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Release date June 9, 2008

UNCONVENTIONAL VEHICLES AND INSURANCE

Until recent years there were only a few categories of motorized vehicle – Farm Tractors, Golf Carts, Motorcycles and Cars and Trucks. Now our modern society has introduced so many new categories, we are hard pressed to name them all – mini vehicles, slow speed vehicles, micro-trucks, motorized bikes and mopeds, Segways, motorized toys, ATVs and snowmobiles. Some are electric, some are gasoline powered. Some of the manufacturer names include Kei, Segway, Schwinn, Smart Car, Honda, Tata Motors and so on. Many are showing up on the streets and rural roads of the Texas Hill Country, joining the ATV’s and Mopeds that already exist here.

Insurance coverage for these can sometimes be found under auto insurance, sometimes under commercial general liability insurance, sometimes under Farm or Home insurance but in the worst case scenario - sometimes not at all.

In the past there have been very clear cut definitions regarding auto insurance and mobile equipment and how and when these machines were covered for liability insurance. The definitions were found in motor vehicle laws, in insurance policies and by industry definitions.

But these definitions have blurred and in many cases there is not automatic liability insurance- not under the home policy, the business policy or the auto policy. The American Association of Insurance Services, a non-profit industry group, has been busy investigating the integral differences in these vehicles and also working with the American Association of Motor Vehicle Administrators as to how new types of vehicles should be registered, inspected and insured.

Potential owner’s or existing owner’s of one of these or of the many other type vehicles should be cautious and discuss the insurance needs with their agent or insurance advisor before purchasing and operating the unconventional vehicle.

Gregory Kaderli of Frantzen, Kaderli & Klier Insurance Agency, Inc. here in Fredericksburg suggests going to the American Association of Insurance Services web page at aaisonline.com to learn more. On the right hand side click on “Emerging Issues and Exposures” and then click on the May 2009 Report, “Unconventional Motorized Vehicles” to access the report.


For Immediate Release.
Gregory Kaderli
Frantzen, Kaderli & Klier Insurance Agency, Inc.
May 27, 2009
Phone 830.997.9531

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12-07 Insuring high tech products

Frantzen Kaderli & Klier Insurance
108 Theodore Specht Drive
P.O. Box 513
Fredericksburg, Texas 78624

Hours: Weekdays, 8:00 a.m. to 5:00 p.m.
Saturdays from 8:00 to 12 noon
Excluding holidays

Phone: 830-997-9531
Toll Free: 1-800-280-9531

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