Aircraft renters insurance policies are primarily designed to protect you against liability damages incurred as a result of the additional risks associated with operating aircraft that you do not own. Many pilots believe that their flight school or FBO insurance covers pilots who rent their aircraft, however their insurance policy normally covers their interests in the aircraft and protects them from liability claims.
Aircraft renters insurance policies can provide coverage for:
If you are flying an aircraft that you do not own, an aircraft renters insurance policy will provide you with the security and peace of mind of knowing that you are covered in the case of a loss or disaster.
What coverages are typically offered in aircraft renters insurance policies?
Liability Coverage: Standard liability coverage is included in all Aircraft Renters Insurance policies. Aircraft liability insurance shields you from legal liability for losses resulting from bodily injury or property damage sustained while operating an aircraft. In the event that you are sued as a result of an accident while flying, aircraft liability insurance will equip you with legal defense.
Aircraft liability insurance is normally offered in increments of $250,000 per event, with a maximum of $25,000 per passenger. The highest level of liability insurance is usually $1,000,000 per event, with a maximum of $200,000 per passenger.
Physical Damage to Non-Owned Aircraft: Aircraft Renters Insurance policies include hull coverage for non-owned aircraft. Hull coverage is often available in sums ranging from $5,000 to $200,000 as an add-on to an aircraft renters insurance policy.
- Is there hull coverage on the aircraft owner’s or flying school’s insurance policy? If that’s the case, does the coverage have a high deductible?
- Depending on the circumstances, you should either cover the deductibles with the amount of hull coverage included in your aircraft renters insurance policy, or cover the full value of the aircraft if the aircraft owner lacks suitable coverage.
*Important note: Hull coverage on a non-owned aircraft or aircraft renters insurance policy is secondary coverage, which means that in the event of a loss, the aircraft owners policy takes precedence. Furthermore, hull coverage is only reimbursed if you are legally liable for non-owned aircraft damage. In order to trigger coverage, you must be sued.>
What types of non-owned aircraft are typically covered?
- Standard, experimental, and light sport aircraft with reciprocating piston engines are included.
- Any fixed-wing, single-engine, single-seat aircraft powered by a reciprocating piston engine is included.
- Any non-pressurized multi-engine land aircraft with reciprocating piston engines is included.
- Non-owned aircraft insurance coverage do not cover any commercial use, including your liability as a CFI, thus there may be exclusions.
- Aircraft renters insurance policies start at $72 per year for $250,000 in liability coverage, with a passenger limit of $25,000 each.
- Liability coverage options range from $1,000,000 per occurrence to $200,000 per passenger, with annual premiums averaging $470.
- Physical damage or hull coverage can be added to an aircraft renters insurance policy as an extra coverage. The cost of $5,000 in physical damage coverage is $86, in addition to the liability fee. In addition to the liability expense, the cost of hull coverage for $200,000 is roughly $1,663.
How much aircraft damage liability should I get?
Consider purchasing extra insurance than the bare minimum required. You should have bodily injury liability limits of $200,000 per passenger for injuries and up to $1 million for all injuries in an accident you cause. It’s also a good idea to have bodily injury insurance for your passengers. Purchase as much liability insurance as you can afford at the absolute least.
When purchasing a non-owner policy, choose ground and flight coverage to gain the maximum aircraft damage protection. Purchase enough aircraft damage insurance to cover the cost of replacing the most expensive jet you rent or borrow. To rent a basic training plane, many flying schools require a minimum of $30,000 in aircraft damage liability, while some require far greater sums of coverage.
Do you need insurance to rent an aircraft?
Don’t think that your flight school or a buddy will cover you while renting or borrowing an aircraft. If you harm someone or cause property damage, their coverage may not shield you from a lawsuit. Renter’s Insurance from Avemco can protect both you and the plane you’re renting. Visit our Aircraft Renter’s Insurance page for more information.
When utilizing a non-owned aircraft, you will need normal bodily injury and property damage insurance as a renter in case you cause harm to someone else or their property. Aircraft damage liability is an extra coverage that protects you if your plane is damaged while you’re flying. Both single-engine and multi-engine planes are covered by Avemco’s renter’s coverage. If you own your plane or this doesn’t seem like the ideal fit for you, check out our Avemco Products page to discover the right coverage.
Aircraft renters, like aircraft owners, desire to carry as much liability insurance as is accessible and affordable. Based on your scenario, an Avemco aviation insurance professional can assist you in determining how much renter’s insurance to carry.
