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The rapid evolution of urban transport: the need for proper e-bike insurance coverage

Explore the rise of e-bikes in urban transport and the critical need for proper insurance coverage to protect riders and mitigate risks.

26/03/2025 · 5 minute read

Urban transport has undergone a significant transformation in recent years, mainly driven by the rise of micromobility solutions, such as e-bikes and e-scooters, which have become popular alternatives to traditional modes of transportation. Micromobility has quickly gained traction as cities grapple with congestion, pollution, and the need for sustainable transport options. However, this rapid adoption presents a host of challenges, particularly regarding the appropriate insurance for these vehicles.

The rise of micromobility

Micromobility refers to small, lightweight vehicles typically used for short-distance travel, including bicycles, e-bikes, e-scooters, and other similar modes of transport. This concept gained momentum in the early 2010s, fuelled by urbanisation, technological advancements, and a growing awareness of environmental issues. Dense cities and moderate distances make Europe particularly well-suited to micromobility solutions. As cities became more congested, residents sought alternatives to cars, leading to the proliferation of bike-sharing programmes and e-scooter rentals.

The COVID-19 pandemic further accelerated this trend, as people looked for socially distanced transportation options. E-bikes, in particular, became increasingly popular due to their ability to cover longer distances with less physical exertion, making them an attractive option for commuters in urban areas.

E-bikes surge in popularity as the market is expected to grow

E-bikes have emerged as a key player in the micromobility landscape. These electric bicycles are equipped with a battery-powered motor that assists with pedalling, allowing riders to travel faster and with less effort. The convenience and efficiency of e-bikes make them ideal for urban commuting, reducing reliance on cars and public transport.

Cities worldwide have responded to this trend by investing in infrastructure to support e-bike usage. Dedicated bike lanes, charging stations, and bike-sharing programmes have become more common, facilitating the integration of e-bikes into urban transport systems. Additionally, many municipalities have implemented policies encouraging e-bike adoption, such as subsidies and tax incentives. 

According to one estimate, the global e-bike market was valued at approximately US$36.6 billion in 2023 and is expected to reach US$118.6 billion by 2030. Additionally, it is estimated that 10 million bikes were sold in 2024, with projections suggesting this number could rise to 17 million by 2030.

Despite their clear benefits, the rapid increase in e-bike usage has raised concerns regarding safety, liability, and effective risk mitigation strategies. As more riders take to the streets, the potential for accidents and injuries has also grown. This has prompted discussions about the need for proper insurance coverage for e-bikes, which is often overlooked by riders.

Inadequate insurance can lead to financial burdens and lawsuits

One of the most pressing issues surrounding the rise of e-bikes is the lack of sufficient insurance coverage. Many e-bike riders assume that their existing auto or homeowner's insurance policies will cover them in the event of an accident. However, this is rarely the case. Standard insurance policies may not extend to e-bikes, leaving riders vulnerable to significant financial liabilities.

In the event of an accident, riders may face medical expenses, property damage claims, and potential lawsuits. Without proper insurance, these costs can quickly add up, leading to financial hardship. Furthermore, the lack of insurance can also impact third parties involved in an accident, such as pedestrians or cyclists, who may seek compensation for their injuries.

From an insurance perspective, e-bikes should be viewed as vehicles, rather than traditional bicycles, due to their higher speeds, increased weight, and motorised components. This classification impacts insurance requirements and coverage options. Unlike regular bikes, which may have limited liability and theft coverage, e-bikes often necessitate more comprehensive insurance policies that address potential accidents, injuries, and property damage.

E-bikes can reach 20 mph or more, elevating the risk of serious accidents and injuries, making liability coverage particularly important. Additionally, many jurisdictions have specific regulations governing e-bikes, further emphasising the need for appropriate insurance that aligns with vehicle standards. As e-bikes continue to gain popularity, understanding their insurance implications is essential for riders to ensure they are adequately protected on the road.

Recognising the growing popularity and unique risks associated with this mode of transport, Marsh has been at the forefront of distributing insurance products tailored to e-bike users. These solutions address the gaps in traditional coverage that often leave riders unprotected. 

For example, policies have been offered that cover theft, damage, and liability, ensuring that e-bike riders are adequately protected. Marsh has also been involved in educating consumers about the importance of proper insurance and advocating for industry standards that promote safety and accountability in the rapidly evolving micromobility landscape.

Risks must be addressed as micromobility solutions continue to grow

Micromobility, particularly e-bikes, is here to stay as urban areas seek sustainable and efficient transportation solutions. With increasing concerns about traffic congestion, pollution, and the need for eco-friendly transportation alternatives, e-bikes are expected to continue to play a pivotal role in reshaping urban mobility. This shift is supported by substantial funding from the EU through initiatives like Horizon Europe and the Cohesion Fund, which aim to promote the adoption of e-bikes and other sustainable transportation solutions. For the period 2021-2027, the EU has committed €4.5 billion as part of the Cohesion Fund for cycling infrastructure, including e-bikes. 

Advancements in technology, such as improved battery life and smart connectivity, will enhance the user experience and expand the capabilities of e-bikes. Additionally, cities will likely invest more in infrastructure, such as dedicated bike lanes and e-bike charging stations, to support this growing trend. Authorities in Paris recently announced plans to invest €250 million to upgrade its cycling infrastructure and expand its network by 2026.   

While these micromobility solutions offer numerous benefits, including reduced congestion and lower emissions, they also present new challenges, particularly regarding insurance coverage, as highlighted above. It is crucial for riders to understand the importance of proper insurance to protect themselves and others on the road. By addressing these risks, we can ensure that the future of urban transport remains sustainable, accessible, and safe.

For more information, contact your local Marsh representative or one of the colleagues below.

Our people

Konrad Andersson

Konrad Andersson

Sales Vice President, Affinity, Marsh Europe

  • Sweden

Karl Kullbratt

Karl Kullbratt

Client Executive, Consumer & Commercial, Marsh Sweden

  • Sweden

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