Trenton's e-bike insurance bill is an absolute mess for NJ. Legislators should scrap it

Every once in a while, legislation in Trenton catches the public’s attention for all the wrong reasons.

While it would be preferable to think our elected legislators are working to craft thoughtful laws that benefit everyday New Jerseyans, some bills introduced and pushed through the Statehouse are too narrowly focused, and it’s unclear what the objective is. Such is the case with New Jersey state Senate Bill S2292.

This bill would require all low-speed e-bikes and scooters to be insured and registered with the Motor Vehicle Commission the same way cars are today.

Full disclosure: I am in the business of selling and fixing bicycles, and this legislation would negatively affect anyone in the business of selling and repairing bicycles. This proposal may be a personal headache for me, but that is not why state lawmakers should reject it. The bill, in its current form, doesn’t appear to have any benefit for anyone, with the possible exception of trial lawyers.

Put simply, this bill is an absolute mess. The key question regarding any proposed legislation is: Why? What is the objective here, and what public policy problem is it trying to solve? Currently, pedestrians and traditional bicycles are covered by no-fault insurance, but low-speed e-bikes and scooters are not. They fall into a gray area that makes personal injury cases difficult to litigate. So why do we need new legislation to address this, when simply amending the current statutes for no-fault auto insurance would easily solve the problem?

This “solution” would open the door to an entirely new category of lawsuits. It would allow individuals to sue for damages over even minor accidents involving low-speed e-bikes and scooters. This in turn would generate a stream of new income for personal injury firms, but is that what we really need? This kind of brazen political maneuvering may not be shocking by New Jersey standards, but it should be.

Putting the dubious aims of S2292 aside, the bill’s feasibility raises serious concerns. It is virtually impossible to enact or enforce. The Motor Vehicle Commission lacks the necessary infrastructure to manage or regulate this massive undertaking. Creating this system would be complex and burdensome for taxpayers — not to mention causing even longer lines and wait times at MVC offices. It would also be unworkable to manage through the currently existing retail channels that sell e-bikes. The bill lacks any guidance on how these onerous regulations would work in practice.

Even the insurance industry, which would stand to gain thousands of new paying customers, is strongly opposed to this proposal. There are currently no insurance products that exist on the market to fulfill this mandate. The Insurance Council, the industry group advocating for insurance companies and policyholders in Trenton, indicates that it would take years to build a product they could sell for this new category of coverage.

Yes, we’ve reached a rare moment when insurance executives and bike riders are totally aligned — the sheer unfairness of this bill is bringing everyone together.

If you own or want to buy an e-bike or scooter, this bill adds another layer of regulation and cost to an already bloated system. New Jersey’s average auto insurance cost is over $2,500 a year. Treating low-speed e-bikes and scooters like motor vehicles would make alternatives to cars more expensive, particularly for those on the lower end of the economic spectrum who rely on affordable transportation for work.

This flawed bill has nothing to do with safety or equity. If it passes, personal injury attorneys will get richer, but at what cost? Fewer people will be riding bikes, traffic and air quality will worsen, workers will have less money, food and other delivery services will cost more, and the number of fatalities will increase with more cars on the roads. What a trade-off.

There are far more pressing issues when it comes to transportation accessibility and safety than misguided requirements to register and insure every e-bike in the state. Lawmakers must slam the brakes on this cynical proposal before it’s too late.

Brendan Poh is the owner of Cycle Craft, an independent bicycle shop in Parsippany.

This article originally appeared on NorthJersey.com: NJ e-bike insurance bill is an absolute mess