Month to Month Insurance is a thing?

SixPapaCharlie

SixPapaCharlie

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Soooooo, I bought a plane a couple years ago and the insurance was high (to me), about $3,500 a year.
The next year, it was lower because I had retract time and it went down to $2,400
This year, I added 200 hours, Commercial and Multi and my quote was $2,600

So I decided to shop around and lo and behold the first quote was $4,500 but the next quote was $1,800 AND they have a monthly option.
I had never heard of being able to pay for aircraft insurance monthly. 2 insurance companies came back with monthly payments versus the annual lump sum.
Granted it is about $200 higher over the 12 months but being able to spread it out is a nice option.

Anyone else paying monthly? I had been told since I started owning 7-ish years ago that this was not an option.

#ShopAroundShopAroundShopUpShopUpAndGetDown
 
SixPapaCharlie said:
Soooooo, I bought a plane a couple years ago and the insurance was high (to me), about $3,500 a year.
The next year, it was lower because I had retract time and it went down to $2,400
This year, I added 200 hours, Commercial and Multi and my quote was $2,600

So I decided to shop around and lo and behold the first quote was $4,500 but the next quote was $1,800 AND they have a monthly option.
I had never heard of being able to pay for aircraft insurance monthly. 2 insurance companies came back with monthly payments versus the annual lump sum.
Granted it is about $200 higher over the 12 months but being able to spread it out is a nice option.

Anyone else paying monthly? I had been told since I started owning 7-ish years ago that this was not an option.

#ShopAroundShopAroundShopUpShopUpAndGetDown
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I pay quarterly w/AVEMCO.
 
IIRC one of my quotes offered a monthly option, but I decided the additional cost wasn't worth it. With the way interest rates are going though it might be worth looking at again.
ArrowFlyer86 said:
I pay quarterly w/AVEMCO.
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One thing that was great about AVEMCO when I first had my plane was being able to get a new rate every quarter. They would also tell you where the next break was so you could call them as soon as you hit the hours. After a couple years though it is significantly cheaper to go through a broker.
 
Jim K said:
IIRC one of my quotes offered a monthly option, but I decided the additional cost wasn't worth it. With the way interest rates are going though it might be worth looking at again.

One thing that was great about AVEMCO when I first had my plane was being able to get a new rate every quarter. They would also tell you where the next break was so you could call them as soon as you hit the hours. After a couple years though it is significantly cheaper to go through a broker.
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That's pretty cool about the breaks. They were the ones that gave me the $4,500 quote though.
 
The policy I had didn’t have monthly payments but (for a small fee) they let you pay with 4 payments.
 
My insurance offers monthly. My insurance is also in Canada so it doesn't really matter to you lol.
 
SixPapaCharlie said:
Soooooo, I bought a plane a couple years ago and the insurance was high (to me), about $3,500 a year.
The next year, it was lower because I had retract time and it went down to $2,400
This year, I added 200 hours, Commercial and Multi and my quote was $2,600

So I decided to shop around and lo and behold the first quote was $4,500 but the next quote was $1,800 AND they have a monthly option.
I had never heard of being able to pay for aircraft insurance monthly. 2 insurance companies came back with monthly payments versus the annual lump sum.
Granted it is about $200 higher over the 12 months but being able to spread it out is a nice option.

Anyone else paying monthly? I had been told since I started owning 7-ish years ago that this was not an option.

#ShopAroundShopAroundShopUpShopUpAndGetDown
Click to expand...
You're essentially just financing the annual premium. That additional cost is interest. This is more common with higher premiums.
 
Be clear about what you're buying. Monthly or quarterly installments are still payments on a 12 month contract. You can't generally just buy one, two or three months coverage, you will generally owe a "short rate" of a minimum 6 months or so if you cancel early.
 
SixPapaCharlie said:
Soooooo, I bought a plane a couple years ago and the insurance was high (to me), about $3,500 a year.
The next year, it was lower because I had retract time and it went down to $2,400
This year, I added 200 hours, Commercial and Multi and my quote was $2,600

So I decided to shop around and lo and behold the first quote was $4,500 but the next quote was $1,800 AND they have a monthly option.
I had never heard of being able to pay for aircraft insurance monthly. 2 insurance companies came back with monthly payments versus the annual lump sum.
Granted it is about $200 higher over the 12 months but being able to spread it out is a nice option.

Anyone else paying monthly? I had been told since I started owning 7-ish years ago that this was not an option.

#ShopAroundShopAroundShopUpShopUpAndGetDown
Click to expand...
Sounds like you checked to satisfy yourself that it's a monthly payment plan and not "monthly insurance." Like any other credit offering, if paying the interest benefits you in some way, go for it.

But check the fine print. As @Chip Sylverne noted, aviation insurance, like many other than regulated auto insurance, tends to be front-loaded. IOW, most of the premium is "earned" up front. Which means if you cancel along the way, the rebate is not pro-rata; you might still end up owing money.
 
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