Do You Need Insurance for an Electric Bike?

Over the brief period of their global release, electric bikes did not take too long to become some of the best-selling and highly demanded consumer products in the world.

Despite the high purchase cost, countries like China, Japan, and the US have millions of electric bikes populating their cities. Along with electric bikes, bike insurance sales also reached an all-time high.

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Do You Need Insurance for an Electric Bike?

Buying any expensive or valuable product insured can be a costly affair; however, the benefits that insurance eventually offers make the decision worth the price.

So far, no country has any form of legal regulations that will require an electric bike owner to insure their bike.

However, it is extremely common for insurance agencies and electric bike enthusiasts to encourage electric bike owners to get their e-bikes insured.

This is exactly why many electric bike owners do not waste any time applying for e-bike insurance as soon as they purchase an electric bike.

Continue reading to learn in greater detail about why an electric bike needs to be insured and how an electric bike owner can apply for e-bike insurance.

Moreover, this read will also cover details regarding what kind of insurance covers electric bikes, what will be covered under electric bike insurance, and the many benefits of applying for electric bike insurance.

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Let’s get started!

Why Do You Need to Insure Your Electric Bike?

It is extremely common for people to get their valuable products insured to avoid a financial loss if something happened to the product. The same goes for an electric bike.

In general, all electric bikes are significantly pricier than most traditional bikes. Some modern electric bikes that come with multiple features can even be more expensive than a car.

The table below lists the average market prices of some of the most renowned electric bikes in the market.

Name of the Electric BikeAverage Market Price of the Electric Bike
Blacktrail BT-01 Electric Bike80,000 USD
Audi Electric Bike  20, 000 USD
Trek Electric Bicycles Rail 9.9  12,000 USD
Brompton Electric Foldable Electric bike3500 USD

As shown above, the market price of a modern-day electric bike can be as high as a brand-new Honda Civic, or even a Tesla Model 3 electric car.

Hence, although there is no legal binding or requirement to do so, people apply for electric bike insurance to protect their valuable investments.

Doing so ensures that any costs related to electric bike damage or theft will be taken care of. It also encourages people to reduce their dependence on public transport or gasoline-powered cars and ride their electric bikes without any worry.

Moreover, since any damage to the electric bike’s body or theft will result in a huge financial loss, sound and reliable bike insurance gives a bike owner peace of mind.

Read Can I Get an Electric Bike on the Cycle to Work Scheme?

What Makes an Electric Bike so Expensive?

There is no doubt that a person can afford four to five high-quality traditional bikes for the price of a single electric bike. So what makes an electric bike so expensive?

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Apart from the fact that the electric bike is a rather recent introduction to the world, an electric bike is designed to be the perfect blend of technological innovation and consumer convenience.

Some of the main components that drive up an electric bike’s market price include its electrical battery, which is its main powertrain, its electrical motor, and its strong steel body that allows it to perform under the influence of electric assistance.

Moreover, the electrical motion sensors, the LCD screen that allows the rider to track their electric bike’s battery charge and range, and the connecting cables add to the electric bike’s final market price.

Furthermore, apart from its innovative design, its ability to completely replace the need for a personal car for inner-city travel has driven the electric bike’s global demand way above its current supply, pushing the price to rise continuously.

Read Electric Bike Keeps Cutting Out

How Can an Electric Bike Owner Apply for Electric Bike Insurance?

An individual interested in applying for e-bike insurance has to go about the same process as insuring any other valuable item.

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They can contact a general insurance company for guidance, or directly go to an insurance firm that already deals with electric bikes insurance.

After getting in contact, the insurance company will usually request the electric bike owner to bring their electric bike to its office for a thorough inspection.

The electric bike insurance company will note every detail about the electric bike that can be useful in the future in case of an insurance claim. Some of these details include:

  • The brand
  • The specific model and the year of manufacturing
  • Name and details of the bike owner
  • The purchase price of the electric bike
  • A photocopy of the electric bike’s documents that came with the purchase
  • A detailed review of the condition of the electric bike, which includes whether any component of the electric bike has been replaced, along with any evident scratches or damages to the electric bike’s body

Once all this information is noted down, the electric bike owner is offered different insurance plans that are either generally for other products as well or are tailored according to the person’s specific electric bike.

To file for insurance, the person will have to agree to the insurance company’s set of terms and conditions. These will clearly specify what kind of coverage will come under the electric bike insurance.

