Insurance at 70

RScott · #1 10-02-2009, 06:16 PM

I have been told that insurance gets a lot more expensive when one turns 70.

Is this true?

How much more--10%, 30%, 60%?

Thanks.

Bob Axsom · #2 10-02-2009, 07:23 PM

I never noticed any change but every year is a **** shoot and I have to admit I'm not overly sensitive to the cost but and a 10% variation might slip beneath my RADAR. I always fill out the questionair for Falcon and they go out and find me the best deal. I stipulate the the insurance must cover cross country air racing and all of the additional insured requirements when they come up - Certificates of Insurance for example. Once when I was a young whipper snapper of 65 a race insisted on $1,000,000 smooth coverage and the cost shot up to around $2,000 and I could only get it through AOPA and Falcon. Falcon was several hundred dollars cheaper than what I could get through AOPA (they had split with Avemco by then). The current price with $60,000 coverage on the airplane and probably the standard other stuff This is not a great subject for me but I am well over 70 so all I can give you is one data point. My current cost is a little over $1,100 per year. It has been in that area for a long time.

Bob Axsom

638RS · #3 10-02-2009, 07:51 PM

that I was charged a surcharge when I turned 65. I had asked why my premium did not go down with increasing time in type. I was paying the same at 200 hr as I was at 5 hours. Their answer was that I had turned 65 at the same time I would have got a discount for increase time and they canceled each other out... ????

JDRhodes · #4 10-05-2009, 06:55 AM

Airplane insurance is market driven - not debit/credit rated like car insurance.
Premium reductions for additional hours in type is kind of a myth. Over the last few years we've seen premium reductions due to market pressures - coincidental with your increase in hours in type - not because of it. Within the next few years, we'll probably see premium increases year to year as the insurance market hardens.

The reason that insurance prices may go up for 70+ pilots is the fact that insurers won't usually quote "new" business with a 70+ pilot. That leaves you with the market you're currently with.

billdianne · #5 10-05-2009, 10:25 AM

Quote:

Originally Posted by JDRhodes

The reason that insurance prices may go up for 70+ pilots is the fact that insurers won't usually quote "new" business with a 70+ pilot. That leaves you with the market you're currently with.

Whoa! Tell me more about this no new business for pilots over 70. I have always rented before starting to build. This could ruin my whole day.

How about just liability insurance?

JDRhodes · #6 10-05-2009, 02:20 PM

Quick underwriter survey this afternoon. Here are the answers for insurance for 70 + year old pilots. All agents - Falcon, Nationair, AOPA, etc. have to place you with one of these companies.

Global Aerospace - new business up to age 69. Through their 70's if they are EAA members - tell your agent if you are!

Chartis (AIG) - New business up to age 70. Maybe a few years beyond, depending on type of aircraft (ie. Cessna 172 better than a Mooney). Might take you for a few more years in certain LSAs.

Aerospace Insurance - New business up to age 70. Up to 75, if the pilot gets an ANNUAL medical - even for LSAs.

US Specialty - Won't quote anyone over age 75, regardless of aircraft type.

Most, if not all of these companies will continue to renew policies for pilots into their 80's. But, at that point, your insurer has become the only game in town - any wonder that prices creep up?

We are working with a new company now that SAYS that they are offering new quotes up to age 79 - more info when we flesh that one out.