For the past few years, the Aircraft Insurance Industry has been on an absolute roller coaster ride. At the end of 2017 and after 10 years of rate decreases, premiums hit rock bottom. At the end of 2018 the industry started to shift, once again and the rates slowly started to increase. In 2019, the trend continued as rates increased and in some cases by about 30-50%.
These are the 5 Things You Need To Know About Aircraft Insurance In 2020:
- Aircraft Insurance Rates are going to continue to increase.
- Extra Pilot Ratings like an IFR Ticket will help get quotes but won’t lower rates as expected.
- Getting your IFR ticket, adding hours in make/model and type for example used to help you get discounts on the insurance rate.
- For Aircraft Insurance in 2020, these additional pilot qualifications will allow more companies to quote your aircraft insurance, but we have not witnessed significant discounts being offered.
- Higher Liability Options (Above 1 Mil/100K) will be hard to get.
- Typical Aircraft Insurance policies come with $1,000,000 Total Liability, which is limited to $100,000 per passenger as standard. Higher liability limits such as $1,000,000 Smooth Limits or $2,000,000 are available but difficult to obtain.
- Higher liability limits depend on the aircraft (make/model) and minimum pilot qualifications, typically PVT/IFR, 1,000 total time, and 250 in make model.
- Market Capacity will remain low, keeping rates high and reducing options.
- The Aviation Insurance Market is a small market as opposed to Auto Insurance for example. Just a few years ago there were 18 carriers, and today the industry is down to just 12.
- Because there are only a few companies offering Aircraft Insurance, pilot requirements will remain strict and rates will stay high and continue to increase.
- Here is our list of the The 10 Best Aviation Insurance Companies.
- The right broker makes all the difference.
- Having the right Aviation Insurance Broker fighting for you and understanding your unique situation will make all the difference not only in getting you the very best rate, but also in ensuring you have the right coverage in place.
- Professional Aviation Insurance Brokers such as BWI, specialize in Aviation Insurance, they understand the ins and outs of the market and they can help you navigate the complex world of Aircraft Insurance.
BWI is The Nation’s Leader in Aviation Insurance.
To get a free quote call us today at 800-296-8595 or submit a quote request online by clicking here