BETHEL – Refusal by insurance companies serving Maine to cover snowmobilers that manicure the 12,500 miles of trails in the state may wash away this season of groomed trail riding, says Rocky Freda, an active snowmobile enthusiast.

Freda owns Sun Valley Sports, which rents snowmobiles, gives guided tours, and supports other winter sports. He is also a member of four snowmobile clubs based in Newry, Gilead, Bethel and Greenwood/Woodstock.

Freda said the insurance coverage by Maine companies for the 265 snowmobile clubs in Maine either ran out Dec. 1 or will run out Feb. 1.

“Some clubs have acquired insurance through out-of-state companies, but that’s really a stick in the eye,” Freda said. “Their policy runs from February to February and if we want to start grooming now we have to pay a full policy and then another full policy in February.

“They won’t pro-rate it,” he said.

Freda said an average cost of insurance last year for all club vehicles was $800 to $850. He said out-of-state companies are asking a $900 premium and then $50 for each piece of equipment.

He said some of the bigger clubs have four or five pieces of grooming machinery. This is expensive for clubs that rely on fundraisers and donations for capital. Many towns pass through the snowmobile registration fees to the clubs, but Freda said that total rarely exceeds $1,500 per year.

He said the state also gives clubs a “token of appreciation” for maintaining trails of a small fee per mile of trails groomed.

“People can still ride, but riding trails that are groomed vs. not groomed is like driving on the Maine turnpike now vs. 200 years ago when it was a cordwood road.”

Bethel Town Manager Scott Cole that if the many miles of trails in western Maine are not groomed to normal standards the riding experience is diminished and sledders may go elsewhere.

He said he could not quantify with accuracy the benefit of snowmobilers to this winter ski resort town, but he is certain it enhances commercial activity.

Freda said the state and businesses here are benefiting from the volunteers in snowmobile clubs. “They love the sport and are dedicated to grooming trails,” Freda said. “When we first started in business in 1995, there were only four companies in Maine that rented snowmobiles. Now there are over 60.”

He said the latest statistics show that snowmobiling brings in $265 million to the state.

Freda does not know why there is a refusal to insure grooming vehicles and why there have been moratoriums put on insuring snowmobile clubs.

“Insurance companies are being hush, hush abut it,” Freda said. “We don’t know why insurance companies have pulled out like they have. Very few cases have ever gone to court where a club was sued.”

Cole said he only knew peripherally about the increase in overall premiums and suggested that it is tied to the insurance industry losses in last several years and “supposedly certain claims filed against snowmobile clubs in Maine.”

An independent insurance representative, speaking on condition of anonymity, said companies known for insuring snowmobile clubs have issued a moratorium on new business.

Freda said a club could either operate without insurance, taking chance of something happening to make the club and officers liable, or try to find the money to pay the insurance increases.

He said there a bill before the Legislature limiting tort liability to $100,000 may encourage insurers to be more flexible with snowmobilers.

“But even that’s not a guarantee that insurers are going to take us back,” Freda said.

Jsmedley@sunjournal.com

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