Velosurance bicycle insurance

Velosurance is a national insurance agency founded by two cyclists in response to the insurance needs of bicycle riders nationwide. We partnered with an A.M.Best “A” rated, US insurance company to provide a multi-risk policy offering protection to all types of cyclists.

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500 NE Spanish River Blvd Suite 103C
Boca Raton, FL 33431
United States
support@velosurance.com
+1 (888) 663 9948

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Electric vehicles (EVs) are on a tear, with global sales nearing 14 million units in 2023 - a 35% increase from 2022. What was once a niche market is now a mainstream trend, with every major vehicle manufacturer offering an electric model. The global sales of electric vehicles in 2023 reached nearly 14 million, with the United States accounting for roughly 1.2 million, or 7.6% of the market.

Modern EVs are a far cry from the zippy little cars that started the EV revolution about a decade ago. Instead, larger vehicles like full-size trucks and SUVs are now the majority of the offerings. From Chevy Silverados to Telsa Cybertrucks, supersized electric cars are becoming more common on the road. The shift isn’t surprising – consumers aren’t interested in tiny cars; they want the vehicles they’ve come to love, just in electric format.

electric car

From the consumers’ perspective, electric vehicles have clear benefits, with the biggest being simplicity of ownership. EVs offer lower operating costs due to cheaper "fuel" (electricity) and reduced maintenance, making them more affordable long-term. They provide a quieter, smoother driving experience with features like instant torque and regenerative braking and allow for convenient home charging, eliminating the need for frequent gas station trips. Additionally, EVs align with environmental goals by producing zero emissions and often come with government incentives and future-proof benefits in response to evolving regulations.

While there may be some apparent advantages to electric vehicles, there are drawbacks that often flip the environmentally-friendly notion on its head. While they eliminate the tailpipe emissions, their environmental impact is far from zero. The production of EVs, particularly their batteries, requires substantial mining of lithium, cobalt, and other metals, which cause significant ecological damage and carbon emissions. Additionally, the electricity that powers EVs often comes from non-renewable sources, meaning they may still indirectly contribute to greenhouse gas emissions. Currently, roughly 40% of total electricity in the US is generated by gas-fired power plants. Two hundred forty-one coal-fired power plants operating in the US account for roughly 19% of that energy. Nuclear energy accounts for only 20%. Finally, 20% of energy comes from renewables, such as hydroelectric power.

US energy sources piechart

But what if there could be a better way? What if there was something that could be a viable replacement for what many electric vehicle owners need their cars to do? While it isn’t a direct replacement for a car, more people should consider purchasing an e-bike rather than another EV. Yes, using an e-bike to replace an electric vehicle will require a lifestyle change, but if you are willing to commit, your life may change fundamentally, altering your perspective on mobility and your surroundings. Oh, and it will favor your wallet and the planet alike.

Environmental impact

Electric vehicles

Unsurprisingly, electric vehicles produce significantly less greenhouse gases than their internally-combusting counterparts. However, where electric cars see environmental benefits as far as emissions go, their long-term impact isn’t truly understood because they haven’t been on the market long enough to measure their entire lifecycle at scale. Every new generation of battery technology brings new materials, including chemistries and packaging innovations that often introduce new challenges in recycling, as different materials require specialized processes. For instance, lithium ion phosphate (LFP) batteries lack cobalt and nickel, making traditional recycling less economically viable. Packaging innovations like Cell-to-Pack (CTP) and Cell-to-Chassis (CTC) can hinder recyclability due to integrated designs that are harder to dismantle.

Batteries

Powerful battery packs are the “gas tasks” of electric vehicles, and they are by far the most challenging component to produce and also have the largest environmental impact.

Lithium, cobalt, and other rare earth minerals used in the production of batteries for electric vehicles are, for the most part, controlled by only a few producers. The top three producers of these minerals control more than 75% of the global market. Many mines operate around the clock within countries with very few mining regulations. The result is significant environmental impact, including high water usage leading to water depletion in arid regions, land degradation and habitat loss, chemical pollution, carbon emissions from energy-intensive processes, and waste generation. These effects can harm local communities and ecosystems that are largely unprepared to deal with such fallout. For example, mines in Tasmania leaked harmful, contaminated water into a river for over five years. Efforts to mitigate the impact include developing sustainable extraction methods, recycling batteries, and using renewable energy for mining operations to reduce overall damage and support a shift toward cleaner energy. Studies suggest EVs can start with 30-40% higher manufacturing emissions than comparable ICE cars.

