Aviation Insurance

Editorial note: Insurance is one of the main nemesis facing virtually every pilot and aircraft owner today. Aircraft purchase prices (new and used) have skyrocketed, costs to repair damages to aircraft are higher today than they ever have been, and until recently, some manufacturers have curtailed all production of general aviation aircraft due to litigation potentials, and a virtual assurance that the manufacturer of the aircraft involved in any aircraft accident or incident will probably be named in a lawsuit, regardless of cause. An old lawyer axiom prevails.... go for the deepest pockets... (and guess who had the deepest pocket)... the manufacturers. The insurance settlements, and the "litigating mania" that prevails in our country today is absolutely out of control... and is getting worse. Nobody on the planet will disagree with this outlook, unless maybe it's the Trial Attorneys Club.

Insurance requirements and costs for everybody... FBOs, mechanics, manufacturers, aircraft owners, fuel providers, airports, terminal facilities, airlines and on and on... are through the roof. We are absolutely "required" (in some cases) by law, and/or by our bankers (if we finance even a part of our aircraft) to carry insurance to cover liabilities, hull damages, and other contingencies. We pay premiums based on a host of reasons only the underwriters can dictate... time in type, age of the aircraft, what licenses we hold, what type of aircraft we have flown in the last 6 months, 1 year, etc. Lord help you if you mention words on your application like.... "experimental, acrobatics, floatplane, crop spraying, medical wavier, or flight instructor" because that really opens the floodgates for the aviation underwriters... "to lay it to you."

Logic tells anyone, that... if you already own an aircraft... in most cases... you are required (by someone) to have insurance. Kind of like driving your car, you need to buy gas... it's about the same price wherever you go, within a few cents. You need insurance? In most cases, there is very little meaningful dollar difference in aircraft insurance. Yes, there is sometimes, but across the board... everybody is paying roughly the same amount of money for a like policy. Insurance companies cite... escalating "costs", continuing litigating mania, higher repair costs, and the all encompassing... "our (insurance company) stockholders want a higher return on their investment, so we have to generate a higher profit margin on our product." It is the classic circular argument, and we are literally powerless to do much about it." "Just put some more gas in the car darling, we need to get to..."

What is anybody doing about it? Not much. Many operators are beginning to carry liability only... and literally can't afford to carry hull insurance. Some aircraft owners have cancelled their insurance all together, and admittedly are "taking a risk", and are becoming "self insured." If an accident does occur, it will in all probability, wipe them clean... but in some cases for many... it comes down to a very simple choice....either you can afford an airplane and its operational costs... or insurance... but NOT both. Kind of like the choice the "aircraft manufacturers" had to make... either keep manufacturing aircraft... or quit. Some quit... never to return. Others have just returned, only after legislation has been passed limiting the liability of manufacturers. Today, they still are on shaky ground.

You could very easily feel this problem is a classic "chicken or the egg" story. I don't have an answer, but I do know that most aircraft owners will do all they can to keep their aircraft flying. What individuals will do to cut costs, and continue to fly safely... will be "genius" in some cases.

A partial solution to reducing insurance costs will be the very first insurance company that slashes it rates, and shakes loose of the mandates that the underwriters dictate to them... will quickly have a majority of aircraft owners and others, canceling their old policies, and buying their new insurance at a competitive price...for a change. As soon as that happens, I would almost guarantee that suddenly (and quietly) the others will "find a reason" to cut their costs, and lower the premiums on their products as well. However, meaningful changes will not occur until some hungry, forward thinking, aggressive insurance company has the courage to step way ahead of the others, and offer a reasonable product for a reasonable price.

Until that happens, aircraft owners will have to continue cutting costs and look for the best coverage's they can find. We have listed some companies that we feel are among the best aviation insurers today. Call them, talk to your insurance broker, write to them, pressure them as much as possible to give you the very best that they can offer. If their best is not good enough, check elsewhere. Unfortunately competition is thin, but don't be timid about asking for the best rates and the best coverage's you can get, year after year.

AOPAIA
AOPAIA Insurance. Competitive, good coverages, good company, 400,000+ AOPA members, and growing. Best legislative lobbying voice we have. The largest aviation insurance company in the country.

Avemco Insurance Company
AVEMCO Insurance. Comprehensive insurance coverage for general aviation aircraft owners and pilots since 1961. Buying aviation insurance from Avemco gives you peace of mind not available anywhere else in the US. Because they are the only Direct Writers of aviation insurance in the country, Avemco is the one place you can go to speak directly to the insurance company - all other aviation insurance providers sell their products through agents and brokers, including all association-sponsored programs. At Avemco you get the straight story about insurance, sold and underwritten at the same place!

Falcon Insurance Agency
FALCON Insurance is one of the largest independently owned aviation insurance specialists in the country. They represent all the aviation insurance markets - both domestic and foreign - and as an independent, they will shop the entire market on your behalf to find the best possible coverage's at the best possible price.

Southwest Aviation Insurance Group
SOUTHWEST Aviation provide all lines of aviation insurance including, but not limited to: private and commercial aircraft, business jets, helicopters, gliders, fixed-base operators, airports, aviation manufacturers liability, fuel storage tank pollution liability, hangars and aviation workers compensation. They are appointed with every domestic "A" Best rated aviation insurance carrier.

Baja Bush Pilots Ltd.
Flying to Mexico? The BAJA BUSH PILOTS probably knows more about the legal and practical requirements for Mexican Liability Insurance than any other group. Check out this site for all you need to know about flying to Mexico and Central America. More expertise and more experience flying "South of the Border" than any other group of aviators on the planet.

DirectoryInsurance.com
DIRECTORY Insurance This is a directory of Aviation insurance companies on the web. Easy to search, easy to use, with a brief description of each company, complete with web addresses, and a description of what aviation insurance products they offer. An excellent place to shop for insurance.