E-Rideables and Insurance: Bridging the Coverage Gap

 
Electric bikes (e-bikes), E-skates, and E-scooters—collectively known as E-rideables—are surging in popularity, but their unique nature creates a gap in traditional insurance coverage. As an insurance agent, it's crucial that I help you identify and educate those who own these types of devices or who have kids who ride them about potential risks and available options.
 
Here's a breakdown of crucial insurance considerations for owners or e-rideables:

• The Coverage Gap: Standard homeowners and renters insurance typically exclude motorized vehicles. Since e-bikes, for example, have motors, they might be excluded, leaving them vulnerable to theft or damage. Review your policy to identify the exclusions that apply to all types of e-rideables.
• Auto Insurance Exclusion: Like homeowners and renters, auto insurance likely won't cover e-bikes and other e-rideables because they aren't registered vehicles.
• Liability Concerns: Perhaps the most significant risk is liability. If your client injures someone or damages property in an accident, they could be financially responsible. Share examples and stories with your clients and encourage them to contact you to discuss options for dealing with e-rideable risks.

Bridging the Insurance Coverage Gap:
There are solutions to help owners of e-rideables achieve peace of mind:

• Endorsements: Some insurers offer an endorsement on a homeowner's policy specifically for e-bikes and other motorized conveyances. This endorsement clarifies coverage for theft, damage, and even liability. Explore options with your insurance carriers so you can make appropriate recommendations.
• Stand-alone Insurance: A growing number of insurers offer dedicated insurance policies for e-bikes. These policies can be similar to motorcycle insurance and provide comprehensive coverage.
• Umbrella Policy: For clients with existing liability concerns, an umbrella policy can provide additional protection in case an e-rideable accident exceeds the limits of their homeowner's policy. However, be sure you have explained the underlying coverage requirements and retention amounts to your client.

Key Points to Discuss with Clients:

• E-bike Classification: Explain how e-bike classification (motor wattage, speed) can impact insurance options. Higher-powered e-bikes might require more specialized coverage and may not qualify for coverage via an endorsement.
• Riding Habits: Advise clients that coverage can vary depending on where and how they ride. Frequent riders on busy roads might need more comprehensive coverage than casual trail riders.
• Safety Gear: Encourage using helmets and other safety equipment to mitigate injuries and potentially influence insurance premiums.

This article originally came to me through my association with CPIA.
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