Tires

EVs experience faster tire wear than internal combustion vehicles, primarily due to their increased weight, 30% heavier on average than ICE cars, and higher torque output. With faster acceleration, a lot more force is applied to the tires, causing them to break down and release tiny particles into the air. EVs also utilize regenerative braking, which uses electric motors to slow down the car and recover energy, significantly reducing reliance on traditional friction brakes and offloading the brake forces onto the tire, accelerating its wear. Studies have shown that tires mounted on EVs release 20% more of these particles than ICE cars – 88 mg vs 73 mg per km.

Electric bikes

E-bikes have a significant environmental advantage over EVs due to their smaller size, lighter weight, and lower energy consumption. They require fewer resources to manufacture, reducing the carbon footprint associated with production. Additionally, e-bikes use smaller batteries, which means less lithium mining and fewer environmental impacts related to battery disposal and recycling. E-bikes also consume much less electricity compared to EVs, leading to reduced greenhouse gas emissions over their lifecycle. Their ability to replace short car trips further contributes to decreasing traffic congestion and urban air pollution, making them an eco-friendlier transportation option.

woman on ebike

Low Energy Consumption

California alone expects to add 12.5 million electric vehicles by 2035 when the state will ban sales of ICE cars. By then, an expected 10% of California’s electricity will be used to power electric vehicles. Today, the state doesn’t have the infrastructure to provide electricity to so many electric vehicles.

When compared to a full-size EV, an electric bike uses far less energy to go from point A to point B. Of course, how much energy an e-bike uses will depend on the terrain, the rider's weight, how fast they are going, and some other factors. But, looking at averages, an e-bike will use around 10-20 Wh (watt-hours) of energy per mile, while the average electric vehicle will use nearly 350 Wh to travel the same distance, a staggering 17.5-fold increase. When it comes to calculating the costs to “fuel” each vehicle, the math is also quite straightforward and equally shocking – it costs on average 10.4 cents to charge an e-bike battery, while an average EV will cost $17.39 per full charge. An average e-bike can travel 30 miles on a full charge while an EV would travel 250 miles, which translates to 0.07 cents per mile for an EV and 0.03 cents per mile for an e-bike, more than double the efficiency!

Reduced Carbon Footprint

When considering how environmentally sustainable electric vehicles and electric bikes are, we can compare the carbon emissions output of the two – basically, how much CO2 was released into the environment while producing each vehicle. The average conventional bike is on the very low end of the spectrum - it produces around 174 kilograms of CO2, while an e-bike can range from 190-240 kg of CO2 in production.

If this seems like a lot, these numbers pale compared to how much CO2 is used to create an EV. Production of an average electric car releases nearly 40 tons, or 36,000 kg of CO2, which is 150 to 189-fold increase compared to electric bike production.

Cost-effectiveness

Electric Vehicles

EVs often come with higher initial purchase prices than internal combustion vehicles, with the average cost for a new EV around $53,376 compared to $48,451 for a gas-powered car as of 2023. However, federal and state incentives, such as tax credits up to $7,500, can significantly offset these costs. EVs benefit from lower fuel expenses, with annual savings of $1,363 to $2,471, and maintenance costs roughly half those for ICE vehicles over their lifespan. On average, EV maintenance and repair costs are $4,600 over the vehicle's lifetime, compared to $9,200 for ICE cars.

Depreciation for EVs has historically been more pronounced, though this is changing with increasing demand and better technology. Used EV prices have come down significantly from their peaks, signaling improved market stability. Over a 10-year period, the total cost of ownership for EVs can be lower than for comparable gasoline vehicles, with potential lifetime savings of up to $18,440 when factoring in reduced fuel and maintenance costs.

E-bikes

Replacing a family EV with an e-bike offers substantial savings across several key categories, including initial purchase price, energy costs, and maintenance. While the initial purchase of an EV is roughly $53,376, a high-quality e-bike typically costs around $3,500, with premium models rarely exceeding $8,000. This represents a significant reduction in upfront investment, making e-bikes a far more economical option for local commuting and short-distance travel.

Annual energy costs for an e-bike are also much lower than those for an EV. Urban dwellers who replace an EV with an e-bike for commuting purposes are expected to save roughly $200 per year in energy costs.

