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Top 10 Aviation Insurance Myths

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Key Takeaways:

  • Aviation insurance policies vary significantly by insurer and state, making it crucial to understand your specific coverage terms rather than assuming all policies are the same.
  • Pilots often underestimate their personal liability for subrogation and loss of use when flying rented or borrowed aircraft, even if seemingly covered by another's policy.
  • Accurate hull valuation and adherence to specific policy conditions (like honest applications or non-commercial use) are vital for valid claims, more so than simple FAR violations.
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Jim Lauerman, former president of Avemco Insurance Company, shares his top list of “aviation insurance myths” – those long-held beliefs about aircraft policies that are misunderstood by pilots, whether they own the airplane they fly, rent the airplane they fly or fly a friend’s airplane. These myths are specific to Avemco® in many cases, so it’s important to check with your insurer to see if they apply. Here’s what Lauerman has to say:

1 Myth: All policies are the same. “The reality is there are a lot of similarities in aviation policies, but there are some significant differences too,” Lauerman said. It’s important to realize that what may be true for an aviation insurance policyholder in one state may not be true for you in your state.

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