Understanding the Importance of Aviation Insurance

[LRingeisen]

While aviation insurance isn't universally mandated, it is often necessary for practical reasons, such as fulfilling contractual obligations required by lenders, airports, and hangar owners. However, most aircraft owners choose to purchase aviation insurance for their own peace of mind and financial protection. Before addressing coverage for the aircraft itself, it's important to discuss liability coverage. This type of insurance is crucial in cases of bodily injury or death to passengers, as well as property damage to others. For instance, with a $1,000,000/$100,000 policy (the minimum we recommend), the $1,000,000 covers each occurrence, while the $100,000 is allocated per passenger. In the event of an accident where your aircraft damages a building and injures a pedestrian, the policy provides up to $1,000,000 to cover the incident. The insurance company will determine the distribution of funds to the pedestrian and the building, up to the policy limit. If passengers are also injured, they are covered up to $100,000 each, within the $1,000,000 total. Adding hull coverage to your policy extends protection to the aircraft itself against accidents, theft, or natural disasters, helping to manage the high costs of repairs or replacements. In short, aviation insurance acts as a safety net, allowing you to focus on flying without the constant worry of potential mishaps.

 

[simpsontl48]

I am an experienced pilot...former Navy... nearly 5000 hours, instrument qualified. I am now 77. I am very healthy. Will I be able to get insurance on a Vans RV-7A?

 

[Estevanb]

I'm very satisfied with Gallagher Services and with the insurance coverage I got. Brought me peace of mind for sure. Special thanks to you @LRingeisen , who is always so quick and helpful with my requests!

 

[LRingeisen]

I am an experienced pilot...former Navy... nearly 5000 hours, instrument qualified. I am now 77. I am very healthy. Will I be able to get insurance on a Vans RV-7A?

As you may be aware, securing insurance coverage for older pilots can be challenging, particularly if they are not already grandfathered into an existing policy. However, we are committed to exploring all available options for you. We do have one insurance company that may consider providing coverage after completing some additional paperwork. Please note that the premium for this coverage will likely be higher than standard rates due to the increased risk factors associated with age. Please feel free to reach out to one of us if you would like more information.

 

[Dugaru]

Please note that the premium for this coverage will likely be higher than standard rates due to the increased risk factors associated with age.

Makes sense (just like life insurance gets a bit more expensive as one ages ).

Assuming no lender is involved, is it possible to reduce the cost by declining hull insurance altogether, and just getting liability-only coverage? Virginia, for example, requires the latter, but not the former.

 

[Sam Buchanan]

Leah,

There are probably some on this thread who would benefit from you explaining GNIM and GIM policies. This can be a useful option for older pilots who are challenged with full flight hull coverage. I've had a GNIM policy for nearly 25 years on my RV-6 which has saved me a huge amount on premiums but still provided full liability protection. I'm primarily concerned with hull damage from our frequent tornadoes!

 

[Ironflight]

Makes sense (just like life insurance gets a bit more expensive as one ages ).

Assuming no lender is involved, is it possible to reduce the cost by declining hull insurance altogether, and just getting liability-only coverage? Virginia, for example, requires the latter, but not the former.

We run liability only on our entire family “fleet”…. A loss of an airplane doesn’t mean we can’t buy groceries or pay the taxes, so it would just make us sad. But not as sad as p[aying for hull coverage for al the flying machines each year!

 

[Mel]

We run liability only on our entire family “fleet”…. A loss of an airplane doesn’t mean we can’t buy groceries or pay the taxes, so it would just make us sad. But not as sad as paying for hull coverage for al the flying machines each year!

You Guys should qualify for a substantial volume discount!

 

[LRingeisen]

Leah,

There are probably some on this thread who would benefit from you explaining GNIM and GIM policies. This can be a useful option for older pilots who are challenged with full flight hull coverage. I've had a GNIM policy for nearly 25 years on my RV-6 which has saved me a huge amount on premiums but still provided full liability protection. I'm primarily concerned with hull damage from our frequent tornadoes!

To address Dugaru's question as well, there are various types of insurance available. Beyond storage coverage, the most basic option is Liability Only. This covers you for situations where you are liable, whether they occur in flight or on the ground, but it does not cover the aircraft itself. You can enhance this with Ground Not in Motion coverage, which protects the aircraft as long as the aircraft is not moving under its own power. With this option, you still maintain liability coverage while flying. Consequently, the premium is determined by factors such as the pilot's rating, age, certifications, flight hours, etc. You can further extend this coverage to Ground Not in Flight, which includes protection for taxiing. However, the most common coverage is Ground and Flight, also known as All Risk Hull or Full Flight coverage, which adds flying coverage for the aircraft. It's crucial to note that all these options include liability coverage both on the ground and in flight.