I live in a city where electric skateboards are technically banned on public roads (like London or parts of NYC). I was hit by a car while riding in the street. I filed a claim for my destroyed board and my injuries. The insurance company pointed to the “Illegal Acts” exclusion and denied everything.
Key Takeaways
- The “Illegal Acts” Exclusion: Most policies exclude coverage for loss/damage arising from “criminal acts” or “illegal trade/transportation.” If riding the board is a misdemeanor or citation-worthy offense, they can deny coverage.
- Jurisdiction Matters: In 2026, laws vary block by block. Riding in a park might be illegal, while the bike lane is legal.
- Liability is Key: If you are riding illegally and hit someone, you are “negligent per se” (negligent because you broke the law). Your liability insurance might refuse to defend you.
- Theft is Still Covered (Usually): Even if the bike is illegal to ride, it is legal to own. If it’s stolen from your house, theft coverage should still apply.
The “Why” (Contract Law)
Insurers do not insure illegal activities. It is against public policy.
“We do not cover loss arising out of any illegal act committed by or at the direction of an insured.”
The Investigation: The Grey Zone
I asked adjusters about the “London Scenario” (where private e-scooters are banned on public roads).
1. Theft Claim
- Outcome: Likely Paid. Owning the board isn’t illegal. The theft happened at home.
2. Crash/Collision Claim
- Outcome: Likely Denied. You were using the property in an illegal manner at the time of loss.
3. Liability Claim
- Outcome: Mixed. Some policies defend you even if you broke a traffic law (like speeding). But if the vehicle itself is banned, they might walk away.
Comparison Table
| Scenario | Legal to Ride? | Insurance Coverage |
| Bike Lane (Legal) | Yes | Yes |
| Sidewalk (Illegal) | No | Risky (Could deny) |
| Banned City (Illegal) | No | Denied (Illegal Act) |
Step-by-Step Action Plan
- Know the Law: Check local ordinances. If it’s banned, drive to a legal area/private property to ride.
- Don’t Volunteer Info: If filing a claim, state the facts. “Collision occurred at [Location].” Let them determine legality. But never lie.
- Lobby for Laws: The only real fix is legalization. Join riders’ rights groups.
FAQ
If I get a ticket, does insurance pay it?
No. Insurance never pays for fines or citations.
[IMAGE: Photo of a “No Motorized Vehicles” sign on a park path]