I tell people all the time that owning an aircraft is not really any more expensive than many other “hobbies.” Boats, motorcycles and recreational vehicles all cost money. And because all the activities cost money it’s a good idea to take a look at some of the costs of ownership and how to manage them.
What are a few of the costs? Fuel, storage and things like engine and avionics reserve are important. But one of the biggest expenses in aircraft ownership is insurance. Not all states require insurance and not all owners buy insurance. But if you are one of those owners who is going to buy insurance there are a few things to think about before you finalize your aircraft purchase.
In today’s market you might not be able to get insurance for the plane you want or the premium might be more than you want to spend, so quote the aircraft before you put the deposit on it.
Some things to consider:
1. What kind of aircraft are you buying? The well-known Experimental aircraft have the best chance for insurance.
2. The age of the aircraft is important. The older the aircraft the harder to insure, but support also plays into this. More on that further down the list.
3. Age of the pilot. I assume you have been hearing about senior pilot issues and insurance. It hasn’t changed. Most companies won’t quote new business if you are over 69 years old. Some companies will if you are in “normal” aircraft (fixed tri-gear, four-seats-or-fewer type of aircraft). No transitioning into new categories or high performance. You are either already qualified or you stay in what you are flying.
4. Retractable gear wouldn’t seem to be a big deal, but it is. Retractable gear aircraft have mechanical/collapse and “I forgot” issues every day in the FAA preliminary accident reports. A few insurance companies have stopped insuring RG Experimentals as well as old twins and complex singles.
5. Tailwheel, same issues. If you have a lot of tailwheel time, it’s easier, but it depends on the model and your age. One company requires 100 hours in the make and model before they quote.
6. Construction needs to be simple and conventional. The more unique, the less the insurance companies want to be involved. The question to ask is how hard the plane is to be repaired and who can do it. Simple all-metal construction is even easier than tube and fabric in today’s world. And that’s easier than some sort of exotic composite construction.
7. Which brings up parts availability. Can you get parts easily? How many months of parts supply are available? If there is a loss and the insurance company must make repairs, they don’t want to wait months for the parts to be made or shipped around the world. The quicker the plane gets repaired (or totaled) the less money they lose.
8. This makes repair locations vital. If the plane has to be shipped long distances to a special repair company, rates go up or the insurance company doesn’t want to have anything to do with it. Being able to have the plane repaired at a local shop or a reasonable distance is a priority.
9. The number of planes flying in the U.S. gives an indication of all these things. If there are only a couple in the States, there won’t be much access or experience in repairs and parts. The more flying aircraft, the more history there is. That’s why Cessna 150s and 172s have reasonable rates; it’s a numbers game.
10. Training is another key factor. If you are building something you can’t get training in, insurance will be difficult. You may have to fly the first 50 hours before anyone even considers quoting you. Good training programs with qualified CFIs in the same make and model are essential. Even a single-seat aircraft is going to require some training in a similar plane. For example, to get into a Pitts single seat, they will want dual in a Pitts two-place. If your aircraft doesn’t have full dual control, you will need to find one that does for training.
All this doesn’t mean you can’t get insured, but it will be difficult and more than likely expensive. The key is to ask before you buy or build. Make sure you can get insurance coverage if you need it, before you spend the money.
One size does not fit all.
The insurance companies rely too much on metrics that do not take into account the individual pilot.
I am 79 years old. A former CFI-A-I-ME. About 14,000 hours. I’ve owned many different airplanes from Cubs to experimentals and have flown many more including a career flying corporate jets. My Glastar was flooded when Hurricane Helene made it all the way into the western NC mountains. The first question from my claims administrator was the date of my last flight review. For a not-in-motion loss that was not my fault. Go figure. Now that loss is a factor in my ability to get insurance, along with my age, plus I want to transition to a different type of aircraft. A no-no.
How about liability only? So far the jury is still out.
Tell me about insurance. You’re betting you will have a loss; they’re betting you won’t. What is wrong with this picture.
I saw the post in GAOA for the salvage; I wanted so much to try and save it; it seemed like it would be pretty straightforward to clean it up and get it flying again. Do you know who bought it at auction?
It turns out that after flying it for 21 years, no insurance company would reinsure me to fly solo when my policy would expire in November 2023, (I would have to have another pilot onboard). I had a valid medical and check ride (BFR) but would be 86 in 2024. All I asked for was liability. I had the same insurance company through the EAA.
It turns out that after flying it for 21 years, no insurance company would reinsure me to fly solo when my policy would expire in November 2023, (I would have to have another pilot onboard). I had a valid medical and check ride but would be 86 in 2024. I have been with the same EAA sponsored agent for over 20 years and only wanted liability.