According to data from Statista, the worldwide electric bike (e-bike) market is expected to eclipse $37 billion in 2025 and grow at an annual growth rate of nearly 4.5 percent through 2029.

However, e-bikes are expensive, with the average model coming in at around $2,000. This leads some owners to consider taking out an insurance policy on their e-bike as a means of protecting their investment.

What e-bike Insurance Covers

E-bike insurance is a specialized policy designed to offer protection in much of the same way that other insurance policies do. When you take out an e-bike policy, you can expect coverage from damage, theft and injury.

For instance, you'll be covered if you were in an accident with your e-bike and it sustained damage or if it was vandalized or damaged in a weather event. An e-bike policy will also cover the cost of replacement if your e-bike is stolen and can provide coverage for injuries and property damage if you're involved in a collision while riding it.

Some e-bike insurance policies may also include roadside assistance if you were to experience a breakdown while riding.

E-bike policies tend to differ by provider. Some insurers write e-bike insurance policies the same way they would any conventional bike. However, since an electric motor powers e-bikes, other insurers classify them the same way they would a motorcycle.

Depending on policy limits, most riders can expect to pay anywhere from $100 to $500 per year for their e-bike insurance policy.

When to Consider E-bike Insurance

Is e-bike insurance right for you? Some considerations to weigh include:

• The cost of your e-bike: If you purchased a high-end e-bike, it makes more sense to protect your investment from damage or theft. Some e-bikes can cost several thousand dollars.
• How often you ride it: If you regularly ride your e-bike to the point where it's become your primary method of transportation, then you're also at a greater likelihood of being involved in an accident and should consider taking out a policy.
• If it's required: Though e-bike insurance is currently not required anywhere, e-bikes are becoming further regulated in some U.S. states. Keep an eye on bills in state legislatures and how they could impact e-bike laws and regulations in your area.
• High crime: If you live in an area with higher crime rates, your e-bike is more at risk of theft or property damage.