Micromobility is Disrupting the Automotive Industry

For many Americans, car ownership is a way of life. That might be changing. The rapid rise of micromobility services — along with increasing concerns about environmental sustainability — has created questions about the future of the American driver.

Granted, most people in the United States still depend on automotive transport, but they don’t necessarily love their cars. According to one Gallup poll1, about 83 percent of U.S. adults say that they “drive frequently,” but only 34 percent of daily drivers reported enjoying their drive “a great deal.” The high cost of vehicle ownership may play a significant role: On average, Americans pay about $199 per month in car insurance alone2.

In many cities, drivers are looking for (and finding) alternatives to the traditional commute. Micromobility could reduce American dependence on cars, and some statistics show that the process is well underway.

What is Micromobility?

Micromobility is a category of low-speed vehicle typically designed for short-term travel. Generally, if a vehicle travels at less than 25 miles per hour (MPH), it’s considered part of the micromobility class.

Some common examples of micro-mobile vehicles:

Bicycles
E-Bikes
E-Skateboards
E-Scooters

In many cities, these vehicles can be rented, driven to a destination, and left on the street. Advanced tracking software monitors the location of all equipment, so riders don’t need to return their vehicles. This model is called shared micromobility, and it’s providing Americans with cheap, convenient transportation.

Shared Micromobility is Disrupting U.S. Travel...Sometimes

Here’s how the shared micromobility model could make a difference:

Still, bikeshare programs and other non-motorized alternatives are certainly green, even accounting for other costs, and all micromobility technologies are quieter and arguably less disruptive than traditional vehicles.

Convenience

Users can typically ride micromobility vehicles in bike lanes, alleys, and through other areas that aren’t navigable by car (ordinances vary from city to city, however — riders should review their local laws before taking off). Some devices can reach speeds of up to 25 MPH, significantly faster than the average vehicle speeds during rush hour in many major cities

Micromobility Safety Concerns (And How Cities Are Adapting)

While micromobility is changing the way that people get around, they can be dangerous.

From 2017-2019, more than 132,800 people were treated in emergency rooms due to micromobility injuries, according to the U.S. Consumer Product Safety Commission (CPSC).

E-scooters were responsible for 50,000 of those injuries. For e-scooters, the most commonly cited cause of accidents was brake failure.

Over that same period, the CPSC reports 41 micromobility-related fatalities.

Some cities have responded to these concerns by building new bike lanes to accommodate micromobility travelers.

Does Insurance Cover Micromobility Accidents?

In most cases, health insurance will cover injuries sustained during micromobility accidents. However, in some states, people may need additional coverage for certain types of vehicles. Scooters, for instance, may require licensure and insurance depending on where you live and the size of the vehicle’s engine.

Some important keys to keep in mind:

Americans took 84 million shared microbility trips in 2018. According to the National Association of City Transportation Officials (NACTO)3, that’s double the number of trips in 2017.
In 2019, that number jumped to 136 million shared trips4. That’s an increase of 60 percent, and while the micromobility market dipped in 2020, it’s expected to make a strong post-pandemic recovery.
Americans spend about 26.9 minutes per day commuting5. While shared micromobility can help some people reduce the time they spend waiting in traffic, most micromobile vehicles have limited range — and they’re not equipped for highway travel, which reduces their usefulness for the average driver.
Electronic scooters and bikes are the most popular micromobility option. In 2019, e-scooters accounted for 86 million trips, while e-bikes accounted for 10 million.

Thanks to new technologies, electronic micromobile vehicles have significant environmental benefits. In addition to lower emissions6, e-scooters and e-bikes are quieter than automotives — and in many cities, these vehicles allow for faster urban travel, since riders can avoid traffic jams by using dedicated bike lanes.

Why Drivers Are Looking for Alternatives

So, why are consumers embracing new micromobility technologies? The exact reasons vary from city to city, but here are a few of the advantages.

The High Cost of Car Ownership

According to one estimate, car ownership costs about $5,264.58 per year on average7. That includes gas, payments, repairs, and — of course — insurance. By pairing micromobility services with ridesharing apps, many city-dwelling consumers are avoiding those bills entirely.

That’s not to say that micromobile vehicles are free. Most charge a base fare and per-mile fee, along with additional per-minute fees of about 15-21 cents per minute.

Environmental Sustainability

Micromobility is often considered eco-friendly, though that’s not necessarily the case. Electric scooters, for instance, require a great deal of rare metals and electricity to produce9, and some experts question whether they’re more sustainable than gas-powered vehicles.

Most auto insurance policies won’t cover damages that occur when operating micromobility vehicles.

However, auto insurance still plays a key role. If you’re driving a car and you’re involved in an accident with a micromobility vehicle, your policy may cover damages to your vehicle, medical bills sustained by the micromobility driver, and other key expenses.

Some cities are considering mandated insurance coverage for micromobility vehicles. This may increase the costs of shared services, but would provide important protection for pedestrians, drivers, and private property

Comparing auto insurance rates can help you stay protected on the road. It’s also a great way to reduce the overall costs of car ownership, so if you’re not ready to join the micromobility revolution — or you’d simply like to keep your vehicle while taking the occasional ride on an e-bike — Insuraroo can help. Enter your information here, and we’ll help you find coverage that fits your budget.