Following are some of the original comments that were made on that post:
DYLAN DAVID
Hi, I have an existing sightseeing tour company in San francisco. I am trying to expand to Electric Bike Tours. I was wondering if you or anyone else might be able to refer us to an insurance company that would be able to insure our company. I just spoke to Scott from Spoke, he mentioned that most companies wouldn’t insure us, unless we were bringing in large number of sales. If anyone has any information, we would greatly appreciate it. Thanks, Dylan
COURT
Good question Dylan… I’m sure you’re not the only company in this position. Have you tried calling Velosurance? Their number is 888-663-9948 but I’ll ask around for you as well, see what other ebike shops that do tours are using for insurance. I have heard that in California (and most states) ebikes are defined as bicycles (if they stay under 20 mph and 750 watts) so defining them as such as you approach insurers might reduce complexity.
DYLAN DAVID
Thank you for your help, here’s my website by the way:
http://www.dylanstours.com – Dylan
WILLIAM MARTIN
I am fighting USAA at the moment. I bought a $7,500 custom made three wheel electric bike. It was stolen out of my storage unit. USAA states the bike is not a motor vehicle, but they claim they will not pay a cent because it is considered “motor conveyance” on land. How do I convince them my electric bike is a bicycle? I have to fight my case with the Department of Insurance Commission. Also, I am ordering a new electric bike. Does this mean if it gets damaged during transport to my house, it is not insured? A this came down on me like a ton of bricks. I am pleading to e-bike builders to tell me how they can get e-bikes insured. I will use the insurance company listed in your article in the near future but it really an unhanded trick that our bikes can not be insured due to the clause “motor conveyance on land” excludes them from the insurance policy. I have USAA and I thought they were the best since they pay for replacement cost of an item as brand new. So now, anybody just still a high end electric bike and they are out of luck and they can be sued if they cause any damage to anybody.
COURT
That’s such a bummer William! Thanks for sharing your story, I’m sorry you have to deal with this. I had heard that ebikes often fall into this other “undefined” category on regular insurance plans and that is part of what got me interested in Spoke and Velosurance. I haven’t filed any claims yet or had an issue but I feel like they would be much easier to work with since it’s a topic they are specifically focusing on. Good luck with the second bike, hang in there
BILL
I really appreciate your kind words. You know, I had my electric bike in I thought the most secure storage area. My unit faced the security cameras. The interior walls of the unit were galvanized steel. It had double locks. Lots of night security lights. But they came in there with power tools and a torch. Burned though the security bars at the gate. Cut the chain on the fence. Used a grinder to ground down my latch. It must of made a lot of noise. They must of had a U Haul truck because they loaded all my bikes and my 5000 watt generator. They knew exactly what units to hit and I think it was an inside job. I had to move all the remainder of my stuff out of a 10 x 30 unit the next day into another storage unit by myself. It was awful. They stole my VK2 lowrider. Nobody can ride this type of bike. When they stole the electric trike, they did not steal the charger. So they won’t get very far. It has a specialized charger and so if they try to plug it into house current, it will blow up. It is a beautiful bike that I have taken so much care of. Now it is probably sitting in a junk heap with some drunken bastards trying to figure out how to make it work. All this pain I have gone through, I thought I had the bases covered by having it insured by USAA. They left me holding the bag over a technicality. This made the pain even worse. I can’t trust nobody. I have gone into depression. Don’t ride any more, can’t trust to leave my bikes anywhere now. I do not trust talking to anybody because they could be the next crook trying to set me up. The only piece of mind I had was having everything insured, but now that is out the door. I am amazed that nobody in the entire country knows how to deal wtih this insurance problem with e-bikes. All the laws are in the grey area. If you got any tips, please let me know. Thanks, Bill
COURT
Hang in there man, it sounds like you still have your health (even if you have been feeling a bit down). Don’t let the things that you once “owned” own the way you feel about life… It was all in storage and your mind was happy, even though you weren’t using all of it at one given time. Now it’s “gone” but things come and go, you can’t take them with you at the end of your life, maybe someone else out there in the world has bought one of your items unknowingly and is enjoying it now? There are so many things in life like friends, family, community, the environment that are truly irreplaceable and even when those are “lost” it’s just a different phase in life. Get out for some exercise on a hike or something, enjoy having a bit less stuff (consider selling all of your extra stuff and stop using any storage company). I’ve also lost a few valuable items and I know how bad it can feel, maybe just sharing here can help you move forward. Don’t let them take your spirit too and try to forgive them for having a less supportive family and lack of empathy… I’m sure their lives are much less enjoyable than yours has been
WILLIAM MARTIN
I am filling out an estimate with Velosurance. Dave have been contacting me every day now. The estimate is over 90 dollars a month. This is more than all my motor vehicles and motorcycles combine. It is well over the insurance I pay on a high end car too. I will be paying over a 1000 dollars a year for a 14,000 bike. I have to think on this one. Right now, I am out of 15,000 dollars of bikes and fighting with an insurance company. Seems like no matter which way I go, I lose. The bottom line is if one rides a high end bike, he must pay high end insurance as well. Thanks again for your words of wisdom.
