Beyond the Automobile: Insuring Alternative Transportation
Securing car insurance is a standard requirement in almost every state, but when it comes to alternative modes of personal transport like electric bikes, scooters, and mopeds, the rules aren’t always the same. As the sales of energy-efficient and environmentally friendly vehicles have increased substantially, so has the public’s awareness of the risks involved—and the adoption of insurance policies for these alternative methods of getting around.
E-bike sales, for example, reached over 1 million for the first time in 2022, up from just over 250,000 in 2018, according to the Department of Energy. The Business Research Company reported that the market size for e-bikes and e-scooters grew to $28.08 billion in 2024, and analysts expect the trend to continue, potentially reaching $197.1 billion by 2033. Drivers are increasingly turning from gas-powered cars to more affordable and sustainable alternatives, influenced by their awareness of the problems of pollution and the rising cost of fuel.
E-bikes and e-scooters have proven convenient for commuters in urban areas, where smaller micromobility options like electric unicycles are also gaining traction due to their affordability. Cities like Denver are offering rebates to incentivize e-bike purchases.
This shift is also reflected in the rise of insurance policy sales. Cycleplan, a cycling insurance provider based in Manchester, noted a 292% increase in insurance sales between 2019 and 2022.
Different types of transportation inherently come with varying degrees of risk, including damage or theft of the vehicle itself and the possibility of physical harm to the operator. Injuries involving micromobility vehicles have been on the rise in recent years. A 2024 study by Columbia University’s Mailman School of Public Health researchers revealed that e-bike and e-scooter injuries increased by 293% and 88%, respectively, from 2019 to 2022. The study, published in the American Journal of Public Health, also suggested that a lack of access to and regulation for protective equipment, such as helmets, might be associated with the spike in injuries.
While insurance offers benefits for all riders, the requirements depend on state law and the specific type of vehicle. For instance, motorcyclists must have insurance in nearly every state, except Florida, but this is not always the case for micromobility vehicles such as mopeds.
This article examines several popular alternatives to the automobile and the insurance considerations that might be relevant to their owners.
Mopeds
A moped is a smaller motorcycle, typically lower in power. Often topping out around 30 miles per hour, mopeds are not as fast as cars or motorcycles, but they are fuel-efficient, cost-effective, and easier to park. On the road, they are usually faster than e-bikes.
Some states treat mopeds the same as motorcycles, with similar licensing requirements, but other states, such as Texas, have no such requirements. Liability insurance requirements for mopeds also differ from state to state. Overall, mopeds are sharing the road with other car alternatives like e-bikes and e-scooters, and have taken some cities by storm because of their affordability and fewer regulations.
E-bikes
E-bikes offer some of the same advantages as traditional bicycles: they provide exercise and are environmentally friendly compared to cars and motorcycles. The e-bike’s electric motor assists the rider, making pedaling easier.
There are three commonly accepted classes of e-bikes, which may affect how they are regulated depending on state laws. Many e-bike owners, such as Adam Flick, a 27-year-old from Philadelphia, opt to get insurance to protect against theft or damage. “The insurance was a great thing to have because my e-bike did end up getting stolen,” Flick said. “Luckily, thanks to my insurance policy, I was able to get the full cost of my bike reimbursed.”
E-scooters
Electric scooters became prevalent in urban areas during the COVID-19 pandemic because of scooter-sharing programs. Along with their affordability and sustainability compared to cars, electric scooters grew in popularity due to rental programs, making them accessible and providing alternative options for public transportation.
However, the rise in e-scooters has led to public debate over sidewalk congestion and an increase in injuries. Legislators in densely populated urban areas such as New York City are proposing regulations in response to the influx of scooters. Most states don’t require the same licensing and insurance as motor vehicles, but insurance might mitigate financial risk in the event of an accident or theft.
Motorcycles
Motorcycles have long been a fixture on American highways. The Department of Transportation classifies them as motor vehicles, with operators generally following the same rules as car and truck drivers; however, they are subject to their own specific regulations. Most states have helmet requirements, which sometimes depend on the rider’s age. Illinois, Iowa, and New Hampshire are the only three states without helmet laws.
Many motorcycles are cheaper than cars. In some states, motorcyclists can move past traffic by lane splitting, which is riding between lanes of traffic moving in the same direction. However, riding a motorcycle is inherently risky, especially when sharing the road with other motor vehicles. Although they make up only 3% of all registered vehicles, motorcyclists account for 14.6% of all traffic fatalities, based on the National Safety Council’s analysis of the Fatality Analysis Reporting System’s 2022 data.
Electric Unicycles
Using an electric unicycle (EUC) is not the most conventional mode of transport. But EUCs are becoming more visible in urban areas because of their maneuverability, small size, and cost-effectiveness. EUC use is still nascent compared to e-bikes and e-scooters, meaning few regulations target them, although they are technically illegal on public roads in some cities, such as New York City. Insurance providers with liability plans covering e-bikes or e-scooters generally also provide coverage for electric unicycles.
