A chart providing state regulations may be found here.

Bike Types

There are three classes of electric bikes.
Class 1 is where the motor starts when the person is pedaling, and stops when the speed reaches 20 mph. The electric motor makes it easier to pedal up hills or over long distances. These bikes are often allowed on certain bike paths and trails.

Class 2 has a pedal-assist mode up to 20 mph, and a throttle mode that does not require pedaling. The throttle allows the rider to not pedal but still travel on the bike. These are also generally allowed on bike paths and trails.

Class 3 is similar to Class 1, and the motor only runs when the rider is pedaling, but the assistance stops when the bike reaches 28 mph. These are the fastest electric bikes. Some have a throttle, but the throttle capacity is capped at 20 mph, and California does not allow Class 3 bikes to have a throttle. The maximum pedal speed is 28 mph. Class 3 bikes are allowed on roads or bike lanes and are not allowed on bike paths or multi-use trails.

Regulations

As is often the case, regulations vary widely by state. Roughly half of the states define electric bikes and include a three-tier classification system, while most of the rest just define electric bikes. A few states have no definition. Another half of the states require helmets for riders and passengers, and some states have age-dependent helmet requirements. Most states with the three-tier classification system exempt electric bikes from registration, licensure, and insurance requirements. However, Alabama, Alaska, Massachusetts, Missouri, New Mexico, and North Dakota do require a license to operate an electric bike, and a license and registration are required. Further information and legislative updates may be found here and here.

Use

Aside from the type of bike, it's important to address how they are intended to be used. Are they considered off-road vehicles, or on the road vehicles? Are they for use on trails and sidewalks, or are they to be ridden on the road like other motor vehicles?

Most states consider electric bikes as being designed for use on public roads. Few allow them to be ridden on sidewalks. Many states allow them to be ridden on public roads other than interstates and limited access highways, have minimum age requirements for riders, and require riders to wear helmets. Some states require electric bikes to be registered and carry liability insurance. There are off-road electric bikes, which adds yet another layer to the discussion of electric bikes.

Cost

Like any sports equipment, the cost of electric bikes varies by model and features. Some models can be bought for as little as $178, although most of the lowest prices we found were closer to $700. The more expensive bikes can run up to $13,000 or more. Many are designed for pleasure or commuter use, and others are designed for endurance sports with batteries that last longer and tires designed for particular terrains. The more average costs seem to hover between $2,000 and $4,000. Electric mountain bikes seem to fall into similar price ranges.

Coverage

The difficulty with electric bikes starts when it's time to provide insurance. Are they covered under the homeowners policy as personal property like a normal bicycle, or because they have a motor, would they fall under the personal auto policy? Or because they're a unique piece of equipment, should they be placed under inland marine or some other coverage? Let's walk through the coverages.

Personal Auto Policy

An electric bike is technically not a motor vehicle, although it does have a motor. While the Personal Auto Policy does not define private passenger auto, the manual clearly states that:

" A. Private Passenger Auto
1. A private passenger auto is a four-wheel motor vehicle, other than a truck type, owned or leased under contract for a continuous period of at least six months, and:
a. Not used as a public or livery conveyance for passengers,
b. Not rented to others."

So electric bikes cannot be covered under the standard Personal Auto Policy in and of itself. But the personal auto policy has many endorsements that modify coverage. The PP 13 16 Low Speed Vehicle Endorsement sounds promising but is designed for "low speed vehicles" which the form defines as a four-wheeled motor vehicle, other than a truck, with a top speed of more than 20 mph and no more than 25 mph on paved surfaces. The requirement for four wheels eliminates this endorsement as an option for coverage.

The PP 03 23 Miscellaneous Type Vehicle Endorsement applies to a number of vehicles as follows: motor homes, motorcycles or other similar vehicles, all-terrain vehicles, dune buggies or golf carts per the form.

The manual reads slightly differently; under eligibility, it lists motorcycles, motor homes, golf carts or other similar vehicles and snowmobiles. Then, the form is referenced as the appropriate endorsement to use under the information for motor homes; motorcycles, mopeds, motorscooters, motorbikes, go-carts and any other similar motor vehicles not used for business purposes; all-terrain vehicles; dune buggies; and golf carts.

