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.