The demand for electric scooters' (commonly referred to as “e-scooters”) has been increasing across Australia over the past few years.
Chances are, you've seen someone riding an e-scooter on the streets, on your way to work or whilst driving. The e-scooter industry is now worth $AUD 59 billion.
As more e-scooters are being sold and produced across the globe, there has been an increase in companies offering rental electric scooters.
What's the connection between insurable risk and e-scooters? We're here to share what you should consider about insurance implications with your e-scooter. Keep reading to learn more!
WHAT IS AN E-SCOOTER?
An e-scooter it's a type of battery-powered scooter that can reach speeds up to 32 km/h. You don't have to have a driver's license or any other type of specialty license to operate an electronic scooter.
A 2018 survey by RACV found that 80% of people residing in Victoria would consider using an e-scooter, with almost 60% would use one instead of a car.
As popularity for e-scooters skyrockets, there has been an increase in the development of insurance liabilities and related problems. That's why insurance for e-scooters have increased in popularity over the recent years.
DOES CAR INSURANCE COVER MY ELECTRONIC SCOOTER?
No, your car insurance won't cover your e-scooter. So if you are involved in an accident while you're riding your e-scooter, your car insurance policy won't cover any property repairs or medical expenses that come with your accident.
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.
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.
ELECTRONIC SCOOTER INSURANCE
Australian e-scooter laws differ from state to state. Investing in insurance for your e-scooter will ensure that damages are covered in case of an accident.
You will also be protected against any damage that occurs and any medical expenses as a result of an accident. Contacting insurance experts in your area will help you better understand what insurance may require your e-scooter.
IS THERE ANY INSURABLE RISK FOR E-SCOOTERS?
Many programs available across Australia allow users to rent an electric scooter via their phone or tablet. E-scooters are tracked via apps that are available throughout the city that the scooter is rented in.
Renters of an e-scooter sign a waiver to give 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. Some examples include; e-scooter riders hitting a pedestrian, getting injured while riding, creating trip hazards for people passing by on the street, or limiting access for disabled people.
UNDERSTANDING INSURABLE RISK WITH ELECTRONIC SCOOTERS
As e-scooters continue to grow in popularity, the insurance risk that e-scooters present also increases. Understanding what insurable risks that e-scooters present can help you. You'll gain an understanding of how to better manage insurance claims made by electronic scooter riders.
GB is Australia’s General Insurance claims management specialist. We offer tailored claims management solutions to insurers, brokers, underwriting agencies, businesses and government departments, covering all classes of General Insurance. Learn more about our General Insurance offering here.