COURT
Bummer… that does seem like a lot. I’ve got it for my Haibike which is a ~$6,000 model and I think it’s closer to $40 (with lots of extra coverage options). I’m not sure what else to say here, I wish people didn’t steal bikes
WILL MINICH
Thanks for the overview Dave and Court, I just bought a policy from Dave this morning on my new 2015 iZip Zuma,
William Minich
COURT
Nice! I’m glad the video and article helped you out Will, I’ve had a policy with Velosurance for a while now and am very happy with the product (though it’s mostly just peace of mind since my bike hasn’t been stolen or crashed). I wish you the same great luck
CHARLES C. BABICZ
It’s good for e-tricycle also ?
COURT
Hi Charles, I would imagine so. My understanding is that bicycles, folding bikes, recumbents, recumbent trikes and upright tricycles (motorized or otherwise) that follow the same guidelines about top speed (20 mph in throttle mode ~28 with pedal assist) and power (up to 750 watts in the US) should qualify for bicycle insurance. When I called to setup my policy I was able to ask questions and I’m sure they would answer yours as well
RR
I have an agent and umbrella policy across my insurance lines. Can this be bought through my agent in order to be I included in my umbrella?
CHERYL WILLIAMS
Please contact me back if you have an agent in Australia or do you cover ebikes in Australia
COURT
Hi Cheryl! I called Velosurance and asked about availability in Australia. They said that unfortunately it is not at this time but there is one other company that is and it’s called Velosure at
velosure.com.au. I hope this works out for you
JANE
It appears there are some other companies who may insure for electric bikes in Australia, as listed below.
- Velosure
- Bikesure
- Wiggle
- Real Insurance
- NRMA
- Swann Insurance
- RAC
- NoWorries Insurance
- Cycling Australia
WILLIAM FOSTER
Is there insurance for conversion ebikes? So far everything I have seen are for Factory builds.
COURT
Hi William, I reached out to Velosurance and got this feedback: “Velosurance offers coverage for all types of bicycles including pedal bicycles that have been converted to electric power. The e-bike coverage is limited to e-bikes that are powered by up to 750 watts and a top speed UNDER POWER ALONE of 20 mph. When you have questions like this one please call my direct line @ 954-773-9099. I welcome your call.”
DIRK GIDNEY
Hi Court! Just went through a theft scenario with a friend here in Vancouver, BC with her specially adapted Emotor assisted Recumbent Trike. Fortunately thanks to a helpful article in the Vancouver Province Newspaper the trike was recovered. She used the trike for her personal recovery training and mobility after a very serious Traumatic Brain Injury in 2010, hit a 40MPH riding her Bicycle. So you can see all the ways her Renters Insurance company might find ways out of covering the bike. They offered $2,000 on a $10,000 replacement cost. Thankfully we got the trike back! Does your provider have policies for Canada? We are shopping for better coverage now. As a dual Citizen She also spends 4 months each summer in Oregon, USA. Maybe there is way to base the policy in the USA, with a Canadian Coverage included? Although her primary residence is in Vancouver, Canada. Also of note, both Toronto and Vancouver have recently implemented city wide tracking system options for bike owners to help them recover stolen bikes (Article
here and
(Link Removed - No Longer Exists)about it). I sometimes help people with disabilities to assemble or build their own affordable Adaptive Hand-Crank or specially designed “power assisted” Ebikes or Trikes. It is a growing need and application for people recovering from disabling injuries or illnesses, including aging ~ that allows them to still stay active, out there in nature and getting some physical exercise. With Aloha ~Dirk Gidney
COURT
Hi Dirk! Thanks for sharing these great resources, I’m so glad your friend got her special bike back… so sad that someone would try to steal that. Stealing any bicycle is frustrating but especially one that is so customized for a disability. You sound like a good friend and I like your idea about maybe registering in the US. I suggest calling Velosurance, they can be reached and reasoned with over the phone fairly easily (in my experience).