Maintenance and repair expenses further highlight the advantages of e-bikes. While EVs are known for lower maintenance costs than ICE cars, averaging between $500-$700 per year, e-bike’s annual maintenance cost is roughly $50.

cyclists crossing the street

Due to the complexity of EVs, their repairs are often challenging, and even a minor fender bender often results in tens of thousands in repair expenses. Because of this, insurance premiums on EVs are notably higher. For instance, the Tesla Model S has an average annual premium of $3,365, significantly above the $1,606 national average. Bicycle insurance on a $3,500 e-bike will cost about $200 per year.

In urban areas, parking fees can add up to $1,000–$2,000 annually, while e-bike parking is typically free or minimal, such as a small fee for secure bike storage.

Health and fitness

While an electric vehicle may take you to the gym, owning an electric vehicle has no direct health or fitness benefits.

A general misconception is that e-bike riders get little to no exercise from their bikes because the motor does all the work. Well, that simply isn’t the case with most e-bikes. The popular Class 1 e-bikes only provide pedal assist, meaning that the motor engages while you are pedaling – no throttle or other way to make the bike go without spinning the pedals. And lots of people are doing just that. One study in 2020 showed that people who rode e-bikes had higher total energy expenditure overall because they rode their e-bikes more often than those with traditional bikes; they could sustain that effort longer and travel further. Another study gave non-exercising participants e-bikes to commute to work three times per week, with each commute lasting about 40 minutes. The researchers found that nearly every participant in the study rode their e-bike more than the minimum three times per week commute.

Your physical health isn’t the only thing that can benefit from commuting on an e-bike. The simple fact is that riding any bike will increase your heart rate, which will, in turn, pump more oxygen to your brain and release endorphins and other beneficial chemicals. This can help improve your mood in the present, and exercise can also help you get a better night’s sleep. And, perhaps most of all, you can forget about the stress of sitting in traffic congestion and instead participate in an activity that provides a sense of freedom and enjoyment.

cyclist on e-bike in nature

Practicality and convenience

Ease of Use

While EVs are often promoted as easier to own and operate, the realities are highly subjective. EVs can be easier to live with if you have access to home charging and mainly drive within the vehicle's range. Access to public charging stations can be limited in some areas, and charging an EV takes longer than refueling an ICE car.

When it comes to e-bikes, the expression “just like riding a bike” certainly applies here. If you can ride a regular bicycle, transitioning to an e-bike will be very easy. The only adjustment period is getting used to the feel of the motor kicking in as you pedal, but after a few miles, you will begin to anticipate the motor’s engagement.

An e-bike can be charged from any home outlet, no charging station necessary! Plugging in an e-bike to charge is just as easy as plugging in a phone, and selecting the power assist mode is also quite simple as it is usually just toggling with one button. E-bikes are also more accessible to more people, as they don’t require a license or special permit to operate on public roads; they become an excellent option for those who may not be as interested in getting a license or afford a car.

Parking

Circling the block and finding a parking spot can be a huge hassle and a waste of time. If you live in a major metropolitan area, you may need to reserve parking at a public garage, which is a significant expense. In New York, the average cost was roughly $5,400 per year to park a car. San Fransisco drivers paid nearly $3,000 per year, while those in Los Angeles paid around $2,400.

There are no tremendous parking fees when switching to an e-bike. For most e-bike owners, the most considerable fee they may face is a storage fee at their apartment complex, which is likely cheaper than paying for a parking space. The only other expense is a quality bike lock, which costs around $50-$100.

Navigating traffic

During rush hour traffic, it is common for traffic lanes to be backed up for blocks. Bike lanes, on the other hand, rarely get backed up – if ever. As more cities become bicycle-commuter friendly, more bike paths are popping up, getting commuters off the main roads with traffic and onto pedestrian paths. Cities like Portland, Oregon, even have pedestrian bridges where cars aren’t allowed.

commuter on ebike

Urban Mobility

While long trips are best done in an EV, when it comes to urban mobility, e-bikes have no equals. E-bikes are compact and maneuverable, perfect for navigating busy urban environments. E-bikes allow you to easily zip through busy downtown traffic and traverse the town away from traffic on shared paths, even on crowded weekends. And since an e-bike is really just a bicycle, finding a place to park and lock it up is easy.

From dirt to asphalt, e-bikes are also versatile. While an average e-bike is built for commuting, it will likely have wider tires that allow for some off-road use, making it perfect for shortcuts off the beaten path. Most e-bikes can also be equipped with cargo baskets, making them perfect grocery-getters. From short to medium trips, just around the block or back and forth to work, the flexibility of an e-bike makes it a good option when considering walking away from an electric vehicle.

