Comparing the Best E-bike Insurance Policies in the Market

Electric bikes are generally way more expensive than traditional bikes. That is why you  must protect your asset at all times. With increasing cases of bicycle theft, it is essential to protect your prized possession, especially if you use it for your daily commute to work.

One way you can do this is by buying an e-bike insurance policy!

However electric bike insurance is generally a new industry and many insurers are reluctant to cover e-bikes because of the generally "untested" laws governing this relatively new mode of transportation. The few companies that do offer these policies are furthermore not aggressive in advertising such to customers.

In this post, we review some of the main insurance agencies that offer e-bike cover and compare these policies!

Why Do You Need to Insure Your E-bike?

A decent quality electric bike can cost you around $1000, with premium brands going . Most people who use their bikes daily, whether to commute to work or run errands around town, usually lock them outside buildings and in public bicycle racks. 

Unfortunately, merely locking your bike does not keep it from the high risk of theft! Thousands of bike owners are reporting cases of theft when they leave their e-bikes unmanned in the middle of the city,  ranging from the entire bike to crucial components, such as the e-bike battery, 

Bicycle insurance helps to cover your e-bike against theft and any damages that may be caused by vandals. Aside from theft, there is a risk of accidents where riders get injured or injure pedestrians on the road.

An e-bike insurance policy will also save you the liability in case you are involved in an accident and offer you a payout in case you get injured!

E-bike Insurance Policies Compared

Below, we will compare policies from three major insurance companies that have advertised e-bike covers online. What are the underlying similarities or differences in what they offer, and can you afford their quotes?

Velosurance in an independent insurer, although its e-bike insurance policies are underwritten by Markel, another insurance company. Velosurance partners with a range of bike shops spread across the country to fix your damaged bikes. They also offer discounts to members of different cycling communities. 

Generally, Velosurance offers the following covers:

• Liability Limit
• Bike Physical Damage
• Vehicle Contact Protection
• Medical Payments
• Rental Reimbursement
• Roadside Assistance
• Cycle Apparel 
• Competitive Event Fee Reimbursement
• Spare Parts
• Worldwide Coverage

There are several things worth noting on the company’s online quote that may end up altering your quote:

Minimum Earned Premium Notice- The policy is subject to a minimum 100-dollar premium. This means if you decide to opt-out of the policy before paying the $100, you will be liable for the unpaid difference. 

Riding Season Premium Adjustment- This refers to a 1-year policy with a premium that’s been adjusted for the expected cycling season in your region. The northern states have lower premiums because of the limited riding season whereas the premiums in the southern states have higher premiums based on their 12-month riding season. 

The insurer also offers various payment plans that you can choose from, including 2 yearly payments, 3 yearly payments, 6 yearly payments, or monthly payments. Paying upfront will also save you a couple of dollars in transaction fees.

MARKEL

Markel is the main insurance company behind the other policies we compared.  The company offers coverage for:

• Bicycle Liability (if you knock someone or damage something after a collision, the company will cover you up to $100,000).
• Medical Payments (you will get medical payment aid of up to $10,000).
• Worldwide Physical Damage (Damages up to the cost of your bicycle).
• Vehicle Contact Protection (If you knock a car that is not properly insured, the policy will cover the costs up to $25,000)
• Roadside Assistance (payment for towing services)
• $200, 300, and 500 deductible options

What They Cover:

• Bike Coverage- This includes everything from physical damage that your bike suffers, transit protection, spare parts, and more.
• Personal Coverage- This includes vehicle contact protection, liability protection, roadside assistance, medical payments, etc.
• Professional Cyclist Coverage- This entails rental reimbursement, as well as competitive event fee reimbursement.

Markel also offers coverage for the three e-bike classes:

• Class 1 e-bike- Top assisted speed of 20mph
• Class 2 e-bike Throttle driven with a top speed of 20mph
• Class 3 e-bike- Top assisted speed of 28mph

Another important aspect to note is that the bike’s motor capacity has to be 750 watts or less!

