Should You Insure a Low-Speed Vehicle?

Many people planning to purchase a non-homologated Melex vehicle wonder whether this type of low-speed vehicle should be covered by third-party liability insurance for motor vehicles (OC insurance).

This question raises significant doubts among potential investors, especially concerning potential damages caused by such vehicles while driving on public roads. In the following sections, we will explain what low-speed vehicles are and whether liability insurance is mandatory for them.

What Are Low-Speed Vehicles?

Before discussing whether a low-speed vehicle needs insurance, it’s important to define what this term means. The definition of a low-speed vehicle is provided in the Polish Road Traffic Act of 1997. According to this legislation, a low-speed vehicle is a motor vehicle designed with a maximum speed of 25 km/h. It does not require registration, but under certain conditions, it can be driven on public roads. Low-speed vehicles are not permitted on highways, where the minimum speed is 40 km/h. Examples of low-speed vehicles include modern electric Melex vehicles without homologation.

Low-Speed Vehicles and OC Insurance – What Should You Know?

Companies and institutions considering adding non-homologated low-speed vehicles, such as Melex vehicles, to their fleets often question whether liability insurance is mandatory. The confusion may stem from the lack of registration requirements for these vehicles and the common belief that any damages caused by low-speed vehicles could be covered under general liability insurance. However, in many cases, this assumption is incorrect and may lead to financial consequences for the owner if the vehicle causes damage.

OC Insurance for Low-Speed Vehicles on Public Roads

According to the Act of May 22, 2003, on Compulsory Insurance, the Insurance Guarantee Fund, and the Polish Motor Insurers' Bureau (Journal of Laws No. 124, item 1152, as amended), owners of motor vehicles are required to obtain third-party liability insurance (OC). This requirement also applies to owners of low-speed vehicles from the moment these vehicles are introduced into traffic. Thus, for a low-speed vehicle, such as a non-homologated Melex, to operate on public roads, it must have compulsory OC insurance. Failure to obtain such insurance can result in financial penalties.

Low-Speed Vehicles Used on Private Property – Is OC Insurance Required?

It seems intuitive that a low-speed vehicle operating on public roads must have compulsory OC insurance. But what if a company or institution intends to use such a vehicle exclusively on private property, avoiding public roads altogether?

OC insurance becomes mandatory for a low-speed vehicle from the moment it is introduced into traffic. According to the Road Traffic Act, "introducing into traffic" is not limited to public roads; it also includes:

• Residential areas,
• Traffic zones, which encompass internal roads marked with appropriate traffic signs.

This is significant because "internal roads" can include parking lots or areas designated for vehicle movement. Consequently, a low-speed vehicle operating on a company’s parking lot or premises must have OC insurance. However, this insurance is generally not required if the vehicle is used solely within a closed facility, such as a warehouse or production hall.

What Is the Cost of OC Insurance for Low-Speed Vehicles?

The cost of OC insurance for a low-speed vehicle depends on several factors, including:

• The type and value of the vehicle,
• The owner's insurance history,
• The insured sum guaranteed under the policy.

Owners can also opt for short-term insurance, which allows for an OC policy lasting less than 12 months (minimum of 3 months). Additionally, vehicle owners are not limited to OC insurance and can extend coverage to include optional policies, such as comprehensive insurance (AC).

Should You Insure a Low-Speed Vehicle? A Summary

If you’re considering investing in a low-speed vehicle, such as a non-homologated Melex, it’s essential to understand when third-party liability insurance (OC) is required. This insurance is mandatory if the vehicle is introduced into traffic. According to the law, this includes both public roads and traffic zones, such as internal roads, parking lots, or company grounds. However, if the low-speed vehicle is used exclusively in a closed facility, such as a warehouse or production hall, OC insurance is not obligatory, and any damages could potentially be covered by the owner's general liability insurance (if specified in the policy).

High-Quality Electric Vehicles from Melex

As a reputable manufacturer of electric vehicles, Melex offers a wide range of homologated and low-speed vehicles, including:

• Cargo vehicles,
• Passenger vehicles,
• Specialized vehicles.

If you are interested in top-tier Melex electric vehicles, we encourage you to contact our Sales Department.