E-scooter insurance risks rise

As the demand for e-scooters grows, the insurance risk they present is increasing as well, according to Gallagher Bassett.

Car insurance won’t cover an e-scooter or any property repairs or medical bills associated with an e-scooter accident, the company says.

One of the largest multi-disciplinary third party claims administrators in Australia and New Zealand, Gallagher Bassett (GB) points to e-scooter demand increasing across New Zealand during the past few years.

“The number of e-scooters imported has risen up to more than 47,000 since 2018,” GB says.

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

It says e-scooter renters usually sign waivers giving 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,” GM says. “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.”

E-scooters can do 32km/h and a driver’s licence or any other type of specialty licence isn’t needed.

“As popularity for e-scooters has skyrocketed, there has been an increase in the development of insurance liabilities and other related problems.

“Since debuting in New Zealand, e-scooter related incidents and accidents have cost the country more than $2.7 million,” GB says.

“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.”

GB says 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 NZ Transport Agency, the wearing of helmets is recommended but not legally required.”

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

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

GM suggests contacting insurance experts for more information.

It’s a similar situation in Australia, Insurance Business Australia reports.