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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:

  • The aviation insurance market has stabilized after years of increasing rates, with new market capacity and competition leading to flattened premiums and more flexible underwriting.
  • Aviation insurance costs are heavily influenced by pilot experience and history (age, ratings, flight hours, past incidents), aircraft characteristics (type, value, complexity, storage), and recent claims.
  • Pilots can optimize their rates by pursuing model-specific training, maintaining proficiency (e.g., instrument rating, FAA WINGS program), accurately assessing hull value, and selecting comprehensive liability limits.
  • It is recommended to work with a specialized aviation insurance broker who possesses deep industry knowledge and strong underwriter relationships to secure the best coverage and rates.
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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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