Ebike and Ebike Insurance:All You Need to Know in UK

Ebike and Ebike Insurance:All You Need to Know in UK
Recently ,electric bikes grow in popularity, however, electric bikes are governed by different laws than non-assisted bikes.So many of you may wondering : What is an electric bike legally and what are the laws surrounding these bikes? What should I know about the e-bike insurance and how can I get insurance for my e-bike? Those are some of the questions we're here to answer, starting with the laws in the United Kingdom, which are the same as those in Europe (at the time of writing).

What’s the Legal Definition of an Electric Bike in UK?

To begin with, we must define what constitutes an e-bike, or an electrically assisted pedal cycle (EAPC), to give it its technical name.

What is an EAPC? According to gov.uk, an EAPC must:

  • Have pedals that can be used to propel it
  • Show either the power output or the manufacturer of the motor
  • Show either the battery’s voltage or the maximum speed of the bike
  • Have an electric motor with a maximum power output of 250 watts
  • Not have a motor able to propel the bike when it’s travelling at more than 15.5mph

If you still can't figure out the legal standard of e-bikes,  just check our website for a better understanding. As a qualified e-bike producer, all of our e-bikes are manufactured strictly according to the UK related regulation.

How Many Types of E-bikes in UK?

In US, E-bikes come in three different classes. E-bike laws dictate how they should be used according to classes. Among the classes are:

  • Class 1: The Class 1 e-bike provides assistance only when you pedal, and stops assisting when you reach 20 mph — great for bike lanes, bike paths, roads or anywhere you'd take a traditional bike.
  • Class 2: The Class 2 e-bike is equipped with a throttle which provides a boost without pedaling, and stops assisting at 20 mph.
  • Class 3: The Class 3 e-bike is equipped with a speedometer, and only assists until the bike reaches 28 mph — an excellent choice for commuters.

However, this is another story in Europe. Here’s only one e-bike class that you need to understand. The motor size is capped at 250 watts, max speed is capped at 25km/h, and power assistance comes only while pedalling - there’s no throttle. Stick to those specs and you can ride your electric bike like a bike. No extra licensing or insurance is necessary for operating it.

What You should Know about UK E-bike Regulations?

If an e-bike meets the EAPC definition, it is legally treated as a regular, non-assisted bike, but you must be at least 14 years old before you can ride one. No registration is needed and no insurance is necessary. Helmets are also not required by law.

You can ride an e-bike anywhere you are permitted to ride a regular bike. That includes on roads, cycle lanes and bridle paths. As with a non-electric bicycle, you’re not allowed to ride on pavements, unless they’re designated for mixed cycle and pedestrian use. You have to obey the Highway Code too, including stop signs and traffic lights.

Is There a Government Grant for Electric Bikes?

It’s such a shame to conclude that there are no specific tax benefits for electric bikes, and they are taxed under the same general use of asset rules as petrol-powered models. However, the UK government do value this healthier and greener lifestyle and they issued a campaign named Cycle to Work.

Cycle to Work scheme is a UK Government tax exemption initiative introduced in the Finance Act 1999 to promote healthier journeys to work and to reduce environmental pollution. Employers in the UK are allowed to purchase (electric) bikes on behalf of employees and receive tax relief, saving employees up to 42% of the recommended retail price (RRP).

The Cycle to Work scheme applies to any pedal assist bikes including e-bikes. This means that someone on the highest rate of tax will save almost half of the cost of a new bike and equipment. 

What is Electric Bike Insurance?

Electric bike insurance are designed for bike owners and offer more coverage than a condo, home, or renters insurance policy. A comprehensive electric bike insurance policy may cover the following:

  •  Theft: covers the cost of a replacement bike if yours is stolen
  • Malicious or accidental damage: pays to repair or replace your electric bike if it’s damaged or vandalised
  • Personal accident: provides a lump sum if you’re seriously injured after an accident on your bike
  • Third-party liability: offers financial protection against claims if you cause an accident while riding your bike

When you buy insurance for your electric bicycle, providers often include various add-ons. Some of these may cost extra, so you need to decide which add-ons are necessary.

A home insurance policy may have a deductible of $1,000 or more. With bike insurance, you can choose a deductible as low as $200. And if you own more than one bike, you can purchase a single policy that covers your entire collection.

Is E-bike Insurance a Legal Requirement for Riders in UK?

Up until 2020, riders in Northern Ireland had a legal obligation to insure their electric bikes, but in the rest of the UK, this type of insurance has always been optional. In the summer of 2020, Northern Ireland's electric bike legislation was amended to align with those in England, Scotland, and Wales.

