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Top 10 Aviation Insurance Myths

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Key Takeaways:

  • Aviation insurance policies are not all the same; pilots must understand their specific coverage as conditions and payouts can vary significantly by insurer and state.
  • Pilots flying rented or borrowed aircraft face potential liability risks, as owners' policies may not fully protect them from subrogation for damages or loss of use.
  • Claim payouts are dictated by specific policy conditions, not just FAR violations, and accurate aircraft valuation is critical for adequate hull coverage.
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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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