Insurance for an RV-10 = $4659??

[MSFT-1]

I am considering buying a flying RV-10.

I just started shopping for insurance and the quotes I am getting are >$4600.

I have 700 hrs TT with a private+instrument ticket. No accidents/incidents.

Hull value is $225K.

This seems pretty high to me. Comments and suggestions are appreciated.

bruce

[asav8tor]

I pay 1,600 to insure 65,000. 11,500 total time.

The rate you were quoted is better than mine based on insured value.

[jcoloccia]

$225,000 will buy a nice house in many parts of the country. Think how expensive it'd be to insure your house if it flew at 200MPH!

John <=== won't carry hull insurance. I figure, if I can build it, I can fix it.

[kentb]

My C172 insured for $45,000 at about $900.
My RV9A insured for $90,000 at about $1900. $1400 is for the hull part.

As for as going without hull insurance, yes I can fix it, but my next of kin may not be able to.
I wish that there were an option to have hull insurance with a higher deductible, let say $5000 at a much better rate. My current is deductible is $100. I wound not bother with the paper work for such a small claim.

Kent

[w1curtis]

Originally Posted by MSFT-1

..
Hull value is $225K.
..

This seems line with that hull value. Just for comparison, what do you think a new 182 for about that amount would cost to insure? You want to reduce the premium, reduce the hull value. If you built it then insure it for what you have in it in actual costs, if you bought it, then.....

[aadamson]

Originally Posted by w1curtis

This seems line with that hull value. Just for comparison, what do you think a new 182 for about that amount would cost to insure? You want to reduce the premium, reduce the hull value. If you built it then insure it for what you have in it in actual costs, if you bought it, then.....

I'll tell ya cuz I own one... 2004 182T hull value 300K, insured at 1,000,000/100,000 with 700TT and instrument - $3500/yr - avemco with all the discounts applied (5% for recurrent training, 5% for annual king DVD course).

Looks like the RV-10 insurance is about in line based upon hull value and number of fleet hours vs. insured risk (what the insurer are interested it).

[markjenn]

It's been a while, but I recall reading a caution a while back about under-insuring the hull-value of an airplane. The basic idea is that if you ensure a $200K airplane for $100K and make a claim, the insurer can legally "total" your airplane, pay you the stated value ($100K), and take the plane.

I'd check this out before reducing your hull value to save money on premiums.

- Mark

[David-aviator]

Originally Posted by w1curtis

This seems line with that hull value. Just for comparison, what do you think a new 182 for about that amount would cost to insure? You want to reduce the premium, reduce the hull value. If you built it then insure it for what you have in it in actual costs, if you bought it, then.....

You may not come out ahead by under insuring the hull. If the damage comes to within 75% of insured value, the company has the option of totaling the wreck, paying the claim and keeping the airplane which they will sell for whatever they can get, reducing their total pay out. It is all a matter of money from the insurance companies perspective, not the aircraft owner.

I prevented this from happening by reducing the claim to less than 75% by offering to do the repair work myself at a less than the cost in a repair shop. It was the only way to keep the airplane other than getting into the bidding game for the wreck.

Beyond that, the insurance premium for the RV10 is not unrealistic. The airplane is a 4 seat experimental with quite a liability risk. Four seat experimentals do not have a good record with the insurance industry, although the RV10 is not in the same loss league as some others, yet.

[TSwezey]

Originally Posted by MSFT-1

I am considering buying a flying RV-10.

I just started shopping for insurance and the quotes I am getting are >$4600.

I have 700 hrs TT with a private+instrument ticket. No accidents/incidents.

Hull value is $225K.

This seems pretty high to me. Comments and suggestions are appreciated.

bruce

I just got my quote for my -10 with the Vesta engine and it was $4510. That's with $200,000 hull coverage and 200 hrs TT. I have to get five hours of training with Mike or Alex.

[w1curtis]

Originally Posted by David-aviator

You may not come out ahead by under insuring the hull. If the damage comes to within 75% of insured value, the company has the option of totaling the wreck, paying the claim and keeping the airplane which they will sell for whatever they can get, reducing their total pay out. It is all a matter of money from the insurance companies perspective, not the aircraft owner.

I prevented this from happening by reducing the claim to less than 75% by offering to do the repair work myself at a less than the cost in a repair shop. It was the only way to keep the airplane other than getting into the bidding game for the wreck.

The point is not that he should under-insure, the point is that if he has a problem with the high premium, reducing the hull value will help. I think you come out WAAAAY ahead if you under-insure to get a reasonable (to each owner) premium, than if you do not insure (hull) because you cannot get a reasonable premium.

You can spend the money on premiums now or spend it on the the difference between what you get from the insurance company after an event later. As in Vegas, you pays your money and take your chances.

Originally Posted by David-aviator

Beyond that, the insurance premium for the RV10 is not unrealistic. The airplane is a 4 seat experimental with quite a liability risk. Four seat experimentals do not have a good record with the insurance industry, although the RV10 is not in the same loss league as some others, yet.

That is a pretty pessimistic view. Do you anticipate that the RV-10 will eventually be in the same loss league as some others?