How does aircraft renters insurance work?
Legal liability insurance protects you from claims for physical injury and property damage while operating a rental aircraft. Legal liability coverage is required by all renter plans. That is, if you are the subject of a claim, the policy will provide you with legal defense as an added layer of protection.
How much is liability insurance on an airplane?
Airplane insurance is a type of property and casualty insurance that protects you and your jet in the case of a disaster. Due to the specialized nature of the aviation sector and the large diversity of aircraft manufacturers, models, and risk circumstances, the cost of plane insurance varies greatly.
The cost of airplane insurance is divided into two categories: liability and hull coverage.
Liability Coverage on an Aircraft Insurance Policy:
- Is usually given with a total liability of $1,000,000 and a passenger limit of $100,000.
- Liability The cost ranges from $275 to $600 (depending on the make/model and kind of aircraft) (pleasure vs commercial)
- When Hull Coverage is included, Liability is normally 15%-35 percent of the overall cost of an aircraft insurance policy.
Hull Coverage 0n an Aircraft Insurance Policy:
- Is a (Agreed Value) policy, which means there is no depreciation and the amount covered is the amount you will receive if a loss occurs (less any deductibles)
- Deductibles are often $0, however they are prevalent for Alaska-based aircraft and all seaplanes/amphibious aircraft.
- The cost of aircraft hull insurance varies between 1.5 and 10% of the insured value, based on a number of underwriting factors.
All airplane insurance costs are broken down into the Two coverages above, whether you’re wanting to insure a helicopter, jet, or Cessna 172. Additional coverages, variants, and stipulations are always available, but all aviation insurance follows the conventional coverage framework outlined above.
Because the cost of aircraft insurance varies greatly and a variety of factors influence the final cost, it’s critical to contact with an Aviation Insurance Professional and obtain a complete Aircraft Insurance Quote for accurate information.
We recommend hiring an Insurance Broker who specializes in Aviation Insurance because plane insurance is a speciality type of insurance. We have been specializing in Aviation Insurance for 42 years at BWI. We are licensed throughout the United States, with locations in California and Alaska.
How much does it cost to insure a Cessna 172?
The cost of Cessna 172 insurance for qualified pilots normally ranges from $150 to $250 per year for $1,000,000 in Liability Only coverage. Adding $50,000 in hull coverage, for example, raises the annual premium range to between $450 and $1100 overall.
What does it mean to be a qualified pilot? A qualified pilot holds a private pilot’s license, has logged 300 total hours, and has logged at least 25 make/model hours.
In the first year of a policy, student pilots or pilots with a low total time and make/model time will pay roughly 70% more. By the next renewal date, you must have built at least 40-50 hours.
Why get a 172?
The Cessna 172 is one of the most straightforward aircraft to insure. Cessna 172s are easy to fly, dependable, and widely available. Over 44,000 have been made in the last 60 years. The C172 is a single-engine, tricycle-gear aircraft that is simple to fly, safe, and has a low hull value. This makes it a delight to quote for aircraft insurance brokers.
The cost of Cessna 172 aircraft insurance varies by year and model. There are 21 various variants of the C172, however the 172RG Cutlass has the highest insurance premium when compared to a basic C172. This is due to the retractable gear’s increased risk of loss.
Why do my rates change?
Airplane insurance premiums fluctuate frequently and are influenced by a number of factors. The most typical factors include pilot licenses and credentials, as well as a history of prior claims, accidents, and DUIs. Significant losses in a particular make/model, on the other hand, can have an impact on the insurance rate for that make/model in the industry as a whole or simply within one insurance company.
BWI
Get a quotation with BWI immediately to verify that you are getting the exact best premium and coverage from a rock solid A+ rated Aviation Insurance company. Our office is available 12 hours a day and staffed with courteous, competent agents you can trust. We specialize in Cessna 172 Insurance. We specialize in aviation insurance and have been doing so for 42 years.
With offices in Corona, California, and Anchorage, Alaska, BWI is the nation’s leader in aviation insurance.
What does non owned aircraft insurance cover?
