Insurance rate increase rant

k9medic

k9medic

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Sep 27, 2018
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N Central FL and GTC Bahamas when off work
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ATP-H, CMEL, CSEL, CFI/CFII Airplanes and Helicopters
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At an LZ near you
Got our first renewal bill for our Cherokee 6. The premium went up $18!

I called and asked why and they lady told me that "everybody's rate went up."

Over the past year of ownership we moved it into a single hangar, and flew almost 100 hours so you would think that would mean a DECREASE!

Ugh...
 
That's a pretty modest increase. While many have seen increases this year, some of us have seen substantial decreases. The Grumman type club policies are really competitive. If you can get underwritten through your type club it is sometimes possible to get excellent prices. When I switched to the type club underwriter it was almost HALF the cost of the most popular providers. Never looked back from that.
 
We are coming off a period of unusually low rates and easy availability of aircraft insurance.
 
k9medic said:
Got our first renewal bill for our Cherokee 6. The premium went up $18!

I called and asked why and they lady told me that "everybody's rate went up."

Over the past year of ownership we moved it into a single hangar, and flew almost 100 hours so you would think that would mean a DECREASE!

Ugh...
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“Everybody’s rate went up”. The guys that didn’t fly 100 hours and hangar the plane probably had an even bigger increase. But, if you’re “average”, then half of everyone flew more than you did. :p
 
Mine is exactly the same this year. I questioned it, because last year I had zero time in the make/model and now I have 50 hours; the agent said the rates went up so I guess it's a wash.
 
Do you guys add new avionics you may have installed to the coverage amount?

If so, do you include the full amount? Plus the installation labor? Or the “aftermarket” amount (i.e., half the avionics value “rule of thumb” once installed and sold with the plane).
 
lets see, my 35k airplane is less than 500 a year to insure. my 20k truck is 2k a year, im not going to complain about the airplane insurance!
 
455 Bravo Uniform said:
Do you guys add new avionics you may have installed to the coverage amount?

If so, do you include the full amount? Plus the installation labor? Or the “aftermarket” amount (i.e., half the avionics value “rule of thumb” once installed and sold with the plane).
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If it was new avionics, I'd go full tilt installed price. After a couple years, I'd bring that down to market price.
 
455 Bravo Uniform said:
Do you guys add new avionics you may have installed to the coverage amount?

If so, do you include the full amount? Plus the installation labor? Or the “aftermarket” amount (i.e., half the avionics value “rule of thumb” once installed and sold with the plane).
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I take a different tack and insure for what it would cost to purchase a replacement aircraft that was similarly equipped and hours on the engine. I'd rather be a shade over-insured that under-insured. If the hangar falls in on your plane, you don't want to have to spend $20-30K to upgrade the avionics, or $20K to overhaul the engine in a replacement plane.
 
k9medic said:
I'm using AOPA's brokerage.
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There is probably a good chance that a type club could get you a better rate than AOPA. I insured my first plane, an AA-1A with Avemco (later snapped up by AOPA) for a couple of years at good rates, then they almost doubled my renewal rate. That's when I ditched them and went with the Grumman type club insurance arrangement, which has been quite stable with competitive rates for over 30 years. I got slight discounts from moving into a hangar and later getting an IR. Nothing dramatic, but appreciated.
 
Mine went up $300(about 10%) with 0 hours in the past 12 months and increased the hull value $13k(about 10%) due to the overhaul that was part of the prop strike that is why I haven't flown in the past 12 months.
 
Kelvin said:
Take this fellas man card. 18 bucks?
That's like a 12 year olds weekly allowance...
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Point was missed here.

I was told that Hangar in the aircraft instead of tying it down outside would show a decrease in my premium not to mention additional time in type would reflect a decrease.

Now, rather than paying $360 a year I pay $3000/ year for a hangar.
 
Please post gofundme link, in accordance with every minor inconvenience these days needing compensation from social media. :D
 
k9medic said:
Point was missed here.

I was told that Hangar in the aircraft instead of tying it down outside would show a decrease in my premium not to mention additional time in type would reflect a decrease.

Now, rather than paying $360 a year I pay $3000/ year for a hangar.
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Insurance savings were never going to offset a 3k hangar expense, not even half that expense. I still posit you knew that. No need to rationalize the real reasons you sprung for the hangar.

At any rate, if you feel that aggrieved by the insurance cost, go back to tie down. You just saved $2640/yr. At 18 bucks a year, that ought to pay the disputed amount for the duration of your ownership.
 
k9medic said:
I don’t disagree. Just expected to see a little break in the premium!
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A hangar doesn't necessarily immunize an aircraft against damage; in some cases it increases the chances of hangar rash. The type of hangar (co-occupied, community, outright owned, rented/leased, partially used for commercial services/repairs) can have an effect on premiums. Oh, by the way- my insurance went DOWN this year and I have even better coverage than the precious year. ;) (I tie down outside for 1/2 the year and park in a fully enclosed hangar the other 1/2.)
 
Have you attempted to call AOPA and let them shop around for you?
 
NoHeat said:
If a broker doesn’t submit to multiple insurers every single year, then it’s time for a new broker.
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That’s why I like Travers. They search broadly every year for competitive rates.
 
k9medic said:
Point was missed here.

I was told that Hangar in the aircraft instead of tying it down outside would show a decrease in my premium not to mention additional time in type would reflect a decrease.

Now, rather than paying $360 a year I pay $3000/ year for a hangar.
Click to expand...

What could you do with that extra $2400 in MX? Tough pill to swallow. But, if you have new paint and interior, I could see the value in it. If yo ride is 'ready clapped out, phsss.... buy some nice ropes and be done with it.
 
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