T

Timbeck2

Member
I just bought a Piper Cherokee and am in the process of selecting insurance. facts follow:

I'm a student pilot with 19 hours
Cherokee is worth $31k
I'm 52

How much coverage do I need other than the hull which I'm assuming I'll put $31K in that blank. I want AOPA unless someone convinces me otherwise.

I've bought a couple of houses and several cars...never an airplane so I'm clueless. Please help a brutha out.


Tim
 
coverage

What is your net worth (do not answer on-line)?
If it is zero no one will sue you, you don't need liability coverage.
Otherwise, you do. "Standard" liability coverage is pretty much $1,000,000 but limited to $100,000 per passenger (AVEMCO limits it per person, I cannot recommend them). If you are a high net worth individual you might ask about higher coverages. They can get expensive just because they're not standard, and make you a better lawsuit target. But $1,000,000 with no per person limits is usually available. You might hold off on this until you get your license, since until then you cannot take passengers. Your CFI's estate might sue you or your estate, but technically he's the PIC so that would be a little tough, but lawyers will try anything.
If you can stand the loss, you may consider no hull insurance, or at least a large deductible.
 
Some airports want proof of a certain amount of liability insurance to rent a hangar or tie down. If so, then you'd probably want at least that much.

Some don't. It varies.

Dave
 
BobTurner said:
What is your net worth (do not answer on-line)?
If it is zero no one will sue you, you don't need liability coverage.
Click to expand...

Not really 100% accurate. If you are found liable and have a judgement filed against you, your future net worth is potentially also at risk. You don't have to be rich today for someone to receive an award of damages, which could be collected in the future.
 
Having 'been there, had that done to', I have a different perspective on how much coverage you need. I got sued (auto accident) 30+ years ago when I had at most $50k net worth. The suit was for a bit north of 1/2 million. I had $300k of liability coverage (relatively high level of coverage back then for a business auto policy), and my insurance company advised me (were legally obligated to do this) that I might want to hire my own lawyer in addition to the lawyer hired by my insurance company. Reason: If the ins co decided that they might run up very large legal bills, *and* expect to lose big, they might decide to simply pay out the policy face value and walk away, with no lawyer expenses. I'd have been left holding the bill for any amount that exceeded the policy value in the subsequent suit.

Have a brake failure & chew up the fuselage & an engine of a brand new bizjet, or worse yet, injure/kill some CEO? I doubt any ins co will write a liability policy for us that would cover that.

My perspective is that if you're going to buy liability coverage, you've got to buy enough for the ins co to have skin in the game; otherwise you could still lose everything and not even have a lawyer in your corner that you thought you paid for. Unfortunately, at the level of awards/settlements these days and incredible costs for legal expenses, it's difficult to buy enough coverage to do that.

Charlie
 
You must log in or register to reply here.