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Rerating/ rewriting insurance...

punkin

Well Known Member
I was pretty excited to email my insurance agent today and let her know that I was finally a certificated pilot. I was a little surprised to read her reply that I would need to wait until my December renewal to be re-rated for insurance purposes.

That seemed kind of strange to me, as I could go shop myself to other insurance companies now as a pilot rather than a student pilot and then cancel my existing policy and be refunded…I would think they wouldn't want me to do that?

It just seems weird to me that they would not want to rerate me, even if it meant writing a new policy and then canceling the old one.

For two years now I have been told that my rates would go down when I was no longer a student pilot… I think I am with a good company that a lot of RVers use, and I'm not mad...but I don't see why I shouldn't go shop if they don't want to do it for me.

I'm missing something?
 
They're typically flexible on things like that.
Several years ago, when I wanted to change my policy renewal date to a different time of the year, they said they could not do that.
When I told them I would consider changing insurance companies they reconsidered and agreed to change my renewal date.
 
I think a lot of student policies are fully earned, meaning no refund if you cancel early.
 
That would be a weird business model...

Jesse, you may be right, but when I sold my piper pacer midstream I did not have any trouble getting credit for that, and they have no problem adding the RV six.

It would seem a weird model to hold a student rated pilot to a more expensive policy for eight extra months… That will be a guaranteed way to make me find a new carrier as soon as my policy expires! . I would like to think somebody wants my business and wants me to have an appropriate policy, not that they feel they need to hold me hostage or they won't get my money…

I'm counting on at least 30 or 40 years more of aircraft ownership and hopefully claim free existence… Squeezing an extra couple hundred bucks out of me in one year wouldn't be a great way to make me a lifelong customer!

I know there are some knowledgeable agents that comment here occasionally, I'm hoping to get some input.
 
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Company?

What insurance company does everyone recommend? Is there a general consensus or a particular company?
 
What insurance company does everyone recommend? Is there a general consensus or a particular company?

In the aviation world - with one exception - you cannot deal directly with the insurance company. Instead you go thru an independent agency. I use Gallagher (Jenny and Shanna) and am happy with their service.
The one exception, where you deal directly with the company, is Avemco. Call them up or send in a request for quote. I've always found them very expensive.
 
To the OP: I'm certainly no insurance expert, but I would be surprised if your rates go down much. As a student pilot, you always had a cfi looking over your shoulder before every flight. Your liability was very limited as you could not carry passengers. That's all behind you now.
 
I agree with Bobs post above
Also, depending on the specifics of your current policy, if you were to cancel, you do not necessarily get a straight prorated return of your money. Sometimes there is a minimum amount that they retain regardless of when you cancel. If you are leaning toward going that way make sure to ask them to specify the amount you will get back before committing to that.

I went through Falcon for years but recently got a better policy for less money through Gallagher

Erich
 
It wouldn't hurt to shop around. It's a good idea to do so when your situation changes, as yours has. I don't know if the rate for someone with a freshly minted ticket is much lower than one for a student pilot, but I'm sure you could find out pretty quickly.
 
I used avemco for my renters insurance while getting my ppl. Logged in and updated when I passed my check ride. A few weeks later I got a letter that my policy cost dropped by about $20 (was only 6 months in). Yea. Don't expect much of a drop.

Maybe with my IR or at renewal with no claims it may go down more.
 
It would seem a weird model to hold a student rated pilot to a more expensive policy for eight extra months? That will be a guaranteed way to make me find a new carrier as soon as my policy expires! . I would like to think somebody wants my business and wants me to have an appropriate policy, not that they feel they need to hold me hostage or they won't get my money?

I think most insurance is priced based on exposure. Most student policies probably assume the exposure is based on the number of hours flown solo to get a private license (10-15) at a much higher rate than after the PPL is earned. I would assume that means that the premium is based more on 10-15 hours of solo flight versus a year of coverage. Once those solo hours are finished and the PPL is received, they assume they have received all of the exposure that they charged for. The further flying as a PPL until the end of he policy term is much lower risk than the 10-15 hours of solo flight.

I have never seen a policy drop mid-term when a new rating is earned or time is built, but often the renewal premium is lower.
 
Thanks guys

OK fellas, the last couple of posts make a lot of sense. That is exactly the kind of info I was looking for, because I figured I was not thinking it through well. I think my basis of misconception was rooted in my original conversation with the insurance agency when the original agent made a bigger deal of passing the checkride than the current agent is.

The idea of direct supervision / versus not from a liability standpoint is not one I had given much thought. Perhaps I should shut up now, because I can make a pretty good case in my head for why the first X number of hours after being "set free" might be statistically the most risky…

Thanks again for the levelheaded responses. I'm also thankful that I am finally at a point in my life where I would ask for council, rather than instantly threw up all over my insurance person because I didn't like what I was hearing. :)
 
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