Context: In 2026, let’s assume a major PEV player (hypothetically) faces financial trouble or parts shortages.
Rumors swirled that my board manufacturer was insolvent. I couldn’t get a response from support about my broken axle. I was terrified that if my board broke, it was a paperweight. I wondered if my insurance would “total” a board simply because parts were unavailable.
Key Takeaways
- Total Loss by Unavailability: If a board is damaged in a crash and parts cannot be sourced (because the company is bankrupt), the insurer often declares it a “Constructive Total Loss” and pays out the full value.
- Third-Party vs. Warranty: Warranty relies on the company existing. Insurance relies on the contract. Insurance is safer in a volatile market.
- Salvage Value: If they pay you out, they take the board. But you might want to keep it for spare parts. You can “buy back” the salvage.
- Agreed Value is Key: If the manufacturer dies, market value tanks. “Agreed Value” coverage ensures you get the purchase price, not the liquidation price.
The “Why” (Repairability)
Insurance owes you a repair. If repair is impossible, they owe you the value.
“If we cannot repair the property within a reasonable time, we will pay the Agreed Value.”
The Investigation: The “Ghost Brand” Test
I asked adjusters: “What if I crash a board from a company that doesn’t exist anymore?”
1. Velosurance
- Response: “If we can’t find a shop to fix it or parts are not available, it is a total loss. We send you a check for the insured amount.”
2. Manufacturer Warranty
- Response: Poof. Gone. If the company is Chapter 7, your warranty is worthless.
3. Home Repair
- Response: If you can fix it with used parts from eBay, the insurer might pay for the used parts. But usually, they prefer to just total it to close the file.
Comparison Table
| Scenario | Manufacturer Support | Insurance Support |
| Broken Part (In Business) | Sends Part (Free) | Pays Shop to Fix |
| Broken Part (Bankrupt) | None | Pays Full Bike Value |
| Software Lock | None | None (Not physical damage) |
Step-by-Step Action Plan
- Insure for Replacement Cost: Ensure your policy is for the cost to buy a new equivalent, not the depreciated value of a defunct brand.
- Document the “Unrepairable” Status: Get an email from a repair shop saying “Parts unavailable due to manufacturer closure.” Send this to the adjuster.
- Keep the Carcass: If they total it, negotiate to keep the board. The battery and motor are valuable currency in a post-bankruptcy community.
FAQ
Does insurance cover “bricking” by software server shutdown?
No. That is not “physical damage.” That is obsolescence.
[IMAGE: Screenshot of a “404 Page Not Found” on a manufacturer support site]