Should I insure my electric bike?

Different countries follow different rules and legislation. Some legally binding laws may sometimes be illegal in other countries. According to the beliefs and cultural aspects of their own countries, rules vary. 

As electric bikes are classified into different classes, laws differ. It determines where you can ride. 

• Class 1 

These types of electric bikes have pedal assist only. The electric motor of the bike activates only when pedalling. You don’t have to pedal hard to make the throttle work, you can choose low gear and pedal with less effort. 

These electric bikes share the path with traditional bikes. Electric bikes can use bike lanes and bike paths. These types of bikes fall under the classification of bicycles. 

 

• Class 2 

Though they have the same speed limit of 20m/h, the throttle works without pedaling. You can choose to pedal-assist your bike or control the bike with the throttle or both. 

These electric bikes too can share the bicycle’s lane and ride in place bicycle riding places like parks.  

 

• Class 3 

These types of electric bikes may have a throttle or maybe not, and the speed limit is 28m/h. Most countries allow this type of bike on road lanes or bike-only lanes but are restricting the bike to ride in bicycle lanes. 

 

Most countries have similar rules, and they may vary depending on the laws of that country. Know the rules before you buy your electric bike. 

In most countries, there are no age restrictions as to who can ride electric bikes and who can not. There are age restrictions and the need for helmets to ride electric bikes. But in many countries, they do not have age restrictions or need for a helmet. 

 

Importance of insurance 

With the increase in needs and wants for automobiles, we can see vehicles everywhere. Different brands with their unique features, invents and develop their automobiles, thus creating a craze for them among people. With the increase in automobiles, the need for more infrastructure to increases to avoid crashes between vehicles. 

Automobiles are expensive and it costs a lot to even replace parts. It is a fear of every automobile owner for even a scratch to appear. Not only do these automobiles have to be careful inroads but nature too can harm them. Extreme weather like; storms, floods, earthquakes, etc. can damage vehicles or their parts. 

Due to the parts of the vehicle being expensive, there are chances for theft and vandalism. These extra expenses might make one wonder about the need for extra finance. This is where insurance come in as a savior. 

The origin of insurance can be dated back to the Babylonian era. But the first modern insurance was introduced by Nicholas Barbon, in 1666. The Great Fire that occurred in London, destroyed more than 30, 000 houses. This insurance system was formed following the tragic fire, providing financial aid for fire accidents. 

Insurance evolved and other forms of coverage were introduced; accidents, theft, and loss due to natural disasters and life insurance are among them. Though insurance is an established business, it changes to meet the need of the consumers. But no insurance was mandatory. It was later in the 20th century, that vehicle insurance became obligatory. 

Automobile owners may face financial hardship when their automobiles are vitiated, due to accidents or natural disasters that can not be avoided. Even if the accidents were not the fault of the owner of the vehicle, they still suffer. Insurance provides financial aid here by repairing or replacing the damaged parts of the vehicle. And also cover the other parties involved. 

Different packages charge differently and provide various coverages. Main automobile coverages are as follows: 

 

• Comprehensive insurance 

This is the insurance that covers your automobile in case of damages due to non-collision accidents. Damages due to fire, flood, falling of trees, earthquakes, rainstorms, vandalism, and theft come under this policy. 

But this does not cover the damages due to collision, damaging the other party’s vehicle due to colliding, or medical expenses of the owner or the passengers after the accident. 

Comprehensive insurance is optional if you own the vehicle. But if the vehicle is using a lease or finance service, it becomes mandatory to get this insurance coverage. 

This is the insurance policy almost everyone applies for as it covers the vehicle and will be repaired or replaced if it is damaged. 

There is a deductible amount that the owner of the vehicle has to select when purchasing an insurance policy. Deducting this amount from the estimated cost of repairing the vehicle, the company will reimburse the remaining cost. You have to pay the deducted amount by yourself for repair. 

In case of theft, the deductibles will be deducted from your vehicle’s depreciated amount and reimbursed. 

As this covers almost the whole vehicle, it is the most expensive insurance coverage you can purchase. Still many purchase this policy to reduce the cost they have to pay in case of accidents. 

The amount that you have to pay monthly or yearly depends on the model of your vehicle and the cost of it and its part. Higher the amount, the higher the monthly payment. 

 

• Collision insurance

This insurance helps you pay for the repairing or the replacement of the vehicle parts that were damaged due to collision. This insurance covers if the vehicle crashes into another vehicle, an object (tree, wall), or rolling or falling over. 

This policy does not cover and reimburse you if the vehicle is stolen or vandalized. The insurance company will not be paying your medical bills or any other person’s medical bills involved in the accident. 

Purchasing this insurance coverage is not mandatory if you own the vehicle, but becomes compulsory if the vehicle is leased or financed. 

You will be selecting the deductible amount when purchasing the policy. This will be deducted from the total cost of repairing, which you will have to pay. The remaining insurance company will reimburse. 

Collision coverage has a maximum value the company will be paying. That is the value of your car after depreciation. 

Amount paid monthly or yearly is calculated depending on the model and the cost of the parts of the vehicle. 

 

•  Liability Insurance

This insurance covers medical and legal expenses of other’s injuries or damages to other’s properties, due to your mistake. In almost all countries, the drivers must carry one. 

Liability insurance is of two types: 

• Bodily injury liability coverage

This insurance covers the medical bills of the other person involved in an accident that happened because of your fault. 

