Owning an aircraft is one of life’s greatest freedoms, but it’s also one of the most significant financial responsibilities. Whether you own a small piston single or a multi-million-dollar business jet, your airplane represents a valuable asset that needs proper protection.
That’s where insurance for airplanes comes in.
Aviation insurance safeguards your aircraft, finances, passengers, and peace of mind from the risks that come with flying. But finding the right coverage, and the right broker, can be the difference between a smooth recovery and a financial nightmare after an incident.
Since 1977, BWI Aviation Insurance has specialized exclusively in aviation coverage, helping more than 10,000 aircraft owners secure affordable, customized protection. With nearly 50 years of experience and 800+ five-star reviews, BWI is one of the most trusted names in aircraft insurance nationwide.
This guide breaks down everything aircraft owners need to know about insuring their airplane, including coverage types, costs, key factors that affect your rates, and how to choose the best policy for your unique flying profile.
Get Your Airplane Insurance Quote With BWI Today>>
Why You Need Insurance for Airplanes
Even the most experienced pilot can face unexpected risks. Accidents, weather events, and liability claims happen more often than most aircraft owners realize.
Examples of real-world losses BWI has seen include:
– Gear-up landing in a Cirrus SR22, $90,000 repair, fully covered.
– Hangar fire that destroyed two aircraft, total loss paid within 30 days.
– Runway overrun damaging airport property, liability claim handled swiftly.
Without proper insurance, those expenses fall directly on you.
Airplane insurance isn’t a luxury, it’s a necessity.
What Does Airplane Insurance Cover?
A standard aircraft owner’s policy combines two main categories of protection:
1. Hull Coverage
Covers physical damage to your airplane itself, whether on the ground or in flight.
Options include:
– Ground Not in Motion: When parked or stored.
– Ground in Motion: When taxiing (but not taking off).
– In-Flight: Complete protection during all flight phases.
Coverage type:
– Agreed Value: Fixed payout if the aircraft is totaled.
– Actual Cash Value: Market value minus depreciation.
BWI always recommends Agreed Value for clarity and fast settlements.
2. Liability Coverage
Covers bodily injury or property damage you cause to others.
This includes passenger injuries, airport damage, or collisions with other aircraft.
Typical limits:
– $1,000,000 per occurrence / $100,000 per passenger (standard).
– $1,000,000 “smooth” (no per-passenger sub-limit) for higher-value aircraft.
Liability coverage also pays for legal defense, which can cost as much as the claim itself.
3. Additional Protections
Top-tier policies also include:
– Medical payments for passengers ($5,000–$25,000 per person).
– Personal effects (for damaged baggage or equipment).
– Spare parts coverage.
– Search and rescue or emergency expense coverage.
– Hangar coverage or non-owned aircraft coverage for owners who rent or lease.
BWI builds policies that fit your full aviation lifestyle, not just your airplane.
How Much Does Insurance for Airplanes Cost?
Premiums vary based on the aircraft, pilot profile, and coverage limits. Here’s a quick overview of average annual costs:
Cessna 172 / Piper Cherokee – $100,000 hull – $1,200–$2,400 – $1M / $100K liability
Beechcraft Bonanza – $400,000 hull – $2,500–$4,500 – $1M smooth
Cirrus SR22 – $450,000 hull – $2,800–$5,000 – $1M smooth
Baron / Seneca – $650,000 hull – $3,500–$7,000 – $1M smooth
King Air / TBM – $2,000,000 hull – $6,000–$12,000 – $2–5M smooth
Light Jet – $5–8M hull – $10,000–$25,000 – $5–10M smooth
Your broker can often save 10–20% by re-marketing your policy across different underwriters, especially when you maintain strong pilot qualifications and clean records.
What Affects Airplane Insurance Cost
Several variables influence your premium. The most significant include:
1. Pilot Experience and Time in Type – More hours = lower rates.
2. Training and Recency – Completing annual simulator or proficiency training can reduce premiums 10–15%.
3. Aircraft Type and Value – Complex, high-performance, and turbine aircraft cost more to insure.
4. Storage – Hangared aircraft receive 5–10% lower rates than tied-down planes.
5. Geographic Location – States with more weather risks (e.g., Texas, Florida, Midwest) pay more.
6. Claims History – Past incidents or violations increase future premiums.
7. Liability Limit Selection – Higher liability coverage adds cost but provides better protection.
How to Get the Best Airplane Insurance Policy
1. Work With a Specialized Aviation Broker – Aviation is niche; general agents lack market access.
2. Request Multiple Quotes – BWI compares all major underwriters for you.
3. Choose Agreed Value Coverage – Avoid payout disputes with guaranteed total-loss values.
4. Don’t Cut Corners on Liability – Always maintain $1M+ per occurrence coverage.
5. Stay Current – Flight recency and training lower premiums.
Common Mistakes to Avoid
1. Using a General Insurance Agent – Aviation coverage requires specialized expertise.
2. Underinsuring Your Aircraft – Small premium savings can cost thousands later.
3. Letting Coverage Lapse – Gaps in coverage lead to higher renewal costs.
4. Failing to Update Flight Time – Missed logbook updates mean missed discounts.
Why BWI Aviation Insurance Is the Trusted Leader
Since 1977, BWI Aviation Insurance has built a reputation for honesty, expertise, and exceptional service.
What sets BWI apart:
– Access to every major aviation underwriter in the U.S.
– Same-day quotes for most piston aircraft.
– Dedicated account managers who personally handle your policy.
– Fast, fair claims coordination with underwriters and repair facilities.
– Nearly 50 years of aviation-only experience.
BWI by the numbers:
– 10,000+ aircraft insured nationwide
– 800+ five-star reviews
– Offices in California and Alaska
– Decades of proven relationships with carriers and clients
At BWI, our mission is simple: to build the best aviation insurance agency on planet Earth.
Conclusion
Finding the right insurance for airplanes is about more than price, it’s about protection, partnership, and peace of mind.
The best policy combines comprehensive coverage, fair pricing, and a broker who knows aviation inside and out.
For expert guidance and same-day quotes, contact BWI Aviation Insurance — trusted by pilots, aircraft owners, and businesses across the country for nearly 50 years.
Visit www.bwifly.com or call 800-666-4359 today.
BWI Aviation Insurance, protecting pilots, aircraft, and peace of mind since 1977.
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