Insuring your e-bike: the basics

Staff member Demaris with her e-bike outside AA Insurance House in Auckland.

Electric bicycles (e-bikes) are growing in popularity and can help you go further, faster whether you use it to commute or for leisure. E-bikes can be a significant investment, so it’s important to make sure they’re accounted for in your insurance cover. Here’s some information on e-bikes and how they may be covered by your insurance.

How do e-bikes work?

With an e-bike, the rider can choose to pedal alone or receive assistance from a built-in electric motor. Most are powered by a battery that’s attached to the frame or the rear rack. This battery can be recharged by plugging it into a normal wall socket using the e-bike’s charging cord – which looks a lot like a laptop charger. Lithium batteries can be a fire hazard so it’s important they’re not stored in areas where they can be exposed to heat or moisture, such as in direct sunlight, or left plugged in for prolonged periods of time. Find out more on lithium battery safety on the Fire Emergency New Zealand website.

Unlike a motorcycle, e-bikes don’t require a license or registration to be driven. However, there are other considerations like power restrictions, so it pays to check-out the NZTA information page to ensure your e-bike meets requirements.

How far and how fast can you go on your e-bike?

In New Zealand, normal traffic speed restrictions apply. Cruising speeds vary greatly from bike to bike and some manufacturers limit the maximum speed, but you can expect to travel around 20-30km/h on flat ground. The distance you can go depends on the battery and how much you use it to do the pedalling for you. Most batteries have a charge indicator, generally you can expect to get around 50km out of a basic model before a recharge is needed.

The cost of an e-bike is a substantial investment. Basic models sell for around $2,000 new. Some high specification models – which are lighter and have more features – can even retail for more than $10,000.

So, if you’re considering purchasing an e-bike or if you already own one, it’s important to make sure you have appropriate cover in place. At AA Insurance, e-bikes are treated like regular bikes and are covered under your contents policy:

• under our Contents Insurance Policy, they are automatically covered up to a combined value of $5,000 (excluding accessories)

• under our Limited Contents Insurance Policy, they are automatically covered up to a combined value of $2,500 (excluding accessories)

If you have one or more bicycles and the combined value of them is worth more than these event limits, remember to increase your adjustable event limit in the 'Update your policy' section on your My AA Insurance online account or get in touch. You’re also covered for legal liability up to $2 million if you have a policy with us. It’s worth checking the details of your cover with your insurer, to make sure you’re adequately insured.

Tips for happy pedalling:

• When you get a new e-bike, have a few practice runs somewhere safe such as a park or field.

• Ensure you’re comfortable with switching gears and test the brakes before you take it on the road. The brakes will need to be maintained more often than with a regular bike because you tend to brake more often on an e-bike.

• Abide by the rules of the highway code and remain vigilant of road traffic and wary of your speed.

• Safety is a priority, so make sure you have the equipment you need to ride safely. That includes a properly fitted helmet, bike lights and reflective or bright clothing. You may need additional warm clothing on an e-bike; you pedal less so you often don’t get as hot.

• Secure your bike with one or two bike locks and, if you can, lock the bike frame and wheel to a fixed object, such as a post or fence. If you have a removable battery, you might want to consider taking it with you.