Insurance

What do you mean--Real Insurance?

Insurance is something we're all rightfully concerened about, but is usually glossed over or even misrepresented.  Nobody wants to be stuck with a bill for damage or liability.  But here's the truth about insurance:

First, the good news.

First, FLYING IS SAFE!  Did you know most flying schools carry zero hull insurance (unless they're financing the airplane).  Why?  The odds of damage are very, very low.  Even when damage occurs, its usually pretty minor.  Why spend money for something you don't need?  The downside is, not only is the school not covered, neither is anyone that flies their airplanes!  Bend it, YOU get to fix it! 

More good news:  INSURANCE IS CHEAP!  Don't go naked lessin' you can stand the cold!  But you have to buy it from a real insurance company, not your flying school/FBO.

Liability is probably your biggest risk, both for third-party injuries and property damage, and is very inexpensive.  A couple hundred dollars will buy $$Million coverage.  Rates for "hull" (damage to the airplane) insurance vary, mostly depending on the value of the airplane.  Most rental airplanes aren't worth all that much (probably $15-25K for a typical 2-seat trainer, to maybe $50K for most four-place fixed-gear singles) and can be fully insured for just a few hundred dollars. 

If you finance the purchase of an airplane the bank will insist you adequately insure it--for their protection and yours.  It's only good sense to cover your risks adequately, whether you are a renter, own your airplane outright or are financing it.

It doesn't cost as much as you might think.  Buy enough to cover your risk and relax--you're covered!

Here's a few well known insurers:

2. Thomas Johnson

3. Travers & Associates (800-888-9859) www.traversaviation.com

4. Cannon Aviation Insurance, www.cannonaviation.com or 800-851-2997

5.  Falcon Insurance Agency is actually the company that handles all of EAA's insurance programs.   http://www.falconinsurance.com/

The bad news:

If you are a renter (which includes student pilots and many CFI's), unless you have purchased your own insurance policy, it is almost certain that you are flying naked!  Are you paying for "insurance" by the hour or by joining a "club?"  Ask for a copy of the policy that covers YOU, that has YOUR NAME on it.  If there actually is such a policy, read it very carefully--you may be in for a very unpleasant surprise. 

Be smart:  Read the fine print in THEIR insurance policy and your rental agreement.  "Subrogation" means YOU pay the bill.

Don't be a sucker.  The only way to get REAL insurance that adequately covers YOU is to buy your own policy.  Buy enough insurance to cover your liability risk, PLUS "hull" (damage to the airplane) insurance adequate to cover at least a substantial portion of the value of the aircraft you fly.  By purchasing your own policy you will be covered regardless of where or what you fly and you'll know exactly what your coverage is.  

Be smart--buy yourself a policy and relax.  'Nuff said.