Owning an aircraft is a dream for many and a serious financial commitment for all. So when it comes to protecting that investment, aircraft insurance is non-negotiable. But here’s the reality most owners don’t think about:
You might be overpaying for your aircraft insurance.
Not by a few bucks. In some cases, by hundreds or even thousands of dollars per year.
And the worst part? Most pilots have no idea. Because unless you have access to real quote data across hundreds or thousands of similar aircraft and pilot profiles, you’re flying blind.
At BWI Aviation Insurance, we see it every week. Pilots come to us with renewals that look fine on paper—until we compare them to what similar aircraft are paying. That’s when we find the gaps. The missed discounts. The outdated training logs. The storage changes that bumped them into a higher tier.
Here’s how to tell if you’re overpaying, and what you can do to fix it.
What Factors Impact Your Aircraft Insurance Premium?
Let’s start with the basics. Aircraft insurance isn’t just about hull value and pilot hours. Underwriters look at 30+ data points to determine your rate.
Some of the most important include:
- Aircraft Make, Model, and Use – Is it a Cirrus SR22 used for personal flights? A Cessna 182 used for business? Risk levels vary.
- Pilot Total Time and Time in Type – Underwriters love recency and currency.
- Flight Hours in the Last 12 Months – You may have 2,000 hours total, but if you haven’t flown recently, your rate may be higher.
- Training History – Annual recurrent training or simulator sessions often qualify for discounts.
- Storage Type – Hangared aircraft usually receive better rates than tied-down.
- Airport Location – High-risk or coastal areas can affect rates.
- Claim History – Even one minor claim can bump you out of preferred tiers.
- Liability Limits Requested – More coverage often means more premium—but not always.
Other less obvious factors can include your medical certification, age, airport elevation, aircraft configuration, and how recently you completed your last biennial flight review (BFR).
Every single one of these affects how your profile is rated.
Real-World Example #1: The Bonanza Owner Paying $900 Too Much
One of our recent clients owned a Beechcraft Bonanza. His prior broker had renewed him for $2,800 annually.
Nothing looked off, until we dug in.
We compared his profile to six other Bonanza pilots in our system:
- Similar hours
- Same airport
- Same aircraft use
- Similar claims history
But they were paying between $1,850 and $2,100.
The reason? Our client had moved his aircraft to a tie-down from a hangar and hadn’t updated the policy. He also missed reporting his annual instrument refresher.
Small details. Big cost.
We resubmitted his profile with the corrected details and secured a premium of $1,975.
Real-World Example #2: The RV-10 Pilot Who Saved $1,300
A Vans RV-10 owner recently contacted us for a quote after years of sticking with his original carrier.
He assumed all aircraft rates had gone up, and accepted his $3,450 renewal without question.
But after sharing his info with us, we noticed:
- He had logged over 60 hours in the past 6 months (a big positive)
- He had recently completed transition training but never submitted documentation
- He had a simulator log that qualified for a carrier discount
Once we compiled this information and positioned it properly with underwriters, we quoted him across the market.
His final quote? $2,150.
That’s a savings of $1,300 per year, simply by knowing what mattered.
What Pilots Often Get Wrong About Insurance
Many aircraft owners assume that as long as they don’t file claims, their renewal will be fair. Unfortunately, that’s not always the case.
Here are a few common mistakes:
- Assuming loyalty means savings – Sticking with the same broker or carrier does not guarantee preferred pricing
- Failing to update hours and training – Underwriters default to old info if you don’t keep it current
- Overinsuring – Market value changes, you might be paying to cover more than your aircraft is worth
- Letting your policy auto-renew – Without a check-in, this can lead to years of unnoticed increases
How to Tell If You’re Overpaying
Here are a few signs:
- Your premium went up and nothing about your profile changed
- You haven’t updated your training hours in over a year
- You changed hangars or storage setup and didn’t notify your broker
- Your current broker only quotes one or two carriers
- You haven’t had a full review of your policy in over 12 months
What You Can Do Today
- Request a Policy Review – Send your current declarations page to a broker who specializes in aviation (like us).
- Compare Your Rate by Aircraft Type – Ask for benchmark quotes for your make and model.
- Update Your Pilot Record – List all training, recurrent sessions, and total hours in the past year.
- Reevaluate Storage – Let your agent know if your aircraft is now hangared, tied down, or moved to a new airport.
- Consider Changing Brokers – Not all brokers shop the entire market or take the time to position your profile properly.
Why Your Broker Matters
Aircraft insurance is a niche. And it’s a relationship-driven, human-underwritten world. If your broker doesn’t understand how to present your risk to underwriters, you might be paying the price.
At BWI, we don’t just submit your app to one carrier and hope for the best. We quote every major aviation insurance company in the U.S., compare options, and guide you through the details.
We also maintain an internal benchmarking system to compare rates by:
- Aircraft type
- Pilot profile
- Airport region
- Training history
That means we know if you’re overpaying, and we can help you fix it.
Final Thought: You Deserve Better
If you haven’t reviewed your aircraft insurance in a year or more, chances are you’re leaving money on the table.
And it’s not just about the money.
It’s about knowing that your policy truly fits your flying profile, protects your aircraft, and reflects the real risk you present, not just what was submitted on an outdated form.
Aircraft insurance is too important, and too expensive, to set and forget.
Let us help you make sure your coverage matches your risk profile, your flying habits, and your budget.
[Request a Free Rate Review from BWI Today]
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