Insurance?

stevanlcrawford · #1 06-02-2009, 11:30 AM

I've been quoted $1470/year for insurance on my RV-4...full coverage whether in motion or parked in the hangar, and liability. I've ALSO been quoted about $885/year for the same coverage, except ONLY WHILE NOT IN MOTION. I keep asking myself: "If I'm the shop and repairman, why am I carrying full coverage?". Do most pilots opt for the "Not In Motion" coverage? Any thoughts/comments would be greatly appreciated!

Radomir · #2 06-02-2009, 11:58 AM

I cannot imagine why you'd carry "not in motion" only... if vast majority of mishaps happen while aircraft is moving..

pierre smith · #3 06-02-2009, 12:10 PM

...Would you be willing to self-insure? That's what this sounds like....you're willing to eat any in-motion loss, which quite a few guys do, by the way.

On the other hand, where would your family be if you went into someone's house and killed yourself? The 1 million I carry might help but with the current litigious attitudes in the country....??

Regards,

Sam Buchanan · #4 06-02-2009, 12:45 PM

Quote:

Originally Posted by stevanlcrawford

I've been quoted $1470/year for insurance on my RV-4...full coverage whether in motion or parked in the hangar, and liability. I've ALSO been quoted about $885/year for the same coverage, except ONLY WHILE NOT IN MOTION. I keep asking myself: "If I'm the shop and repairman, why am I carrying full coverage?". Do most pilots opt for the "Not In Motion" coverage? Any thoughts/comments would be greatly appreciated!

I have had GNIM (ground, not in motion) coverage on my RV-6 for nine years. This is a personal decision that I'm comfortable with but will not appeal to all pilots. The plane is self-insured if I wad it up but I have full hull if the hangar gets hit by a tornado or fire. Basically, I'm taking responsibility for any errors I make while flying, and I intend to be the repair shop if necessary. If the accident is really severe........guess I won't have to worry about repairing the plane...........

Just to be clear, a GNIM policy has full liability coverage at all times, so no liability protection is lost if GNIM is written. There is also GIM (ground, in motion) that covers the hull until you take the active runway.

By the way, my agent is Skysmith, and the carrier is AIG (or whatever they are called now).

JDRhodes · #5 06-02-2009, 01:16 PM

Quote:

Originally Posted by stevanlcrawford

I keep asking myself: "If I'm the shop and repairman, why am I carrying full coverage?".

Because, in addition to making all the repairs, you'll also be buying all the parts. An engine with a prop strike might cost $20,000 to fix. Ditto with airframe repairs. If you are comfortable with this, you can save $500 a year.

Not a judgement - many people are comfortable with this.

Sam's right about liability coverage - GNIM applies only to hull coverage on most policies.

Mel · #6 06-02-2009, 01:38 PM

I carry "in motion" but "not in flight".
This covers me while taxiing until I start the take-off roll.
Costs me just under $900 with AIG through SkySmith.

John_RV4 · #7 06-02-2009, 02:41 PM

Steve,
I also have an RV-4 and I'm paying similar rates. Your correct, there is very little to be gained by dropping the "in-motion" coverage. Almost all accidents happen in motion anyway. I have self insured motorcyles in the past. Generally, if the insurance premiums will amount to the cost of the vehicle in (say 5 years), I will self-insure. In this case, it will take you about 30 years of premiums to cover the cost of your RV. In this scenario, I pay the premiums.

That said, my(2nd hand) RV went 16 years without insurance before I bought it. When I told my friend (the builder) that I thought the insurance was a little high for the plane, his response was "You can get insurance ??"

John

Dave Cole · #8 06-02-2009, 03:17 PM

I have always changed my sailplane insurance to "not in motion" coverage during the winter months when I don't fly it. For years, I presumed that if I chose to fly while the "not in motion" coverage was in effect, that I was accepting the risk of no hull coverage, but that the liability coverage was still in effect.

It turns out that I was mistaken. The underwriter considers "not in motion" to mean that there is no coverage, either hull or liability, for in-motion incidents. Knowing that, I no longer fly my glider when the "not in motion" coverage is in effect.

If you choose the not in motion option, be sure to verify whether or not the liability coverage for in motion remains in effect.

Webb · #9 06-02-2009, 04:30 PM

Sounds reasonable for hull damage. What's the liability gonna cost?

roadrunner20 · #10 06-02-2009, 09:08 PM

Quote:

Originally Posted by Radomir

I cannot imagine why you'd carry "not in motion" only... if vast majority of mishaps happen while aircraft is moving..

Except in Florida, when it's hurricane season.

I'm self insured and have liability only for 355/year.
I figure I'm saving almost 2k/year and figure I can do my own repairs. I've been flying 3 years now and figured I've saved 6k.
It is a risk I've felt comfortable with up to now. The downside is if we get nailed by a hurricane or tornando.