How to insure e-bikes and motorized scooters

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Two of the most economical ways to get around a town or city is to buy yourself an e-bike or a motorized scooter. Though these two forms of transportation may be similar in the convenience and cost-efficiency they offer, they are in a category of their own when it comes to insurance.

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An e-bike is a two- or three-wheeled cycle with a seat, pedal, and an electric motor. To legally drive an e-bike in Canada you have to be 16 years of age or older and wear a helmet. That’s it. There is no licence required. Why? It’s because of the limited power, speed restriction, safety features, and ease of use that e-bikes offer.

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How to insure e-bikes and motorized scooters Back to video

A motorized scooter is not considered an e-bike because it has a gas-powered motor and no pedals. Just like a motorcyclist, if you plan to ride a motorized scooter you will require a licence and insurance.

Do I need insurance for my e-bike?

If you had a regular bicycle stolen,  your home insurance would cover the cost of replacing or repairing it. But an e-bike isn’t a normal bicycle. The cost of an entry-level e-bike starts at more than $1,000 and the average rider spends around $3,000 on their e-bike. If you want to go high-end, you’re looking at paying as much as $12,000 for an e-bike. A typical home insurance policy won’t be enough to cover the replacement or repair costs if your e-bike gets snatched or damaged.

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While you’re not legally required to insure your e-bike, don’t forget there’s a chance that you could be involved in a collision while riding.

E-bikes are heavier than a regular bike and because they are powered, you can travel down the road or pathway quicker than if you were riding a regular bike. These factors increase your chance of being involved in a collision, which could lead to you causing damage to someone else’s property or bodily harm to a person. Without liability insurance in place, you could be deemed personally responsible and be on the hook for substantial financial liabilities.

How do I get insurance for my e-bike?

Having the proper insurance in place for an e-bike is a bit of a conundrum. Some traditional home insurance companies consider an e-bike a motorized vehicle and therefore only offer limited coverage for theft, damage, or liability. Some auto insurance companies may not insure your e-bike because you’re not required to register the vehicle or have a valid driver’s licence to operate it.

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So, what can you do?

One option is to speak to your home insurance agent about adding custom coverage to your current policy. Remember, insurance policies are generally “off-the-shelf” and contain standard wording. If your e-bike isn’t properly covered for theft, damage, and liability by your current standard policy, it’s possible that your agent could add an endorsement that overrides the standard policy wording to provide you with the coverage you need. Naturally, this will increase your monthly premium.

In the U.S. there are companies that actually offer e-bike insurance policies. In Canada, there is currently only one: Pedal Power, which specializes in e-bike insurance and offers three coverage options. The cost of the coverage depends on the value of the bike being insured.

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According to Pedal Power, for a person over the age of 21 with no claims or thefts, the cost for fire, theft, and collision coverage on a $2,500 e-bike would be about $163/year. If the person had a $13,000 e-bike the cost of the fire, theft, and collision coverage would be $796/year.

To get a quick estimate of what your e-bike coverage might cost, use the online price calculator on the Pedal Power website.

What about insurance for a motorized scooter?

Insuring a motorized scooter is definitely more straightforward than having to insure an e-bike. Since you need a licence to operate a motorized scooter and insurance companies consider it a “motorcycle,” you just need to purchase motorcycle insurance.

Like car insurance , motorcycle insurance must cover you for a minimum of $200,000 in liability. Comprehensive coverage is not legally required, though. In a lot of cases, if the rider has purchased a used motorcycle, the cost of the comprehensive coverage ends up being more than the value of the bike, which is why many people opt not to get it.

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If you have a good record as the driver of a car, it doesn’t matter when you go to get a motorcycle insurance policy. When you get your motorcycle licence,  you will be viewed as a new rider , which means your rates will be higher than a more experienced rider. 

If you have a bad  record as the driver of a car though (i.e. speeding tickets, accidents, etc.), this will be taken into consideration and could mean higher rates for your motorcycle insurance. 

Here’s a money-saving tip: If you take a rider training course, many insurance providers will view you as having an extra year’s worth of riding experience and give you a reduced rate on the insurance policy for your motorized scooter.

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