Two people riding bicycles

E-bikes Are on a Roll and ERIE Is Along for the Ride

by Erie Insurance on October 17, 2023

This article appeared in the New York version of Eriesense® magazine.

Depending on where you live, you might see them, well, everywhere.

Battery-powered electric bikes have become difficult to ignore, and they’re the fastest-selling electric vehicle.

In 2022 alone, about 1.1 million e-bikes were imported into the United States, according to the Light Electric Vehicle Association. This represents a fairly good proxy for the total amount sold in the U.S., as very few e-bikes are manufactured here.

This shattered the previous record of 880,000 imports in 2021.

In New York, e-bikes have gained considerable traction. Since the state and New York City legalized e-bikes and scooters in 2020, they’ve become

a fashionable mode of transportation for many commuters, delivery drivers and bike enthusiasts.

Now, Erie Insurance offers New York Customers e-bike insurance coverage through ErieSecure Home®, Condo® and Tenant® policies.

“We recognize that e-bikes are rapidly growing in popularity and numbers,” said Michelle Tenant, vice president for home product management at Erie Insurance. “So we want to provide our Customers with coverage necessary for them to ride with peace of mind.”

Why so popular?

Environmental concerns, as well as gas prices, have been significant factors, as have advancements in the technology of the lithium batteries that power the bikes. Another catalyst was the pandemic, as those looking to avoid enclosed public transportation took to biking in the open air.

Accessibility to e-bikes has increased too. Just about anyone who downloads a smartphone app can use one in many cities, thanks to popular bike-sharing platforms such as Lime.

What’s considered an e-bike?

E-bikes are bicycles with battery-powered electric motors that give them extra juice. They operate similarly to standard bikes but can save riders extra time and effort going up hills or cycling long distances. E-bikes are distinguished from other motorized bikes by their ability to also be pedaled.

They are generally categorized into three classes:

  • Class 1: These e-bikes have an electric motor that only works when the rider is pedaling. This class, commonly referred to as a pedal electric cycle, or pedelec, can reach a top speed of about 20 mph.
  • Class 2: E-bikes in Class 2 also max out at 20 mph but have a throttle that powers the bike even when it isn’t being pedaled. Class 2 bikes typically still have the pedal-assist option of Class 1.
  • Class 3: These e-bikes are the fastest, possessing an electric motor that can reach speeds of up to 25 mph in New York. As Class 3 bikes are permitted only in cities with a population of one million people, they’re only legal in New York City.

Rules of the road

In New York, e-bikes can be no more than 36 inches wide and must have an electric motor of less than 750 watts. Although they aren’t registered vehicles, e-bikes can be operated on some streets and highways in the state.

For instance, they are allowed on highways with posted speed limits of 30 mph or less. Municipalities can also have their own laws governing usage, so it’s important to familiarize yourself with rules in your area before you start riding. E-bikes are banned from use on sidewalks unless permitted by local laws.

Safety first

Riders should follow the same safety practices on the road as when riding standard bikes, including obeying traffic lights and road signs. They should also ride with the flow of traffic, use hand signals when appropriate and wear reflective or high-visibility clothing. And wearing a helmet at all times is a must.

As the number of e-bikes and other mobility devices have multiplied, another tragic trend has emerged. A rash of fires resulting from overheated lithium batteries has taken place, and urban areas where e-bikes are often most abundant have been hit hardest.

According to the U.S. Consumer Product Safety Commission (CPSC), more than 200 reported fires or overheating incidents across 39 states resulted in at least 19 deaths from the beginning of 2021 through November 2022. In September, New York City became the first in the nation to ban the sale of e-mobility devices that don’t meet recognized safety standards.

To help prevent fires, the CPSC recommends following the manufacturer’s charging instructions and unplugging the device when it’s completed  charging. Only the charger that came with the device should be used, and owners should always be present and awake while it charges. Owners should also only use approved replacement battery packs and never ones worked on by unqualified personnel or with repurposed or used cells.

Cover your e-bike

Customers with ErieSecure Home®, Condo® and Tenant® policies automatically receive coverage for their e-bikes.

This means physical damage totaling up to $5,000 is provided for motorized bicycles, scooters and mopeds not subject to motor vehicle registration.

Property damage and injury liabilities will also be covered when an e-bike is used away from home and is not built or modified to exceed 28 miles per hour and is not subject to motor vehicle registration.

The next time you’re cruising to your destination, stay covered by taking ERIE along for the ride.

Contact your ERIE Agent with any questions about insuring your e-bike.

Do you have the coverage you need?

Discover great rates from local people who care. Get a free quote now.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of the article’s publish date and may be changed at any time.

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.