The government’s ongoing struggle to get a grip on e-scooter regulation was back under scrutiny this week as peers raised questions about the insurance implications of illegal e-scooter use.
At Oral Questions in the House of Lords on 14 May 2025, Baroness McIntosh of Pickering opened a wide-ranging discussion by pressing the government on the growing costs borne by law-abiding motorists as a result of uninsured and illegally operated e-scooters. Citing a figure of £530 million in losses covered by the Motor Insurers’ Bureau (MIB), she asked what discussions the Department for Transport has had with the insurance sector on how to address this growing burden.
In response, Transport Minister Lord Hendy of Richmond Hill confirmed that officials remain in regular contact with insurers and the MIB, and that rental e-scooters within government-approved trials are insured. However, he conceded that illegal usage outside of these schemes continues to present a challenge. He noted that while the majority of claims are under £50,000, this is still an area of concern and he offered to meet with Baroness McIntosh to explore potential solutions. Her ongoing Private Member’s Bill on road offences involving e-scooters was also referenced.
The discussion quickly broadened to touch on safety, enforcement, and the legislative vacuum surrounding micromobility more generally.
Baroness Meacher focused on the dangers to pedestrians, especially those with disabilities, posed by pavement use. Lord Hendy admitted that the current legal framework lacks clarity and that a balance must be struck in future legislation.
Labour’s Lord Brennan raised the related issue of modified e-bikes being used by gig economy delivery workers, often travelling at speeds of 25 to 30 mph without appropriate licensing or insurance. Lord Hendy acknowledged the enforcement challenges in this space and signalled that future regulation will need to take account of the wider micromobility landscape, including the practices of large delivery platforms.
Conservative peer Lord Moylan accused the government of allowing a “regulatory vacuum” to persist and criticised the pace of legislative reform. Lord Hendy countered that it was the previous Conservative administration that initiated trials without following through with permanent legislation.
Coming soon: We’ll be diving deeper into this topic in an upcoming podcast episode featuring Dr Ianto Guy from the Transport Research Laboratory (TRL), where we’ll explore TRL’s latest research on e-scooter safety and regulation. Keep an eye out for that episode if you want to stay ahead of the curve.
Natalie Larnder, Head of Market Affairs
Matthew Rogers, Head of Property Risks
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