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How to Save Money on Aviation Insurance

** Illustration by Chris Gall**
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Key Takeaways:

  • Aviation insurance is crucial for pilots, as incidents can lead to high costs that far exceed policy premiums, making adequate coverage and understanding policy limits essential.
  • The specialized aviation insurance market has experienced competitive rates recently, emphasizing the importance of choosing a knowledgeable broker who can tailor policies and help navigate rate variations.
  • Pilots can reduce their aircraft insurance premiums by engaging in regular training, acquiring new ratings, accumulating flight hours, parking in hangars, and leveraging association memberships or partnerships.
  • Life insurance for pilots often has specific general aviation exclusions, requiring careful selection of policies (term vs. universal) and shopping around with specialized brokers to secure competitive rates and appropriate coverage.
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A few years back, a Cessna 172 pilot had trouble starting his airplane and decided to hand-prop it near the Typhoon restaurant at the Santa Monica airport. No one was inside the Skyhawk. The engine spun up, and the airplane made a solo trip across runway 21. In the process, it made a business jet go around and entered a hangar on the other side of the runway. The propeller proceeded to chop up the fuselage of a Beechcraft Baron that was parked inside the hangar.

At the time, an annual insurance policy on a Cessna 172 would have been around $1,000. The claim was likely in the hundreds of thousands. There are not many products you purchase that you hope to never use. But insurance truly fits that profile. And the owner of that Skyhawk was likely very happy to have it.

Pia Bergqvist

Pia Bergqvist joined FLYING in December 2010. A passionate aviator, Pia started flying in 1999 and quickly obtained her single- and multi-engine commercial, instrument and instructor ratings. After a decade of working in general aviation, Pia has accumulated almost 3,000 hours of flight time in nearly 40 different types of aircraft.

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