New Jersey Riders Now Need E-Bike Insurance. Is Your State Next?
A new law requires registration, licensing and, for some riders, liability insurance. Here's what riders need to know.
As of this week, e-bike riders in New Jersey will need to register their bikes, have driver's licenses and, for some bike types, get insurance. Essentially, your e-bike is going to be regulated a lot more like a car or motorcycle.
If you've been using your e-bike as a way to save on transportation or give your kid a way to get around town before they're old enough to get a driver's license, these new regulations might seem like a hassle. But the changes come in response to a spike in e-bike related accidents in the state.
The new law aims to make riders safer and better protected on the road. Though, some advocacy groups argue that the New Jersey law is too restrictive and unfairly lumps lower speed e-bikes in with their higher speed counterparts. Whether you like the new laws or not, here's what you need to know before you head out for your next e-bike ride in New Jersey.
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What e-bike riders need to know about the New Jersey law
With the new law in effect, a few things have changed for e-bike riders. Here are the most important changes:
- Any motorized bike, including pedal-assisted models and those with throttles will now need to be registered and riders will need a driver's license, an e-bike license or an e-bike permit to ride it.
- If your e-bike can reach speeds higher than 20 mph, you also need to get insurance in addition to following the license and registration requirements.
- If your e-bike can reach speeds higher than 28 mph, New Jersey now regulates it like a motorcycle — meaning you'll need a motorcycle license or an "M" endorsement added to your driver's license. You'll also need to meet the minimum insurance requirements for motorcycles, rather than the requirements for e-bikes.
If you already have a driver's license, you don't need an additional license for the e-bike. But you do need to carry your license along with registration and proof of insurance while riding.
If you don't have a driver's license, you can apply for an e-bike license or e-bike permit. This involves passing a knowledge test and scheduling a road test, similar to the process for getting a standard Class C driver's license.
If your driver's license was suspended or revoked and you were using an e-bike as an alternative form of transportation, you can no longer do that. You'll need to switch to public transit or a non-motorized bike.
How to get e-bike insurance
New Jersey's Department of Insurance is still working with insurance companies to finalize a list of approved e-bike insurance providers. In the meantime, the minimum coverage requirements you'll need to meet are as follows:
- Bodily injury liability: $15,000 per person/$30,000 per accident
- Property damage liability: $5,000
- Policies also need to have personal injury protection (PIP) for pedestrians.
Right now, the liability coverage in a standard home or car insurance policy wouldn't cover you on an e-bike. So, you'll either need to add e-bike coverage onto one of your existing policies or buy standalone e-bike insurance that meets the minimum requirements above.
Fortunately, standalone e-bike insurance is likely to be pretty affordable. A liability-only policy can cost as little as $75 per year, according to Progressive, which already offers e-bike insurance.
But, like car insurance, some providers may also offer full coverage policies. Given how expensive e-bikes can be, getting collision or comprehensive insurance to ensure you'll have the cash to replace your ride if it's damaged can be worth it — especially if it's become your primary mode of transportation.
Meanwhile, some insurers allow you to bundle limited forms of e-bike protection into your existing policies.
Lemonade, for example, would already cover your bike against theft or certain types of damage under a typical home or renter's insurance policy. But the company also allows riders to add an extra coverage rider to their policy that would act similarly to collision insurance. The company doesn't appear to offer liability coverage for e-bikes similar to what New Jersey now requires.
Since it's still a relatively new insurance product, not all providers offer it or offer versions that would comply with the New Jersey law. But it's still a good idea to start your search by getting a quote from your current insurer for either car or home insurance. If either of them offers e-bike insurance, you might be able to take advantage of bundling discounts.
Use the tool below, powered by Bankrate, to compare quotes:
Other states might soon follow New Jersey's lead
At least three other states have proposed similar registration and insurance requirements for e-bikes, according to People for Bikes, a nationwide advocacy group focused on improving cycling-related infrastructure and policy. That includes the garden state's neighbor, New York as well as California and New Hampshire.
So far, no other state has implemented insurance requirements like New Jersey has, but Hawaii does require e-bikes to be registered and many states have minimum age requirements for Class 3 e-bikes (defined by most states as bikes that can go faster than 20 mph).
As e-bikes gain in popularity, riders should keep an eye out for changing laws in their state.
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