E-Scooters: The Newly Insurable Risk

The demand for electric scooters’ (commonly referred to as “e-scooters”) has been increasing across New Zealand over the past few years.

Chances are, you’ve seen someone riding an e-scooter on the streets, on your way to work or whilst driving. The number of e-scooters imported has risen up to more than 47,000 since 2018.

As more e-scooters are being sold and produced across the globe, there has been an increase in companies offering rental electric scooters.

What’s the connection between insurable risk and electric scooters? We’re here to share what you should consider about insurance implications with your electronic scooter. Keep reading to learn more!

What is an E-Scooter?

An e-scooter it’s a type of battery-powered scooter that can typically reach speeds up to 32km/hr. You don’t have to have a driver’s license or any other type of specialty license to operate an electronic scooter.

As popularity for e-scooters has skyrocketed, there has been an increase in the development of insurance liabilities and other related problems. Since their debut in New Zealand, e-scooter related incidents and accidents have cost the country more than $2.7 million.

Does Car Insurance Cover My Electronic Scooter?

No, your car insurance won’t cover your e-scooter. So if you are involved in an accident while you’re riding your e-scooter, your car insurance policy won’t cover any property repairs or medical expenses that come with your accident.

Get into an accident when you’re riding your e-scooter, and you may have to pay out-of-pocket for any property damage or medical expenses that occur because of the accident.

Also, if you damage another person’s property with your e-scooter, you may be held liable for any repairs. The same goes with if you injure a pedestrian and your liability for any medical expenses incurred.

Electronic Scooter Insurance

The regulations and requirements for the use of low-powered vehicles, such as e-scooters, are relatively vague in New Zealand. For example, outlined by Waka Kotahi, the New Zealand Transport Agency, the wearing of helmets are recommended but not legally required.

Investing in insurance for your e-scooter will ensure that damages are covered in case of an accident.

You will also be protected against any damage that occurs and any medical expenses as a result of an accident.

Contacting insurance experts in your area will help you better understand what insurance may require your e-scooter.

Is There Any Insurable Risk For E-Scooters?

Many programs available in the New Zealand allow users to rent an electric scooter via their phone or tablet. E-scooters are tracked via apps that are available throughout the city that the scooter is rented in.

Renters of an e-scooter sign waivers to give up the right to sue a company in case of an accident or injury. Yet, that doesn’t completely eliminate insurable risk.

Even with signed wavers, there are other insurance risks that rental companies will face. Some examples include; e-scooter riders hitting pedestrians, getting injured while riding, creating trip hazards for people passing by on the street, or limiting access for disabled people.

Understanding Insurable Risk with Electronic Scooters

As e-scooters continue to grow in popularity, the insurance risk that e-scooters present also increases. Understanding what insurable risks that e-scooters present can help you. You’ll gain an understanding of how to better manage insurance claims made by electronic scooter riders.

Are you interested in outsourcing your electronic scooter insurance claims? We’re here to help. GB is New Zealand’s General Insurance claims management specialist. We offer tailored claims management solutions to insurers, brokers, underwriting agencies, businesses and government departments, covering all classes of General Insurance. Learn more about our General Insurance offering here.