Infrastructural Benefits

Electric Vehicles

Charging an electric vehicle at home is a great option, and what most new electric vehicle owners expect to do upon purchasing, 68% of electric vehicle owners have access to level 2 charging at home. Surprisingly, the satisfaction of electric vehicle owners has decreased in recent years. This decrease in satisfaction is directly related to a 2.3% average increase in electricity costs nationwide; in many areas, charging an EV costs more than filling up a gas task. The jump in electric vehicle ownership has impacted the electrical grid in some areas of the country, leading states like California to ask electric vehicle owners not to charge during peak times.

EV owners face frustrations with the current charging network due to insufficient infrastructure, leading to limited availability and crowded stations, especially in rural areas. Reliability issues, such as malfunctioning or out-of-service chargers, add to the inconvenience, while compatibility differences between vehicles and charging networks complicate use. The variability in charging speeds, inconsistent pricing structures, and the need for multiple memberships create further challenges. These factors make long-distance travel and daily use less predictable, emphasizing the need for improvements to support broader EV adoption and a more seamless user experience.

The automotive industry has proven resilient and adaptable, having survived the COVID-19 pandemic, supply chain disruptions, and evolving consumer preferences. By 2025, the annual US vehicle sales are expected to match the pre-pandemic numbers of 17.05M and continue to grow at 5.43% compound annual growth rate. In contrast, the U.S. road infrastructure hasn’t grown meaningfully, while expenditure has risen from $92.5B in 2017 to $105.1B in 2021. Investments have been directed toward repairing aging infrastructure, but it doesn’t keep pace with the number of vehicles added, making the scenario unsustainable in the long term.

E-bikes

E-bikes have significantly less strain on the public infrastructure. Bike lanes and bike paths are much less expensive for cities and counties to build and benefit any area as they ultimately help with congestion.

There is also no need to build charging stations for e-bikes because a full battery can easily be achieved at home. Depending on your e-bike, a complete charge can happen anywhere between 2-12 hours, meaning that an overnight charge will almost always give you a full battery in the morning.

E-bikes also promote active transportation by making cycling more accessible to more individuals, including those with physical limitations or lower fitness levels. This inclusivity encourages more people to adopt eco-friendly transport habits, which supports overall public health and decreases the burden on urban infrastructure. To complement public transit, e-bikes provide a sustainable solution for "last-mile" travel, helping build a more resilient, environmentally friendly transportation network.

cyclist on a bike lane

Your personal use case

According to the U.S. Census Bureau, the average one-way commute time is around 27 to 30 minutes, which aligns with distances typically between 15 and 20 miles at moderate driving speeds. While e-bikes can not match car speeds, they make it easy to travel on B-roads and side streets, avoiding traffic and often resulting in similar travel times.

Replacing a car with an e-bike makes sense in specific scenarios where the benefits align with your lifestyle and transportation needs. If your daily commute or most of your trips are relatively short (e.g., under 20 miles each way) and within city limits, an e-bike is an excellent alternative. E-bikes are perfect for urban sprawls where traffic congestion and limited parking can be major issues. This move especially makes sense for multi-car households where at least one member works from home or within biking distance. Retaining one car will allow the family to take longer trips, travel together, and carry cargo.

Replacing a car with an e-bike especially makes sense for multi-car households where at least one member works from home or within biking distance. Retaining one car will allow the family to take longer trips, travel together, and carry cargo.

Consider insurance

Switching from a car to an e-bike is an excellent move on many levels, from financial to personal convenience and environmental impact. If you are going to rely on your e-bike as if it were a car replacement, it makes sense to take precautions to ensure that the bike is always available. Unfortunately, bike theft is a serious problem, with a bike stolen every 30 seconds in North America. A quality bike lock is a must-have, but even the best lock does not guarantee that your bike will remain yours; a determined thief can tear through any lock with a diamond blade angle grinder and enough time. Specialty bike insurance, like a policy from Velosurance, is designed to address this and many other risks cyclists expose themselves to as a part of their lifestyle.

Besides theft, the policy also covers accidental damage, which could result from a crash or something unexpected, like the bike falling off a car rack. Optional coverages such as medical, liability, and uninsured/underinsured motorist, with varying limits, can be added to complement theft and accidental damage coverage and address riders' specific needs. Getting a quote and purchasing a policy takes less than 5 minutes.

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