Private Aircraft Insurance protects the financial stability of aircraft owners in the event they are held responsible for bodily injury or property damage to others. It also provides a level of security to those renting or borrowing the aircraft. Liability coverage is a requirement in most jurisdictions. The premium for liability and hull coverage can vary depending on the aircraft type, pilot skill level and safety record, how it is stored, and other factors. The price can be from $10,000 to $500,000.
In addition to following proper aviation procedures, it is important for aircraft owners to work with an experienced insurance broker who will review the available options and provide a comprehensive quote. Choosing the right insurance policy for your specific aircraft can save you thousands of dollars in the event of an accident or loss.
It is a good practice to review your aircrafts insurance policies at least yearly. This will help ensure that you are still adequately insured and that any changes in the value of your aircraft are reflected in your policy. For example, if you have updated the avionics, undertaken a engine overhaul, or built a new interior, these items may change your aircrafts value and require an adjustment in your coverage levels.
Keeping your aircraft in a hangar rather than being tied down on the apron can save you money on your airplane insurance. This is because the aircraft will be less likely to experience damage from vandalism, wind or weather conditions if it is in a hangar. In addition, most aircraft owners have found that the annual cost of storing their aircraft in a hangar is significantly lower than the cost of storage on the apron.
Another way to keep your aircraft insurance costs down is to increase your flight time and complete advanced pilot training. Insurance companies view these as positive risk management techniques and can lead to reduced insurance rates. Similarly, experienced drivers get better car insurance rates than teenagers.
Hull insurance covers the physical damage to your aircraft, whereas liability coverage provides protection against legal responsibility for an incident involving your aircraft. There are several deductibles that may be included in your policy, including:
Ground risk hull insurance is protection against incidents or mishaps while the aircraft is on the ground and not moving. It is similar to comprehensive and collision insurance on cars. Aircraft insurance companies usually include this in your policy. In-flight hull insurance is protection against incidents that occur while the aircraft is in motion, such as during taxiing or takeoff. This is generally an optional add-on to your hull coverage.
It is important to note that the deductibles you choose will directly affect the premium that you pay. You can choose to select a higher deductible to reduce your premium, but be sure you can afford to cover the deductible in case of an accident or loss. Many insurance companies offer discounts for members of aviation organizations such as AOPA and NBAA, which can reduce your aircraft insurance cost.