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insurance help?

dbhill916

Well Known Member
Hi

I'm looking for something reasonable out of the insurance industry. I doubt that that makes any sense, but I'm asking if anyone has any ideas.

My RV12 is insured for $90K hull value. I'd like to teach a friend (co-owner with me in a Cirrus SR-22, 500 hr complex/high performance) to fly it and allow him to build hours more cheaply than in the Cirrus. My current premium is $1400/yr. Our broker is quoting $3600/yr to add him, and that strikes me as quite unreasonable.

Any clue why it's roughly x3 to add a relatively experienced pilot to an existing policy?

Thanks for any suggestions,
-dbh
 
That doesn’t make sense to me either. I’ve added additional pilots to my policy with no incremental premium increase. As you know, my hull is quite a bit higher.

My assumption is that it’s based on some quirk with your underwriter.

I should be at the hangar all day Fri through Monday finishing my panel upgrade. Stop by if you aren’t working.
 
Insurers seem to heavily weight time in type, and your friend presumably has zero. That said, for a -12, it seems a bit much. Insurance business is complicated: the last 12 months have not been good for the stock market, which means premiums will be higher.
 
Just curious what your insurance on the Cirrus is. Are the 12 and Cirrus with the same company? If not I would see what a combined policy might cost.
 
I'm insured for just myself through VAF sponsor Gallagher, and paid ~$1400 for this year's insurance bill. Give them a call if they're not already your broker.

My policy has the following clause in it, which may be helpful if they have experience in other Vans aircraft.
The policy shall not apply while the aircraft is in flight unless the pilot in command is any of the following:

Any person holding a currently effective certificate issued by the Federal Aviation Administration designating him or her a sport, private, commercial or airline transport pilot, airplane category, with a single engine land rating, who has a minimum of 500 total logged flying hours of which not less than 25 hours shall have been in a Van's tricycle gear aircraft.
 
I'm insured for just myself through VAF sponsor Gallagher, and paid ~$1400 for this year's insurance bill. Give them a call if they're not already your broker.

My policy has the following clause in it, which may be helpful if they have experience in other Vans aircraft.

Bare in mind that the so-called ‘open pilot waiver’ protects you, the owner. Unless there is a ‘waiver of subrogation’ statement, the insurance company may sue your friend to get their money back, and you may be obligated to help them! Think about it.
 
I pay about $1400/year (Global through Gallagher) and only have about 100 hours in RV's. I just added a buddy, the guy who did my transition training a couple of years ago, and it didn't raise my premium at all.
 
I pay about $1100 per year for 75K hull coverage arranged through EAA. 71 years old MEII/ATP with about 5800 hrs total time (all GA time) and about 1200 in type. Just a data point.
 
I'm insured for just myself through VAF sponsor Gallagher said:
+1. I have Old Republic through Gallagher. Gallagher has saved me and a few friends lots of money. My first bill was $1,400 with zero time in the RV12. Btw, a great full coverage policy. Flew a 100 hrs and they dropped it to around $1,250 for this year.
 
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I suggest the word “teaching” never be spoken when shopping for insurance. If you want to give flight instruction in your plane, be prepared for triple the premiums.
 
I pay about $1400/year (Global through Gallagher) and only have about 100 hours in RV's. I just added a buddy, the guy who did my transition training a couple of years ago, and it didn't raise my premium at all.

I would add for context that the buddy I added to my insurance for no premium increase is over 70 y/o (as am I) and is a CFI. The purpose of adding him definitely included/includes flight instruction. I'm not sure where the subject of flight instruction comes up in the insurance conversation, but it was never a component of the underwriting documents/application that were requested and is not mentioned anywhere in my policy as an exclusion.
 
Teaching was definitely the culprit. The broker said that "time in type" is the most important variable, followed by the fact that it is a "teaching" airplane. My buddy had zero RV-12 hours, so there was a mandated 5 hr of dual. For me to give him the dual instruction the policy had to include the permission for me to do so. What makes no sense is that he & I are co-owners of Cirrus SR22 and the policy for that plane is lower than the RV12. At least, only for this first year. Broker promises that the premium will be "better" if he gets 25 hrs of time in type.
 
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