Because its a risk they aren't insuring now. More risk for no extra premium will not happen. the state WILL allow rate increases when the requests come in. The rate increases will not really come from Liability. Thats peanuts, although it will create a whole new level of fraud, where people will start running in front of ebikes (people lay down behind cars in parking lots, for example, right now). But besides that colorful sort of thing, the real money will be in Personal Injury Protection claims in any state that has No Fault coverage. These coverages pay out regardless of fault and they tend to be statutorily high limits. In New Jersey its $250,000 period no matter what other coverage you have (auto insurance pays out before health insurance if both are present). In neighboring New York it starts off at $50,000. In Pennsylvania it can be as high as about $1.1 million dollars. And in Michigan... it defaults to UNLIMITED. Recent reforms in that state offer MI residents the opportunity to lower that statutory limit but few take advantage of this.Why would the insurance industry not want to give any ebike owner free liabillity coverage for riding the ebike if they also have a car policy. Obviously any time someone is riding an ebike vs driving a car the insurance liability is much less yet my guess is you would never see that happen. I have asked a number of major insurance providers this question.
Seems a bit odd that I get many car insurance sales cold calls every week if they are loosing money on compulsory auto insurance. Maybe not paying the executives $10s or even $100s of $millions a year could prevent those claimed losses.
Also, why does that Bike Europe article mention the insurance industry efforts for 5 years to get compulsory insurance on all ebikes. Something just doesn't add up if what you are saying is accurate.
and this is just off the top of my head. I am certain there are other avenues of recovery that will spike premiums everywhere (sidebar: I have helped write actual policy language in dozens of US states so when I say there will be avenues it comes from a lot of experience in the field).
Obviously, the chance of personal physical injury on an ebike is much higher than in a car. If an auto policy offers coverage to someone riding a bicycle, you'll see rate increases and fraud in nothing flat. As a player in this industry I want NO PART of it. I am in the car insurance business and I know that business. When someone is involved in this sort of accident its what we call a "limits loss" meaning whatever the policy limit is, thats what will be paid as personal injuries will be catastrophic and will outstrip the insurance policy limits.
All that crap about insurance executives wiping their asses with $100 bills or whatever is just so much balderdash and not worth consideration.
the only thing that doesn't add up is why you don't have a life outside of this forum. What are we at for this thread alone? three to five thousand words? Just here?
And look here I am getting drawn in again. No more. Learned my lesson and need to remember it. Bye.
To everyone else: Don't feed the troll.