JACK
Excellent questions, Court. A couple of follow-ups…
- Markel has an excellent rep in my former avocation, which was crossing oceans & cruising internationally via sailboat. They were known to be very fair on claims and innovative in how they delivered insurance services. I was pleased (and impressed) to see them behind Velosurance coverage.
- This interview was done quite some time ago. From your perspective, Court, has anything changed? E.g. the issue you raised about electric trailer (Ridekick) coverage? Does Velosurance enjoy a good rep insofar as you have heard?
- Did I miss hearing a Q&A about how a theft loss is handled? If a home owner’s/renter’s policy provides limited reimbursement, I’m assuming bike insurance covers the balance of the loss, and providing a police report would be required when filing the claim. Any insight you have on this from the bike owner’s perspective? After viewing some Youtube videos on how easy it is to defeat most bike locks, it seems like insurance is as important as a good lock..
I really appreciate you offering this information. Hadn’t even considered it when doing my ebike research until seeing this guide.
COURT
Thanks Jack! I still use Velosurance and it’s working well… though I haven’t filed any claims. For me the peace of mind about potential accidents is worth just as much if not more than the potential loss of the bike. I’m not sure what has changed (if anything) as far as what is offered by Velosurance but I may do another interview/video chat again sometime to catch up and I’ll dig in deeper then. Great question about coverage splits, glad you enjoyed the guide
GURUUNO
I got my
iZip E3 Peak this summer, and have had a heck of a time getting any info re: insurance to protect the person who might get hit, injured, or sue me for an accident if it were to occur, as well as verifying from my Allstate agent, Blue Cross/Blue Shield, etc.. Velosurance gave me a quote and said I don’t need UI (Uninsured Motorist), as the example he gave me was, “If you were sitting on a park bench, walking, or in a car or anywhere, you would be covered by your existing policy for UI, so it makes no difference if you are on a bicycle and if it is an e-bile, etc.”.
That is great, however, I have my attorney reviewing a ‘Policy Specimen’ from Markel, to asses the actual 100% coverages, exclusions, etc. My attorney has been a Personal Injury attorney for over 40 years, as well as having contact with all of the powers that be in the industry, yet he is stumped as to the actual “written in stone” actuallity of what may or may not be disallowed, as an example, if I had a $1 million umbrella policy, does Allstate need to accept the base coverage from Velosurance/Markel and how does one address the communication with the insurance companies?
I’ve spent over 4 months on the phone with dozens of insurance companies, and most have no clue what an e-bike is. It’s great that Velosurance/Markel offer coverage, and I’m still digesting the sample policy, awaiting comments from multiple attorneys, but many, many questions in addition to the insurance aspect exist. For example: Each state has some sort of acceptance/denial/knowledge or non knowledge of how they deal with an e-bike. And, looking at specific discussions for each article I can Google, there is no set standard. I walk into the NJ Motor Vehicle Division, they have not a clue when I ask do I need to register or have any special anything. “Nope”, but where is the specific addressable “nope” documented? Looking at NJ legislative law, is complex. So, summary, even if you get insurance, are you allowed to ride it in NJ?
COURT
Thanks for sharing your experience with Markel and Velosurance Guruuno, I’m not a lawyer but I agree that it’s a complex space right now because ebikes are somewhat uncommon or unknown to insurers. Some states like New York have different laws and that can complicate the issue (maybe New Jersey is the same?) so I wonder how that would impact your policy. Maybe I can get Velosurance to chime in and provide some feedback here for us
SAM
Hi Guruuno, Did you ever get more information on this? I also want to see if this would be covered under my umbrella policy and how it would work.
