One of the things a lot of people miss about the non-street-legal electric bikes is the liability issue.
On one side, if somebody hits you with a motor vehicle and injures you, chances are you are SOL on getting any compensation from them or their insurance because you were operating an illegal vehicle. To some extent that depends on the state though.
If you, god forbid, cause an accident with your illegal bike than you are in for a universe of pain and suffering. Chances are whatever insurance you have won't help you, and chances are when you get sued you will lose and lose badly. Given what even modest personal injury payouts can be chances are that you will lose your home and your retirement savings and be squeezed dry by lawyers. Oh, did I mention the legal fees you'll have to pay to defend yourself? Nobody will help you with those either.
So even if something isn't "enforceable" by a cop on the bike path you could still find yourself in a world of hurt when things go wrong. That also means if you bought an illegal bike for your precious little offspring to ride to school you could also be sued into the dirt.
For myself I'd rather pay fines and have my bike confiscated than be on the losing side of a personal injury lawsuit.
I had a conversation with my insurance agent about this yesterday. My homeowner's policy as well as my motor vehicle and umbrella liability policy are coming due, and I wanted to understand how I would be covered on my e-bike.
The issue is complicated, and results from the lack of uniform regulation and licensing. Since my e-bike is not a registered as a vehicle, it is not covered for liability under my vehicle insurance. Since it is operated outside of my home, it is not covered for liability outside of my home. Finally, the umbrella policy is supplemental to other policies, so if the e-bike isn't covered under another policy, it cannot be covered under the umbrella liability policy. The bottom line is, I'm not covered.
I could get a standalone policy from a company like Velosurance, but they have coverages I don't want or need, like theft, supplemental medical and for competitive events.
My concern is not theft or collision coverage. I can eat those costs. My concern is the little kid who jumps out in front of me on the MUP and I can't stop in time. I ride responsibly on them, slowing down while approaching other users, but an ambulance chaser will subpoena the data from my bike and make a case.
She offered to explore other carriers that might have e-bike specific coverage, but this would mean giving up my homeowner's insurance carrier. I live in a coastal area, and use a coastal-specific carrier because the main carriers are twice the cost and more. I'm not switching.
So, for now, I'm taking the risk. She said that she feels that this will be sorted out with regulation. I agree. She said that she is seeing the same thing with golf carts near the beach. Many are not street legal, so they cannot be registered and insured.
Time will tell. I absolutely hate unnecessary regulation, but I think uniform clarity is needed in our space.
