I came around a blind corner on the bike path. A dog walker was in the middle of the lane. I swerved, clipped him, and we both went down. He broke his wrist and the dog needed vet care. Two weeks later, I got a letter from a lawyer demanding $45,000. I sent it to my homeowners insurance, confident I was covered. Then came the question: “Was the bike motorized?”
Key Takeaways
- The Motor Vehicle Exclusion (Again): Standard personal liability (in Homeowners/Renters) excludes liability arising from “motor vehicles.”
- The “Service to Residence” Exception: Some policies cover e-bikes if they are only used to service the home or are designed for the handicapped. Commuting or recreation doesn’t count.
- Umbrella Policies: Even an umbrella policy follows the underlying homeowners exclusion. If the home policy denies it, the umbrella usually denies it too.
- Class 1/2 vs. Class 3: Some insurers cover Class 1 (assist only) but strictly exclude Class 2 (throttle) or Class 3 (28mph).
The “Why” (Liability Gaps)
This is the most dangerous financial gap. If you injure someone, you can be sued for future wages and pain and suffering.
“Medical payments and Personal Liability do not apply to bodily injury arising out of the ownership, maintenance, or use of… a motor vehicle.”
The Investigation: Am I Covered?
I asked three carriers: “If I hit a pedestrian on my e-bike, do you defend me in court?”
1. Erie Insurance
- Answer: They have updated their policies to specifically cover e-bikes under certain speeds. If it’s a standard Class 1 or 2, they likely cover it.
2. Progressive (Renters)
- Answer: Depends on the state. In many states, they strictly exclude any motorized land conveyance not subject to motor vehicle registration. It’s a gray area you don’t want to be in.
3. Standalone Liability (Oyster/Velosurance)
- Answer: Yes. They offer $100k to $300k in liability coverage specifically for this. It covers defense costs and payouts.
Comparison Table
| Policy | Liability Coverage for E-Bike Crash | Note |
| Standard Homeowners | Doubtful | Depends on “Motor Vehicle” definition. |
| Umbrella Policy | Doubtful | Usually requires underlying coverage first. |
| Standalone Bike Policy | YES | Specifically designed for this risk. |
Step-by-Step Action Plan
- Read the “Exclusions – Personal Liability” Section: Look for the motor vehicle definition.
- Buy Standalone Liability: If you ride on multi-use paths with pedestrians, this is essential. It is usually included in the theft policy package.
- Don’t Admit Fault: If you crash, ask if they are okay, call help, but do not say “I was going too fast” or “It was my fault.” Let the adjusters handle the liability determination.
FAQ
Does my auto insurance cover this liability?
No. Auto insurance only covers your car.
What if I have a “Non-Owned Auto” policy?
Still no. That’s for driving rental cars, not riding bikes.
[IMAGE: Placeholder for a diagram showing Liability vs Property coverage]