Every pilot hopes never to experience it, but every pilot knows it’s possible, an aircraft accident. Whether it’s a hard landing, gear-up incident, or total loss, accidents happen even to the most experienced aviators. When they do, airplane crash insurance determines how financially secure you’ll be afterward.
While aviation insurance policies are built to protect against much more than just crashes, this article focuses specifically on crash-related coverage, what it includes, how it works, who it protects, and how to ensure you have the right limits in place.
Since 1977, BWI Aviation Insurance has guided aircraft owners, pilots, and operators through every type of claim imaginable. With nearly five decades of experience and 800+ five-star reviews, BWI is a leader in helping pilots prepare for the worst while flying with confidence.
What Is Airplane Crash Insurance?
“Airplane crash insurance” isn’t a single product, it’s a combination of coverages inside your broader aviation policy that respond when an accident occurs. In insurance terms, a crash is a covered physical damage loss and may also trigger liability coverage if people or property are harmed.
Crash-related insurance can be broken into three key components:
1. Hull coverage (for the aircraft itself)
2. Liability coverage (for injuries and property damage)
3. Medical and supplemental coverages (for pilot and passengers)
Each component works together to protect both the airplane and the people involved.
Hull Coverage: Protecting the Aircraft
Hull insurance pays for damage to your aircraft from nearly any cause, collision, hard landing, midair incident, hangar collapse, or forced landing. It also applies whether the aircraft is parked, taxiing, or in flight, depending on the policy option you choose.
Types of Hull Coverage
– Ground Not-in-Motion: Covers damage while parked or stored, such as hangar fires, windstorms, or towing accidents.
– Ground in Motion: Covers taxiing but not takeoff or flight.
– In-Flight Coverage: Comprehensive protection that includes every phase of operation, from taxi to takeoff to landing.
Agreed Value vs. Actual Cash Value
Most airplane policies use Agreed Value hull coverage, which pays the full insured value if the aircraft is totaled. For example, if you insure your Cessna 182 for $250,000 and it’s destroyed, you’ll receive that amount (less deductible), regardless of market fluctuations.
Actual Cash Value (ACV) policies, more common in other industries, pay depreciated value. ACV is rare in aviation because it can create disputes over payout amounts.
Partial Damage and Repairs
If the aircraft can be repaired economically, the insurer covers repair costs, including labor, parts, and ferrying to the repair facility. BWI’s experience shows that strong relationships with adjusters and maintenance shops often speed up this process significantly.
Liability Coverage: Protecting You From Lawsuits
When a crash causes injury or property damage, liability coverage becomes essential. This portion of the policy defends you against lawsuits and pays settlements or judgments, up to your policy limit.
Typical liability limits:
– $1 million per occurrence / $100,000 per passenger (most common)
– $1 million smooth (no sub-limits)
– $2 million or higher (for turbine aircraft or corporations)
What Liability Covers
– Bodily injury to passengers or people on the ground
– Damage to property (buildings, vehicles, etc.)
– Legal defense costs
Even if you’re not found at fault, defense costs alone can exceed six figures. A good policy pays for attorneys, investigators, and expert witnesses without eating into your liability limit.
Medical Payments and Passenger Protections
Medical payment coverage reimburses small medical bills for injured passengers, regardless of fault. This quick-pay benefit typically ranges from $5,000 to $25,000 per passenger and can prevent minor claims from escalating into lawsuits.
Some policies also offer voluntary settlement coverage, allowing the insurer to pay an agreed amount quickly in exchange for release of liability, a useful feature when multiple passengers are involved.
What’s Covered After a Crash
A standard aviation policy covers most types of crash damage, including:
– Impact with terrain, water, or obstacles
– Gear-up or gear-collapse incidents
– Runway overruns or undershoots
– Structural damage from hard landings
– Forced landings due to mechanical failure
– Ground collisions during taxi or towing
In addition to hull repairs or total loss payments, crash insurance may pay for:
– Engine teardown inspections after prop strikes
– Salvage and recovery costs
– Cleanup of wreckage or fuel spills
– Transportation of aircraft to repair facilities
What’s Not Covered
Aviation insurance is comprehensive but not unlimited. Exclusions typically include:
– Wear, tear, or mechanical breakdown
– Operating outside policy limits (e.g., unapproved pilot, unlisted use)
– Intentional damage or illegal acts
– War or nuclear hazards
– Flying outside covered territories
To stay protected, always verify that:
– All regular pilots are listed
– Training requirements are met
– Aircraft usage matches your policy (personal, business, commercial, etc.)
