If you've noticed more electric bikes, or e-bikes, on the road recently, you're not alone. These motor-assisted bikes help riders get more out of the health benefits of biking, pushing them to go further than their pedal-only counterparts. Hailed as a sustainable alternative to car-based travel, e-bikes also help environmentally minded commuters avoid the hassle and costs of driving in urban areas.

Before you hit the road on a brand-new e-bike, ensure your investment is protected with an insurance policy that can help you recoup your losses in the event of an accident, damage or loss. As e-bikes become more popular, many owners discover they exist in a unique insurance grey area — they're motorized, unlike standard bikes, but don't require a driver's license, special training or proof of insurance to operate — and carry unique risks not associated with conventional bicycles. These factors can make finding the best insurance policy to limit your exposures challenging. In this article, learn what to shop for in an e-bike, essential coverages to look for in an e-bike insurance policy and steps you can take to improve your safety and reduce liability at home.

Selecting an E-Bike

As the e-bike market grows, many options are available for various budgets. Selecting a model that suits your specific needs can help you make the appropriate investment 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, e-bikes are available in classes. These classes can reach different speeds with varying levels of pedal assist. Additionally, e-bikes come in models designed to suit riders' needs, such as folding commuter bikes to road cruisers and mountain bikes.
  • Know your desired range – Do you plan on using your e-bike for long-distance recreational biking, or are you looking for a hefty workhorse that can transport heavy loads, such as children or groceries, in urban areas? Depending on your answer, your range can vary greatly.
  • Buy a top brand that suits your budget – As tempting as it may be to purchase an e-bike for an extremely low price from an online retailer, there's reason to be wary of the deal that seems too good to be true. E-bikes pose unique risks not seen in conventional bicycles that poorly made or defective materials could exacerbate. Luckily, e-bikes are available at a wide range of price points, with quality e-bikes starting in the $1,000 to $2,000 range, according to Consumer Reports.
  • Test your bike before you buy it – Test ride different models before you make a decision. Visiting a bike shop not only lets you get a sense of how the bike feels but also lets you know what should be customized — such as, whether the seat is uncomfortable and could your safety be improved by adding some mirrors — while connecting you with knowledgeable bike experts.

Electric bicycles come with many great features that can help you become more active and live your life in a more environmentally friendly way. But it is important to keep in mind some unique risk exposures associated with e-bikes that you and your trusted insurance advisor must take into account.

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 such items from their policies, classifying them as motorized land vehicles rather than personal property. One popular home insurance carrier will only cover e-bikes if used to service the premises or assist people with disabilities. In contrast, another will only cover them as a recreational vehicle if they're only used on-premises.

Even if your homeowners insurance provides coverage for e-bikes, the total cost of repairs or bike replacement following a covered event will likely be far under your home deductible. For example, let's say your home is insured for $300,000 and your deductible is $3,000. After a garage fire, you attempt to file a claim on your destroyed e-bike. Because the electric bike costs only $1,200, far below your deductible, you're expected to pay its replacement costs yourself. However, securing a specific e-bike policy that has a lower deductible than your homeowners policy, would enable you to file a claim.

Another insurance consideration is the unique risks associated with e-bikes. An early-morning fire made headlines in June 2023 following an explosion at a New York City e-bike repair store. It's believed the blast was the result of the volatile lithium-ion batteries. According to Associated Press coverage of the incident, there were already 100 electric bicycle-related fires in the city as of June 2023.

Checking with your insurance broker to see if your homeowners policy provides liability coverage for e-bikes is essential for your health and financial wellbeing. E-bike riders are more than three times more likely to have an injury involving a collision with a pedestrian than pedal bicycles or powered scooters. Assuming you 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.

E-Bike Safety at Home

As demonstrated by the tragic June 2023 e-bike repair shop fire, the lithium-ion batteries necessary for your e-bike can be dangerous if they're not cared for properly. In New York City, some landlords, co-ops and condo boards are even taking steps to ban e-bikes from their buildings due to the risks associated with their batteries.

While these batteries are an efficient and increasingly common component of consumer electronics, they can overheat, catch fire or even explode when they are damaged, improperly used or stored in a dangerous location, according to the National Fire Protection Association (NFPA). When mishandled, they can pose a severe risk to your home and loved ones.

Follow the NFPA's safety tips to reduce your risks of lithium-ion battery fires:

  • Purchase batteries that are certified for meeting recognized safety and testing standards. In North America, look for a UL in a circle. These marks are commonly seen on thousands of products, including fire extinguishers, smoke alarms, sprinkler systems and more, and denote the product has been properly tested and certified.
  • Charge your batteries outdoors, away from your home or garage, and out of direct sunlight.
  • Never leave charging batteries unattended, and stop charging a battery once it is full. Do not store them in extremely cold or hot areas when not in use.
  • Stop using your device if the battery shows signs of damage, such as excessive heat, swelling or unusual odor.

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 personal insurance advisor to understand how your insurance policies can insulate you against their specific risks.

Depending on your carrier, you might need to purchase an e-bike-specific policy or purchase extra coverage beyond your base policy. As e-bikes continue to grow 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.