In our work environment, this is a regular scenario. Because the company’s own plane is unavailable or the company doesn’t possess one, senior executives must charter a corporate plane for an important meeting. To make flight arrangements, a contact is made to a local aircraft charter business. This trip will improve the meeting’s punctuality and offer the company an advantage over its competitors. Sadly, something goes horribly wrong, and an accident occurs. Despite the fact that the corporation had been added as an additional insured under the charter company’s liability insurance, it is becoming increasingly evident that the charter company’s coverage limits will be insufficient to pay the impending wave of lawsuits. The claimants have decided to take legal action against the corporation. Why do you inquire? Your meeting was the catalyst for the flight’s inception. This is, unfortunately, when the requirement for non-owned aircraft liability insurance becomes apparent.
Aircraft that are not owned by a company Liability insurance protects a company if it is held legally accountable for third-party physical injury (including passengers) or property damage as a result of a loss involving a company’s or employee’s usage of a non-owned aircraft. As long as the aircraft is not partly or totally owned or registered in the name of the corporation, its subsidiaries, or other related entities, liability coverage would be offered to the corporation.
It is recommended that the corporation request additional insured status under the charter company’s insurance policy and that the charter company’s policy be primary without right of contribution from any coverage the corporation may carry in order to protect the corporation when it charters an aircraft on company business. A Certificate of Insurance and a copy of the associated endorsement should be obtained as proof of this coverage. As a result, the charter company’s policy would protect the corporation up to the charter company’s liability limits, with the corporation’s non-owned aircraft liability insurance policy serving as excess coverage. The corporation’s policy would not be affected if the charter company’s policy contains suitable boundaries.
When an employee utilizes a company-owned or non-owned aircraft for corporate work, the corporation should request additional insured status under the employee’s policy, or the employee’s FBO policy if renting aircraft. Before activating the corporation’s non-owned aircraft coverage, the employee’s policy or FBO insurance liability limit will operate as a first line of defense. Although the limits of liability carried by an employee on a personal aircraft or FBO coverage will be substantially lower than those carried by a charter firm, establishing such requirements is sound business practice.
So long as the aircraft is not owned in whole or in part by, or registered in the name of such person or any member of his family, an employee who operates a non-owned aircraft for corporate business receives the same coverage as the corporation. An employee who uses his personal aircraft for company business must rely on his insurance policy to cover him adequately.
Before approaching the insurance underwriting community for a quote on non-owned aircraft liability insurance, it’s a good idea to complete your homework. The following information will be required by the underwriter:
- Is it permissible for workers to fly company-owned or non-owned aircraft for business purposes? If yes, how many hours per year do you fly and what type of aircraft do you fly?
- Is the company’s charter vendor and/or personnel travelling on company business covered by supplementary insurance?
- What are the charter company’s or employee’s underlying limits of liability?
- Is there a company policy that limits the amount of executives who can fly in a single plane?
- Do you have a current pilot history form for employees who fly their own or rented aircraft so the underwriter may evaluate his pilot qualifications? In the make/model flown, what kind of training does the person receive?
Once an underwriter has a good picture of the risk, he will provide a quote, which will typically include conditions such as proof of underlying insurance, recurring training, or some other underwriting need. Depending on the exposure, requests for liability limitations can range from $5,000,000 to $100,000,000 or more.
Commonly asked questions:
Don’t be taken off guard when you ask your broker about this coverage after your firm is involved in an accident involving a non-owned aircraft. Now is the moment to take action.
How much is insurance on a Piper Arrow?
According to Vref, an AOPA partner that provides aircraft value assessments, a 1969 Arrow is worth $46,000 to $86,000 for a 1988 model year, while a Piper Arrow IV is about $61,000 for a 1979 model.
An $80,000 turbocharged Piper Arrow flown by a low-time pilot with 10 hours in type will cost $2,494 per year to insure, according to AOPA Insurance Services. Some carriers demand an additional 10 hours dual and five hours solo aircraft checkout.
AOPA Finance predicts a monthly payment of $555 for a $80,000 loan with a 5.5 percent interest rate and a 15% down payment over 15 years.
Which of the following are covered by aviation insurance?
Aviation insurance covers hull losses as well as liability for injuries to passengers, environmental damage, and third-party damage caused by aircraft accidents.
What is required for a flight review?
The framework for flight reviews is laid forth in FAR 61.56. A minimum of one hour of flight training and one hour of ground training is required for a flying review. The evaluation must contain the following:
- A review of the maneuvers and procedures that, in the opinion of the person conducting the review, are required for the pilot to show safe use of the pilot certificate’s privileges.
