Aircraft Insurance 101
Everything you need to know about aircraft insurance coverage, costs, and requirements.
Insurance Is Mandatory
Important: If you finance your aircraft through a loan, your lender will require you to carry comprehensive insurance. Even without a loan, insurance is highly recommended to protect your investment.
Types of Aircraft Insurance
Liability Insurance
Covers bodily injury and property damage you cause to third parties (people not in your aircraft).
Typical Coverage$100K - $1M
Cost ImpactBase level, lower cost
Hull Insurance (Physical Damage)
Covers damage to your aircraft from accidents, collisions, and weather. Most lenders require this.
Typical CoverageFull aircraft value
Deductible Options$0, $500, $1K, $2.5K
Medical Payments Coverage
Covers medical expenses for occupants of your aircraft in case of accident, regardless of fault.
Typical Coverage$1K - $10K per person
CostLow (typically $300-$500/year)
Factors Affecting Your Insurance Rate
Pilot-Related
- • Hours flown
- • Pilot experience
- • Rating/certification
- • Accident history
- • Age of pilot
Aircraft-Related
- • Aircraft type
- • Aircraft age
- • Engine hours
- • Maintenance history
- • Equipment/avionics
Typical Insurance Costs
| Aircraft Type | Aircraft Value | Annual Cost | % of Value |
|---|---|---|---|
| Cessna 172 | $200K | $1,200-$1,800 | 0.6-0.9% |
| Beechcraft Bonanza | $600K | $3,600-$5,400 | 0.6-0.9% |
| King Air 200 | $2.5M | $15K-$25K | 0.6-1.0% |
Money-Saving Tips
- Increase deductible: Raising from $0 to $2,500 can reduce premiums by 15-25%
- Improve pilot experience: More flight hours = lower rates
- Maintain your aircraft: Better maintenance history = better rates
- Shop around: Rates vary significantly between insurers
- Bundle policies: Some insurers offer discounts for multiple policies
What to Ask Your Insurer
- What coverages are required vs optional?
- Are there discounts for pilots with more experience?
- What's covered during aircraft maintenance?
- Is coverage included for solo students?
- What's the claims process and timeline?
Finance Your Aircraft Today
Secure competitive financing with proper insurance coverage requirements.