Insurance
FAQ
Does increasing my deductibles lower the premium?
While individual insurance company deductibles vary from
company to company, in most cases individual insurance
companies have set deductibles which cannot be changed.
The exception to this is aircraft with insured values
generally greater than $1 million.
How much coverage is
enough?
For liability coverage - as much as is available and you
can afford.
For hull coverage - the advice is generally to insure
your aircraft for its “market value.” Sources of current
aircraft value can be found in aircraft price guides and
aircraft for sale listings. This is only a guide however
- aircraft condition, options, avionics and equipment
vary widely.
Consult with your agent and the insurance company to
assist you in determining an appropriate “agreed value”
basis.
What are the issues of
over insuring or underinsuring an aircraft?
Over insuring an aircraft can lead an insurance company
to repair an extensively damaged aircraft leaving the
owner with an aircraft that may never be the same and be
difficult to sell later.
In the case of an underinsured aircraft, the owner may
not have enough insurance monies to replace the aircraft
with a similar one (this is important to remember when
adding equipment such as avionics or replacing an
engine)
It is also important to remember that an underinsured
aircraft will more likely be declared a total loss if it
is substantially damaged.
Consult with your agent and insurance company to arrive
at an appropriate “agreed value” at the time of
insuring.
How can I reduce my
insurance premiums?
All of the following will help minimize your premium:
Participate in pilot proficiency program (such as FAA
Wings)
Obtain an instrument rating.
Hangar your aircraft.
Take recurring training annually
Obtain advance ratings and certificates
Maintain a claim-free status
What does medical
payments coverage provide?
This coverage pays for immediate medical expense
sustained in an aircraft accident including that
incurred while entering or leaving the aircraft. Usually
written in limits from $1,000 up to $15,000 per person,
it may or may not cover the pilot.
The coverage is to pay for initial medical treatment and
typically has a time limit on the medical service
provided. It is considered “no fault” insurance meaning
liability does not have to be established for the
medical payment to be made.
This coverage can be beneficial because it covers
smaller injury claims without filing against other
insurance which may or may not offer protection.
Other than coverage
and pilot experience, what other factors affect
premiums?
Pilot experience is only one factor. Others include loss
ratios for general aviation aircraft, specific loss
history of the aircraft type and model, aircraft use,
geographic location, parts prices, and competition
between insurance carriers.
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