The question then becomes is an electric bike similar to any of the vehicles that the PP 03 23 can be used with? How similar is an electric bike to a motorcycle or motor scooter, all-terrain vehicle, or other vehicle? An electric bike is most similar to a moped or motorscooter – while both the moped and motorscooter go faster than the electric bikes, they are similar in size and operate on two wheels, although each has different power capabilities and licensing and registration requirements vary by state. Underwriting guidelines will dictate whether the insurer will allow this endorsement to be used to provide coverage for an electric bike. Electric mountain bikes could be covered here as well. While certain states have specific forms that address electric bikes, the PP 03 23 is the only multistate form ISO has available. Of course, insurers may have their own specific forms that address the exposure.

The PP 03 23 provides the standard coverages you would expect from an auto policy – liability, med pay, UM, and physical damage coverage. All desired coverages must be listed in the schedule. The form excludes liability and medical payments for vehicles with fewer than four wheels unless those vehicles are listed in the schedule with the coverages indicated. If the vehicle is scheduled, which it must be, then coverage is available if the coverage is also indicated on the schedule.

Homeowners Policy

The homeowners policy defines a "motor vehicle" as a land or amphibious vehicle that is self-propelled or capable of being self-propelled, or a trailer hitched to or being towed by such a vehicle. There is no particular number of wheels needed for the vehicle to be considered a "motor vehicle"; it just has to be self-propelled, which an electric bike can be if it has a throttle that can move without pedaling. These are Class 2 bikes. If the bike only has a pedal assist mode, such as Class 1 or Class 3, where the rider must pedal first to engage the motor, then it may not be considered a motor vehicle.

"Motor Vehicle Liability" is defined as liability for "bodily injury" or "property damage" arising out of ownership of such a vehicle by an "insured", or maintenance, occupancy, operation, use, loading or unloading of a motor vehicle by an "insured", as well as entrustment of such a vehicle to any person by an "Insured". Failure to supervise or negligent supervision of any person involving such a vehicle, as well as vicarious liability for actions of a child or minor involving such a vehicle also falls into the motor vehicle liability parameters.

Under Section I Property Coverages, Coverage C. Personal Property, 4. Property not Covered, "motor vehicles" are specifically excluded with a few exceptions. Vehicles not required to be registered for use on public roads or property which are used solely to service a residence or are designed to assist the handicapped are allowed. So, the bikes with throttles, the Class 2 bikes, could be covered if they're not required to be registered and are being used to service the residence or to assist the handicapped. A hybrid bike, with a throttle and pedaling, would still likely be considered a motor vehicle under this policy.

Under Section II Liability Coverages, Coverages E and F do not apply coverage to any "motor vehicle" if it is registered for use on public roads or is required to be registered to be used at the place of occurrence. If the vehicle is not required to be registered, there are still conditions that must be met for a vehicle to fit the exception to the motor vehicle exclusion. The exceptions are restrictive and allow for vehicles in dead storage, used solely to service a residence, mowers being used to mow a lawn, designed to assist the handicapped and being used to assist a person or are parked on premises, designed for recreational use off public roads and not owned by an insured, owned by an insured if used on defined locations, or designed for children and battery powered with speed no more than five miles per hour if off an insured location.

So where do electric bikes fit within these exceptions? If the vehicle does not have to be registered for use on any property, and is designed for recreational use off public roads and is owned by an insured, and at the time of an occurrence is on a defined location, there should be liability coverage for electric mountain bikes as they are designed for recreational use off public roads. Regular electric bikes that an insured might use to take to work that are not designed for recreational use off public roads would not be covered.

The defined locations include the "residence premises", part of premises shown in the dec and used as a residence or acquired during the policy period, a nonowned property where the insured is temporarily residing, vacant land, or part of a premises occasionally rented to an insured for other than business use.

If an electric bike does not fit that description, then there is no liability coverage under the base homeowners policy.

While there are some endorsements that address low power vehicles and motorized bicycles, they do not provide coverage for electric bikes. The HO 24 13 Incidental Low Power Recreational Motor Vehicle Liability Coverage form sounds good at first. It modifies the above exceptions to the motor vehicle exclusion, and allows for a vehicle designed for recreational use off public roads that is either not owned by an insured or is owned by an insured and used on specified locations, or is used off the "insured location" if the vehicle is not a moped or motorized golf cart, and the vehicle was not built or modified to exceed 28 miles per hour on level ground. This would provide coverage for electric mountain bikes, but not the electric bike the insured is riding around town.

For non-owned motorized bicycles and scooters, there is a similar exclusion. This is the HO 24 03 03 22 Non-Owned Motorized Bicycle and Motorized Scooter Liability Exclusion. It revises the motor vehicle exclusion in the liability section of the policy and specifically excludes motorized bicycles and motorized scooters that are not owned by an insured and designed for recreational use off public roads. Again, this is for vehicles designed for recreational use off public roads, such as an electric mountain bike. Electric bikes used on public roads do not meet this requirement.

