Murphy signs sweeping New Jersey e-bike law expanding insurance and licensing rules

New Jersey Gov. Phil Murphy on Monday signed a controversial bill into law that tightens rules for electric bikes while expanding insurance protections for riders injured in crashes, a move supporters say will improve safety but critics warn could create new barriers to affordable, equitable transportation.

The law requires riders to have a license to operate all forms of e-bikes, which are now classified as motorized bicycles under state law. It also makes operators of bicycles, low-speed electric bicycles and low-speed electric scooters eligible for personal injury protection, or PIP, benefits under New Jersey’s no-fault auto insurance system and brings those vehicles explicitly under the state’s crash-reporting requirements.

The bill was sponsored by Senate President Nicholas Scutari, a Somerset County Democrat and attorney, and signed amid growing concern about the rapid spread of e-bikes on roads, sidewalks and trails.

“It is clear that we are in an age of increasing e-bike use that requires us to take action and update regulations that help prevent tragedies from occurring,” Murphy said. “Making our roads safer for all users has been a key priority for my administration.”

Under the new law, all e-bikes — including those with fully operable pedals and an electric motor — are treated as motorized bicycles. Riders must obtain a motorized bicycle license from the New Jersey Motor Vehicle Commission unless they already have a standard driver’s license.

To qualify for a motorized bicycle license, riders must be at least 15 years old, present six points of identification, pass a written knowledge test and a vision test, and complete a road test after holding a permit for at least 20 days, according to the MVC. Riders with a standard driver’s license may operate e-bikes without a separate motorized bicycle license. The law also requires e-bikes to be registered with the state and be covered by insurance.

Beyond licensing, the legislation responds to a 2024 New Jersey Supreme Court decision, Goyco v. Progressive Insurance Co., which found that operators of low-speed electric scooters were not considered pedestrians and therefore were not eligible for PIP benefits. The new law defines operators of bicycles, low-speed electric bicycles, and low-speed electric scooters as pedestrians for insurance purposes, allowing injured riders to access PIP coverage after crashes involving motor vehicles.

The law also updates long-standing statutes to require crash reporting for accidents involving low-speed electric bicycles and scooters, including mandatory reporting to police and electronic transmission of crash reports to the state.

Some provisions of the law, including the insurance and crash-reporting changes, take effect 180 days after enactment, giving state agencies time to issue guidance on implementation and enforcement.

But the measure has drawn sharp criticism from the New Jersey Bike and Walk Coalition and other safe-streets advocates, who opposed the bill in the lame-duck legislative session. More than 3,600 people signed a petition opposing the legislation.

Advocates argue the law eliminates the three-tier e-bike classification system used in most states and replaces it with new and confusing categories. They object in particular to requiring licensing, registration, and insurance for low-speed Class 1 e-bikes — pedal-assisted bikes without throttles that are capped at 20 miles per hour.

The coalition warned that the requirements could disproportionately affect seniors, families using cargo bikes, people with disabilities, delivery workers, and commuters who rely on low-cost e-bikes as mobility aids or alternatives to cars. They also raised concerns about new age requirements that apply not only to higher-speed devices but also to low-speed e-bikes.

Critics further questioned how the law will be implemented, noting that a 2019 law requiring registration, licensing, and insurance for higher-speed Class 3 e-bikes has never been fully enforced.

Requiring licenses and registration for low-speed e-bikes “will not meaningfully address roadway fatalities,” advocates said, arguing that motor vehicles, not e-bikes, account for the vast majority of traffic deaths and serious injuries in New Jersey. They urged the state to focus instead on enforcing existing laws for high-powered electric devices, regulating vendors, improving street design, and investing in proven safety infrastructure.