‘Car insurance’ could soon be required for e-bike ownership

A New Jersey bill is up for discussion in the State Senate regarding liability insurance for e-bikes owned and operated in the state, just as one would for owning and operating a motor vehicle. 

Bill S2292 was introduced to the New Jersey State Senate in early January 2024 and is gaining traction as it moves through the required Senate committee reviews. 

The bill states that “low-speed electric bicycles,” and “motorized bicycles” would be required to be insured against “loss resulting from liability imposed by law for bodily injury, death and property damage sustained by any person arising out of the ownership, operation, maintenance or use of [an e-bike]” and to be insured for “personal injury protection coverage benefits…to pedestrians who sustain bodily injury [from an e-bike].” 

In layman’s terms, all e-bike owners would be required to have insurance against potential bodily injury, death or property damage that may be caused by their e-bike. Additionally, e-bike owners would need to carry personal injury protection insurance in case their e-bike causes bodily injury or death to another person. 

According to the bill, a “low-speed electric bicycle” is defined as a two- or three-wheeled vehicle with operable pedals and an electric motor of less than 750 watts that either provides assistance only when the rider is pedaling or ceases to provide assistance when the rider reaches 20mph.

A “motorized bicycle” is defined as bicycle with pedals with a motor whose maximum piston displacement is less than 50cc or whose motor is rated at no more than 1.5 brake horsepower or is powered by an electric drive motor and the bike does not reach more than 25mph on a flat surface.

While e-bikes have their benefits, they also have their drawbacks - some as serious as death. Earlier this month, a 66-year-old woman died after colliding with a child riding an e-bike. Previous heavily publicized tragedies include the death of a young child after her involvement in an e-bike crash and her parents consequently suing Rad Power Bikes in a wrongful death lawsuit.

E-bikes have also made a name for themselves when it comes to being a significant fire hazard. New York City alone saw over 400 fires and 300 injuries linked to lithium-ion batteries from 2019 to 2023.

With these dangers in mind, liability insurance seems pertinent, bill authors Senator Vin Gopal (D) and Senator Nicolas Scutari (D) claim.

If e-bike owners are required to have insurance to own and operate an e-bike, some worry that it could make the purchase of an e-bike financially prohibitive. For others, requiring insurance for an e-bike may provide peace of mind while riding or living in an area with many e-bike riders.

Those against a bill such as S2292 also argue that by requiring insurance similar to car or motorcycle insurance, e-bikes are being classified as a motorized vehicle at the state level, while at the federal level, they are classified as micromobility devices. 

Bill S2292 was read to the Senate Budget and Appropriations Committee on February 15 of this year and was reported on “favorably” by the committee. The next step will be for the bill to be voted on, and a date for voting on S2292 has not yet been set.