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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
April 10, 2012

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)

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