Consumers Say Insurance Should Evolve for Micromobility Vehicles

Almost all consumers agree that insurance policies should evolve to provide clearer coverage for micromobility vehicles on public roads, Nationwide shared in a new report.

Nine in 10 respondents to a recent survey commissioned by the insurer held that view. Among commercial drivers, 85% said policies should evolve to provide clearer coverage for the increasingly popular lightweight vehicles.

The findings come amid growing use of scooters and e-bikes in the U.S. Adoption is especially high among younger individuals, with nearly two in five parents saying their teens own or operate personal electric scooters and 28% reporting e-bike or motorized bicycle use.

Among all consumer respondents, 17% said they own an e-bike or motorized bicycle, while 12% own an electric scooter.

“Equal shares of consumers and parents believe drivers of micromobility vehicles are uniquely risky in their behavior on public roads and [that] current laws [and] regulations are unclear,” the report said. Overall, 89% of respondents said existing laws and regulations governing alternative or micromobility vehicles are unclear or insufficient.

Coverage Rules and Consumer Expectations

Progressive reports that most states treat e-bikes as bicycles, meaning riders typically are not required to carry liability coverage or other insurance mandated for motor vehicles. Requirements for other micromobility vehicles vary more widely, with coverage often required for scooters with engines of 50cc or more.

A majority of respondents to Nationwide’s survey believe that motorized scooters (81%) and off-road vehicles (80%) should require insurance coverage to operate on public roads. Sixty-three percent believe coverage should be required for e-bikes, and 38% said insurance should be necessary for on-road personal electric scooters.

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Nationwide also found that only 38% of respondents believe they would be covered by their current auto insurance policy if they were involved in an accident while operating a motorized scooter. That number was 30% for e-bikes and 21% for personal electric scooters.

The full report shows that consumers believe driving in the U.S. has become more dangerous. To gather responses, Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online survey of 1,005 general consumers, 400 parents of teen drivers and 400 commercial drivers in January.