What You Need to Know About E-Bikes and Insurance

What to Know About E-Bikes and Insurance

Electric bikes (e-bikes) have quickly become one of the fastest-growing ways to get around—from commuting to cruising local trails. But as more riders hit the road, one question comes up often: how are e-bikes insured?

Before diving into coverage, it helps to understand what e-bikes are, how they’re classified, and why insurance can look a little different than it does for a traditional bicycle.

What Is an E-Bike?

An e-bike is a bicycle equipped with an electric motor that assists with pedaling. This added boost makes it easier to tackle hills and commute longer distances. They have become increasingly common in metros as a quick way to get around.

Most e-bikes are treated as bicycles under federal law when they meet certain requirements, such as having a motor under 750 watts and specific speed limits.

E-Bike Growth and Popularity

E-bikes have seen major growth in recent years:

An estimated 800,000 to 900,000 e-bikes were sold in the U.S. in 2023.
They now account for about 30% of the total bicycle market value in the U.S.
The U.S. e-bike market is projected to grow at a 15.6% annual rate through 2030.

E-Bike Classifications

Forty states in the U.S., including Wisconsin, use a three-tier classification system for electric bikes.

Class

Pedal assist only
No throttle
Assistance up to 20 mph
Generally allowed on bike paths and trails

Class

Pedal assist plus throttle
Can move without pedaling
Max assisted speed of 20 mph
More restricted access to park trails due to the throttle

Class

Pedal assist plus throttle
Maximum speed of 28 mph for pedal assist
Maximum speed of 20 mph for throttle
Generally limited to roads and on-road bike lane

Do You Need Insurance for an E-Bike?

In most states, e-bike insurance is not legally required. However, many riders still choose to insure their bikes due to their value and the potential risks. With the average e-bike costing around a thousand dollars, protection can provide peace of mind.

What E-Bike Insurance Can Cover

Coverage depends on the policy, but common protections may include:

Theft
Accident or damage
Liability if you injure someone or damage property
Medical expenses

Some policies also bundle multiple coverages into a single plan designed specifically for e-bikes.

Does Homeowners Insurance Cover E-Bikes?

Many people assume their homeowners or renters policy will fully cover an e-bike, but coverage is often limited. The class of your e-bike can affect how it’s covered under insurance. Many homeowners and renters policies have exclusions for motorized equipment. While some carriers may treat Class 1 e-bikes similarly to traditional bicycles, Class 2 and Class 3 models are more likely to be viewed as motorized vehicles and may not be covered under a standard policy. In some cases, this could mean a theft claim for a higher-class e-bike may not be covered at all, even if it occurs at home.

To recap, here are a few key considerations:

Coverage may have low limits or high deductibles.
Theft away from home may not be covered.
Liability while riding is often excluded.
Higher-speed or more powerful e-bikes may not be covered at all.

Why Coverage Varies by Carrier

There is no universal standard for insuring e-bikes, so coverage can vary from one carrier to another.

Key factors include:

The class of the e-bike
Speed and motor power
The bike’s value
How the carrier categorizes it, either as personal property or a motorized vehicle

Some carriers offer endorsements under a homeowners policy, while others may recommend a standalone policy built specifically for e-bikes.

Know What Your E-Bike Coverage Looks Like

If you own or are considering purchasing an e-bike, it is a good idea to review your insurance coverage.

Connect with an advisor to discuss your e-bike, understand how it may be covered, and explore coverage options that fit your needs.

Speak to an advisor today!

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