Enjoy Your Ride, But Beware of the Drawbacks: What You Need to Know About Insurance for
April 16, 2020
Renting an e-scooter and riding around the neighborhood continues to be a fun and popular springtime activity. But from a financial, and sometimes physical, standpoint, it comes with hidden dangers that you may not consider when you initially rent.
In New Jersey, e-scooters are not considered a motor vehicle because they have fewer than four wheels, which means they are not covered under your auto insurance policy, nor are they considered personal property for homeowner’s or renter’s purposes. The one exception, in the case of homeowner’s or renter’s insurance, is that they would be covered if they were being used to assist a handicap. This lack of coverage leaves you, the rider, in a tricky situation if you should be found liable for another party’s injuries as the result of an accident. Your health insurance would likely cover your own medical bills, but it would not cover those of the other party. Provided you did not insure your scooter separately, you would be stuck paying out of pocket for the injured party’s medical bills and vehicle repairs.
New Jersey law does not require riders to purchase insurance for e-scooters, but it will likely be in your best interests to get coverage so you can avoid steep personal expenses in the event of an accident. Generally, when you rent an e-scooter, you have two coverage options. You can purchase a special policy that would cover medical bills, property damage and other debts incurred by an accident, or you can purchase an umbrella policy that includes e-scooters. Keep in mind that not all umbrella policies cover e-scooters, so you would need to carefully review the terms of the policy with your insurance agent to determine coverage. Many e-scooter policies can be purchased for $50 or less, which is a small investment compared to what you may need to pay without the policy.
At David G. Sayles Insurance Services, we work closely with e-scooter renters to get them the coverage they need. Contact us today and set up an appointment with one of our agents to discuss the best policy for you.