Renting an airplane is one of the most flexible and cost-effective ways to fly. It allows you to maintain your skills, explore new destinations, and enjoy aviation without the long-term expense of ownership. But many pilots don’t realize that when you rent an airplane, from a flight school, FBO, or a friend, you could be personally responsible for thousands of dollars if something goes wrong.
That’s where airplane rental insurance, also known as non-owned aircraft insurance, comes in. This coverage protects pilots from liability for damage to rented or borrowed aircraft and from lawsuits that can arise after an accident.
This article explains what airplane rental insurance covers, how it works, how much it costs, and how to get the right policy before your next flight.
Why Rental Insurance Matters
Most flight schools and FBOs carry insurance on their aircraft, but that coverage is written to protect the owner, not the renter.
If an incident occurs while you are pilot in command, the owner’s insurer can demand repayment for the deductible or even pursue you for the entire loss.
For example, if you misjudge a landing and bend a prop, the repair might cost $15,000. The school’s deductible could be $5,000, and they can bill you directly for it. If the airplane is out of service for weeks, you could also be charged for “loss of use.” Without your own policy, those expenses come out of your pocket.
Airplane rental insurance shifts that financial burden away from you and gives you peace of mind every time you fly.
What Airplane Rental Insurance Covers
Every policy has two key components: liability coverage and damage to non-owned aircraft (often called “hull coverage”).
Liability Coverage
Liability protection pays for bodily injury or property damage you cause while operating a rented or borrowed airplane. It covers your legal defense and settlements up to the policy limit.
Typical limits range from $250,000 to $1,000,000 per occurrence, with sub-limits of $100,000 per passenger. Some carriers offer “smooth” limits (no per-passenger sub-limit) for experienced pilots.
Liability coverage is the most important part of any policy, it protects your personal assets if someone sues you after an accident.
Physical Damage to Non-Owned Aircraft
This portion pays for damage to the aircraft you rent or borrow. It covers repairs, the owner’s deductible, and sometimes loss-of-use charges.
Coverage amounts are flexible, typically ranging from $5,000 to $200,000, depending on the aircraft you fly. Choose a limit close to the market value of the airplanes you rent most often.
Additional Options
– Medical payments for minor injuries
– Legal defense outside the liability limit
– Search and rescue expenses
– Coverage for borrowed aircraft as well as rentals
Policies are available for single-engine, multi-engine, and even turbine aircraft. Some carriers also offer instructor endorsements so CFIs are protected while teaching.
What It Doesn’t Cover
Rental policies exclude:
– Wear and tear or mechanical failure
– Intentional acts or illegal flights
– Operations outside pilot limitations or certificate level
– Aircraft types not listed in the policy
– Commercial use unless specifically endorsed
It’s critical to read the fine print. If you fly both piston and turbine aircraft, make sure your policy includes both categories.
How Much Airplane Rental Insurance Costs
One reason pilots skip this coverage is because they assume it’s expensive. In reality, it’s one of the best values in all of aviation insurance.
Average annual premiums:
– Liability only: $80–$120
– Liability + $5,000 hull: $150–$200
– Liability + $50,000 hull: $250–$350
– Liability + $100,000 hull: $400–$500
The difference between minimal and full coverage is often less than the cost of one hour of flight time.
Rates depend on your flight time, ratings, and aircraft type. Student pilots, CFIs, and renters with higher hull limits pay slightly more.
Get Your Airplane Renters Insurance Quote Today>>
How to Choose the Right Coverage
1. Match Hull Value to Aircraft You Fly – Insure for at least the typical value of the airplanes you rent.
2. Select Adequate Liability Limits – $1,000,000 per occurrence / $100,000 per passenger is the standard benchmark.
3. Check for Loss-of-Use Protection – Make sure your policy covers downtime the owner may claim.
4. Include Instruction if Needed – If you’re training or instructing, confirm the policy includes dual operations.
5. Confirm Geographic Limits – Some policies restrict coverage to the continental U.S. or exclude certain airports.
The Claims Process
If an accident happens:
1. Ensure everyone’s safety and secure the aircraft.
2. Notify the aircraft owner or flight school immediately.
3. Contact your insurer or broker to file a claim.
4. Provide photos, incident reports, and any requested documentation.
The insurer will coordinate directly with the owner’s insurer. If you owe a deductible or loss-of-use fee, your policy covers it up to your selected limit.
Having a broker like BWI Aviation Insurance on your side ensures that the claim is handled quickly and fairly.
The Difference Between Rental Insurance and Renter’s Endorsements
Some flight schools advertise that their insurance “covers renters,” but that’s usually limited to liability protection for the school, not the individual pilot. It rarely includes hull coverage and often provides no defense for the renter if sued personally.
A dedicated renter’s policy is personal coverage, it follows you, not the aircraft owner. Whether you’re flying at your home airport or on vacation, your policy stays in effect.
Common Myths About Airplane Rental Insurance
“The flight school’s insurance covers me.” – It doesn’t, schools carry insurance for themselves, not you.
“I only fly once or twice a month; I don’t need it.” – Accidents are unpredictable, and even small incidents can lead to big bills.
“All renter’s policies are the same.” – Coverage varies by carrier. Some include loss-of-use, others don’t. Always read the policy.
“It’s too expensive.” – Most pilots pay less than $300 a year, less than one flight lesson.
How to Get an Airplane Rental Insurance Quote
Most renters can get a quote in less than 10 minutes. Here’s what to have ready:
– Pilot certificate and ratings
– Total time and time in make/model
– Aircraft type and hull value
– Training status (student, private, CFI, etc.)
Contact a broker like BWI Aviation Insurance for a fast, accurate quote. We can provide same-day coverage for most single-engine aircraft and issue certificates immediately to your flight school or FBO.
Why Work With an Aviation Insurance Broker
Aviation brokers specialize in finding the right coverage and guiding you through the process. They know which carriers offer the best value for renters and can explain policy differences clearly.
Working with a broker like BWI provides:
– Access to multiple insurers (Starr, Old Republic, Global Aerospace, USAIG, and more)
– Personalized coverage recommendations
– Fast processing and policy issuance
– Expert claims assistance
BWI Aviation Insurance: Experience That Counts
Since 1977, BWI Aviation Insurance has been a leader in aviation coverage. Our team insures more than 10,000 aircraft owners and pilots nationwide and represents every major underwriter in the industry.
We make the process easy: one application, multiple quotes, professional guidance, and fast service. Whether you’re a student pilot, renter, or CFI, we’ll help you secure the right policy so you can focus on flying.
BWI by the numbers
– Nearly 50 years of aviation-only expertise
– 800+ five-star reviews from pilots and owners
– Offices in California and Alaska
– Same-day coverage for most renters
Conclusion
Flying rented aircraft should be enjoyable, not stressful. Airplane rental insurance protects you from the financial risks of flying someone else’s airplane. For the cost of a single hour in the pattern, you can secure coverage that could save you tens of thousands of dollars in the event of an accident.
Before your next checkout or flight review, make sure you’re covered.
Visit www.bwifly.com or call 800-666-4359 to get your airplane rental insurance quote today.
BWI Aviation Insurance, protecting pilots, aircraft, and peace of mind since 1977.
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