Register

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 rising rates, the aviation insurance market has stabilized due to increased capacity from new insurers and managing general agents (MGAs), leading to moderated premium increases.
  • Aviation insurance pricing is primarily driven by pilot factors (age, experience, ratings, flight hours), aircraft type and value, and prior claims history, with an instrument rating notably improving competitiveness.
  • To optimize rates and coverage, pilots should pursue model-specific training, maintain proficiency programs (like FAA WINGS), accurately establish an "agreed value" for hull insurance, and select the highest feasible "smooth" liability limit without restrictive per-person sublimits.
  • Choosing a single, specialized aviation insurance broker with industry expertise and strong underwriter relationships is crucial for navigating the market effectively and securing the best terms.
See a mistake? Contact us.

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.

Ready to Sell Your Aircraft?

List your airplane on AircraftForSale.com and reach qualified buyers.

List Your Aircraft
AircraftForSale Logo | FLYING Logo
Pilot in aircraft
Sign-up for newsletters & special offers!

Get the latest stories & special offers delivered directly to your inbox.

SUBSCRIBE