How smart bikes are changing mobility, markets and insurance

What makes a bike smart?

A smart bike is more than just an e-bike with GPS. It is a digital system on two wheels, equipped with sensors, communication modules, smart software and cloud connectivity. It continuously collects data, evaluates it and uses it to make decisions or send notifications. It detects bicycle thefts, reports possible maintenance requirements, helps to optimise individual riding styles and can automatically send a message in the event of an accident.

While the conventional bicycle remains more of a passive means of transport, the IoT bike – as it is also known – is increasingly becoming an active player: it communicates, learns, protects and connects with infrastructure, apps and even insurers. No wonder, then, that more and more new e-bikes and pedelecs sold in Germany are equipped with smart functions as standard. This not only significantly raises the technological level, but also contributes significantly to the growing popularity of IoT bikes.

The smart technology in the bike

The heart of an IoT bike is the GPS module, which provides location information with an accuracy of up to ten metres. This information is transmitted in real time via energy-efficient mobile communications technology (LTE-M), even if the bike has not been moved for days. The system is also connected to the bike's on-board electronics, allowing important information such as battery status, motor power and other measurements to be accessed at any time.

There are also motion and vibration sensors that detect abnormalities, such as when the bike is moved jerkily, falls over or is involved in an accident. Artificial intelligence precisely evaluates the signals, reduces the number of false alarms and recognises patterns in riding and usage behaviour. On this basis, it is also possible to detect gradual changes that indicate incipient wear and tear. All of this now works with minimal energy consumption and virtually no maintenance.

Greater security through active theft protection

The bikes also score highly when it comes to theft protection. Especially in large cities, where bicycle theft is an everyday occurrence, IoT technology brings real added value. Smart bikes can be locked via an app, for example, and as soon as someone moves them without authorisation, an alarm is automatically triggered – acoustically on the bike and digitally on the smartphone. At the same time, the power supply can be cut off remotely, bringing the motor to a standstill.

Intelligent geofencing functions help to customise protection: if the bike leaves a predefined area, such as a car park or company premises, an alarm is also triggered. This allows e-bike riders to keep an eye on their bike at all times and react quickly in the event of theft.

If a bike is stolen, it can be located and tracked in real time via GPS. Some bikes also offer the option of transmitting the location data directly to the police. The police can then take over the pursuit professionally, so that the owner does not have to put themselves in danger. Connected bikes thus offer significantly better chances of recovery than was previously possible with traditional bikes.

Maintenance becomes predictable and intelligent

Another advantage of connected bikes is predictive maintenance. The app no longer just reminds riders to service their bikes every six months, but analyses their individual riding behaviour. Based on this information, someone who regularly goes on long rides or uses their bike in winter will receive different recommendations than someone who only occasionally rides around town.

This also allows technical problems or wear and tear to be detected at an early stage. Whether the battery is discharging significantly faster, the motor is getting unusually hot or the brakes are often subjected to heavy use – the sensor technology provides a clear overview. This gives workshops the opportunity to read out all relevant data and respond in a targeted manner.

All this not only increases the service life of the bike, but also saves costs and prevents unplanned breakdowns.

Cycling fun meets data analysis

IoT bikes are not only smarter and safer, they can also make cycling more motivating. Users can record their trips via an app, view evaluations of speed, altitude or energy consumption, and track their progress. Particularly exciting is the comparison of CO₂ emissions in relation to car use or the calculation of calories burned – all motivating factors to get on your bike more often.

Cities also benefit from the rise of smart bikes. Aggregated, anonymised data provides information on where bicycle traffic is concentrated, where there are bottlenecks in road traffic, and which routes are used particularly frequently. All of this opens up new possibilities for urban planning, traffic management, and the development of sustainable infrastructure.

Control centre on your smartphone

The functions of the IoT bike are usually controlled using a central app – from theft protection, maintenance and ride data to navigation, insurance and community features. In addition, factors such as traffic conditions, weather and battery range can be taken into account, while routes can be shared, group rides organised and personal achievements celebrated. The user interface adapts flexibly to individual usage profiles – whether for commuters, sports enthusiasts or sharing purposes.

Limitations and challenges

As advanced as the technology is now, there are still areas for improvement: as is so often the case, data protection is a key issue, as people's movement profiles and usage data are extremely sensitive. Energy efficiency also needs to be further optimised so that neither range nor standby time compromises performance. In rural areas, poor network coverage can also be an obstacle, which can impair the functionality of emergency calls or location services.

Another challenge is the lack of standardisation. Many manufacturers use individual solutions, which complicates maintenance and compatibility. And, of course, price plays an important role. After all, IoT technology makes bicycles more expensive. This makes it all the more important to have an insurance partner who not only covers the higher material value, but also understands the special features of connected bikes – and provides protection where traditional policies reach their limits, for example when it comes to smart components such as connectivity modules, sensors or software-based functions. 

Smart bikes need smart e-bike insurance

Anyone who considers all these developments and functions will quickly realise that traditional bicycle insurance policies no longer meet the requirements of smart bikes. While conventional policies are usually designed to cover theft or vandalism, connected bikes pose entirely new challenges. They continuously generate data, interact with digital services and therefore require insurance solutions that can keep pace.

At the same time, however, this opens up new opportunities. Today, modern insurance partners can do more than just pay out when an accident or theft occurs. Instead, they can actively provide support, identify risks at an early stage and offer individual insurance products and integration options.

The IoT bike thus lays the foundation for:

• Insurance rates that can be integrated into apps – either as part of subscriptions or as separate, flexible offers;
• Digital claims reports directly via app or bike display – fast, intuitive and without paperwork;
• Automated theft reports, directly from the bike or app system with complete data log – simplifies processes and reduces manual effort;
• Seamless system integration, with the bike, app and insurance working together smoothly in the background – as a basis for new digital touchpoints and embedded services.

This opens up a completely new level of sales for bike manufacturers: by integrating modern IoT bike insurance directly into the product ecosystem – for example, via app services or in the purchase process – targeted additional offers can be created, such as digital protection packages or flexible service subscriptions. This not only promotes customer loyalty through regular app use and automated reminders, but also opens up new, continuous sources of revenue in digital after-sales. This creates real added value that is precisely tailored to the requirements of connected mobility.

Conclusion: Connected, insured, ready for tomorrow

Smart bikes have long been more than just GPS gadgets or simple means of transport. They create real added value – for e-bike riders, dealers, manufacturers and cities alike. Through their connectivity, they increase safety, enhance comfort, promote sustainable mobility and open up new data-based business models.

They are increasingly becoming active components of modern mobility structures: they recognise danger spots, report status data in real time and enable automated processes – for example, in maintenance, service or insurance. What was considered a smart additional feature yesterday is now increasingly becoming a matter of course in a digitally connected mobility world.

For the insurance industry, one thing is certain: digital mobility has long been a reality, and with it, the requirements for products and processes are constantly evolving. It is no longer a question of whether to adapt, but how consistently.

hepster is already leading the way: with tailor-made, digitally integrable insurance solutions, we offer exactly the cover that connected bikes need. Our IoT-enabled policies pick up where traditional products leave off – from theft protection to cover for smart components.

This benefits retail partners and manufacturers in particular: thanks to API-supported integration, our insurance policies can be seamlessly integrated into a wide variety of digital business models. This results in comprehensive offerings that perfectly combine technology and protection – for greater customer satisfaction and competitive advantages.