Insurance and e-scooters: The need for legislative reform in Australia

Love them or loathe them, it’s impossible to ignore the rise in e-scooter use across the country. They offer a cleaner and cheaper alternative to motor vehicles and for short commutes are a viable alternative to reduce the number of cars on the road. As governments around the world push to reduce vehicle carbon emissions, we can expect that e-scooters are here to stay.

Are Governments keeping up with Australia’s e-scooter boom?

E-scooters are a relatively new feature of urban mobility, and their popularity is only growing. Yet governments and councils are falling behind in their attempts to implement infrastructure and legislation which keeps up. For instance, in New South Wales, while it is legal to buy and sell an e-scooter, and it is estimated that there are more than 460,000 privately owned e-scooters in the state¹, it is currently illegal to ride an e-scooter anywhere other than on private property. Under the current legislation, an e-scooter is captured by the definition of a registrable motor vehicle², however as they do not meet Australian Design Standards, they are ineligible for registration. Therefore, if one of those 460,000 e-scooters is ridden on a road, the rider technically faces the charge of operating an unregistered vehicle. In practice though, police often overlook this, highlighting the disconnect between the rules and how things are actually operating on the ground. A similar position exists in South Australia. Both governments are reviewing these rules, but will the changes go far enough?

Navigating e-scooter rules and regulations across the country

The rules governing e-scooter use in Australia vary from state to state and often change between neighbouring local council areas creating a minefield for the uninformed rider. Additionally, many riders likely underestimate the risks – not only of injury to themselves in an accident, but also to their own hip pocket should they injure someone else.

Join me in a ride down the east coast. We’ll start in Queensland, where e-scooters are allowed on footpaths and local roads. Cross into New South Wales, though, and you’ll need to dismount and carry your scooter until we reach the ACT, where riding is permitted… but only on footpaths, not roads. In Victoria, the rules flip, allowing us to ride on the road but not the footpath. A quick detour into South Australia and we’re back to carrying them again.

Confused yet?

Rules on privately owned e-scooters by state

The above, however, is not reflective of the rules surrounding shared e-scooters. In some capital cities they’re permitted (Brisbane, Darwin, Hobart), while others are trialling them (Adelaide, Sydney, Perth) or banned them outright (Melbourne). More than 600 cities worldwide have e-scooter sharing programs, so we can expect it is only a matter of time before permanent acceptance in Australia. Arguably, shared e-scooters are easier to regulate in terms of speed limiters, number caps, geo fencing, and insurance requirements.

E-scooter injuries - a growing public health concern?

Like any mode of transport, motor vehicles included, e-scooters come with inherent risks. Their small wheels, high speeds, and elevated centre of gravity increase those risks. Couple that with their frequent use on footpaths, silent approach, and close encounters with unaware pedestrians, the chance of injury is high.

In 2023, the Jamieson Trauma Institute (JTI) published research on e-scooter injuries, conducted across a number of Queensland Emergency Departments³. They concluded:

• E-scooter crashes are becoming more common and severe, with Emergency Department (ED) presentations increasing from 691 in 2021 to 1,273 in 2023.
• ED presentations are no longer limited to Friday and Saturday nights, with mid-week early evening presentations becoming more common.
• The most common injuries include head and facial injuries and fractures.

A study of data⁴ from Royal Melbourne Hospital in 2023, conducted during a rental e-scooter trial, recorded 256 e-scooter related injuries in the year, including 9 pedestrians and a total hospitalisation cost of $1.9 million.

Fatalities are also a growing concern. According to one source, eight people have died in e-scooter accidents in 2024 in Queensland alone⁵. The true national numbers may be underreported due to difference in reporting methods across the states and the grouping of e-scooter accidents with those of e-bikes, conventional bikes or motorbikes.

Gaps in Australia’s insurance

Currently, there is no requirement in any Australian state for the owner or rider of a personal e-scooter to have personal or public liability insurance. This leaves injured road users or pedestrians with little recourse other than to seek compensation directly from the at-fault rider. Many at-fault riders will not have the available funds, a fact which for many may become apparent only after it is too late. In which case, either the rider or injured party will end up out of pocket. Some household insurance policies may extend to a rider’s public liability, but how many riders have checked their coverage?

It is easier to require insurance from the shared scooter companies, but how many riders have actually read the fine print? One hire company’s published policy shows that it will cover some personal injury, but coverage is limited – such as up to $1,000 for a fractured bone, $250 per lost tooth, and weekly benefit for lost wages capped at six months. Passengers, however, are specifically excluded from any cover.

Cities internationally have already implemented insurance requirements, and perhaps it’s time Australia followed suit. In Germany, it is compulsory to have valid liability insurance, evidenced by an insurance licence plate which must be displayed, but no licence is needed. In France, riders must have civil liability insurance with the principal rider named on the policy. In Japan, riders are required to have personal injury and liability coverage, and in three USA states (North Carolina, Hawaii and Louisiana) DMV registration is required for privately owned e-scooters.

Where to from here? A call for legislative action

Reform is required to ensure both e-scooter riders and those to whom they owe a duty of care are adequately covered. A compulsory third party insurance scheme specific to micromobility devices might be the solution. This would require e-scooters to be registrable, despite not adhering to Australian Design Rules, with a corresponding premium paid by the owner. Alternatively, they could fall under the umbrella of the Nominal Defendant, similar to how cover is offered to motorised mobility devices like mobility scooters or motorised wheelchairs in Queensland. Another possibility is a simple requirement that users of privately owned e-scooters in public places carry public liability insurance. However, regulation is challenging. Until a solution is implemented, we will all have to stay alert to avoid potential collisions.

¹ According to the Minister for Transport Jo Halen
² Under the Road Transport Act 2013 (NSW), a motor vehicle is defined as 'a vehicle that is built to be propelled by a motor that forms part of the vehicle.'
³ RBWH Foundation research shows e-scooter users still not taking safety seriously 20 December 2023
⁴ The impact of electric scooters in Melbourne: data from a major trauma service 12 December 2023
⁵ Get the facts | StreetSmarts - Queensland Government