TRENTON, N.J. (KYW Newsradio) — A new ruling from New Jersey’s Supreme Court on Tuesday found that electric bikes and scooters do not fall into the same category as self-powered bicycles under the state’s No Fault Act.
Under the act, which covers Personal Injury Protection (PIP) on auto insurance plans, accidents on self-powered bikes can be covered. However, in the case of a man that was denied coverage by Progressive after an accident on his Segway, the court sided with the insurance company.
“What it comes down to is the court recognizing that these things are not powered by muscle power, to use the statutory language,” said Gary La Spisa, vice president of the Insurance Council of New Jersey.
He also said it’s up to the state legislature to take action to clear up the present gray area of the No Fault Act.
“If the legislature wants to correct it, they’ll have to take affirmative action and say that these folks are eligible for pedestrian PIP,” said La Spisa.
He estimated that if this were to happen and insurance was available, the premiums would range into the hundreds of dollars per month.
Still, La Spisa said those riding e-bikes or scooters could still be covered by medical insurance if they have it, or a driver’s auto insurance if the driver is at fault.