Flying Cars...Did You Know?
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Is there any circumstance where there would be aircraft liability coverage under a Virginia Personal Auto policy?
A firm by the name of Terrafugia, founded by five Massachusetts Institute of Technology graduates in 2006, is finalizing production on a flying car (or driving plane, depending on our viewpoint) estimated to be delivered to consumers within three years.
Terrafugia is one of many firms that is building a hybrid car/plane. Terrafugia’s Transition model can attain a top speed of 100 miles per hour in the air and normal highway speeds on the ground. Capable of flying up to 400 miles with a maximum altitude of 10,000 feet with computer-controlled flight, it will be equipped with a complete suite of automotive safety features and a full-vehicle parachute. It can convert between flight and drive modes in less than one minute and fit in a standard-sized single-car garage.
While the estimated price tag of $279,000 will not be for the average buyer, how should this type of vehicle be insured?
Did you know that there is no aircraft liability exclusion in the Virginia Personal Auto policy? Obviously, if your client were to request their newly purchased flying car be added to their auto policy, the carrier most likely would decline. However, what if they failed to notify you? Liability coverage is afforded for newly acquired autos under the Virginia Personal Auto Policy for a certain period depending upon the carrier.
It will be interesting to see how the insurance and regulatory industries respond to the development of these “flying cars.” While coverage for this type of vehicle will probably emanate from the aviation insurance industry, it is just interesting to note that currently there is no exclusion for aircraft liability coverage under the Virginia Personal Auto Policy.
This is the type of thing that makes the insurance business so interesting!
Linda S. Loving, CIC, AISM, AIAO is IIAV’s Chief Operating Officer and Executive Vice President of VFSC, the wholly owned subsidiary of IIAV responsible for the association’s insurance division.