It also helps pay legal fees if the driver is sued. 

• Property damage liability coverage

If you happened to damage another person’s property by accident, this coverage would pay for it. 

This policy does not cover your medical expenses or the damages to your car. 

There are limits the insurance company will pay for an accident, and you have to choose it when purchasing. The options will be provided by the insurer and if the limit exceeds, you have to pay the extras. 

The amount to pay monthly or yearly depends on the coverage you have purchased and the limit the insurer has to pay. The higher the coverage limit, the higher the payment. 

 

• Uninsured and underinsured coverage

This insurance covers you and your vehicle when the other driver whose at fault, does not have enough liability coverage or ran away. 

The policy pays for your medical bills and the bills of people in your vehicle, and the damages to the vehicle. 

This insurance policy is not available in some countries and it is optional to have this coverage in many countries. 

The monthly or yearly payment depends on the place where you live. In places where hit and run are high, the payment will be high. 

 

• Medical Payment Coverage

Regardless of who caused the accident, this insurance covers your and your passenger’s medical expenses. The coverage pays the doctor or hospital fee, X-ray and surgery bills, ambulance service fee, and nursing fee. 

There is a limit your insurer will pay, and you will be selected when purchasing. You will be paying the extra cost. 

This coverage is not available in all countries and is optional. 

 

Electric bikes vs Traditional bikes 

Electric bikes are gaining more popularity in many countries. Because of its many features that are lacking in traditional bikes, its demand has hiked up, along with its price. 

Many manufacturers manufacture electric bikes and have many unique features, and adding more. 

Though electric bikes are prototyped like traditional bikes, they vary in function. Traditional bikes have pedals and the rider has to pedal his way through. It is powered by human power and no assistance in pedaling. Electric bikes have motors that control the movement of the bike and assist the rider in pedaling. Even people with special medical conditions can ride an electric bike, but that person will not be able to ride a traditional bike. 

Hiking in the mountains can be done with less effort when riding electric bikes. As there is pedal assistance, electric bikes can be used to climb the hill with less effort. Whereas in traditional bikes, you have to walk up there, if the road is steep. 

Electric bikes can be accessed on your smartphone and use the apps to track your path, fitness training, GPS, and more. 

Electric bikes are heavy as it carries motor and battery inside it. Even the frames and pedals are heavier than in traditional bikes, as they are made with quality products and manufactured stronger. To carry one in steps could be tiring, whereas traditional bikes are easy and lightweight as they do not have any internal gadgets in them. 

Electric bikes cost much more than traditional bikes. Due to the high competition among the manufacturers in inventing and developing electric bikes, they try to use quality products to manufacture them with the latest technology available. Thus increasing in price. Traditional bike manufacturers have fewer competitions and therefore mo new insertion in them. 

Though electric bikes are pricey and heavy, it has more features and user friendly. Due to this, traditional bikes have deteriorated greatly while electric bikes’ demand has hiked up. 

 

Why are electric bikes so expensive? 

Electric bikes are classy and stylish. They are comfortable and convenient too, as they have many rider-assisting features. These added features and convenience add more cost to the bike. Here are reasons for the electric bikes to hike in price; 

• Expensive batteries

Batteries are a vital part of the electric bike. They determine how far your bike will go without charging. It gives power t the bike’s motor to function and control. Though there are cheaper batteries available in the market, expensive ones last longer and have a long lifespan. 

The raw materials used in expensive batteries cost more thus increasing the price of the batteries. Special care is taken in manufacturing these costly batteries to give a long life span and range. 

• Motors

Motors are essentially important as batteries. They convert electric energy to mechanical energy. Motor controllers control the amount of energy flowing into the motors from the battery, using the effort the ride makes. 

The price of the motor depends on the quality and the type of motor used in electric bikes. 

• Cost of engineering

The cost to build the bike and new insertion would cost the company, as many attempts would have failed before and would have cost the manufacturers a lot. Thus successful completion costs are higher. 

• Quality of the products

Many other parts in the bikes are expensive as it provides great service. The handlebars, pedals, chains, brakes, frames, etc. are expensive because they are made with quality products to compete with the better servicing bikes. 

Manufacturers are making better parts using quality materials, to provide an excellent ride. Thus increasing the whole cost. 

• Research and development

Before manufacturing an item, it goes through many processes. Research is one of the first things they are doing. Knowledge about the item and the raw materials used is important to select the raw materials for production. Knowing the raw materials will help you select the best one with higher productivity. It affects the overall functioning of the item. 

After researching manufacturers with the help of engineers, will develop the product’s performance using new techniques. 

Designing unique models will increase the demand for them. 

 

Should I insure my electric bike? 

Yes and no. It depends on how expensive it is for you. 

Electric bikes are more costly than traditional bikes as it is providing more functions and features. Quality and expensive materials are used in making these electric bikes. Its parts cost more; like batteries and motors. Due to this, there is more theft reporting regarding battery stealing. 

Insurance gives me coverage for your bike and its parts. And if the bike is damaged in an accident, they cover it too. 

As this expensive vehicle and its parts would cost you to repair or replace, it is a good choice to insure your electric bike. But if you can afford it, and you do not want to insure, you do not have to. 

In many countries, you can insure your electric bikes. But it is optional, but the safer choice for your expensive electric bike.