Why You Need a License and Insurance to Ride an Electric Bike

Let’s face it; climate change is for real and anything that can be done to reverse the damage or at least slow down the effect must be done. Switching to an electric vehicle is one such thing. An electric vehicle uses electricity for operating and has no dependency on fossil fuels such as petrol and diesel. This makes it a green and clean mode of transport.

In India, the Central and state governments are promoting the electric mobility sector by introducing conducive policies and benefits for electric vehicle owners. Here’s all you need to know about owning, using and buying insurance for bike that run on electricity.

License for an Electric Bike

In India, all bike owners must have third party insurance for a two-wheeler. Electric bikes are no exception. Also, similar to other vehicles, it is illegal to drive your electric bike on the road without a valid driving License. Without a valid License, your third party insurance for a two-wheeler will not cover any damages caused by or to your e-bike in case of an accident. However, for electric bikes with a power backup of less than 250W and 25km/h maximum speed, the rider can skip the License requirement. It means you can ride such an electric bike without a driving License. For this reason, electric bikes are immensely popular among students and retired individuals in India. 

While electric bikes and motorcycles are evolving too fast for the motor rules to match the pace, it has become difficult to differentiate between the two. This is because new electric bike models are almost as fast as electric motorcycles. In fact, some models look so similar to e-motorcycles, that you cannot make out the difference in one go. Irrespective of what model you prefer or whether you have a License for your electric bike or not, it is always safe to get insurance for the bike to stay protected in time of need.

Insurance for an Electric Bike 

Even for an electric bike reaching speeds up to 25 km/h, accidents and injuries are inevitable. Therefore, the rider must be aware of their License and insurance requirements before purchasing an electric bike to cover any sort of damage. Otherwise, the rider will have to bear the cost of compensation for the damage out of their pocket. For an electric bike whose speed exceeds 25 km/h and has a power capacity of more than 250 kW, it is important to have insurance for the bike.

It is recommended for the rider to opt for comprehensive insurance for the bike rather than third party insurance. The cost of third party insurance for two wheeler ranges between Rs 1000 and Rs 3000 depending upon the capacity of the engine and insurance coverage. Meanwhile, a comprehensive insurance policy would cost between Rs 4,500 and Rs 6,000, which will again depend on the type of electric vehicle and insurance coverage. Comprehensive insurance for the bike would also cover the loss of your electric bike in case of theft. However, the driver must have a valid License to make a claim.

Although electric bikes with a speed limit of 25 km/h and 250 W power capacity do not require either a License or insurance, the driver can opt for any insurance policy based on their needs and budget. 

The Need for Electric Bike Insurance

Similar to other vehicles, your electric bike needs at least third party insurance for a two-wheeler to be covered in the event of a mishap. Whether you use the e-bike for commuting, running errands, or recreation, it is a significant investment and should be protected in case of an accident or theft.

There are a few things to consider when insuring your electric bike :-

• First, most homeowners' or renter's insurance policies will not cover damage to an electric bike unless it is specifically listed as a covered item. If your policy covers the electric bike, check coverage and deductibles to ensure thorough protection.
• Electric bikes are typically classified as either mopeds or motorcycles based on the power output of the motor. Moped insurance is usually much less expensive than motorcycle insurance. However, it may not provide the same level of coverage. Therefore, check with your insurer how your electric bike will be classified and what type of coverage is available.
• Many electric bike manufacturers offer extended warranty coverage that includes insurance. This can be a good option if you are worried about the cost of insuring your electric bike. But, be sure to read the fine print carefully to understand what is covered and what is not covered.

In general, electric bikes are similar to traditional bicycles when it comes to insurance. However, because they are powered by motors, there are a few additional things to consider. Talk to your insurance agent about your specific needs to make sure you are properly protected.

Choosing Insurance Provider for Electric Bikes

Just as with any other type of vehicle, make sure that your electric bike is properly insured. This will protect you in case of an accident, theft, or other damage. Contact your insurance provider to know coverage options for electric bikes. Some providers may offer special rates for electric bike owners, so ask for it. You may also need additional insurance for your bike if you plan to ride your electric bike in areas without coverage.

In most states, you do not need a License to operate an electric bike. However, there are some exceptions. In some states, you may need a License if the motor on your bike is over a certain power limit. Check with your local Department of Motor Vehicles to find out the laws in your state. You may also need to register your electric bike with the DMV.

The traffic laws in India regarding electric bikes are the same as for regular bicycles. This means you should ride in the same direction as traffic and obey all traffic signals. You should also use hand signals to indicate when you are turning.

Conclusion

Electric bikes are gaining popularity for their simplicity and hassle-free nature of licensing and insurance. With several models flooding the Indian market, riders have ample choices for electric bikes along with insurance policies. Overall, electric bikes are a great option for those who want an alternative to traditional bikes. They are affordable, easy to operate, and do not require a License in most states. However, you should ensure that your bike is properly insured and that you understand the traffic laws in your area. Discuss your specific needs with your insurance agent to make sure you are properly protected.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.