That second criterion may appear wide or ambiguous, and it is supposed to be that way for a reason. Most flight review criteria are left up to the discretion of the individual instructor, according to the FAA.
Your instructor should discuss your normal flying behaviors and experiences with you. They’ll then set up the flight review to cover items you might not do on a regular basis (and are presumably rusty on).
If you fly a lot of cross-country in your plane, for example, you may not have done any steep spins or stalls in a while. If you do a lot of local flying, on the other hand, an instructor might urge you to arrange a cross-country flight so you can brush up on your pilotage, dead reckoning, and navigation systems skills.
Does AOPA have renters insurance?
The following are some key points to remember regarding renter’s insurance that AOPA Insurance Services routinely discusses with pilots to help them better understand their insurance coverage needs for non-owned aircraft operations.
What’s the difference between a policy that contains a sublimit for per-person liability coverage, and a policy that has a per-passenger liability coverage sublimit? Which type affords the greater coverage?
In the case of a $1 million occurrence policy with either a $100,000 per person or a $100,000 per passenger sublimit, both plans would cap passenger liability coverage at $100,000. Any additional injured person (such as someone outside the aircraft) would be limited to $100,000 under the policy with the per-person liability sublimit. An injured individual outside the airplane would only be covered up to the $1 million liability limit under the insurance with the per-passenger sublimit. As a result, the policy with the per-passenger sublimit provides additional protection.
Do renter insurance policies cover an insured person’s legal costs?
Yes, to varied degrees. As part of liability coverage, a policy that covers an insured person’s legal defense will pay for legal expenditures up to the policy amount. Some policies, however, limit the amount of coverage for legal defense costs, according to the experts at AOPA Insurance Services. It’s something to think about if you’re thinking about buying a policy.
What’s the difference between a named pilot and a named insured?
Specific individuals may be identified as approved pilots or insured persons on an aircraft insurance policy, as the terms suggest. However, there are some considerations to be aware of in order to limit your liability risk while renting or borrowing another party’s aircraft.
The fact that you’re listed as a named pilot on an aircraft owner’s insurance policy doesn’t mean you don’t need your own liability insurance. Your status as a named pilot “would not prevent” the owner’s coverage from being applicable if an accident or other covered occurrence occurs while you are operating the aircraft. However, as a non-owned aircraft pilot, you may be subject to subrogation by an injured party demanding compensation. (Subrogation refers to the possibility of you, the renter, being substituted for the aircraft owner in a judicial action for damages.) If you were found guilty in such a scenario, your liability coverage for operating a non-owned aircraft would protect you up to the policy limits.
What else does a renter’s insurance policy cover?
Renter’s insurance policies, in addition to providing liability protection, also give optional coverage for physical damage to an aircraft that you are operating, with the cost of the policy determined by the quantity of coverage a buyer chooses to purchase. You may also be protected from having to pay for the aircraft owner’s loss of usage under certain policies. A renter should also check to see if the policy includes a provision that covers an owner’s insurance deductible.
What aircraft can I fly under my renter’s insurance policy?
The terms vary, but most renter’s insurance policies are very explicit about the types of aircraft that are covered. According to AOPA Insurance Services, a policy that covers “your personal and non-commercial use of a non-owned, single engine land, fixed wing, non-pressurized aircraft with a non-turbine engine of 450 horsepower or less (including non-powered sailplanes), capacity of seven (7) or less total seats, and a standard, experimental, restricted, or light sport aircraft certificate” is an example. “Multi-Engine, Rotorwing, and Seaplanes are not included unless specifically selected and quoted,” says the clause.
What aircraft are considered to be non-owned aircraft under a renter’s insurance policy?
A non-owned aircraft, according to the same policy’s language, is “an aircraft that you use with the owner’s permission, but excluding any aircraft owned in whole or in part by, or furnished for more than thirty (30) consecutive days to, or under a lease and/or purchase agreement to you or your spouse, parent, child, sibling, corporation, partnership, or other organization in which any of these entities owns more than twenty percent (20%).”
AOPA Insurance Services, which has been selling renter’s insurance online for 15 years, is regularly asked how much insurance a pilot needs and how much protection he or she should have. Only seven states require aircraft to have liability insurance. However, because FBO plans rarely provide appropriate coverage for pilots, AOPA Insurance Services recommended that renters carry as much insurance as they can afford to avoid personal liability for thousands of dollars in repair costs and legal fines.