Airplane Insurance 2009

[lucky]

I got my quote today for my insurance renewal and it didn't change from last year - exactly the same to the penny. I'm still trying to figure out if that's a good thing or a bad thing based on STUFF like the falling value of homes and cars and barrels of oil vs in the increases in market pessimism, unemployment, and continued bailouts/handouts/record deficit spending.

The broker is Traverse and the underwriter is AIG.

I thought someone else might be wondering how AC insurance renewal was playing out these days....

[Radomir]

did you provide them with updated hours? I received the quote first which was same as last year, but then after they got new total time.. it dropped a decent amount.. but mine's not underwriten by AIG.. so not sure if that makes any difference...

How many hours, btw.. did they tell you what would be minimum to make any difference in premium?

[zilik]

I also received my new premium this week for AIG. With AIG tanking I wonder if I'm throwing my money away paying the bill. I think I'll call tomorrow and see if the agent can quote me another underwriter.

[Bryan Wood]

Originally Posted by zilik

I also received my new premium this week for AIG. With AIG tanking I wonder if I'm throwing my money away paying the bill. I think I'll call tomorrow and see if the agent can quote me another underwriter.

Gary,

I switched from AIG on my last renewel and it did raise my rates about $50 to get peace of mind on this. Now when the news brings up AIG don't have to worry.

[grover]

I dumped AIG out of disgust. when the premium refund came, I sent it P1 overnight to the credit union- hoping the check would clear before they are totally insolvent.

[664781]

Just got my new rate and it went down this year with Global thru EAA.

[JDRhodes]

Most of the RV's I now handle are going with Global Aerospace, right now.

In general, premiums are at / near the bottom of where they can go across the board. If you add a rating, go from none to a lot of TW or MM time, or something, you might see a little reduction, but rates aren't plunging overall like they have done in the past years.

Take your choice with AIG. They're telling us that the commercial insurance arm is strong and solvent. But - you guys are smart people. Weak divisions can take out strong divisions, easily. Many of my clients are concerned and many are not at all - if AIG is cheaper, go there, they say.

There are alternatives.

Mine came up for renewal with EAA, whom I've been with since completion and first flight in 2004. For this year, the premium dropped from $2,100 to $1,900 with $1M/$100k liability, $70k hull, and $10k med pay. I'm a VFR private pilot, 400 hours total and about 230-250 in RVs.

Just for fun I called Avemco, spoke with them and they quoted $2,900. No thanks.

Earlier this week I saw the ad in the latest Sport Aviation touting smooth limits (no per passenger sublimit) with the EAA program. I called Falcon and they said that was available for standard airworthiness certificates but not experimental. I would go for the $1M smooth if it were available, but it appears to be an elusive animal, at least for an RV.

[lucky]

Travers and associates took a few days to find a 'cheaper' alternative. They found a different company, Specialty Aviation Underwriters, and I was able to go from $1607 to $1492 but my deductable went from $100 to $500. Everything else about the coverage is the same. Not a big savings but when the first two numbers are 14 instead of 16 if feels a little better cutting that check!

So AIG would not budge on the number for a second or third year in a row so I didn't feel bad about leaving them for a different company with the same A rating. Wish I had done it a year or two earlier.

Here's a blurb about them since I never heard of them before.

Specialty Aviation Underwriters has opened for business to insure a range of aviation risks, including antique and classic aircraft, experimental and homebuilt aircraft, "war birds," ex-military aircraft and seaplanes. The new venture will also insure transitioning pilots.

The new entity is headed by Truman (Ted) Thomas, the former owner of Southern Aviation Insurance Underwriters. More recently he held senior management positions with HCC Aviation Insurance Group and U.S. Specialty Insurance Co.
The company initially will offer hull limits up to $500,000 per aircraft and up to $1 million in liability coverage. Higher limits on specific aircraft are expected to become available. Liability-only policies, including medical payments coverage, also will be available. Eligible aircraft can have no more than 10 seats. Short-term policies will be available for special events.

Initially, coverage will be confined to aircraft based in the continental U.S., with geographic limits extending to Canada, Mexico, the Bahamas and Caribbean islands, as necessary.

All aviation coverage will be underwritten and issued via Specialty Aviation Underwriters Inc., in Birmingham, Ala. The carrier will be Old United Casualty Co., rated A VII by A.M. Best.

For more information, contact Specialty Aviation Underwriters Inc. at (205) 335-5089

[JDRhodes]

Global Aerospace or AIG Aviation - Call your favorite agent and have them give you those 2 companies' quotes. Take your pick. If you don't like AIG, then your choice is easy.

If you've nothing better to do, you can call 100 different agents, who will all give you the same 2 quotes from the same 2 companies. Global Aerospace = EAA program. You have to be a member to get a quote. Any agent can get it.

Everybody's rates are /have been going down for a year or more. RV's less than other spam cans because fewer companies write the business. All are expected to flatten over the next 12 months and will probably start to creep back up. Premiums across the board are too low to be profitable right now.

US Specialty and Avemco also quote RV's. Both are owned by Houston Casualty and both have similar (high) pricing.

2 years ago, most of mine were with AIG. Now, most are going to Global Aerospace.