Thank you
ANONYMOUS
However, the e-bike industry is ramping up, sales are increasing, and the consumer needs to have clarity. I’ve experienced similar issues with my Ford Focus Electric car, as to how Allstate can charge a premium for electric cars, yet other companies give a discount. Regulation, laws, politics, all smells to me. Reminds me of 25+ years ago in NJ the licensing issue with home improvement contractors…..real simple solution; model a law around the 3 best implemented laws as in California, Maryland, Texas, Florida, etc., and make it the best in US….however local politicians say, “we get elected/paid to fight, filibuster, and so forth, we can’t make it too easy”, yet to this day, there is no real licensing, only registration in each town.
I know it’s off topic, but the point is, how do you win? How can an industry (e-bike) flourish without the comfort of knowing the customers who make the purchase can be insured? Build them, and they will come? Oh, ok, like GM and the ignition key problem, the Pinto and the gas tank, ok, I get it now. Happy New Year
COURT
It can be frustrating, I traveled to Albany New York last year to speak with state level politicians about ebike law and realized that the things aren’t always as altruistic and citizen-minded as I had hoped. There’s room for improvement out there and some people are genuinely trying to get there, be one of them
GURUUNO
I just got off the phone with Markel insurance. I also sent a rather lengthy email to Velosurance. Although I am awaiting a reply from Velosurance, Markel insurance has informed me that there is no coverage for injury to human beings such as joggers other bikers runners pedestrians and so forth. The coverage needed for E bike owners is to have the comfort of knowing that if they are involved in some type of accident and create injury to someone else that they can have an insurance policy to cover them and not get sued and lose their life possessions. For everything except injury to human beings. Can anyone give clarification as to how an e-Bike owner can continue to use an e-bike and feel comfortable riding an e-bike without fear of getting sued if they get into some sort of accident with a human being??????? How can the E-bike industry flourish and avoidance of this very critical issue not be addressed??
PETER
I’m not sure spoke insurance is still in business. It’s been a while since their Facebook page has been updated and their website shows: System Offline, Thank you for coming to Spoke Bicycle Insurance we apologize for any in convenience. Claims: Phone: 1-855-712-7212, Fax: 1-816-943-1149, Email:
[email protected], Customer Service: Phone: 1-866-954-1025, Email:
[email protected], Roadside Assistance: 1-888-262-2699, Thank you Team Spoke
COURT
Thanks for the update Peter, I’m going to comb through the article… It appears they may have gone out of business or transitioned away from bicycle insurance. Velosurance is still around as far as I know and they appear to be doing well. If you have any other tips about bicycle insurers I’d love to hear about it
FRANK PRESTI
You could check with your insurance agent about an umbrella policy. It kicks in after your home owners/auto insurance is tapped out. It’s typically pretty cheap…… I pay about $250 a year for $2,000,000.
Best of luck,
Frank
ARMANDO
I have a Airwheel A3 It is not a standard tandem wheel transport and goes under 15mph where can I get liability coverage. It is a auto gyro bike.
COURT
Hi Armando! I would think Velosurance or any other bicycle insurer would cover you… if it’s classified as a bicycle they don’t seem to mind whether it’s traditional or alternative design
ANONYMOUS
I have looked into insurance recently, pressing my home owner’s insurance for coverage. Here is what I learned:
- If your bike is defined as a bicycle in your state, then when riding it, you are considered a pedestrian. You have the same rules and liabilities as a bicyclist. If your bike is stolen, you can make a home owner’s claim, but at what deductible? Will it be much? If you hurt someone, your homeowner’s liability kicks in. Here an umbrella policy would financial cushion.
- If you have a higher powered ebike/moped, ride it legal. States may have registration and liability requirements. If you are at fault in an accident and are not riding legal, then liability goes up. I believe a homeowner’s policy will cover liability under a suit. For physical loss of bike due to accident or theft, add a rider to your home owner’s. It will be about $40-50 a yea. It is like insuring jewelry. You will need to provide proof of purchase.
- If the ebike has a power level to be classified as a motor vehicle, then all state licensing and insurance applied, tags, title, etc as if it is a motorcycle. Here, you are regulated more specifically.