Usually, people have to pay an annual fee to renew or continue their electric bike insurance. Moreover, in cases of an accident or theft, the following procedure will have to be adhered to receive an insurance claim:

  • The person will have to contact the insurance company and inform them about the damage or theft.
  • In case of an accident, a team of experts is sent out by the insurance company to review the condition of the electric bike. These experts note every detail regarding the electric bike’s condition while exempting any damages or scratches that were on the bike prior to the accident.
  • The condition report is sent back to the insurance company for review.
  • If the damages come under the pre-decided terms of the electric bike’s insurance claims, the insurance company will reimburse the electric bike owner. Any damage to a certain electric bike component that is not covered by the insurance will not be reimbursed. Usually, insurance companies do not pay the complete amount for the damages. Instead, a certain percentage is already pre-decided in the insurance’s terms and conditions.
  • If the electric bike has been stolen, a lengthier investigation has to be conducted. If the electric bike owner cannot prove that the theft did not happen due to their lack of responsibility, they will not receive any insurance claims. For instance, if the insurance company finds out that the electric bike got stolen due to being parked in a public parking lot without a bike lock, they will not reimburse the owner for their loss.

Now that we know how e-bike insurance works, we can have a look at the different insurance companies you should work with.

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Continue reading to learn about some of the most well-renowned and reliable insurance companies offering insurance for electric bikes.

Read How Much Does an Electric Bike Battery Cost?

What Are the Top Three Insurance Companies Offering Insurance for Electric Bikes?

Some of the most positively reviewed insurance companies that offer electric bike insurance are as follows:

Velosurance

Velosurance is a German insurance company that is admired for its unmatchable coverage. All kinds of electric bikes can be secured by insurance from Velosurance. Its most standard policy includes coverage for:

  • Electric bike theft
  • Damage due to roadside assistance or transit
  • Damage due to an accident
  • Electric bike owner’s medical payments

Some of the pros of getting your electric bike insured through Velosurance include:

  • A unique and wide variety of coverage
  • Several discounts
  • One can take their electric bike to any country and have their insurance limit extended for a minimal fee

Some of the cons of getting your electric bike insured through Velosurance include:

  • Getting an insurance quote can take a long time
  • The website does not offer much information about the pricing and deductibles

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McClain Insurance

McClain Insurance is another electric bike insurance company known for its comprehensive and consumer-flexible coverage policies.

Some of the pros of getting your electric bike insured through McClain Insurance include:

  • Some unique policies have high coverage limits
  • The insurance is reviewed annually to keep it up to date at all times
  • Has highly affordable premiums that can start as low as 250 USD per year

Some of the cons of getting your electric bike insured through McClain Insurance include:

  • Their insurance coverage is not available in every state and is not the ideal option for everyone
  • No AM best financial capability and strength rating

Read How to Clean an Electric Bike

Sundays Insurance

One of the best qualities about Sundays Insurance is that it offers a unique international electric bike insurance coverage. As a result, electric bike owners do not usually worry about their electric bikes when they travel overseas.

Some of the pros of getting your electric bike insured through Sundays Insurance include:

  • A wide variety of coverage options with high limits, along with many unique policies that no other electric bike insurance companies offer
  • Electric bike battery damage or theft also comes under insurance coverage
  • The process of getting a loan, applying for the electric bike insurance, and filing for a claim on their online portal is designed to be consumer-friendly

Some of the cons of getting your electric bike insured through Sundays Insurance include:

  • International coverage is not free and has a high additional fee
  • The insurance coverage is not extended to every American state

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Top Benefits of Applying for an Electric Bike Insurance

  • Purchasing an electric bike can be an extremely expensive affair for many consumers. Applying for electric bike insurance can protect the person’s investment if something were to happen to the electric bike.
  • Once riders know that their electric bikes are insured, they can ride their bikes without worry. As a result, their dependence on gasoline-powered public transport vehicles and personal cars is reduced.
  • With more people riding electric bikes for their everyday commute, the global GHG emissions go down, and the air quality is improved.
  • Moreover, with more electric bikes on the road, road traffic and incidences of severe accidents can be minimized. These bikes are designed to be safe, which means fewer accidents.
Do You Need Insurance for an Electric Bike
Do You Need Insurance for an Electric Bike

Final Thoughts on Electric Bike Insurance

An electric bike is not a cheap two-wheeled automobile that just about anyone can own. When your electric bike costs more than a standard car, you must protect your investment at all costs.

Like all vehicles on the road, an electric bike is equally exposed to the chances of getting damaged in an accident or a crash, if not more.

As a matter of fact, due to its relatively smaller size, an electric bike is at a higher risk of getting stolen than a car. They can also be stripped for their parts, which will make them no better than a regular bike.

Hence, it is extremely important that an electric bike owner applies and pays for the best available e-bike insurance policy to safeguard their investment and to riding enjoy their electric bike without any worry.

The policies mentioned in this article should help you adequately cover your eBike and make sure that you’re covered in case the worst does happens.

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