Airplane Insurance FAQ
Airplane insurance is also known as aircraft insurance and aviation insurance. Whether you own an airplane or borrow one, it is important to have the right kind of airplane insurance coverage. There are different kinds of insurance solutions for airplane insurance.
You can buy insurance if you own an aircraft or if you rent or borrow one. You can get insurance if you are a certified flight instructor and own a plane, or if you are a certified flight instructor and don’t own your own plane. Flying clubs can also have airplane insurance.
You can buy private aircraft insurance, corporate aircraft insurance, and commercial aviation insurance. Hangar insurance is also available with different options. Pilots are able to purchase term life insurance through most airplane insurance carriers, giving you complete insurance coverage.
Reasons to Buy Airplane Insurance
When you drive a car, insurance is mandatory by law. When you buy a home, insurance is necessary to protect your investment. Whether you buy an aircraft or fly someone else’s, you need airplane insurance to protect your finances.
There are several facets to consider when buying airplane insurance. You need liability insurance to cover bodily injury and property damage for the passengers in your aircraft. Most states require a minimum amount of liability that you have to carry.
How much liability you are required to buy depends upon the state in which you reside. For example, you may need to buy $50,000 for bodily injury and $500,000 for property damage, with a total payout of $500,000 per accident.
If you own an aircraft then you may want to consider purchasing insurance for it. If anything happens to your airplane and you don’t have insurance for it then you will lose whatever you have invested in the aircraft.
Similar to cars, if you finance the purchase of an airplane, insurance may be mandatory from your lender. Your lender may require you to buy enough coverage to cover the value of your aircraft throughout the entire length of your financing contract. If you have the ability to pay off your aircraft early without penalty, then once you have paid your obligation in full it is up to you if you want to continue to insure your aircraft.
Types of Airplane Insurance
As mentioned above, you can buy liability insurance as an aircraft owner or pilot and you can also buy airplane insurance that covers damages to the airplane. You also have the option of adding medical payments to your insurance plan.
Medical payments may be important coverage even if you have separate health insurance for yourself. Medical payments usually apply not just to the policy holder, but to the passengers aboard the aircraft as well. Usually you can add medical to your insurance for coverage amounts ranging from $1,000 to $5,000.
Airplane insurance can be purchased by individuals as well as businesses. However, if you are the non-owner of an aircraft and you want to buy renter’s and borrower’s airplane insurance then you usually have to apply for it as an individual. Businesses that want airplane insurance should apply for corporate or commercial airplane insurance.
- Certified Flight Instructors: If you are a certified flight instructor you may apply for CFI owned airplane insurance or CFI non-owned airplane insurance. This coverage is not the same as you need for commercial use, however. You have the option of purchasing various liability limits and adding on medical payments as well.
- Flying Clubs: Flying clubs usually have a fleet of different aircrafts and frequently share the ownership of the various airplanes. Insurance for flying clubs is more unique and may not be available from all airplane insurance carriers. While your liability limits and medical payment options are the same as other airplane insurance, your premiums and deductibles may vary based on your group’s history of accidents and claims.
- Hangar Insurance: It’s important to remember to insure your hangar if you have one. If you are housing your airplane in someone else’s hangar be sure there is appropriate coverage or find out about securing your own. Different factors can affect your hangar insurance, such as if the airport is fenced and if the airport has a tower. You may also get cheaper airplane insurance for your hangar if the airport has a fire department or if the hangar has a sprinkler system installed.
- Business Aviation: Business travelers may have their own insurance coverage when they are flying, but some airplane insurance companies offer business aviation insurance. Your company may cover your insurance when you travel on business, but your companions may not have the same coverage. If you travel with non-employee consultants, or if you bring your family on the trip with you, then you need to make sure that these passengers are covered as well. Business aviation insurance covers all passengers for the business trip, regardless of who is an employee and who is a travel mate.
- Aircraft Traders: Airplane insurance is even available for the aircraft trader. If you buy airplanes with the intention of reselling them, then you need short term airplane insurance. Short term airplane insurance for an aircraft trader is important as protection for your financial investment. With it you may also get coverage for trial flights.
Airplane Insurance for Pilots
Insuring your airplane and your hangar goes a long way in protecting your financial security. However, you also need to consider getting insurance for your own life.
Flying in a plane is statistically safer than driving a car, but that does not mean you do not need to consider your life insurance needs. As a pilot, you may want to consider life insurance, term life insurance, accidental death and dismemberment, and disability insurance.
Pilots may have different life insurance needs and may be able to get a life insurance policy that is geared toward their job or hobby as pilots. By going through your airplane insurance company for your pilot life insurance you may be able to benefit from competitive rates and special discounts.
As with all insurance policies, it is important to check the details of your policy to be sure you have the appropriate coverage. Read over any policy exclusions thoroughly so you know what is covered and what is not covered. Different airplane insurance policies are available so that you can get the type of coverage you need.