GET A QUOTE
24/7 COI

A General Guide to Airplane Insurance Cost

man thinking about airplane insurance costs

Car insurance and aircraft insurance serve similar purposes in protecting owners from financial losses due to accidents and other risks but differ significantly in their coverage, requirements, and scope due to the different nature and risks associated with cars and aircraft.

While both car insurance and aircraft insurance provide financial protection, they differ greatly in their coverage scope, insurance costs, complexity, risk factors, liability limits, regulatory requirements, claims processes, and additional coverage

Unlike car insurance, aircraft insurance includes specialized coverages such as hull insurance (physical damage), liability insurance, passenger and crew coverage, in-flight coverage, hangar keepers insurance, and war and terrorism coverage for aircraft owners.

Do I Need to Insure my Aircraft?

It’s highly advisable to insure your aircraft. Aircraft insurance provides financial protection against a wide range of risks associated with owning and operating an aircraft. Here are some reasons why aircraft insurance is essential:

1. Legal Requirement

In many countries, having insurance coverage for aircraft is a legal requirement. Regulatory authorities typically mandate certain minimum insurance levels to ensure compliance with safety standards and federal or state regulations to protect third parties in case of accidents.

2. Financial Protection

Aircraft are high-value assets, and any damage, loss, or liability resulting from accidents or incidents can result in significant financial losses. Insurance helps mitigate these risks by covering repair or replacement costs, liability claims, and other related expenses.

3. Liability Coverage

Aircraft insurance typically includes liability coverage, which protects you in case your aircraft causes damage to third-party property or injures third parties. This coverage is crucial for protecting your assets and financial well-being in the event of lawsuits or legal claims.

4. Hull Coverage

Hull insurance, also known as physical damage coverage, protects your aircraft against damage or loss due to various perils, including accidents, theft, vandalism, and natural disasters. This coverage is especially important for costly repairs or replacement of the aircraft.

5. Medical Expenses

Aircraft insurance may cover medical expenses for injuries sustained by passengers or crew members during flight operations. This coverage helps ensure that medical costs are taken care of in case of accidents or emergencies.

6. Emergency Assistance

Some aircraft insurance policies include coverage for emergency assistance services, such as search and rescue, towing, and temporary repairs. These services can be invaluable during emergencies or unforeseen circumstances.

7. Customized Coverage

Aircraft insurance policies can be tailored to meet your specific needs and preferences. Aircraft owners can choose from a broad range of coverage options, deductibles, and limits to create a policy that best suits their requirements and budget.

8. Peace of Mind

With insurance coverage in place, you can enjoy peace of mind knowing that you’re financially protected against unforeseen events and liabilities associated with aircraft ownership and operation.

Types of Aircraft Insurance

  • Hull Insurance:
    Covers damage to the aircraft itself.
  • Liability Insurance:
    Protects against third-party claims for property damage or bodily injury.
  • Passenger and Crew Liability Insurance:
    Specifically covers passengers and crew members.
  • Medical Payments Insurance:
    Covers medical expenses for injuries.
  • Hangar Insurance:
    Protects against damage to aircraft while stored in a hangar.

Choosing an Insurance Policy

  • Consultation:
    Work with an experienced aviation insurance broker to assess your needs and find the right coverage.
  • Comparison:
    Compare quotes from multiple insurers to get the best rates and coverage options.
  • Review:
    Carefully review the terms, conditions, and exclusions of the policy before purchasing.
  • Updates:
    Keep your insurance policy updated to reflect changes in aircraft value, usage, and regulations.

In summary, aircraft insurance is essential for protecting your investment, ensuring compliance with legal requirements, and providing peace of mind while operating your aircraft.

What Types of Airplanes Can Be Insured?

A wide range of aircraft can be insured, including both private and commercial aircraft, as well as various types of aerial vehicles used for different purposes. Here are some common types of aircraft that can be insured:

1. Fixed-Wing Aircraft

  • Single-Engine Piston Aircraft:
    Small, single-engine planes commonly used for personal and recreational flying.
  • Multi-Engine Piston Aircraft:
    Larger, more powerful aircraft with multiple piston engines, often used for business and personal travel.
owner calculating insurance costs for airplanes
  • Turboprop Aircraft:
    Propeller-driven aircraft equipped with turbine engines, offering enhanced performance and range for regional flights and short-haul transportation.
  • Jet Aircraft:
    High-speed, turbine-powered aircraft capable of flying long distances, ranging from light jets for private use to large commercial airliners.

2. Helicopters

  • Single-Engine Helicopters:
    Helicopters with one main rotor and one engine, used for various purposes such as aerial photography, sightseeing tours, and medical evacuation.
  • Multi-Engine Helicopters:
    Larger helicopters with multiple engines, providing increased capacity and range for tasks such as corporate transportation, offshore operations, and search and rescue missions.

