Avemco Insurance Alert!

Don't want to start a war, just want to give everyone a heads up on our experience with Avemco Insurance. We called Avemco the day before the first flight of our RV-8. We went ahead and had them bind the insurance so that we could fly the next day. The next day came and we flew without any problems (except for this huge grin I can't get off my face!). Two days later we received a copy of the policy and thought all was in order. The next day we received an addendum to the policy that stated that the aircraft is not covered until it completes ten successful take-offs and landings. We were floored! Thank God nothing happened. We immediately contacted the agent that we dealt with and he proceeded to tell us that he must have been "off his game" that day and forgot to tell us that information. BS in our opinion. Of course we canceled the policy. From our view, Avemco uses a very fraudulent and sneeky way to do business. We have since contacted Falcon Aviation and got a policy at half the cost that covers first flight, pilot and aircraft in phase one and no deductible on the hull (This is through the EAA program). If your thinking about using Avemco to insure your aircraft, don't fly until you receive the written policy and read it. We asked very specific questions at the time we bound the policy and still were not covered.

Paul "OX" Harder
RV-8 969PH in Phase One

I just switched my insurance from Avemco to AUA and I was able to get better coverage at a much lower price. Definitely read every word of an insurance binder to the letter! Remember that insurance companies make more money when they can find ways to exclude you from coverage, hence the legalese terms and conditions attached to everything.

Congrats on the first flight!

I'd give NationAir a call instead of Avemco. I think you may find a big difference between the two. I insured with Avemco on my Wolf Boredom Fighter as I couldn't get coverage through another, but other brokers should be able to cover an RV without issue.

Policies say EXACTLY what they cover - and don't

Eric,

I'd take a little bit of exception to your premise that the insurance companies try to "find a way to exclude [deny] coverage" through leagalese. But, in a way, you're right. The important thing to remember is that the insurance policy is a legal contract, and yes - it should be read and understood before it's accepted. You accept it by binding coverage.

Insurance contracts say EXACTLY what is and is not covered and what conditions must be met in order for coverage to apply. Don't ASSUME that something is covered - read and verify via appropriate binder letters, policies, endorsements, etc.

AVEMCO is the Progressive or Gieco of the aviation insurance world. Their coverage is marginal and their ad budget is high. If you have coverage with AVEMCO, you need to call a good agent - PM me if you need the name of one - and get something better.

One other thing - moderators my axe it if necessary - As much as my compeditors' names are thrown out here (Nationair, Falcon, AUA, etc.), I would remind members that there are other aviation insurance specialists, with full marketplace access, here, too!

I have used Avemco in the past and found their service very good. However their pricing is not good and accordingly I have not been a customer of Avemco for quite some time. I bound coverage on my -8 when I first flew it with NationAir. What I paid at NationAir was about half of the Avemco quote for the same coverage. So far my experience at NationAir has been excellent.

Call Jenny at Nationair. She handles the RV's. My insurance (AIG) did increase the deductible to 10% of the plane for the first 20 hours I think.

I have always found Avemco to be expensive.

They used to have a tie-in with EAA and when I was newsletter editor, each year when I renewed my insurance I put an announcement in the newsletter about how much more expensive Avemco was than my regular source. I got a call from Oshkosh and they thought there must be an error; that the quotes must not be on the same basis. I sent them a copy of my policy and the quote from Avemco.

Wasn't long after that, maybe a year, before EAA dropped their affiliation with Avemco.

I am compelled to add a little ballast water to the other side of the boat so it floats a bit more evenly. I've been with the company for a long time with several airplanes. Every now and then I go shopping and end up staying with them. Here's why.

When I was looking to insure the RV with a Subaru engine, none of the regular RV insurers would touch it - had to be a Lycoming.

Avemco insured it without a hitch. And when I wrecked the airplane, it was a payment without a hitch. And then they wrote another policy with another Subby and there was no increase in premium. The service has been very good and that's worth something when you need it. Before that, I had one claim with a Lycoming in another airplane. That service too was very good.

Yes, I could save a couple hundred bucks by shopping around but what do you know about their claim service and how many will take a pilot over 70 or keep a pilot over 70? I put that question to Avemco at a forum at OSH last year the response was all that is required is the FAA medical. We will not drop you because you are over 70 and the rep gave me her card.

Yes, they do not insure a hull the first 10 hours. Its been that way a long time. I sure knew it. It did not take long to log 10 hours.

Likewise, Avemco has always been high. I've been buying aircraft insurance for darn near 29 years and they haven't once been competitive in price.

They are very good at sending reminder notices and asking for my business, though.

David Paule

nice Welcome Wagon for the new advertiser

how

about some #s. this is high, that is low, how high, or low? i have been paying thru AOPA $1,600/ yr full coverage with $106,000 hull. been like that for 10 years now.

FYI - Falcon is not the underwriter. My Falcon insurance policy was actually held by Global.

Falcon writes a great policy but when you have an issue, it goes back to the underwriter. After my taxi incident it took them three months to figure out what to do. It became very obvious that the investigator who I worked with had little experience with experimentals. This worked both in my favor and against it. My problem was that they quickly found out the cost of overhauling my O-290-D2 with low time parts would cost more than the price of a brand new IO-360 angle valve. Eventually we came to terms but the fight is not over until the final check is written and that won?t happen until after I'm flying in a few months.

A few other things about the Falcon policy, it covers your hangar and contents and you in any other plane you are qualified to fly up to the limits of your policy.

Dumb question...

...but isn't a binder, well binding?

If the agent specifically told you one thing (you called and asked for first flight insurance), and the documents arrive later, doesn't the binder override, even though it's verbal?

After all, that's why he's a highly paid state authorized agent, not some secretary answering the phone.

Didn't this make some of the insurance problems on the NY Twin Towers since they were still under a binder on 9-11?

Unpopular vendor

I realize this site needs non-user funding to exist. That said, I always thought one of the nice things about VAF was that you felt some type of group support behind the advertisers. And I have to admit that I have been pleasantly surprised, Tina's, Glo Custom, Avery's etc are really class acts. I am also disappointed that some of the potential advertisers ignore the audience that is here. So where does Avemco fit in? Fine I guess as long as participants are allowed to express their concerns as they have today. I think if Avemco is smart (which they probably are) they will use this as an opportunity to change our minds. We should certainly find out if they read the forum they advertise in!

At least Avemco gives you a free hat for requesting a quote.....

greg

Insurance ...

Insurance ... Well, I won't say it. However, I will say that I don't let it have anything to do with my decision making or the risks involved in flying - it is just something society forces me to have.

Bob Axsom

az_gila said:

...but isn't a binder, well binding?

If the agent specifically told you one thing (you called and asked for first flight insurance), and the documents arrive later, doesn't the binder override, even though it's verbal?

After all, that's why he's a highly paid state authorized agent, not some secretary answering the phone.

Didn't this make some of the insurance problems on the NY Twin Towers since they were still under a binder on 9-11?

Click to expand...

That would be an expensive fight with lawyers involved, but I'd expect that the policy he bought is the one described over the phone.

Avemco has always quoted me twice that of any other company.
Enough said.

I just renewed mine and Avemco came up with a rather attractive quote, roughly $300 less then others. When I looked at the policy closely, they had made a mistake and quoted me for just liability. When they adjusted to match others, it was roughly double all others which also included a $500 deductible

be careful

read. understand. ask. confirm.