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Pleasant Surprise from my Insurance Agent

Mitch757

Well Known Member
I got a call this morning from my agent (Mid-Continent) telling me it's renewal time. I was shocked wnen she told me that my same company, Global Aerospace, was quoting me at $916 for full coverage! That's over$300 less than they have been charging me for the past several years.

Addtionally, they knocked liability only for my PL4 from $550 to $305!

I don't know what's driving this but I'm a happy camper.

Mitch Garner
RV-4 flying
PL-4 flying
RV-12...workin' on it.
 
My -9A insurance this year dropped $241 from $1265 to $1024, for same $1M liability and $85K hull. Hangar insurance dropped from $500 to $285 for same $75K replacement. Falcon Insurance thru USAA. Dan
 
any chance you guys can call your agent and find out why this is happening.

Did you pass a certain number of hours, etc?

I just got quoted $1976 for 100k ground/flight coverg. $1 mil liability, 100k each passenger liability (Chartis)
 
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I just renewed the RV-8's policy (Our broker is SkySmith) with a new company he recommended, and it dropped about $200 from last year. No idea why, but it seems to me there were more companies quoting than years past - could be that competition is becoming more important? Both Louise and I have enough hours and licenses that we don't see much of a decrease due to additional experience anymore.

Bob, you're probably seeing higher numbers (than some examples) because of the hull value you've chosen (I use the same thing, because I have a lot in the airplane) - many don't insure for near that much.

Paul
 
I asked once and was told the change in rates year over year are more based on how much was paid out versus collected, and not so much how many more hours you have accumalated from the previous year. If the insurance company had a good year, you'll see more of drop. Sounds like the insurance companies did fairly well last year!

Bob - your 1976 sounds about right compared to what I first paid for insurance a year ago when I did my first flight.

Vince
RV-7
N567VB
 
A little time in the plane helps, it seems

Bob,
My insurance costs on Mikey went down a couple hundred dollars after my first year and another hundred or two the second year. I assume it was because I passed 500 hours total time and 200 hours tailwheel and model time. That, of course, was several years ago.
 
My insurance

thru EAA (Falcon) was $300 less than last year too. $1320 for 120K hull and a million liability.:D

Wonder what is driving this?
 
Same numbers as Mitch

I renewed last Friday. Got the same exact numbers as Mitch did in the original post. $300 drop year over year from $1216 to $916, underwritten by Global Aerospace.
 
for 100K hull, Mil liability, I paid 2200 first flight. It dropped right at 600 for the next year with just over 110 hours on the plane. I had 450 hours in the log book total.
 
Bob, I think you have low hours in type? That's a big driver for insurance companies. Also, I think you're still in phase 1? Another hit.

Bob
 
Mine dropped $308 this year, which I was very happy to see.

Remember, the total cost of your insurance is dependent on your total time, ratings, time in type, time on the aircraft, NW vs TW, TW time (if applicable), hull value, and what is covered.

My insurance covers my plane for $85K, the hangar, the hangar contents, off airport landings, and any other aircraft which I I?m qualified to fly up to that $85K limit.
 
First year insurance.

any chance you guys can call your agent and find out why this is happening.

Did you pass a certain number of hours, etc?

I just got quoted $1976 for 100k ground/flight coverg. $1 mil liability, 100k each passenger liability (Chartis)

That is very close to what I paid for my first year of insurance, same coverage (includes hull in motion), year two it went way down. This year (yr3) the same coverage is $1440. (Travers Insurance through EAA)
 
Even more good news

It looks like AIG is starting to insure RV's. I just received my renewal and it is now just over $1,000 for $85K hull. It was around $1,500 last year.

I asked the broker how much of a penalty I'm paying for the tailwheel and he said about 10%, maybe less. That is a small price to pay and well worth it, in my book. He also added I'm at the point where adding ratings (I'm a VFR SEL only kind of pilot.) or more total time wouldn't change my rates.

He did add that if I was new to tailwheel aircraft, my rate would probably be double that for the first year but would come down significantly on the second year. He didn't say, and I didn't think to ask how much a new RV pilot with the little wheel up front would be surcharged.

Anyway, it looks like there is some competition back in the insurance marketplace.
 
Random data point, but AIG gave me a competitive quote, but I was able to save $75 more by going with Global ($950). I used NationAir as a broker. Great service so far and I'm extremely happy.

First 2 years of ownership, I was with Starr, but this year they not only did not reduce the premium, but it went up from $1150 to $1225 with no claims and 230 hrsRV-4/310 TW.
 
Random data point, but AIG gave me a competitive quote, but I was able to save $75 more by going with Global ($950). I used NationAir as a broker. Great service so far and I'm extremely happy.

First 2 years of ownership, I was with Starr, but this year they not only did not reduce the premium, but it went up from $1150 to $1225 with no claims and 230 hrsRV-4/310 TW.

What hull value did you list it at? That and hours are the big numbers.
 
I don't know if you'll ever get any insurance industry personnel to admit this, but it's pretty easy to check with historical data if you've been buying a/c insurance long enough. A/C rates are much more dependent on the stock market than the actuarial market. Stock market's down? Your rates are going up. Stock market's up? Your rates are going down. Insurance companies make their money from investing your premiums, not from the spread between premiums and payouts. If the investment market goes down, they quit making monster profits and partially make up for it by raising our rates.

FWIW,

Charlie
 
I was quoted 1200+- for my in motion policy on 80k and my first flight by AIG. (RV7) It required 1 hr transition training. They were the only one that would insure me because of my 1800' grass runway. I called Nation Air about two months after the quote to activate it and it had gone down about 100$. I have about 300 hrs previous tail wheel time.
 
Interesting point Mike. I never thought to inquire how my 1900' grass runway might affect my insurance. It may be none. It may be some.
 
I don't know if you'll ever get any insurance industry personnel to admit this, but it's pretty easy to check with historical data if you've been buying a/c insurance long enough. A/C rates are much more dependent on the stock market than the actuarial market. Stock market's down? Your rates are going up. Stock market's up? Your rates are going down. Insurance companies make their money from investing your premiums, not from the spread between premiums and payouts. If the investment market goes down, they quit making monster profits and partially make up for it by raising our rates.

FWIW,

Charlie


Yep, there are a good many things that effect insurance rates, but this is one of the big ones that effect us all across the board.

Tim
 
Insurance

My quote with Global went up 15% for no reason. Previous 2 years my policy was the same price. Not using them anymore......
 
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