Everything offered on the company’s website is virtually the same as what you get from Markel, including the price. Refer to the coverage offered by Markel above. 

Comparing E-bike Insurance Quotes

When you assess the online quotes offered by Markel, Velosurance, and Spoke, you will note the following:

One of the quotes offered is for the bare minimum cover of bike’s physical damage and theft but does not include coverage for liability, medical payment, or vehicle contact protection.

The other quote is for full protection but doesn’t include worldwide coverage and roadside assistance.

Let us look at some examples of the quotes offered based on the price of the E-bike:

Quote 1: The Bare Basics, $8,000 E-bike

Markel- $610 per year

Spoke- $610 per year

Velosurance- $610 per year

Quote 2: The Works, $8,000 E-bike

Markel- $969/year

Spoke -$969/year

Velosurance -$969/year

Quote 3: The Bare Basics, $2,000 E-bike

Markel -    $152/year

Spoke -    $152/year

Velosurance -  $152/year

Quote 4: The Works, $2000 E-bike

Markel -        $511/year

Spoke -        $511/year

Velosurance -  $511/year

The Takeaway

By comparing the quotes above, you will notice that all three companies offer the same coverage, which is expected considering that they are underwritten by the same insurance company, Markel. This also means that it can be tricky to choose between these companies. We then looked at some of the online reviews to obtain insights from these reviews.

Velosurance has a couple of positive reviews from users of Reddit. They also received a rating of 4.2/5 stars, which is pretty decent! Meanwhile, Markel boasts an A+ rating on BBB, although the reviews are limited.

Overall, we recommend insuring your e-bike through Velosurance since it is a company founded by cyclists for cyclists! Markel is a large insurance company that may not offer the kind of personalized experience you get from Velosurance.

How to Choose the Best Electric Bike Insurance Company

Before searching for an insurance policy you need to establish what coverage you require.  The following guide will assist you with such. 

Ensure that the e-bike policy you are about to buy can cover the initial cost of your bicycle by looking at the maximum cover the insurer offers. Normally, when you purchase e-bike insurance, the service provider will include a range of add-ons, and some of these may come with additional costs. The bike insurance policy may include cover for:

• Personal Accident- This policy can offer you a lump sum payment in case you are seriously injured after an accident on your e-bike.
• Theft- This covers the cost to replace your  bicycle in the event that it is stolen.
• Malicious or Accidental Damage- This covers the cost of fixing or replacing the damaged or vandalized bicycle.
• Third-party Liability- This covers any claims against you when you cause an accident with your e-bike.

Add Any Needed Extras

Most policies provide buyers with additional options that you can add to increase the coverage. Some of the extras you can consider may include:

• Bicycle breakdowns
• Riding your bike abroad
• Accessories such as lights or GPS

What are the Benefits of E-bike Insurance?

Secures Your Initial Investment

If you’ve ever owned an electric bike, then you know that it is a hefty investment. A good quality e-bike can cost you at least $1000, while the high-end models will set you back as much as $10,000. With such an investment, you’ll want to ensure full protection from all kinds of risks it may be exposed to.

Whether the bike is stolen, damaged, or involved in a accident, insurance policies help to keep your bike fully protected from all these risks. Furthermore, e-bikes come with complex electrical, mechanical, and computer-driven systems that make them more prone to damage!

Homeowner and Renter Insurances Offer Limited E-bike Coverage

Traditional renter and homeowner insurances generally offer limited coverage in case of damage, theft, or any other form of liability related to electric bikes because they are considered to be motorized vehicles. 

Furthermore, car insurance companies may not offer insurance for e-bikes since they don’t have to be registered and owners can ride them without a valid driver’s license.

As such, e-bike insurance is your only sure option of fully covering your investment!

Final Thought

The last thing you want to deal with is replacing a newly acquired e-bike that has either been stolen by thieves or damaged by vandals. The cost of both repairs and replacing an e-bike can take a huge toll on your finances.

So, if you were wondering how to secure your high-end electric bike, e-bike insurance is available to cover you for any damage or loss. The above post provides great insight into what you can expect from available policies!