So, electric bike insurance is no longer compulsory in the whole UK.

The Importance of E-bike Insurance

E-bikes (commonly referred to as e-bikes) are expensive and high-risk vehicles that are usually not fully covered by home, renter, or auto insurance policies.

1.E-bikes can be expensive

Owning or planning to buy an electric bicycle is an expensive investment. Even we hovsco team are determined to provide the most cost-effective e-bikes for our supportive customers,the price remains high due to the delicate and enduring parts are usually expensive.

It costs upwards of €1,000 for a good entry-level e-bike, €3,000 for a mid-range e-bike, and up to €12,000 for a high-end e-bike. Can you afford repairing or replacing your bike?

2.E-bikes have potential risk

Liability coverage is more important for e-bikes. Electric bikes travel faster and are heavier than bicycles, making them a high risk of causing property damage or bodily harm to another. When an accident occurs, an e-biker may be held liable and have to deal with crippling financial obligations.

3.Homeowners, renter and auto insurances offer very limited e-bike coverage.

Most homeowners and renter insurance policies do not cover theft, damage, or liability related to electric bikes since they are considered motorized vehicles. Moreover, e-bike insurance may not be offered by auto insurance companies since e-bikes aren't required to be registered, and the rider doesn't have to have a valid driver's license to ride one

How Much does it Cost to Insure an E-bike?

It’s difficult to say how much you’ll have to pay for e-bike insurance because the insurance premium calculation will be based on a wide range of different risk variables, including:

  • Your postcode
  • The crime rate in your local area
  • The type of electric bike you own
  • Your e-bike’s current market value
  • Whether or not you use your e-bike to compete in competitive cycling races

How to Choose the Right Insurance Company?

To choose the right bike insurance company from which to purchase electric bike insurance, you must exercise extreme caution.

1. Purchase Insurance Policy Online

The first step is to purchase an electric bike insurance policy online rather than in person. If you decide to purchase an insurance policy offline, you must either visit the insurance company's office directly or rely on an insurance agent. When you buy e-bike insurance online, you can choose from a variety of options without relying on a third party.

2. Check desired company’s history

As the information is readily available online, it is recommended that you investigate the history of your preferred insurance company. Based on your needs, you can compare a few desired plans online. Check the history of claims settled, customer reviews, and so on

3. How big is the company?

You need to know whether the insurance company is able to pay out your claim based on the size of the company. Analyze their total assets, market performance, growth ratio, market share, etc. If the graph appears to be steadily increasing, then you can go for it.

4. Insured declared value (IDV)

Companies offer a variety of insurance plans at a variety of prices and with a variety of coverages. If you file a claim, the insured declared value is the maximum amount of financial coverage you receive. Choose an electric insurance provider that offers a higher IDV with the best type of coverage among the many available.

5. Coverage and add-ons

If you are considering electric vehicle insurance, make sure you read its inclusions. Specifically, it is to understand the types of coverage provided by the insurance company under that particular plan, such as own damage, theft, personal accident coverage, etc. Additionally, it is crucial to know what is not covered by the plan, so that you are aware of the risks for which the company will not provide coverage.

6. Ease of doing business online

Electric bike insurance opens up a wealth of options for interacting with the insurer. Make certain that the insurer accepts claims online, offers 24*7 customer service, is easily accessible, solves various problems online, and so on, as these features will benefit you as a policyholder in the future.

7. Quality of service

In choosing an insurance company from which to purchase e-bike insurance, you must consider the type of services available. See if your insurer is patient with you when you have a question. Are they always available to answer your questions? These are some of the facts you should learn about the company. These are some of the considerations you should make when selecting the right insurance.

Any E-bike Insurance to Recommend?

Absolutely! To provide you with the most reliable insurance, we've searched a lot of information online and carefully checked the leading website https://www.investopedia.com/ and here are our answers for you:

The Best E-bike (Electric Bike) Insurance in 2022  

Best Overall: Velosurance  

Best Affordable Option: Spoke Insurance  

Best for High Coverage Limits: McClain Insurance  

Best for International Travelers: Sundays Insurance  

Best for Multi-Bike Policies: Simple Bike Insurance  

Best for Bundling Options: Progressive

The Bottom Line

When you spend several thousand dollars on an e-bike, it makes sense to protect it with a separate electric bike insurance policy. Condo, homeowners, or renters policies might cover your e-bike in case it is stolen from your garage or destroyed in a house fire, but it won't likely provide enough coverage to replace it. Designed for e-bikes, e-bike insurance offers the protection cyclists need at home, on the road, and abroad. Both recreational riders and commuters will find e-bike insurance to be affordable and of value.

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