COURT
Great feedback, thanks for sharing these details
BILL GALLUP
I have a jetson electric bike which I have had over a year. I checked with my insurance agent to see if my bike was covered under my homeowners insurance. He informed me that most insurance companies don’t or would not cover electric bikes. He refered me to Velosurance . I went on to the Velosurance website plus, got ahold of them . After they explained what the insurance would cover I got it. I am covered for all categories except World Travel . My ebike is covered for the total cost of the bike plus all gear, accessories, etc. My monthly premium is $32.34. I fell very comfortable with my ebike and myself being insured when I am riding. I would highly recommended getting insurance thru Velosurance.
COURT
Nice! Thanks for the real world numbers Bill, glad to hear the Velosurance product has brought sone peace of mind for you. Ebikes aren’t worth much if you’re not out there using them but the flip side is how much they cost. I love that the premium is low enough for you that it’s not like you’re spending enough to buy a whole new bike each year with the money… It feels like a good deal and I like that
DEWEY
Thank you Court for this very helpful article. As a ebike newbie wanting to convert my hybrid with a DIY kit but obtain liability insurance I found it difficult to find a kit that would combine hill climbing ability but could also stay under the federal CPSC limits <750W peak output, 1,000W so I returned it. My third kit is a Bafang BBS01 250W 36V mid-drive kit because the 15ah controller can be configured to set a speed restriction. I chose not to fit the throttle which would have provided up to 100% current, over-riding the controller speed limit, peak output is 540W and as a mid-drive the kit utilizes the bicycle gears, I ride pedal assist only, set the controller to a 15mph speed limit, this set-up meets insurer requirements and gets me up hills.
COURT
That’s awesome Dewey! Creative thinking, great job and thanks for sharing
STEVE
My wife an I have purchased new electric bikes and seem to have landed in insurance hell. In getting quotes from Dave at Velosurance and State Farm who has our home and auto insurance I saw that Velosurance had the best coverage for us given that they do not depreciate the value of the bike. Dave was extremely helpful. But in working with State Farm some things came to light that make it a not so obvious decision. I haven’t made my decision yet but I’d like to mention what I learned in case it’s helpful to someone else.
We have an umbrella policy with State Farm. What State Farm said is that bikes with motors are considered vehicles by them and I have two options:
- Option 1: Insure with State Farm for about $240/year to cover the bikes that retail for about $6,000. That includes theft and damage to the bikes. They reimburse based on what their research says is the value of the bike at the time, minus deductible. It also includes the medical and liability coverages from our other insurance.
- Option 2: Insure with someone else. If that were Velosurance the yearly cost would about $30 a year more than State Farm but worth it in my opinion given that there would be no depreciation. However, to keep the umbrella policy in force would cost an additional $185/year. If we did not tell them about the other insurance and it came to light the umbrella policy would be canceled.
So, if you’re exploring insurance you may want to look into your umbrella policy if you have one to see how that may affect overall coverage and costs.
COURT
Very interesting Steve, thank you so much for sharing these insights. I hadn’t thought about how health coverage might overlap or still be required from an auto insurer vs. just covering the bike. It starts to erode the value of the non-depreciating policy a bit when you’re paying hundreds extra per year to get a bit of coverage from both places vs. eating the depreciation but definitely saving cash by just going with one plan (if I understand you correctly). I’d love to hear what you decide on and why once you get there
STEVE
I should mention that I live in Colorado because state laws differ but I think this has more to do with State Farm and them wanting to manage their risk. That said, I decided to go with State Farm because they made it virtually impossible to do anything else without up-ending all our policies by either changing all my insurance to another )potentially more cooperative) insurer or dropping umbrella coverage, neither of which I wanted to do. In the end the insurance is costing $252/yr with State Farm for two bikes vs. what would have been $476 with Velosurance ($288 for bikes and $188 to State Farm for umbrella policy).
Upon further discussion with my agent, they came up with two more gotchas to keep the umbrella policy in effect. One was a requirement for liability coverage with another insurer at least at the level I have with State Farm. But Velosurance does not offer that amount and the amount they do offer adds additional cost. The other condition was that the other insurer has to have an A+ financial rating. I could only find a 2013 rating for Velosurance of A so that would have been a problem. I could have checked with Velosurace but it had gotten way too complicated and I basically surrendered. My wife and I will be casual riders just looking to have some fun. This insurance thing was not fun.
