Your neighbor needs to pick up a cabinet, or your sister-in-law wants to take the kids out for the weekend. Can you just lend out your electric cargo bike? It might be possible, but you’ll need to check with your bike insurance provider to confirm whether someone else is allowed to ride it. If the borrower causes damage, you’ll also need to check who’s liable and whether the borrower has liability insurance (AVP). So be sure to call or email your insurer before you hand over the key—not after the damage has already occurred.
In this article, you’ll learn what questions to ask beforehand, who pays if the borrower causes damage, and when it’s better to say no. This article focuses on occasionally lending items to people outside your own household. Want to know what bicycle insurance generally covers in the event of theft or damage? Then read this first What a bicycle insurance policy covers for an electric cargo bike.
You can find out whether lending is permitted in your policy
There is no single answer that applies to every insurer. However, insurers’ terms and conditions do reveal where the differences lie. For example, HEMA states in the frequently asked questions section of its bicycle insurance page that you You may let someone else ride your bike. In the event of theft, you must always send in two original keys, or—if you have a digital lock without physical keys—the log file as proof that the bike was locked.
That's the policy of one insurer. Your policy may have different terms and conditions. Do you have the STOER bicycle insurance? It offers replacement value coverage, no deductible in the event of theft, and 24/7 assistance. To find out how the coverage applies if someone else is riding the cargo bike, check the terms and conditions in advance or contact customer service.
What questions should you ask your insurer beforehand?
With a few specific questions, you can find out where you stand in just one phone call. It’s best to ask for the answer via email, so you have it in writing.
- Can someone outside my household ride the cargo bike? And does that also apply if that person takes him away for an entire weekend?
- What are the requirements in the event of theft if someone else was using the bicycle? Think of keys, an approved lock, a log file, or a tax return in the borrower's name.
- Who reports the damage? As the policyholder, do you have to file the claim, even if you weren't there yourself?
- Is damage to the cargo bike covered if the borrower falls or hits something? Or does the insurer refer to the borrower's liability insurance in that case?
- Are there any exclusions? for use by inexperienced drivers, for transporting other people's children, or for business use by the borrower?
Do you have questions about final requirements or other conditions? In What to Look for When Purchasing E-Bike Insurance You'll find the points that also count toward borrowing.
Who pays if the borrower causes damage?
Here, you need to distinguish between damage to your cargo bike itself and damage caused by the borrower to a third party. In both cases, the terms and conditions of the insurers involved determine the outcome.
Damage to your cargo bike
Interpolis explains that liability insurance covers damage caused by you or a family member to other people’s property. Here’s their example: a child borrows a neighbor’s bike, falls, and damages the bike. That damage can then be covered by liability insurance. According to Interpolis, the person who borrows something in most cases, responsible for damage to borrowed items, and that damage is usually compensated up to a maximum amount.
That maximum amount is an important consideration for an electric cargo bike. So ask the borrower if he or she has liability insurance and up to what amount damage to borrowed items is covered. If the borrower doesn’t have insurance, or doesn’t know the maximum amount, agree in advance on who will pay for what in the event of damage.
Harm to Others
What if the borrower crashes into a car or injures a pedestrian? Interpolis states that damage you cause to another person while riding a bicycle is covered by liability insurance. The insurer will first determine whether the damage is covered under the policy terms, and then whether you are legally liable. If a bicycle requires a license plate, Interpolis states that you must insure damage to others under a moped insurance policy.
In short: in the event of damage to third parties, you should first check the liability insurance of the person who was driving. Be sure to always review the terms and conditions of both parties.
Does anything change if a theft occurs while someone else is using the cargo bike?
Even if someone else is using the cargo bike, you must still meet the key, lock, and proof requirements specified in your policy in the event of theft. If the borrower forgets the lock or loses a key, you may not be able to meet those requirements.
The HEMA example illustrates why: there, you must be able to provide two original keys or a log file after a theft. Therefore, never give the borrower both keys. Also explain how the lock works and where they can safely park the cargo bike. You can read more about the requirements insurers have for locks in E-bike Insurance Requirements, Exclusions, and Terms and Conditions.
When is it not advisable to lend something without making arrangements?
From a legal standpoint, lending is considered a loan for use. Univé explains that the legal rules governing loans for use be governed by. This means you can make other arrangements, such as who is liable in the event of loss or damage. If you do not make clear arrangements, all statutory rules will apply.
It's better to say no right away, or to set some ground rules first, in these situations:
- The borrower does not have liability insurance, or does not know the amount up to which borrowed items are covered.
- Your insurer has not yet confirmed that use by another person is permitted.
- The borrower has never ridden a cargo bike before and wants to head straight into the city with children or a heavy load.
- The cargo bike will be kept for an extended period of time or used for the borrower's work.
A cargo bike handles differently than a regular bike. So, have an inexperienced rider take it for a test ride without passengers first. You’ll find helpful tips in Learning to Ride a Cargo Bike for Beginners.
Here's how to easily record your appointments
For example, you can document the agreements in writing in a message within the app. Such agreements do not replace the policy terms or an insurer’s assessment. Be sure to note the following:
- The period during which the borrower uses the cargo bike.
- Who pays for damage to the cargo bike, and up to what amount?.
- Whether the cargo bike is always locked and what kind of lock is used.
- That any damage or theft is reported directly to you.
- Whether children or cargo are allowed on board, and how many or how much.
Before you leave, take a few photos of the cargo bike. That way, you’ll be able to tell later what’s new and what was already there.
Do you have STOER bike insurance and want to know how it handles lending your bike to others? Check out the insurance page and please contact us before lending out the cargo bike.
