One significant way to reduce the cost of aircraft ownership is to keep aviation insurance costs in check. According to Plane & Pilot magazine, aviation insurance costs have increased significantly since 2018 as the industry has entered a hard market. So while keeping insurance costs in check might seem easier said than done, there are several things you can do to make sure you have the most competitive insurance rates and best coverages.
Underinsuring your aircraft is not one of them. Whatever steps you take to reduce your insurance costs, make sure you maintain adequate coverage at all times.
Here are some easy ways to save money on aircraft insurance for anyone who could use a little financial relief on your premiums.
13 Tips for Saving Money on Aircraft Insurance
Even if you can’t take advantage of all of these tips, you’re sure to find a few that can help you save.
1. Keep Training
Yes, classes and training cost money, but they can go a long way in reducing your aviation insurance and keeping you and your aircraft safe. To ensure you’re receiving any discounts or premium reductions, make sure you notify your insurance broker of every training you complete and all hours year over year, especially hours in make and model. To your insurance company, a well-trained pilot is a lower-risk pilot.
2. Increase Your Make and Model Hours
The more PIC (Pilot-in-Command) hours you accumulate in the aircraft you are insuring, the better your insurance rates will be. A pilot with 200+ hours in their aircraft can expect to save hundreds, if not thousands, of dollars on their insurance, vs a lower time transitional or student pilot.
3. Log Your Flight Hours
Keeping an accurate account of all hours flown in all aircraft and make and models hours flown, is a basic but very important step to make sure you have the logbooks to back up your hours to the insurance company. In the event of an accident or incident, insurance company adjusters will typically ask to see a copy of your logbook and all training certificates.
4. Earn Additional Certifications and Ratings
Certification on multiple aircraft types or instrument ratings can lower your insurance premiums. The most impactful rating (depending on the make and model aircraft) can be getting your instrument rating. Many insurance companies will consider you less of a risk, than pilots without an instrument rating.
5. Keep Your Record Clean
One of the most effective ways to keep aircraft insurance costs in check is to have a clean record. Avoiding accidents or causing damage to your aircraft that involves a claim will keep your premiums as low as possible.
6. Park Your Aircraft in a Hangar
You’d have to check with your insurer to verify they offer this discount, but parking your aircraft in a hangar could save you some money on insurance. While hanger storage is not free, it can also save you money on maintenance since your plane will not continually be out in the elements.
7. Build a History With One Insurer When It Makes Financial Sense
A clean flying record may save you even more if you’ve been with the same insurer for a long time. This certainly does not mean you shouldn’t adjust your insurance coverage as necessary. But most insurers will reward your loyalty and safe flying with lower premiums or more consistent year over year premiums. However, your broker will always help you shop for the best aviation insurance rates and let you know when another company can help you get the most significant savings.
8. Form a Partnership
Entering into a partnership agreement is not right for everyone, but it can help you save a lot on aircraft ownership and insurance. Some companies will allow you to name up to four pilots on your policy with no added cost. Just know that the least experienced pilot will determine your rates. Partnering with more experienced pilots will help keep your insurance premiums down.
9. Join a Club
Starting or joining a flying club can also help you share aircraft expenses with other pilots, saving everyone some money. Flying club insurance is based on the experience of all club pilots, so it can be expensive, but a broker can help you find reasonable rates. A broker can also help you get a good deal on any additional non-owned insurance you might need as a secondary coverage or to cover the flying clubs deductibles.
10. Carefully Consider Your Insurance Needs
Being over or underinsured on your aircraft can cost you a lot of extra money. But how can you determine if you have the correct coverage?
Aviation insurance can be confusing. Take the time to read and understand your policy to best work with your broker to ensure correct coverage.
11. Get Every Discount You Can
Most aviation insurance companies offer discounts or better rates for qualified aircraft owners and pilots. These are some standard discounts that might help you save, and your broker might be able to recommend others:
- IFR (Instrument Flight Rules) rating discount
- Aircraft hangar discount
- AOPA (Aircraft Owners and Pilot Association) member discount
- Multi-aircraft discounts
12. Reduce Liability Coverage When Your Plane Is Not In Use
Some insurers may allow you to reduce your liability coverage if you won’t be flying for a few months. This may help you see significant savings if you don’t fly year-round but there is typically a limit of changing coverage a maximum of 2 times during a policy period. For example, you could change to ground storage coverage for the winter, and then in the spring, change coverage back to full flight. Keep in mind that many insurers will not offer this.
13. Have Your Broker Shop Every Year for Aviation Insurance
About three months before your policy renewal date, get with your insurance broker to update them on your updated pilot and aircraft information. Don’t forget about any training or certifications you may have completed.
Then evaluate your insurance needs to determine if any policy changes need to be made. After that, your broker can shop around for the best rate for you. This is often with the same company, but sometimes a broker can get you better rates through another insurer.
How Much Can You Save On Your Aircraft Insurance?
You should save money by incorporating as many of these tips as possible. However, the best way to save money on aircraft insurance is to take actions that indicate to insurance companies that you are a low-risk pilot. Be sure to check in with your broker every year before you renew your policy to reevaluate your coverage and update them on steps you have taken that might get you a discount.
BWI Aviation Insurance can help ensure you get the correct coverage at the best price. Call us at 800-666-4359 with any questions or to get a quote. Our knowledgeable representatives are ready to assist you.
Why choose BWI Aviation Insurance?
Over our 42 year history, BWI has built longstanding relationships with all of the above Aviation Insurance Companies. We work hand in hand with the above companies and leverage our experience to find the best market for your particular airplane insurance risk.
To ensure that you are getting the absolute lowest rate and best coverage with a rock solid A+ rated Aviation Insurance company, get a quote with BWI today. We specialize only in Airplane Insurance and our office is open 12 hours a day. Our agents are friendly and knowledgeable, and most importantly they are agents that you can trust to get you the best coverage for your needs. Aviation Insurance is all that we do and have done for 42 years.
Call 800.666.4359 today for a free Airplane Insurance Quote or Click Here to submit a quote request online.
BWI is the Nation’s Leader in Aviation Insurance, with offices based in Corona, CA and Anchorage, AK.