3. Experimental and Homebuilt Aircraft

  • Single-Engine Helicopters:
    Helicopters with one main rotor and one engine, used for various purposes such as aerial photography, sightseeing tours, and medical evacuation.
  • Multi-Engine Helicopters:
    Larger helicopters with multiple engines, providing increased capacity and range for tasks such as corporate transportation, offshore operations, and search and rescue missions.

4. Ultralight and Microlight Aircraft

  • Ultralight Aircraft:
    Lightweight, single-seat or two-seat aircraft with simple construction and limited range, used primarily for recreational flying.
  • Microlight Aircraft:
    Similar to ultralights but typically equipped with more advanced features and controls, suitable for training, leisure flying, and aerial photography.

5. Seaplanes and Amphibious Aircraft

  • Seaplanes:
    Aircraft equipped with floats or pontoons for takeoff and landing on water, used for transportation, sightseeing, and remote access to coastal and island destinations.
  • Amphibious Aircraft:
    Aircraft capable of operating from both land and water, offering versatility for transportation and exploration in diverse environments.

6. Gliders and Sailplanes

  • Gliders:
    Non-powered aircraft designed for unpowered flight, utilizing updrafts and thermals for lift, commonly used for recreational soaring and competitive flying.
  • Sailplanes:
    High-performance gliders equipped with advanced aerodynamic features and instruments, capable of extended flights and cross-country soaring.

7. Light Sport Aircraft (LSA)

  • LSA:
    Light aircraft designed and built to meet specific regulatory requirements for the Light Sport Aircraft category, offering simplified certification and operational requirements for recreational pilots.

8. Unmanned Aerial Vehicles (UAVs)

  • UAVs or Drones: Remote-controlled or autonomous aircraft used for various purposes, including aerial photography, surveillance, mapping, and commercial applications such as delivery and inspection services.

Insurance Coverage For Different Aircraft​

  • Hull Insurance: Covers physical damage to the aircraft itself.
  • Liability Insurance: Protects against third-party claims for property damage or bodily injury.
  • Passenger and Crew Liability Insurance: Specifically covers passengers and crew members.
  • Hull Deductible Waiver: Waives the deductible in case of a covered loss.
  • In-Flight Coverage: Covers accidents and incidents that occur during flight operations.
  • Ground Risk Coverage: Covers damage to the aircraft while on the ground, such as hangar damage, towing accidents, and theft.

Whether you own a small recreational aircraft or operate a fleet of commercial jets, there are insurance options available to protect your investment and mitigate risks associated with aircraft ownership and operation.

airplane flying over the sky during sunset

Passenger Liability Insurance and Other Coverages

Aviation insurance for private jet owners and operators typically includes a range of coverages designed to protect against various risks associated with aircraft ownership and operation. Here are the key coverages commonly included in aviation insurance policies for private jet owners and operators:

1. Hull Insurance (Physical Damage Coverage)

  • Definition: Covers damage to the aircraft itself, including repairs or replacement in case of accidents, collisions, fire, theft, vandalism, or natural disasters.
  • Features:
    Agreed Value Coverage: Provides coverage for an agreed-upon value reflecting the aircraft's current market value or the cost of replacement, regardless of depreciation.
    Comprehensive Coverage: Protects against a wide range of risks, ensuring financial protection in various scenarios.
    Deductibles: Policyholders typically choose a deductible amount, which is the out-of-pocket expense paid before insurance coverage applies.

2. Liability Insurance

  • Definition: Protects against legal liabilities arising from bodily injury or property damage caused by the aircraft.
  • Features:
    Third-Party Liability Coverage: Covers claims made by third parties, including passengers, pedestrians, other aircraft, and property owners.
    Passenger Liability Coverage: Includes coverage for bodily injury or death of passengers on board the aircraft.
    Legal Defense Costs: Covers legal fees, court costs, and settlements or judgments associated with defending against lawsuits, up to the policy limits.

3. Crew and Passenger Liability Insurance

  • Definition: Provides coverage for bodily injury or death of passengers and crew members on board the aircraft.
  • Features:
    Medical Expenses: Covers medical expenses for injuries sustained by passengers and crew members during flight operations.
    Accidental Death and Dismemberment: Provides compensation in the event of death or serious injury resulting from an accident while traveling on the aircraft.

4. In-Flight Coverage

  • Definition: In-flight insurance covers accidents, incidents, and emergencies that occur during flight operations.
  • Features:
    Emergency Assistance: Includes coverage for search and rescue operations, emergency medical evacuation, and other assistance services.
    Emergency Landing Expenses: Covers expenses associated with making emergency landings, such as lodging, transportation, and repairs.

5. Hangarkeepers Insurance

  • Definition: Protects against damage to the aircraft while stored in a hangar, including damage from fire, theft, vandalism, and natural disasters.
  • Features:
    Coverage Options: Policies may offer different levels of coverage based on the value of the aircraft and the specific risks associated with hangar storage.