The HO 24 04 09 22 Motorized Bicycle and Motorized Scooter Liability Exclusion excludes motorized bicycles and scooters that are registered for use on public roads, not registered for use on public roads but required to be registered at the places they are operated on the time of occurrence, or are being used in any sort of race or competition, rented to others, used to carry people or cargo or used for any business purposes. This attaches to the HO 04 14 only.

The exclusion then states that even if these situations don't apply, coverage is still excluded unless the vehicle is designed to assist the handicapped, and at the time of the occurrence, is being used to assist a handicapped person or is parked on an "insured location." Again, this excludes coverage for electric bikes unless they are designed to assist the handicapped.

Currently, there are no other homeowners endorsements that address electric bikes.

Motorcycle Policy

The MT 00 01 12 13 Personal Motorcycle Policy is the next place coverage could be possible for electric bikes. The policy is designed to provide coverage for motorcycles, which are defined as follows:

""Motorcycle" means a motorized vehicle:
1. Having a saddle or seat for the use of the rider;
2. Designed to travel on not more than three wheels in contact with the ground; and
3. Designed and equipped to operate on public roads.
Sidecars that are original equipment installed by the manufacturer are considered to be part of a "motorcycle".

The policy contains no horsepower or speed requirements for a vehicle to be considered a motorcycle beyond this definition. The liability exclusions address vehicles designed mainly for use off public roads, which only applies to electric mountain bicycles, and not electric road bikes. There are no other exclusions that would address electric bicycles in the policy.

The manual states that vehicles eligible for coverage include motorcycles, motorcycle cargo trailers, and motorcycle transport trailers if they are written on a specified basis and owned by an individual or spouses who are residents of the same household. If the vehicle is written on a specified coverage basis, then coverage extends to vehicles that are jointly owned by resident relatives other than spouses, resident individuals, or non-resident relatives, including non-resident spouses.

While it seems like an electric bicycle would fit on a motorcycle policy, there are parameters for other vehicles that apply. A Recreational Vehicle Endorsement MT 03 08 12 13 exists and the manual states that this endorsement should be used for all-terrain vehicles, motorbikes, mopeds, motorscooters, go-karts, dirt bikes or similar vehicles and snowmobiles, as long as the vehicles are written on a specified basis, are owned by an individual, spouses, relatives other than spouses, or resident individuals and this endorsement is used. Since an electric bicycle is most similar to a moped or motorscooter, and would readily be considered a similar vehicle, then an electric bicycle, either road or mountain bike, should be scheduled on a motorcycle policy by using this endorsement.

The Recreational Vehicle Endorsement requires the vehicle to be described on the schedule. Desired coverage must be listed as well with limits and deductibles. The form defines "recreational vehicle(s)" as all-terrain vehicles, dirt bikes, dune buggies, golf carts, mopeds, motorscooters, motorbikes or go-karts.

Under liability coverage, vehicles designed mainly for use off public roads are excluded unless listed in the schedule. A passenger hazard exclusion applies if it is selected in the schedule. A full discussion of the endorsement can be found here. There are no other endorsements that would modify the motorcycle policy to include electric bikes.

Personal Inland Marine

The Personal Property Form PM 00 19 12 02 specifically excludes motor vehicles , motorized bicycles or scooters, and any other motorized land conveyance designed for transportation or recreational use. This excludes all forms of electric bikes. An exception exists for motorized vehicles not required to be registered for use on public roads, which would provide coverage for electric bikes depending on the state. Note that unlike the homeowners policy, there is no requirement that the vehicle be designed for recreational use off public roads. The exception is broader, and there is also an exception for vehicles designed to assist the handicapped.

In order for any property to be covered on the inland marine form, it must be scheduled onto the form. Coverage is for damage to the property itself, and no liability coverage is provided.

The PM 00 18 12 02 Bicycles Form provides coverage for bicycles, but excludes motorized bicycles, scooters, vehicles or any motorized conveyance. Electric bikes would not be eligible under this form.

Summary

When looking at an electric bike, it's important to identify it by Class – is it a Class 1, Class 2, or Class 3? How is the bike being used? Is the bike being used on public roads for commuting or recreation, or is the bike an off-road mountain bike that is only used on certain trails? What are the relevant state regulations? There could be licensing and insurance requirements for certain classes of bike, which would impact how a bike is treated under various forms.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.