Is it a bike or motor vehicle? How the debate over e-bikes could end up costing consumers

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SOUTH JORDAN — Electric bikes are huge right now, as sales in the U.S. are set to top $1.3 billion by 2022, according to the National Bicycle Dealers Association.

E-bikes they have also become huge targets for thieves.

When two electric bikes were stolen from a South Jordan man’s garage, he thought his owner’s insurance would cover them, just like any other bike.

But he found himself in the middle of a debate between state regulators and the insurance industry over whether e-bikes are considered a motorized vehicle.

“I think I bought a bicycle”

“They were literally parked there,” John Winterholler told KSL as he showed us around his garage.

His ordeal began last summer when someone broke into his garage.

“Oh, it was a pit in my stomach,” he said of the discovery of the theft.

He filed a claim with his home owner’s insurance, which covers the bike theft. But to his shock, his insurer denied the claim. The denial letter said his policy did not cover “motor vehicles.”

“You’ve got to be kidding me,” Winterholler said. “I was disappointed, saying: ‘Well, they certainly didn’t understand. There must be something I haven’t explained.”

There was no mistake, his insurance company insisted. His denial means that he is out more than $5,000 for the pair of e-bikes.

“I thought I bought a bike,” Winterholler said.

He decided it was time to Get Gephardt.

Is an electric bicycle a bicycle?

“An electric bicycle is not a motor vehicle,” emphasized Jason Gardner, spokesman for the Utah Division of Motor Vehicles. “There are a couple more techniques.”

Certainly, the legalese in the and state laws defining motor vehicles it can be, well, weird. Think of all things with motors besides cars and trucks: snowmobiles, boats, motorcycles, ATVs, golf carts, and even motorized wheelchairs. So, think about e-bikes.

It has an engine. So why is it not considered a motor vehicle by the DMV?

“It’s just a definition thing under the statute,” Gardner said.

So, can the DMV step in and help Winterholler? No.

“We don’t have expertise or jurisdiction over insurance claims,” ​​Gardner said.

Do you know who does it? The Utah Department of Insurance does. But what they told KSL won’t help Winterholler either.

“There is no specific classification for an electric bicycle in the Insurance Code or rules,” spokesman Steve Gooch wrote in an email to KSL. “As for whether an electric bicycle is a bicycle or a motor vehicle for insurance purposes, unfortunately there is no satisfactory answer at the moment.”

Or is an e-bike a motor vehicle?

Bear River Mutual Insurance, Winterholler’s insurer, said classifying e-bikes as motor vehicles is an industry standard.

“From an insurance policy perspective, yes, it’s a motor vehicle,” said vice president Dave Andrist.

“All insurance contracts, or almost all insurance contracts, a motor vehicle would be any self-propelled vehicle,” Andrist said. “And that would include anything with a throttle.”

He admits that a disparity in the definition of an electric bike exists, but says the industry hasn’t seen it become much of an issue, yet.

“I’ll be honest, e-bike is an emerging issue, right?” Andrist said. “Because we went from having almost none in 2018, five or six years ago, to having, I would say thousands, maybe tens of thousands.”

He says that the insurance industry is “always looking at these emerging issues and looking for ways to incorporate them into their contracts so that people are covered.”

Secure an e-bike

If you want to make sure your e-bike is covered by insurance, you need to talk to your agent.

Some e-bikes that only work when you pedal may already be covered on your existing homeowner’s policy. Others that require the push of a button to get going are likely not covered unless the rider pays for specific e-bike coverage.

As for Winterholler, there is some silver lining: He says that after hearing his story, the manufacturer cut a good deal on new e-bikes.

“We like them so much,” he said of e-bikes. “We wanted to replace them.”

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