Skip to content Accessibility info

Insurance for Pedal-Powered Electric Bikes and Microcars

Insurance for Pedal-Powered Electric Bikes and Microcars

Pedal-operated electric bikes (or e-bikes) and microcars can be convenient alternatives to traditional cars, but they also come with risks. For example, your bike or microcar could be stolen, or you could accidentally injure someone or damage their property. But standard home and renters insurance don’t cover theft. They also have limited liability coverage.

Learn ways to insure and secure your bike so you can avoid costly surprises down the road.

E-bike and pedal-assisted microcar classifications

There are many exceptions to what insurers will cover when it comes to e-bikes. Depending on where you live, high-speed e-bikes and microcars are treated as motor vehicles. An e-bike’s classification impacts the type of insurance you’ll need and the regulations you must follow.

Classification of e-bikes

Most localities have e-bike classifications and regulate their use, like the following:

  • Class 1 e-bikes are pedal-assisted only, meaning the motor only activates while pedaling. They top out at 20 mph with a maximum 750-watt motor. Most states recommend wearing a helmet and may require helmets for anyone under 18. Check your local laws for age restrictions.
  • Class 2 e-bikes are throttle-enabled, meaning the motor can operate without pedaling. They can reach a top speed of 20 mph, powered by a 750-watt motor. Most states recommend wearing a helmet and may require them for anyone under 18. Check your local laws for age restrictions.
  • Class 3 e-bikes are pedal-assisted only (have no throttle) and reach a maximum motor speed of 28 mph with a 750-watt motor. In most states, you must be at least 16 years old to drive one. All riders are required to wear a helmet, regardless of age. Many states allow them only on roadways and prohibit their use on bike paths or pedestrian zones.

E-bikes exceeding 28 mph or lacking pedals

Bikes that exceed 28 mph and/or have a motor of 750 watts are no longer e-bikes, in most cases. These may require a driver’s license, registration, license plates and separate motor vehicle insurance, such as motorcycle insurance.

Vehicles without functional pedals may be classified as mopeds or motorcycles, leading to stricter regulations. That’s even if they are marketed as e-bikes.

Research your local laws on e-bikes before purchasing one, so you understand what you’re getting into.

Look for the e-bike maker’s mark

Reputable e-bikes will have a permanently attached sticker stating their classification, top assisted speed and motor wattage. A street-legal e-bike doesn’t exceed 28 mph and/or use a motor over 750 watts. If the sticker claims to be street-legal but exceeds these parameters, be wary of the brand. E-bikes that allow you to “unlock” to higher speeds aren’t street legal. If you cause an accident, it could impact your liability and insurance claim.

Also look for e-bikes that have been tested and certified by Underwriters Laboratories (UL), a globally recognized safety certification organization that tests electrical safety, fire prevention and reliability. Also, check for the UL mark on e-bike batteries and chargers for maximum fire prevention safety.

Classification of pedal-assisted microcars

Pedal-powered microcars, or velomobiles, are aerodynamic enclosed human-powered vehicles. They are lightweight with a streamlined shell. Riders power them by pedaling, just like a bicycle. They combine cycling with advanced, electric pedal-powered motors to achieve speeds higher than those of traditional bicycles, sometimes reaching up to 40 to 60 mph. They usually have three or four wheels for increased stability.

If local laws allow you to drive pedal-assisted microcars on the road, you’ll be required to have a valid driver’s license, register your vehicle, and carry motor vehicle or auto insurance.

Costly liabilities and property replacement

Standard home and renters policies have steep limitations when it comes to e-bikes and microcars. In fact, don’t assume your home or renters policy covers you.

Theft of your e-bike

E-bikes and pedal-operated microcars are expensive, costing several thousand dollars. This makes them attractive targets for thieves. Without insurance, replacing your e-bike could be a significant financial hit.

But most standard home and renters policies only cover theft that occurs on your premises. Your policy may only cover the actual value of your e-bike, which is the value of your bike, including depreciation. You may also have to pay a deductible, which is the amount you must pay before your insurance coverage kicks in.

And if your e-bike is stolen away from home, like on a ride or commuting to work, you won’t be covered at all.

Injury to others and property damage

High-speed e-bikes and microcars can pose risks to pedestrians, cyclists and others sharing the road. If you accidentally injure someone or damage property while operating your e-bike, you could be held legally liable for property damage and the medical bills of those involved.

Insurance for e-bikes and pedal-powered microcars

To protect yourself and your bike, consider all your insurance options.

Theft coverage. Some homeowners and renters insurance policies offer theft coverage, but it’s limited. Also, the theft typically needs to occur at home or elsewhere on your property. If your e-bike or microcar is damaged, it won’t be covered unless it was damaged in a covered event, like a fire. Standard home and renters insurance policies treat your e-bike like your other belongings, such as computers or jewelry, but with even more limitations.

Liability coverage. Liability coverage will protect you if you injure someone or damage their property while riding your e-bike or microcar.

As an owner, you can be held financially liable for injuries or damage you cause, like the following:

  • You accidentally strike a pedestrian on a crosswalk.
  • You lose control and damage someone’s parked car.
  • You cause an accident involving another cyclist on a bike path.

If you lend your e-bike to someone else, you can be held responsible for any damage they cause. Proper insurance can help you financially recover from unfortunate events.

Separate specialized e-bike policies

If you’re looking for more comprehensive liability and theft coverage, a separate specialized e-bike insurance policy might be for you. Plans provide complete theft coverage regardless of where the theft occurs. You can add full coverage for collision and liability.

If you want collision and accident coverage for your e-bike or microcar, ask your agent about specialized plans for micromobility vehicles.

Also, keep records, photos and receipts for your e-bike or microcar. You’ll need these to prove the value of your e-bike and accessories if you make a claim.

Tips for protecting your e-bike or microcar

Here are a few tips for keeping your property safe:

  • Invest in high-quality locks. Use them every time you leave your bike unattended, even if it’s just for a few moments.
  • Register your e-bike or microcar if your local government allows it. This can help authorities recover it if it’s stolen.
  • Mark it using distinguishing features. Add a GPS tracker to help locate it if it’s stolen.
  • Follow proper safety practices to reduce accidents. Take a bike safety class to stay current with the local laws. Bonus: Some safety classes qualify for insurance discounts.

Rented e-bikes aren’t covered by home or renters insurance

This is a gray area, but assume you’re not covered for liability or damage under your home or renters policy. Before you sign the agreement for your rented e-bike (or even regular bike), check whether the rental agreement includes personal liability and damage coverage in its terms. Many scooter and e-bike companies offer some limited insurance as part of their service, but you may have to buy the added coverage.

Consider the physical damage you could do if you lost control of your rented bike and crashed into a crowd of people. Since you’re not covered elsewhere, the fee is worth the peace of mind.

Call your agent about e-bikes and microcars

Contact your Rathbun Account Manager for a review of your insurance coverage if you use e-bikes or pedal-assisted microcars.

Have your bike’s year, make, and model ready when you call your agent so they can provide an accurate quote and offer advice. Ask them to verify the theft and personal liability coverage on your home or renters policy. You may need an endorsement (policy add-on) or a separate e-bike policy. In some cases, a motor vehicle insurance policy might be required.

It might seem like a lot, but once all your bike questions are answered and properly insured, you’ll be free to enjoy the open road.