal bicyclists or powered scooter riders. At the same time, letting an inexperienced friend or guest use your e-bikes at your vacation property could result in liability claims if they experience an injury. Assuming you and your guests are covered following an accident, only to learn that e-bikes are specifically excluded from your policy, could result in you paying for damages and costly medical bills out of pocket.
Depending on your carrier, you might need to purchase an e-bike-specific policy or extra coverage beyond your base policy. As e-bikes continue to increase in popularity, the e-bike insurance market will likely continue to grow with more options available for consumers as property losses and injury claims become more common.
E-bikes are an enjoyable way to get outdoors and carry out daily chores in an environmentally friendly way. However, they carry risks not commonly associated with pedal bicycles, so it's essential to consult your Gallagher Private Client advisor to understand how your insurance policies can insulate you against their specific risks.