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Here Are Some Tips on Aircraft Insurance Strategies

Cycles, though unpredictable in duration, are a fact of life, even when it comes to insuring aircraft.

Factors that lead to higher rates and/or insurer declinations include high-time student pilots, pilots with no make/model time, pilots over 70, pilots with zero or few hours logged over the prior year, and any recent claims activity. [Illustration: Carlo Giambarresi]
Gemini Sparkle

Key Takeaways:

  • After years of increasing rates and tightening standards, the aviation insurance market is stabilizing, with premiums generally tracking inflation due to abundant capacity and new competition.
  • Aviation insurance pricing is primarily driven by pilot experience (age, ratings, flight hours, claims history) and aircraft characteristics (type, value, storage), with an instrument rating notably leading to more competitive premiums.
  • Aircraft owners can optimize their insurance by undertaking model-specific training, participating in proficiency programs like FAA WINGS, insuring hull value accurately, and prioritizing smooth liability limits over those with per-person sublimits.
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Cycles, though unpredictable in duration, are a fact of life—a manifestation of the age-old idiom “what goes up must come down.” In aviation, this could not be more evident than in the parabolic curve of airline pilot hiring that creates perpetual boom/bust cycles of opportunity.

Though not quite as headline grabbing or sexy, aviation insurance is cyclical too. For more than five years as FLYING’s aviation insurance contributor, I’ve been lamenting the woes of higher insurance rates and tougher underwriting standards. I was starting to feel like a killjoy of a post-pandemic general aviation party, where more people were becoming pilots, and they were flying more hours in more capable airplanes—a boom we haven’t experienced in decades.

David Hampson

David Hampson is president of Schrager Hampson Aviation Insurance Agency LLC and general manager of William J. Grohs Aviation Inc.

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