There is no doubt in my mind that Veloinsurance offers better coverage, all the complexities aside. I would urge anyone who wants good coverage to talk to them and I think Dave can help you through the maze. There’s also no doubt in my mind that if we have a claim State Farm it will be a frustrating to work with them and we will be disappointed with reimbursements.
The good news is we picked up our bikes last night, a Pedego Boomerang Plus for my wife and an Easy Motion City for me. We are older (70 ish) and these seem to be great matches for our particular needs. We also got a great price at Best Electric Bikes in Denver because we were buying two. Can’t wait to get out and ride.
LEE
While this thread has been around awhile, the topic remains current, and I would like to share my experiences to give you another tool as you all look for insurance options.
I just purchased a Specialized Turbo Vado 3.0 and was anxious to ensure it against theft, as I would in a major metro area.
I got a quote from Veloinsurnce which was approximately $240 a year. And then I called my insurance company. I spent a full hour on the phone with four missteps as they got me to the right department. But I was very glad I hung in there and they persisted with me, because I learned about an area of insurance called Inland Marine. The name seems way off base,but the agent told me that this is an area of insurance for things not normally covered in a homeowners policy…things like ebikes. (Once you know what to look for there’s a lot of information online about it. It started for businesses covering things in transit, but also works for individuals covering unusual items like expensive furs, jewelry and specialized equipment.)
As an existing customer adding to my homeowners, acknowledging I did no racing or competitions, for full replacement no deductible on theft I got coverage for $83 a year.
I’m happy to have the bike covered with the company that I’ve been very happy with and I was delighted at the price.
So when you’re talking to your insurance company you might ask them about an inland marine policy and investigate how it fits into your overall insurance protection strategy.
COURT
Wow, that’s incredible! Thanks for the feedback Lee, I had never heard of Inland Marine insurance but just knowing what to ask for now could be very helpful (at least to check if my own insurance company offers it). Do you care to share which insurer you use, it sounds like they have done a great job for you for some time now. Thanks for including that the coverage you got was full replacement and no-deductible. That’s one of the areas that Velosurance highlights… that they don’t devalue the product over time and will also cover the accessories you add (since they can get very expensive in some cases like suspension seat posts and lights).
MARK SOINE
8 months ago
In Washington state I’m insuring 2 ebikes with State Farm Insurance for about $40 per month. I wanted to purchase 2 additional ebikes and insure them in Arizona. There State Farm Insurance quoted me $75 per month for 2 identical ebikes. Haven’t gotten an explanation as to why it is so much more in Arizona. State Farm treats them as motorcycles. The store/manufacturer we purchased from never tells its customers about this issue even after I’ve had multiple conversations with the CEO/founder of the company. Telling people they don’t need insurance is correct only to the extent it may not be mandatory in your state. Be truthful and work with insurance companies to obtain appropriate underwriting standards for ebike owners.
COURT
Interesting, thanks for the feedback Mark. I feel like this is a growing but still inconsistent and somewhat unknown area of ebike ownership and getting to hear from individuals like you makes it a bit more clear or at least helps to fill in the gaps and surface alternatives.
MARTIN
Hi Court
What advice would you give to someone looking for insurance to cover their new ebike shop. Selling, renting,demoing and servicing of just ebikes in California.
I look forward to your thoughts.
Thanks
Martin
COURT
Hi Martin! I’m not an expert on the different types of insurance for running a bike shop, but I’ll reach out to a couple of other shops and ask for their input. A while back, I had heard about a company that offers insurance for tours and rentals, I think Pedego uses them, and I wrote a short article about it on the EBR forums
here. I hope this helps answer part of your question and I’ll chime in later with more info. What state are you in?
DORI
Very good interview with Velosurance founder. Thanks. When I checked with my auto insurer about renters’ insurance, I was told that it would also cover my e-bike if stolen. But this blog posts have given me more insights into insuring e-bikes so I’m going to check with them again with more details that I’ve learned here….like personal injury! Thanks again Court.
P.S. I have enjoyed your e-bike reviews.
COURT
Sweet! Thanks for the positive feedback Dori, I’m glad this interview/article helped you out. It’s really interesting what “coverage” really means when you factor in accessories, depreciation of bikes, personal injury etc. I learned a lot as well
