New Jersey E-Bike Registration, Insurance Requirements Now in Effect

Sunday July 19 was the deadline for most New Jersey electric bicycle owners to register their e-bikes and obtain liability insurance required under a new law.

New Jersey’s new e-bike law classifies all e-bikes principally garaged in the state as motorized bicycles. Riders must be at least 15 years old and hold either a driver’s license or obtain a motorized bicycle license.

Motorized bikes must be registered with the New Jersey Motor Vehicle Commission.

Low speed e-bikes must be registered but do not need to be insured. However, owners of motorized bicycles that travel 20 mph or faster, must not only register them but also have liability insurance for bodily injury, death and property damage.

Also every person in the business of renting motorized bicycles must maintain liability insurance coverage.

All riders are required to wear helmets and carry their license, insurance, and registration while riding. Riders caught without insurance or registration can face can fines and penalties.

As for insurance, the law requires liability limits of at least $15,000 per person and $30,000 per accident for bodily injury, and $5,000 for property damage. Policies must also provide personal injury protection (PIP) for pedestrians. Standard homeowners and auto policies do not meet these minimums.

The state’s insurance department is still in the process of receiving and approving insurer filings. The agency told Insurance Journal it hopes to eventually post a list of approved carriers on its website.

In April, Susan Ochs, acting insurance commissioner, told lawmakers that the regulatory agency’s budget has been “essentially flat” for the last decade and it is 25% understaffed. Ochs was asking for a boost in its budget. “We are really, significantly understaffed, especially as the department has taken on new responsibilities. It’s really left us shortchanged,” she said, citing the extra work involved regulating new insurance products for e-bikes, pets, and travel and administering new federal regulations around pharmacy benefit managers.

Despite the plea, the latest state budget did not increase funding for the Department of Banking and Insurance.

The e-bike law was signed in January but it included a six-month delay that gave riders until July 19 to comply with the licensing, registration and insurance requirements.

Velosurance and Markel have indicated they have policies available for New Jersey’s liability-only requirement. Voom, a broker offering policies backed by Markel, has said it is about to launch one. Progressive Insurance told Insurance Journal it should have an offering available soon.

Meanwhile, the New Jersey Bike & Walk Coalition of 20 groups has continued its advocacy for what it calls a “better” e-bike law that does not impose burdens on users of low speed bikes. “We continue to believe NJ can improve safety while protecting access to low-speed e-bikes by focusing regulations where they are most needed,” the coalition stated.

The legislation was authored by Senate President Nick Scutari who said he proposed the changes after several high-profile crashes in which a 13-year-old, a 22-year-old, and two teenagers riding e-bikes were hit and killed by motorists.