Scooter Sharing Creates Insurance Implications for Consumers
Understanding insurance coverages for electric rental scooters
Electric scooter sharing is a popular aspect of ridesharing as an alternative mode of transportation. There are hundreds of scooters in some cities, and they have created insurance implications for consumers, municipalities and insurance companies. The NAIC offers the following guidance for consumers about insurance coverage before renting an electric scooter.
About Electric Scooter Sharing
The battery-powered rental scooters reach speeds of 15-20 mph and may or may not require proof of a valid driver's license.
Are You Covered?
There have been reports of wrecks on motorized rental scooters. Before renting a scooter, you should understand the insurance implications and know whether you are covered.
Assume you are not covered by the scooter company's insurance in case of an accident. You should rely on your health insurance for any medical injury you sustain. In case of an accident, you might not have any coverage if you are found liable for an accident or damage.
Contact your insurance company or agent with questions about your coverage. Scooters are usually not covered under your home or auto policies.
Understanding Your Scooter Insurance Options
Scooter Insurance: Regulations and requirements vary by state — often depending on the engine size. Most scooter rental companies offer rentals with engines smaller than 50 cc. While most states do not require insurance for engines that small, they do recommend it. Scooter insurance will often cover the following:
- Collision: Covers damages resulting from a collision.
- Liability: Protects against damage you do to others or their property while operating a scooter.
- Medical: Covers your medical costs in an accident.
Contact your state insurance department to learn more about what is required in your area.
Contact your insurance agent to determine what coverage might be the best fit for you.
Other Ways to Protect Yourself
- Wear a helmet: You may not be required to wear a helmet while operating a rental scooter, but it is highly recommended. Learn more about your state's laws about wearing helmets.
- Operate the scooter in right-hand lanes and bike lanes where possible: Your agreement with your scooter rental company will tell you to use streets and bike lanes. Riding motorized scooters on sidewalks is illegal in most cities, and you can be cited for doing so.
- Always pay attention to the road. You may be tempted to share photos or video of your new adventure on social media while operating. Keep both hands on the scooter at all times, unless using hand turn signals.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.