Every aircraft is an investment — and whether you fly a simple Cessna 172 or a $10 million jet, protecting that investment requires one critical step: making sure it’s properly insured.
But what does it really mean for an aircraft to be “insured”? What types of protection are available? And how can you ensure your policy fully covers your aircraft, passengers, and financial liability in every scenario?
At BWI Aviation Insurance, we’ve helped insure more than 10,000 aircraft nationwide over the past 45 years. This guide breaks down everything you need to know about insured aircraft — from what the term means to how policies work, what factors affect cost, and how to secure the best protection available.
1. What Does “Insured Aircraft” Mean?
An insured aircraft is any aircraft covered by an active aviation insurance policy. That policy protects the aircraft owner and pilot from financial loss due to physical damage, liability, or other covered events.
Insurance doesn’t just protect the airplane itself — it protects your assets, your family, and your future from the financial impact of accidents, injuries, or legal claims.
- The aircraft itself (hull coverage).
- Damage or injury caused to others (liability).
- Medical expenses.
- Legal defense and court costs.
- Optional protections like personal effects, hangar coverage, and non-owned aircraft use.
2. Types of Aircraft That Can Be Insured
- Single-engine pistons (Cessna, Piper, Beechcraft, Diamond).
- High-performance aircraft (Cirrus, Bonanza, Mooney).
- Multi-engine pistons (Baron, Seneca, Aztec).
- Turboprops (King Air, Pilatus, TBM).
- Jets (Citation, Phenom, Learjet).
- Helicopters (Robinson, Bell, Airbus).
- Experimental and homebuilt aircraft.
- Drones and UAVs (commercial and agricultural).
- Non-owned or rented aircraft.
- Flight schools and commercial operators.
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3. The Core Coverages of an Insured Aircraft Policy
Every aircraft insurance policy has two main components:
- Liability Coverage
Protects you if your aircraft causes injury or property damage. It covers legal defense, settlements, and judgments up to your policy limit. Common structures include $1M combined single limit (CSL), $1M with $100k per passenger sub-limit, or smooth coverage where the full limit applies to all claims.
- Hull (Physical Damage) Coverage
Covers your aircraft itself for damage or total loss, whether it’s in flight, taxiing, or parked. Hull coverage is written on an agreed value basis — meaning you and your insurer agree on the aircraft’s value before the policy starts.
Additional optional coverages include medical payments, personal effects, hangar insurance, and non-owned coverage.
4. How an Aircraft Becomes Insured
- Provide your aircraft’s make, model, year, and value.
- Share pilot details (name, certificates, total flight time, time in make/model, ratings, and training).
- Specify how the aircraft will be used (personal, business, or commercial).
- Include storage location, hangar details, and any past claims.
- Select the desired coverage and pay the premium.
Once payment is received, your aircraft becomes insured immediately — coverage is active upon policy binding.
5. What Does It Cost to Insure an Aircraft?
Aircraft insurance cost depends on aircraft type, pilot experience, hull value, and use. Here’s what most owners can expect in 2025:
| Aircraft Type | Typical Hull Value | Annual Premium Range | Average |
| Light Single-Engine (Cessna, Piper) | $100k–$300k | $1,200 – $2,800 | $2,000 |
| High-Performance Single (Cirrus, Bonanza) | $300k–$800k | $3,000 – $6,000 | $4,500 |
| Twin-Engine Piston | $400k–$900k | $4,000 – $8,000 | $6,000 |
| Turboprop | $1M–$3M | $8,000 – $18,000 | $12,000 |
| Light Jet | $3M–$8M | $15,000 – $30,000+ | $22,000 |
Liability-only policies (for non-owned or lower-value aircraft) can cost as little as $175–$500 per year.
6. What Affects Aircraft Insurance Rates
- Pilot Experience – Total hours and time in make/model.
- Training & Ratings – Instrument rating and simulator recurrency reduce risk.
- Claims History – Past incidents can increase premiums temporarily.
- Aircraft Value – Higher hull values increase premiums proportionally.
- Use Type – Private pleasure costs less than business or charter use.
- Location & Storage – Hangared aircraft receive lower rates.
- Market Conditions – Industrywide trends influence pricing cycles.
7. How to Ensure You’re Fully Protected
- Choose the right liability limit (at least $1M CSL for most owners).
- Use accurate hull values to avoid over- or under-insuring.
- Keep your policy updated for pilot, avionics, or equipment changes.
- Complete annual recurrent training for potential discounts.
- Hangar your aircraft to minimize exposure to damage.
- Review your coverage annually and have your broker re-shop your policy.
8. Real-World Example: BWI Client
A 750-hour IFR-rated pilot in Arizona purchased a 2015 Cirrus SR22T valued at $700,000.
Coverage: $1M smooth liability / $700k hull
Annual Premium: $4,750
Underwriter: Global Aerospace
Storage: Hangared
After two years with zero claims, the client’s premium decreased by 12% due to experience and market softening.
9. Why You Need a Specialized Aviation Insurance Broker
- Access to every major underwriter (AIG, Global Aerospace, Old Republic, Starr, USAIG, and more).
- Market-wide rate comparison for best pricing.
- Faster quotes (24 hours or less for piston aircraft).
- Claims advocacy if something goes wrong.
- Annual re-shopping to maintain competitive rates.
10. Why Thousands of Pilots Trust BWI
- 45+ years specializing exclusively in aviation insurance.
- 10,000+ active policies nationwide.
- 800+ five-star reviews.
- Access to every major aviation underwriter.
- Fast quotes and renewals.
- Dedicated account managers who understand your operation.
11. The Bottom Line
An insured aircraft isn’t just a regulatory or lender requirement — it’s the financial foundation that protects your aircraft, your family, and your future.
At BWI Aviation Insurance, we help aircraft owners secure comprehensive protection with the best rates in the market. Whether you’re insuring your first airplane or managing a fleet, we’ll find the perfect policy for your needs.
Protect your aircraft. Protect your future. Get your aircraft insurance quote today at www.bwifly.com.
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