The insurance gaps of e-bikes and e-scooters

In recent years, e-bikes and e-scooters—or micromobility vehicles—have taken off across the United States, offering a greener, cheaper and more convenient way to get around, especially in crowded cities and sprawling rural areas. Whether it’s commuters, leisure riders or delivery workers zipping through traffic, these vehicles have become part of daily life.

However, as their popularity grows, so does the issue of insurance coverage. A significant gap has emerged, leaving riders, insurers, lawmakers and the public scrambling to address the risks tied to their use. Without clear policies in place, accidents and liability issues are becoming more frequent, underscoring the need for comprehensive solutions that address both safety concerns and the changing landscape of urban mobility.

The growth of e-bikes and e-scooters

E-bikes and e-scooters have integrated into the daily lives of many Americans. Cities like New York, Boston and San Francisco have embraced these vehicles as a solution to traffic congestion, to reduce carbon footprints, and to provide a cost-effective transportation option. In rural and suburban areas, e-bikes and e-scooters are filling gaps where public transportation is scarce—allowing residents to travel short distances with ease.

While this shift has transformed the way people maneuver, it has simultaneously introduced new challenges—particularly in the insurance and regulatory spheres.

One of these key challenges stems from the direct correlation between increased e-bike and e-scooter usage and increased risk of exposure. According to one study: Between 2017-22, there were approximately 169,300 emergency room visits by e-scooter riders and 53,200 emergency room visits by e-bike riders.[1] This breaks down to an annual average of 28,216 e-scooter injuries and 8,866 e-bike injuries, with injury numbers increasing each year. The study also reported 111 deaths from e-scooter accidents and 104 from e-bike accidents during the same six-year period—highlighting the growing risks associated with these modes of transportation.

Insurance gaps and the implications

Compounding this issue is the lack of mandatory insurance for e-bikes and e-scooters, which creates significant risks for the public. Many riders may mistakenly assume that their existing auto or homeowners insurance policies will cover accidents involving these vehicles. Unfortunately, this assumption often leads to financial hardship following an accident, as most policies do not adequately cover e-bike- or e-scooter-related incidents.

One court case that exemplifies the complexities of micromobility insurance is Goyco v. Progressive Insurance Co. In New Jersey, an e-scooter rider who was involved in an accident sought personal injury protection benefits under his auto insurance policy. However, the claim was denied because, under New Jersey law, the e-scooter did not qualify as an automobile, and the rider did not meet the legal definition of a pedestrian.

Consequently, the court ruled that e-scooters are not considered motor vehicles for insurance purposes, leaving the rider without coverage. This case highlights the uncertainty surrounding the insurance status of e-bikes and e-scooters and the pressing need for policies to address their unique risks. In response, the New Jersey state Senate introduced S-2292 in the Senate Transportation Committee, to propose that low-speed electric bicycles and scooters (i.e., those traveling 20 mph and under) be registered with the New Jersey Motor Vehicle Commission and that operators be required to carry PIP, liability insurance and uninsured motorist coverage.[2]

Without proper insurance, not only are e-bike and e-scooter riders vulnerable, but so too are pedestrians, bicyclists and motorists who may be injured in accidents involving these vehicles. The financial burden from medical expenses, property damage and lost wages often falls on the victim, exacerbating the public safety risks posed by the lack of comprehensive insurance coverage.

The need for regulatory oversight

The regulatory landscape for e-bikes and e-scooters is inconsistent—as there are no standardized, comprehensive guidelines for insurance, registration or licensure across the 50 states. This lack of uniformity forces individual states and municipalities to develop their own distinct policies, resulting in a fragmented patchwork of regulations that can vary significantly from one location to another.

A clear example of this can be seen in New York, where state lawmakers—particularly those from New York City—introduced several legislative proposals during the 2024 legislative session. These initiatives would establish state-level regulations concerning mandatory insurance, licensure and registration of micromobility vehicles on city streets.

Right now, there are a few laws in New York City that address these vehicles. For example, Law 72 of 2020,[3] prohibits the operation of e-bikes and e-scooters in certain public areas, allowing for enforcement by the New York Police Department and imposing civil penalties for violations.

On the other hand, Local Law 73 of 2020[4] took a more inclusive stance by granting e-scooter and electric-assist bicycle operators the same rights and responsibilities as traditional cyclists, integrating these vehicles into New York City’s broader traffic system.

This contrast between state-level proposals and localized city regulations not only highlights the lack of consistency in how e-bikes and e-scooters are governed, but also has ripple effects throughout the supply chain—particularly impacting the insurance marketplace. The absence of uniform regulations creates uncertainty for insurers, agents and consumers alike, which complicates efforts to design insurance products with adequate coverages for these emerging forms of transportation.

Implications for insurance producers

Insurers have been slow to adapt to the growing market for e-bikes and e-scooters, leaving many riders in a precarious position. According to anecdotal evidence from PIA agents and brokers, some insurance producers have started covering e-bikes and e-scooters under existing policies for similar vehicles, such as mopeds. However, this approach is not a long-term solution. E-bikes and e-scooters have unique risks that differ from mopeds, and covering them under these insurance policies can lead to complications if an accident occurs.

Insurance agents and brokers have voiced concerns about the lack of standardized insurance products for these vehicles. Without clear guidelines, agents often are left to navigate a complex and ambiguous market. This creates challenges not only for agents, but also for consumers, who may not fully understand the coverage they are purchasing or the risks to which they are exposed.

Conclusion

As e-bikes and e-scooters continue to gain traction across the United States, the need for a comprehensive insurance framework becomes increasingly urgent. The current gaps in coverage leave riders, pedestrians and other road users at risk—while insurance agents and companies face uncertainty in developing appropriate products.

Policymakers and insurers must collaborate to create regulations and policies that ensure these vehicles are accompanied by the necessary protections. Addressing these gaps is no longer an option—it’s a necessity, both for the safety of the public and for the stability of the growing e-bike and e-scooter market.

This article originally appeared in the November 2024 issue of PIA Magazine.

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[1] U.S. Consumer Product Safety Commission, 2023

[2] State of New Jersey, 221st Legislature, Senate, No. 2292

[3] Local Laws of the City of New York for 2020

[4] Local Laws of the City of New York for 2020