Flying doesn’t always require owning your own airplane. Thousands of pilots across the U.S. rent aircraft for training, travel, or leisure every week. But what many don’t realize is that when you fly an airplane you don’t own, you’re often not fully protected by the owner’s insurance.
That’s where airplane renter insurance, also known as non-owned aircraft insurance, comes in. This coverage is essential for protecting your personal finances and liability when flying rented or borrowed airplanes.
Since 1977, BWI Aviation Insurance has specialized exclusively in aviation coverage, helping more than 10,000 pilots and aircraft owners secure the right protection. With nearly 50 years of experience and 800+ five-star reviews, BWI remains one of the nation’s most trusted aviation insurance brokers.
This article explains what airplane renter insurance covers, why it matters, how much it costs, and how to choose the right policy before your next flight.
What Is Airplane Renter Insurance?
Airplane renter insurance protects pilots who rent or borrow aircraft that they do not own. It fills the coverage gap between the aircraft owner’s policy and your personal liability as the pilot in command.
When you rent an airplane from a flight school or FBO, their insurance policy is designed to protect the owner, not you. If an incident occurs while you’re flying, the owner’s insurer may demand repayment of their deductible, or worse, pursue you for the full cost of repairs or damages.
Renter insurance provides two key protections:
1. Liability coverage – for bodily injury or property damage you cause.
2. Physical damage coverage – for damage to the rented aircraft itself.
Without a renter policy, you could personally owe thousands, even for a minor incident.
Why You Need Renter Insurance
Most pilots underestimate how much financial risk they take on every time they rent. Consider this scenario:
A private pilot rents a Cessna 172 for a weekend trip. During landing, a gust of wind causes a ground loop that damages the propeller and landing gear. The FBO’s insurance pays for the $15,000 repair, but the insurer sends the pilot a bill for their $5,000 deductible and two weeks of lost rental revenue.
The result? A $7,000 bill for a low-speed incident.
A renter’s policy would have covered those expenses entirely.
Even minor accidents, prop strikes, hangar rash, taxiway collisions, can result in claims. Without insurance, you’re financially exposed.
What Airplane Renter Insurance Covers
Renter insurance typically consists of two parts:
1. Liability Coverage
Liability protection covers legal responsibility if your actions cause injury or property damage. It includes both defense costs and settlements up to your policy limit.
Common limits include:
– $250,000 per occurrence (entry-level)
– $500,000 per occurrence
– $1,000,000 per occurrence / $100,000 per passenger (most popular)
– “Smooth” $1,000,000 (no per-passenger sublimit) for experienced pilots
Liability insurance follows you personally, regardless of where you rent or which aircraft you fly (as long as it meets policy requirements).
2. Physical Damage to Non-Owned Aircraft (Hull Coverage)
This pays for repairs or replacement of the aircraft you rent. It also covers the owner’s deductible and loss of use.
Coverage amounts typically range from $5,000 to $200,000, depending on aircraft type and your comfort level.
If you only purchase liability coverage, you’re still responsible for any damage to the airplane itself.
3. Additional Optional Coverages
– Medical payments for minor injuries
– Search and rescue expenses
– Legal defense outside liability limits
– Coverage for borrowed aircraft (not just rentals)
– Instructional use for CFIs or students
These optional protections can be added to most policies through your broker.
What’s Not Covered
As with any insurance policy, exclusions apply. Most renter insurance policies will not cover:
– Wear and tear or mechanical failure
– Intentional or illegal acts
– Operations outside your certificate level or endorsements
– Aircraft types not approved by the policy (for example, multi-engine or turbine aircraft without a proper endorsement)
– Use for hire or charter
Always review your policy carefully and discuss your flying habits with your broker to ensure you’re fully protected.
How Much Does Airplane Renter Insurance Cost?
Renter insurance is affordable, often less than the cost of a single flight lesson.
Typical annual premiums:
– Liability only: $80–$120
– Liability + $5,000 hull coverage: $150–$200
– Liability + $50,000 hull coverage: $250–$350
– Liability + $100,000 hull coverage: $400–$500
Costs vary by your total time, time in make/model, and whether you’re a student, private, or commercial pilot.
