Flying-Car Insurance Could Cost $60,000
Massachusetts-based Terrafugia recently introduced its Transition vehicle, a two-seat flying car that could go on sale within a year, but buyers of this car may have few options when it comes to insurance. “There’s no off-the-shelf policy for something like this,” says Insurance Information Institute President Robert Hartwig. Terrafugia says it is working with insurers and state officials to ensure car flyers can get a policy. Experts project yearly premiums could run as high as $60,000 – roughly 76 times the average $785 household auto insurance policy.
Premiums would also reflect the higher possible expense of any air or road accident, Hartwig says. Injuries and property damage from crash-landing a plane, for example, are likely to be more grievous than those incurred when driving, which affects liability coverage. Even a minor accident could be expensive to fix — few mechanics could handle such repairs, and the Federal Aviation Administration would have to re-certify the vehicle as flight-worthy, he says.
Read more on insuring a flying car: Flying-Car Insurance May Cost $60,000 (Smart Money 4/3/12)