How Claims Work After a Crash
The first hours after a crash are stressful. Knowing what to do helps both your safety and your claim.
Step 1: Ensure safety and notify authorities.
Step 2: Protect the aircraft from further damage (if possible).
Step 3: Contact your insurance broker or carrier immediately.
Step 4: Provide accident details, photos, and maintenance records.
Step 5: Cooperate with the assigned claims adjuster and FAA investigators.
Once the adjuster assesses the damage, the insurer determines whether to repair or declare a total loss. Payment is made to you or any lienholder once documentation is complete.
BWI’s claims team coordinates directly with carriers and repair facilities, ensuring fair assessments and rapid settlements.
How Much Airplane Crash Insurance Costs
There isn’t a separate “crash policy”, crash protection is included in your hull and liability premiums.
Approximate annual premiums:
– Small single-engine piston: $1,200–$2,500
– High-performance piston: $2,000–$5,000
– Twin-engine aircraft: $3,000–$7,000
– Turbine / Jet: $10,000+
Factors that influence pricing include aircraft value, pilot experience, usage, and claims history. A pilot with more than 1,000 hours and annual training pays less than a low-time or inactive pilot.
Tips to Ensure Proper Crash Coverage
1. Insure for Realistic Hull Value. Avoid over- or underinsuring. Use market data or professional appraisals.
2. Review Deductibles. Higher deductibles lower premiums but increase out-of-pocket cost after a claim.
3. Check Pilot Endorsements. Every named pilot must meet the experience and recency requirements stated in your policy.
4. Include All Intended Uses. If you use your airplane for business or flight instruction, make sure your policy covers it.
5. Keep Records Current. Logbooks, maintenance logs, and training certificates help avoid delays during claims.
6. Work With an Aviation Specialist. Brokers who understand aviation ensure coverage is written correctly.
The Broker’s Role in Crash Coverage
The relationship between you and your broker is critical, especially during a crash. A specialized broker like BWI Aviation Insurance doesn’t just sell policies; we act as your advocate during the claim.
BWI’s claims team works directly with adjusters and underwriters to ensure fair outcomes, minimal downtime, and full transparency. Because we represent every major carrier, Global Aerospace, Old Republic, Starr, USAIG, and others, we know exactly how each handles claims and what to expect.
Why Experience Matters
A crash claim can test the quality of your policy and your broker. Cheap policies often mean narrow coverage and slow responses. Working with experienced aviation professionals means having a team that knows:
– Which carriers handle claims efficiently
– How to interpret policy language
– How to secure interim funding for repairs
– How to manage communication with the FAA and NTSB
Experience is what turns a chaotic situation into a controlled recovery.
Get Your Airplane Crash Insurance Quote Today>>
BWI Aviation Insurance: Trusted Since 1977
BWI has spent nearly fifty years helping aircraft owners, pilots, and operators navigate the complex world of aviation insurance.
What we provide:
– Access to every major aviation underwriter
– Same-day quotes for most piston aircraft
– Fast, hands-on claims support
– Nationwide service with offices in California and Alaska
– More than 800 five-star Google reviews
Whether it’s a minor runway incident or a total loss, our mission is the same: to get you back in the air quickly, confidently, and fully protected.
Conclusion
Airplane crash insurance isn’t a separate policy, it’s the foundation of your aviation protection. When properly structured, it covers your aircraft, passengers, and liability in even the worst-case scenarios.
You can’t control every factor in flight, but you can control how well you’re insured.
Work with a broker who understands aviation from the inside out.
Visit www.bwifly.com or call 800-666-4359 to discuss your policy or get a quote today.
BWI Aviation Insurance, protecting pilots, aircraft, and peace of mind since 1977.
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