Airplane Insurance is a from of property and casualty insurance, designed to protect you and your aircraft in the event of a loss. Airplane Insurance cost varies wildly due to the specialized nature of the aviation industry and the wide variety of aircraft makes, models and risk situations.
Airplane Insurance Cost is broken down into two main coverages, Liability and Hull Coverage.
Liability Coverage on an Aircraft Insurance Policy:
- Covers Bodily Injury, Property Damage and provides legal defense.
- Is typically offered at $1,000,000 Total Liability and limited to $100,000 per passenger
- Can be offered as a Combined Single Limit or Smooth Limit
- Liability Cost range is between $275-$600 (Depending on the make/model and aircraft use (pleasure vs commercial)
- If the policy is Liability Only, rates will be surcharged +25%
- Liability is typically 15%-35% of the total cost of an aircraft insurance policy, when Hull Coverage is included.
Hull Coverage 0n an Aircraft Insurance Policy:
- Covers physical damage to the aircraft itself.
- Is an (Agreed Value) meaning there is no depreciation and the amount insured is the amount you will get in the event of a loss (less any deductibles)
- Typically subject to $0 deductibles, but deductibles are common for Alaska based aircraft and all seaplanes/amphibious aircraft.
- Aircraft Hull Insurance Cost range is between 1.5% and 10% of the insured value depending on a variety of underwriting factors.
- For more information, please see our article: Do I need more hull coverage?
Whether you are looking to insure a helicopter, jet or Cessna 172, all airplane insurance cost is broken down into the Two coverages above. There are always additional coverages, variations and stipulations but all airplane insurance follows the above standard coverage format.
Since Aircraft Insurance Cost varies significantly and there are a plethora of factors that go into the actual cost of Airplane Insurance, it’s important to speak to an Aviation Insurance Professional and get a full Aircraft Insurance Quote for accurate information.
Airplane Insurance is a specialty line of insurance and we recommend using an Insurance Broker who specializes in Aviation Insurance. At BWI, we specialize only in Aviation Insurance and have done so for 42 years. We are licensed Nationwide and have offices in California and Alaska.
To get a full Airplane Insurance Quote, click here or call us at 800-296-8595.