When borrowing or renting an aircraft, you may not be an insured on that aircraft policy, leaving you legally liable in the event of a claim. This is where aircraft renters insurance comes in, protecting you for claims for property damage, bodily injury, and damage to the non-owned aircraft. Many insurance brokers market this coverage for under $100 annually. But how much does that bargain premium really get you? Is it really a good deal?
It is important to call an aviation insurance expert and pilot before purchasing your renters insurance to obtain proper coverage that fits your needs. Aviation Insurance Resources (AIR) offers a simple online system (or paper application) that you can easily see all the policy details and the prices associated with each limit.
The low rates often advertised are for the lowest limit option available in liability only coverage. This portion of the policy provides protection against bodily injury and property damage ($250,000 each occurrence with a $25,000 each passenger sub-limit). For less than $20 more, a pilot can double their protection to $500,000 each occurrence and $50,000 each passenger. This extra $20 can go a long way in protecting you from financial disaster due to an aircraft accident!
The premiums above do not include physical damage to non-owned aircraft, which is often required by FBOs and flight schools. It is important to carry this coverage to cover any deductible, loss of use, and subrogation in the event of a claim. Most importantly, it provides a legal defense! Limits are available in $5,000 increments starting at $1,000 in physical damage coverage (only $71 additional annually). Note: you can get five times the coverage ($5,000) for only $15 more! A commonly purchased limit which meets many flight school requirements is $25,000 in physical damage at $238 annually.
The following are comparisons of the policies discussed above (assuming a claims free discount of 5%):
Lowest priced option: Liability only $250,000 each occurrence /$25,000 each passenger
$79 Total Annual Premium
Double the coverage: Liability only $500,000 each occurrence/$50,000 each passenger
$95 Total Annual Premium
Including physical damage: $500,000 each occurrence/$50,000 each passenger
$5,000 Physical Damage
$181 Total Annual Premium
Increasing physical damage: $500,000 each occurrence/$50,000 each passenger
$25,000 Physical Damage
$333 Total Annual Premium
There are many options when it comes to purchasing a non-owned policy that fits best for you. And it only takes one phone call to talk to an aviation insurance brokerage owned and run by pilots: Aviation Insurance Resources (AIR). Call 301-682-6200 or visit us online to receive your renters or owners insurance quote tod
