Why the price of e-scooter rentals in Norway will increase
The cost of renting an electric scooter in Norway will likely increase in the near future due to a new insurance rule for firms that rent out the devices.
From September 1st, rental companies will need compulsory statutory liability coverage on their e-scooter networks.
The requirement is being brought in as part of a set of legislation aimed at regulating the use of e-scooters in Norway more thoroughly.
Insurance requirements are part of the same set of regulations brought in earlier this year, which included a drink-driving limit for e-scooters.
Norwegian newspaper VG reports that this new insurance requirement will likely make renting e-scooters more expensive.
READ ALSO: Two Norwegians fined for using e-scooters drunk
E-scooter companies are finding it hard to find an insurance firm willing to offer them a policy. Those that are willing to offer rental companies a policy are apparently only offering coverage at very costly rates.
Several firms have said that offering policies to scooter rental companies represented too big a risk.
"We consider the risk too high by offering such insurance. It is a purely business assessment. We do not want to enter this market," Bjarne Aani Rysstad, communications manager at insurance company Gjensidige, told VG.
Rental operators have said that the lack of competition in the market means that securing a competitive insurance policy would be incredibly difficult.
Ryde, a rental firm operating in Norway, told VG that it had yet to seal a deal, but when it does, the cost of renting an e-scooter would likely increase.
"We haven't landed the deal yet. The price we have received will amount to between 15 and 20 percent of turnover. It goes without saying that this will affect the rental price," Tobias Balchen, general manager of Ryde, told the newspaper.
Voi didn't tell VG whether costs would go up but said that companies should've been given until the new year to get insurance policies in place.
Tier told VG that prices would increase over the next 12 months once it signed the dotted line on an insurance agreement.
Another operator, Bolt, said that prices wouldn't be affected as it has had an insurance policy in place since 2021.
Next year, private owners of e-scooters will also be required to have an insurance policy on their devices.
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From September 1st, rental companies will need compulsory statutory liability coverage on their e-scooter networks.
The requirement is being brought in as part of a set of legislation aimed at regulating the use of e-scooters in Norway more thoroughly.
Insurance requirements are part of the same set of regulations brought in earlier this year, which included a drink-driving limit for e-scooters.
Norwegian newspaper VG reports that this new insurance requirement will likely make renting e-scooters more expensive.
READ ALSO: Two Norwegians fined for using e-scooters drunk
E-scooter companies are finding it hard to find an insurance firm willing to offer them a policy. Those that are willing to offer rental companies a policy are apparently only offering coverage at very costly rates.
Several firms have said that offering policies to scooter rental companies represented too big a risk.
"We consider the risk too high by offering such insurance. It is a purely business assessment. We do not want to enter this market," Bjarne Aani Rysstad, communications manager at insurance company Gjensidige, told VG.
Rental operators have said that the lack of competition in the market means that securing a competitive insurance policy would be incredibly difficult.
Ryde, a rental firm operating in Norway, told VG that it had yet to seal a deal, but when it does, the cost of renting an e-scooter would likely increase.
"We haven't landed the deal yet. The price we have received will amount to between 15 and 20 percent of turnover. It goes without saying that this will affect the rental price," Tobias Balchen, general manager of Ryde, told the newspaper.
Voi didn't tell VG whether costs would go up but said that companies should've been given until the new year to get insurance policies in place.
Tier told VG that prices would increase over the next 12 months once it signed the dotted line on an insurance agreement.
Another operator, Bolt, said that prices wouldn't be affected as it has had an insurance policy in place since 2021.
Next year, private owners of e-scooters will also be required to have an insurance policy on their devices.
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