Student pilots and CFIs generally pay slightly higher premiums, but the difference is minimal. Considering that even minor damage can exceed $10,000, renters insurance remains one of the best values in aviation.
How to Choose the Right Limits
Selecting proper limits depends on how and what you fly:
1. Match Hull Coverage to Aircraft Value – If you regularly rent a $100,000 Cessna 172, select at least $100,000 in hull coverage.
2. Choose Sufficient Liability Limits – $1 million per occurrence with $100,000 per passenger is the industry standard.
3. Include Loss-of-Use Coverage – Some FBOs will charge you for lost rental revenue while the aircraft is down for repairs.
4. If You’re a CFI or Student Pilot – Ensure your policy allows dual instruction or solo under supervision.
5. Add Additional Insureds – Some FBOs may require their name listed on your policy certificate.
Your broker can help tailor the policy for your flight habits and aircraft types.
How Claims Work
If an incident happens while flying a rented aircraft:
1. Secure the aircraft and ensure everyone’s safety.
2. Notify the aircraft owner or flight school immediately.
3. Contact your insurance company or broker to file a claim.
4. Provide all requested documentation—photos, logs, and reports.
Your insurer will coordinate with the aircraft owner’s insurance company to settle repair costs. If the FBO’s insurer subrogates against you, your renter’s policy covers the claim up to your chosen limit.
Having an aviation broker like BWI manage this process ensures your claim is handled quickly and fairly.
The Difference Between Renter Insurance and FBO Coverage
Flight schools and FBOs sometimes advertise “renter protection,” but this is typically designed to protect the business, not you.
Their policy insures the aircraft and owners; you’re often excluded as a named insured. That means the insurance company can pursue you personally for deductible payments or subrogation.
A dedicated renter’s policy is personal, it follows you regardless of where you fly or rent.
Renter Insurance for Instructors and Students
Certified Flight Instructors (CFIs):
You need renter’s coverage that includes instruction. Standard policies exclude commercial use, so you’ll need an endorsement specifically for instructing in non-owned aircraft.
Student Pilots:
You can obtain renter’s insurance as a student. Coverage applies whether you’re dual with an instructor or soloing under supervision. Liability-only plans are inexpensive and offer peace of mind during training.
Example Scenarios
Scenario 1 – Ground Incident:
A student accidentally taxis too close to another aircraft, scratching the wingtip. Repair cost: $7,000. The FBO’s insurer subrogates against the student for $5,000 (their deductible).
Outcome: The renter’s policy covers the $5,000 in full.
Scenario 2 – Gear-Up Landing:
A private pilot forgets to extend the landing gear on a retractable aircraft. Damage exceeds $50,000.
Outcome: The renter’s policy covers up to the selected hull limit, protecting the pilot from personal financial loss.
How to Get a Quote
Quotes are quick and straightforward. To receive one, you’ll need:
– Pilot certificate and ratings
– Total hours and time in make/model
– Aircraft type(s) you rent
– Training status and usage (personal, instruction, or business)
– Desired coverage limits
BWI Aviation Insurance can usually provide same-day quotes and immediate proof of insurance for most single-engine aircraft.
Get Your Airplane Renter’s Insurance Quote Today>>
Why Work With BWI Aviation Insurance
BWI is more than an insurance agency, it’s an aviation partner. We work with every major aviation underwriter, including Starr, Old Republic, Global Aerospace, and USAIG, to find the best policy for your flying profile.
What sets BWI apart:
– Aviation-only focus since 1977
– Over 10,000 aircraft and pilots insured nationwide
– 800+ five-star reviews
– Dedicated account managers for renters and CFIs
– Same-day quotes and certificates
With BWI, you get expert guidance, fast service, and personalized coverage from a team that understands aviation inside and out.
Conclusion
If you rent or borrow airplanes, having renter’s insurance isn’t optional, it’s essential. One small mistake could lead to thousands in damage or liability, and the aircraft owner’s policy won’t protect you.
For less than the price of one flight lesson, you can protect your finances, your reputation, and your flying future.
Since 1977, BWI Aviation Insurance has made getting coverage fast, simple, and affordable for pilots nationwide.
Visit www.bwifly.com or call 800-666-4359 to request your airplane renter insurance quote today.
BWI Aviation Insurance, protecting pilots, aircraft, and peace of mind since 1977.
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