Entertaining insurance news…
Flying cars have been a part of our imaginations for decades, and though it will become possible for drivers to purchase them within the months to come, it is the insurance coverage that they may find more surprising than the technology itself.
The Transition, the two-seater car that have fold-out wings that allow it to take flight and that was manufactured by Terrafugia in Massachusetts, made its first appearance before the attendees of an auto show. The company had already announced at the start of the week that the vehicle has made its initial flight and that it will be available for purchase within a years’ time. There have already been approximately 100 advance purchases of these flying cars, which are believed to sell at a price of $279,000.
However, if the purchase price itself wasn’t prohibitive enough for the majority of people, it would likely be the insurance coverage that would put it over the top. As of yet, insurance companies have not introduced policies for flying cars, but experts are predicting that there will be very restricted options for consumers.
According to the Insurance Information Institute president, Robert Hartwig, “There’s no off-the-shelf policy for something like this.”
Scott Simmonds, an insurance consultant, pointed out that there may be only a few insurance companies in the entire country that would even think about coming up with an offering for a hybrid vehicle like a flying car. According to him, “You’d be lucky to find two.”
Furthermore, beyond the insurers themselves, being able to sell flying car insurance will require the state insurance commissioners’ approval, which could minimize the choices available to buyers even further.
Terrafugia has stated that it is working alongside insurance companies to help to make certain that the flyers of these vehicles will be able to obtain the coverage that they require. Vice president of business development at the flying auto manufacturer, Richard Gersh, explained that though they are unable to talk about the specifics as there is still most of a year before the first product is delivered, they wouldn’t simply force their customers to try to obtain insurance all on their own; they are doing some of the groundwork.