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Registration & Insurance
October 14, 2007
LINCOLN, California -- Insuring and registering a Neighborhood Electric Vehicle (NEV) can be easier and less expensive than it would be for a traditional vehicle. Unfortunately, some common mistakes can make the experience less than enjoyable. By understanding your vehicle, the law, and your options, you'll save time, money and frustration. For this article, we talked to the California DMV, as well as insurance agents, who made recommendations that are sure to smooth your road to registration.
Registration
The first steps to a hassle-free registration process begin before you even buy your NEV. According to California DMV Information Officer Armando Botello, "A Neighborhood Electric Vehicle is a type of Low Speed Vehicle as is defined in California Vehicle Code Sections 385.5 and 21250. A Low Speed Vehicle must always comply with United States Federal Motor Vehicle Safety Standards [FMVSS] for Low Speed Vehicles pursuant to California Vehicle Code Sections 21253 and 21254." True NEVs will have a label stating that the vehicle complies with FMVSS requirements [PDF], and will have a 17 digit VIN (see example below).
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| GEM's FMVSS Compliance and VIN Label (highlight added) |
Regrettably, some people buy vehicles that look like a NEV, but are really designed for use on private property--and cannot legally be registered. According to what the DMV told us, NEV dealers in California are required to be licensed. The California licensed dealer is required to register the vehicle for the retail purchaser unless the buyer demands the titling documents, or the vehicle is to be registered out-of-state. If a person purchases a NEV from a dealer in another state, that out-of-state dealer is not required to register it for the buyer in California.
Before you buy a vehicle, ask whether the dealer will be handling the registration. Ask to see the federal safety compliance sticker, and verify that the VIN has 17 digits. If the dealer wants you to register the car, or cannot point out the safety sticker or VIN, proceed with extreme caution. You may not be able to register the vehicle, and if you do succeed in registering it, the process likely won't be easy.
| What about golf cart conversions? The DMV explained that most golf carts will not meet the federal safety standards for Low Speed Vehicles (LSV) and therefore cannot legally be converted to LSVs by increasing the maximum speed, or making other modifications. The car must be manufactured as a Low Speed Vehicle to be registered as such. While some have had limited success registering a golf cart as a NEV, it is a risky proposition. |
Insurance
Like gas-powered cars, NEVs are required by law to carry liability insurance. While many insurance companies cover NEVs, these policies are written much less frequently than traditional automobile policies. As a result, many agents (especially at the national level) are unfamiliar with NEVs and how to insure them. Fortunately, in NEV-friendly communities (such as Lincoln, California) most local agents are aware of these vehicles and know how they should be insured. Using a local agent who is familiar with NEVs will make the process of insuring your new vehicle less complicated.
When NEVs first started hitting the streets, early-adopters were typically residents of gated or age-restricted communities. Owners of these electric cars usually kept them in a confined community, rarely venturing outside the gates. Some insurance companies considered this usage extremely low-risk, and wrote special "recreational vehicle" polices for the cars. These policies were particularly inexpensive--starting at about $150 for a full year of complete coverage. But like all (or at least most) good things, this practice had to come to an end.
Recreational vehicle policies have one major flaw for NEV drivers: they don't electronically transmit insurance data to the DMV. In California, insurers are required to transmit proof of insurance electronically. If the DMV doesn't receive electronic notice of coverage, they will issue a "Notice of Intent to Suspend," and will eventually suspend registration. Many drivers with this inexpensive policy received (or will receive) suspension notices from the DMV. Once the process is started, it is extremely difficult to reverse. Even after repeatedly sending proof of insurance, the DMV system will likely end up suspending the vehicle's registration.
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| Wendy in Jim's NEV at the Lincoln, CA Office |
Now that NEVs have made their way into more heavily traveled areas and electronic transmission laws are in effect, insurance companies are treating NEVs much more like traditional cars. Most offer normal auto policies at standard rates. However, some companies still offer discounted policies to NEV owners. Allstate's Julie Domenick explained that her office now writes "special auto" policies, which are typically reserved for show cars or other low-mileage vehicles. This type of policy saves several hundred dollars annually over a traditional auto policy, and still meets DMV requirements.
While insurance for a NEV will cost less, don't let price be your only concern. Some people try to skimp by adding the vehicle to their homeowner's insurance policy (which does not meet DMV requirements). Others get the lowest possible limits and ask, "what could go wrong?" The fact remains that a NEV is a true motor vehicle, and is capable of causing significant damage in the right situation. Unfortunately, some owners see the fun nature of a NEV and mistakenly consider the vehicle more like a toy than a car. Experts advise to get the proper policy and not to skimp on the limits.
Save Time and Money
Follow these simple steps to avoid the most common pitfalls of NEV registration and insurance:
- Before you buy a vehicle, verify that it has a 17-digit VIN and a FMVSS compliance sticker.
- If you're buying a new NEV, verify that the dealer will handle the registration process.
- Find a local insurance agent who knows about NEVs. Avoid uninformed agents who think that a NEV is the same as a golf cart.
- Select an insurance policy that electronically reports to the DMV, and don't skimp on the limits.
Life's too short to spend it worrying about proper coverage or waiting in long DMV lines. Armed with a bit of knowledge, you'll be enjoying your NEV on the roads--legally--in no time.
One More Thing ... Don't Forget Your ZEV Decal
The California DMV offers a ZEV (Zero-Emission Vehicle) Decal, which allows you to park in designated ZEV spaces. Most "Golf Cart" and "NEV" parking spaces in Lincoln do not currently require this decal. However, future charging stations will likely require the decal. Existing parking spaces may eventually be converted to require the ZEV decal as well. At $17, the one-time cost is minimal, and worth the avoidance of future parking problems. You can Download a copy of the Zero Emission Vehicle (ZEV) Parking Decal Application (REG 4048).