Electric bikes are increasingly popular as an alternative mode of transport. In 2022, it was reported that half of the population either owned an electric bike or knew someone who did. These bikes offer significant advantages, including fuel savings, reduced travel costs, and a lower carbon footprint, while making cycling accessible for people of all ages.
A survey from 2022 revealed that the primary motivation for buying an electric bike was to simplify cycling. While cycling has numerous benefits, challenges like long distances, steep inclines, and busy city traffic can be deterrents. Electric bikes provide the extra boost needed to overcome these barriers, enhancing confidence and encouraging more frequent cycling.
However, despite their benefits, electric bikes represent a substantial investment. The cost of purchasing, maintaining, and insuring an e-bike can be a significant consideration. This makes it important to understand common insurance misconceptions and the advantages of specialist electric bike insurance.
Do electric bicycles need insurance?
A common misconception is that electric bikes must be insured to be used on roads. Only about a third of people are aware that electric bikes are not legally required to have electric bicycle insurance. To ride an e-bike without needing a license or insurance, it must adhere to specific regulations. These include a maximum power output of 750 watts and a top speed of 28 mph. E-bikes exceeding these limits are classified as mopeds or electric motorcycles, which do require motorbike insurance.
Misconceptions about e-bikes and specialist bike insurance
There are several common misconceptions about electric bikes and their insurance requirements that might surprise you.
Electric bikes are more dangerous
There’s a belief that electric bikes are inherently more dangerous due to their motorized assistance. However, this is not true. Electric bikes can actually be safer than traditional bikes because they can maintain higher speeds that match traffic flow, which might reduce the likelihood of accidents. They are also generally less prone to theft compared to non-electric bikes.
High insurance costs for electric bikes
It’s a common assumption that insurance for electric bikes is very expensive due to their higher price and perceived risk. However, the average cost of insuring an electric bike is relatively low, ranging from $5 to $10 per month.
Specialist insurance is more expensive
Some believe that insurance for electric bikes should be more costly than for regular bikes due to higher risks. In reality, electric bikes often have a 30% lower risk profile, including reduced chances of theft and damage. Consequently, insurers like ALA do not charge higher premiums for electric bikes.” – ALA is a bike insurance company from the UK.
Coverage under home insurance policies
Another misconception is that home or contents insurance will fully cover electric bikes. While some home insurance policies may offer limited coverage for bikes, they often do not cover the full value of an electric bike. For comprehensive protection both at home and on the go, it is advisable to purchase dedicated bike insurance.
Why should you insure an e-bike?
Insuring your electric bike can provide valuable protection against financial loss, especially given their cost. Electric bikes typically range from $2,000 to $3,000, representing a significant investment. Beyond the initial purchase, you might also have spent money on repairs or accessories. Despite this, around 40% of e-bike owners don’t have insurance, leaving them potentially exposed to higher costs if something goes wrong.
Standard bike insurance may be insufficient
Regular bike insurance often covers theft and accidental damage, but this might not be enough for an electric bike. Such insurance may not extend to the bike itself, the rider, or any additional accessories. For better protection, consider policies that offer more comprehensive coverage tailored to electric bikes.
Cycle hire replacement
If you rely on your e-bike for commuting and it needs repairs, you could be left without a bike temporarily. In this case, cycle hire replacement coverage can be very useful, ensuring you can rent a replacement bike while yours is being fixed.
Accessory cover
Electric bike owners often invest in accessories like helmets, GPS systems, or storage solutions. Accessory cover can help replace these items if they are lost, stolen, or damaged, ensuring you don’t incur additional costs.
Public liability coverage
While electric bikes generally present a lower risk of accidents, incidents can still occur. Public liability insurance can protect you if an accident involving your bike affects another person or their property, covering potential legal and compensation costs.
`Worldwide cover
Many people enjoy taking their e-bikes on holiday, but travel insurance can be expensive. If you frequently travel with your bike, look for insurance that includes worldwide coverage to protect your bike while abroad.
Personal accident cover
Although the risk of accidents with e-bikes is lower, it’s not zero. Personal accident cover can provide additional security, offering peace of mind in case you are injured while riding.
Legal expenses
Cyclists are often involved in accidents where drivers are at fault. Having legal expense coverage in your insurance policy can be crucial, providing support if you need to pursue a claim or defend yourself legally in such situations.