6. Additional Coverage Options

  • Loss of Use: Provides compensation for loss of income or additional expenses incurred while the aircraft is being repaired or replaced.
  • Avionics Equipment Coverage: Covers damage to avionics equipment and instruments installed in the aircraft.
  • Spare Parts Coverage: Protects against loss or damage to spare parts and components stored on the aircraft.
  • War and Terrorism Coverage: Offers protection against risks associated with acts of war, terrorism, or political unrest in certain regions.

7. Non-Owned Aircraft Insurance

  • Bodily Injury and Property Damage: Covers legal liability for bodily injury or property damage caused to third parties while operating a non-owned aircraft.
  • Passenger Liability: Includes coverage for injury or death of passengers aboard the non-owned aircraft.
  • Medical Payments Coverage: Covers medical expenses for injuries sustained by the pilot and passengers in the event of an accident while operating the non-owned aircraft.

8. International Liability Coverage

  • Financial Protection: Aviation insurance provides essential financial protection against costly damages, legal liabilities, and potential lawsuits associated with aircraft ownership and operation.
  • Compliance: Private jet owners and operators are often required by aviation regulatory authorities to have insurance coverage as a condition of aircraft registration and operation.
  • Peace of Mind: With comprehensive insurance coverage in place, private jet owners and operators can have peace of mind knowing that they are financially protected against unforeseen events and liabilities in the aviation industry.

The Importance of Aviation Insurance for Private Jet Owners and Operators

  • Financial Protection:
    Aviation insurance provides essential financial protection against costly damages, legal liabilities, and potential lawsuits associated with aircraft ownership and operation.
  • Compliance:
    Private jet owners and operators are often required by aviation regulatory authorities to have insurance coverage as a condition of aircraft registration and operation.
  • Peace of Mind:
    With comprehensive insurance coverage in place, private jet owners and operators can have peace of mind knowing that they are financially protected against unforeseen events and liabilities in the aviation industry.

How Much Money Does Aircraft Insurance Cost?

The cost of airplane insurance premiums is influenced by a range of factors including the type and value of the aircraft, its intended use, the pilot’s experience, and the coverage limits selected. Small private aircraft insurance can cost up to $5,000 annually, while more complex or commercial aircraft can have significantly higher premiums. To obtain an accurate quote, it’s advisable to consult with aviation insurance brokers or providers who can tailor the coverage to your specific needs and circumstances.

What Factors Affect Aircraft Insurance Rates?

  • Type and Value of Aircraft:
    More expensive and complex aircraft typically have higher insurance premiums due to the increased cost of repairs or replacement and higher operational risks.
  • Intended Use:
    Private use (e.g., personal travel, recreational flying) generally incurs lower premiums than commercial use (e.g., charter flights, flight instruction), which involves higher risks and more stringent regulatory requirements.
  • Pilot Experience and Qualifications:
    Pilots with more experience, advanced ratings, and a good safety record typically receive lower premiums. Insurers may also consider the number of hours flown annually and specific training on the insured aircraft type.
  • Geographic Location and Operating Environment:
    Operating in areas with higher risk factors, such as densely populated regions, severe weather zones, or areas with high traffic density, can increase insurance costs.
  • Coverage Limits and Deductibles:
    Higher liability limits and lower deductibles increase the premium cost. Policies can be tailored with various options for liability limits and deductibles to balance coverage needs and premium affordability.
  • Insurance Provider and Policy Details:
    Different insurance companies offer varying rates and coverage options. It's essential to compare quotes from multiple providers and understand the specifics of what each policy covers.
  • Loss History:
    An individual or company's history of claims can significantly impact premiums. A history of accidents or incidents will typically result in higher insurance costs.

Reducing Aircraft Insurance Costs

  • Safety Measures:
    Implementing robust safety programs, regular training, and advanced certifications can help lower premiums.
  • Maintenance:
    Ensuring regular, high-quality maintenance of the aircraft can reduce the risk of incidents and potentially lower insurance costs.
  • Comparison Shopping:
    Obtaining quotes from multiple insurers and working with an experienced aviation insurance company representative can help jet owners find the best rates and coverage options.
  • Higher Deductibles:
    Opting for higher deductibles can reduce premium costs, though this means higher out-of-pocket expenses in case of a claim.

How Age Affects Aircraft Insurance Coverage Costs

Age impacts aviation insurance premiums in various ways, with both the age of the aircraft and the age of the pilot being significant factors. Younger and older pilots may face higher premiums due to perceived higher risk, whereas middle-aged pilots typically enjoy lower premiums due to a favorable balance of experience and health. For aircraft, older models might incur higher premiums due to maintenance and safety concerns, while newer aircraft might be more costly to insure due to their higher value. Understanding these factors can help aircraft owners and pilots take steps to mitigate higher insurance costs.

Get Aviation Insurance Coverage Today

CAI helps jet owners and operators find the right aircraft insurance policy. We work with multiple insurance companies to help you find the best deals in the industry. Request an instant quote today. We’d be happy to answer your questions about annual premiums, the cost to insure a private aircraft, and more.

Request a Quote