Buying a personal jet is a big decision in terms of both money and time commitments. You can get a new jet with all the bells and whistles, a used jet to get you from point A to point B, or something in between. There are several factors you should consider in making this big decision, from choosing the right time to purchase your jet to buying private jet aviation insurance.
Is It the Right Time For You To Buy a Private Jet?
There are several things you should keep in mind before you take the leap and make the investment in your own jet. Make sure you consider not just the cost of the plane, but also how much jet you need and the best way to protect yourself with aviation insurance.
The Initial Cost of a Private Jet
A cost of a new private jet ranges from about $2 million to as much as $500 million depending on size, technology, and how it is customized. You can find used jets for as little as $200,000, but generally, they are priced higher depending on factors such as age, flight hours, avionics, and customizations.
How Are You Going to Use Your Jet?
Also consider how you are going to use your private jet, including where you are going to fly it. If the jet is only for a couple of friends or family members on relatively short trips, you can buy a private jet that is on the smaller side. Longer trips or more people means additional size, more range, and the cost of added comfort.
Do You Log Enough Hours to Need Your Own Jet?
Buying a private jet based on pure economics depends on how often you would use it and what the cost would be if you didn’t have your own aircraft. Estimate the hours you will spend flying and figure out how much it would cost you to pay for those same hours by chartering jets, getting fractional ownership, or using a jet card.
Estimates vary between 200 and 400 hours of flight time costing you enough to justify buying your own jet, with one estimate finding the sweet spot at 240 hours based on several cost factors.
Maintaining Your Jet
The initial outlay for your private jet is a big investment, but so is the ongoing cost of having one. You should factor in hangar costs and insurance, Repairs can also be very costly, as your insurance won’t cover normal wear and tear and mechanical breakdowns. The yearly cost of maintaining a private jet can run into hundreds of thousands of dollars.
Other Considerations For a Used Jet
At first glance, you might fall in love with an older jet at the right price and with the customizations you want already in place. But there are other factors to consider, for example:
- Does it have FAA-mandated avionics?
- Are parts and support available?
- Does it meet noise abatement requirements?
Advantages of Jet Ownership
Your decision to buy a jet might not be hinged solely on money, as there are other advantages to having your own aircraft, such as:
- Making more remote destinations accessible for business or pleasure
- Privacy and enjoying your flight without interference from passengers you don’t know
- The joy of flying yourself if you plan to pilot your jet
- Customization that fits your wants and needs
Buying Private Jet Aviation Insurance
Once you have a private jet, talk to an experienced broker to make sure you insure it properly. Over or under-insuring your jet can cost you in the long run, or keep you out of the skies. Talk to your broker about several insurance options.
Your liability coverage protects you when flying your private jet leads to bodily injury to others or property damage. Liability coverage typically starts for a very small jet from $1,000,000 per occurrence, limited to $100,000 per passenger. Depending on the number of seats in the aircraft, types of passengers and the overall speed, performance and liability risk to you, liability limits can go up to $50,000,000 depending on many factors.
Physical Damage Coverage
Your aircraft could sustain damage in several scenarios, and while you don’t have to cover them all, the cost of fixing a private jet dictates that you should strongly consider it.
Physical damage coverage could include damage that occurs:
- Stationary on the ground
- In motion on the ground
- A combination of the above in one damage policy
Tips For Getting a Great Private Jet Insurance Policy
There are several ways that you can go into your conversation with your insurance broker with a leg up on pricing your policy, such as:
- Get in as many flight hours as possible, especially in your private jet or in a similar one
- Make sure you have the proper ratings and plenty of ongoing training in jets and with advanced avionics
- Be prepared to talk about where and how your aircraft will be stored
- Ask your broker to shop for new rates every year as you add flight hours and training
Research your broker thoroughly before insuring your aircraft. It is a big upfront and ongoing investment and you need a broker with experience in insuring private jets to help you choose the proper coverage. Your broker should ask you a lot of questions and should be able to answer any questions that you have.
Learn More or Get a Quote
If you want to learn more about private jet insurance or you are ready to get a quote, visit family-owned BWI Aviation Insurance.
We were ranked #1 in aircraft insurance in 2021 and 2022 by Investopedia based on our ability to get you the best coverage and rates and our top-notch customer service. We can help you get the coverage you need to give you peace of mind and keep you flying.
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