New Jersey has passed one of the toughest laws in the U.S. regulating electric bicycles, requiring all riders to get a license, register their vehicle, and carry insurance. Governor Phil Murphy signed the bill into law this week, just before leaving office. The new rules apply to every type of e-bike, from slower pedal-assist models capped at 20 mph to more powerful electric mopeds that can exceed 30 mph. Riders under 15 years old are not allowed to use any motorized bicycles or scooters.
This change comes as e-bike use grows rapidly and after a series of serious accidents that have caught lawmakers’ attention. Governor Murphy said the goal is to update safety rules and prevent accidents, making roads safer for everyone.
For insurance companies, the law creates a new market but also a challenge. Treating small, low-speed e-bikes the same as faster, heavier electric mopeds makes it harder to set fair prices and assess risks. Some experts worry this could push responsible, low-risk riders out of the insurance market while not focusing enough on the real dangers posed by faster machines.
Supporters of the bill, like Senate President Nicholas Scutari, say mandatory insurance will protect everyone involved in accidents and improve overall safety. The law passed easily through the state legislature earlier this month.
However, cycling groups and industry insiders disagree. They argue the law creates unnecessary hurdles for people who want to use e-bikes for everyday commuting. The New Jersey Bike Walk Coalition points out that a 2019 law already required licensing and insurance for more powerful Class 3 e-bikes, but it was never well enforced. Some say this new law unfairly groups together low-speed and high-speed electric bikes, which have very different safety concerns.
Patrick Cunnae, an adviser to Hyper Bicycles, called the new rules “fundamentally flawed,” noting that many accidents involved faster electric mopeds, not standard e-bikes. He said low-speed bikes shouldn’t be lumped together with more dangerous vehicles.
Insurance experts also highlight differences in accident severity and liability between pedal-assist bikes and throttle-driven e-mopeds. By treating them the same, New Jersey risks losing safer riders and missing the chance to target riskier behaviors effectively.
The national advocacy group People For Bikes warned that this law could make New Jersey less friendly to bike riders. They are working with lawmakers to update the rules and focus on high-speed electric vehicles instead.
E-bike owners have until July 19 to get their licenses and register their vehicles through the state’s Motor Vehicle Commission. Insurers will be watching closely to see whether this new law truly improves safety or simply increases the number of insured riders without properly sorting the different risks.