In 2019, the U.S. insurance industry net premiums in the amount of $1.32 trillion dollars and among that massive figure, airplane renter’s insurance was a relatively small piece of the pie. That’s because out of America’s 350 million plus population, only 660,000 individuals have the distinct honor to call themselves a certified pilot in that same year.
Now, not every single one of those pilots will need airplane renters insurance. However for pilots who don’t personally own an aircraft and rent, or fly non-owned aircraft, they would do well to purchase an aircraft renter’s insurance policy.
The cost is relatively small compared to the cost and liability of finding out the owner’s policy does not cover you. If you think there is even a chance that you might fly a non-owned aircraft, then this article is a must read before you proceed.
Do I Really Need Airplane Renters Insurance Coverage?
Airplane renter’s insurance can be procured to have both liability coverage for yourself as the pilot as well as hull insurance for any damage to the aircraft that you do not own. Far too many new pilots assume that the owner’s coverage has the covered. BWI Aviation has specialized in aviation insurance for over 40 years and we can emphatically emphasize enough that this is not always true. Fixed based operators and flights schools do indeed have aviation insurance, but the entire focus of that insurance is protecting their interests.
The aircraft owners insurance policy is always primary, in the event of a loss, but coverage for you and in the event that the owners insurance policy is inadequate, a non-owned insurance policy will step in up to the coverage limits.
Things like third-party bodily injury, third-party property damage, physical damage to the aircraft, and all the legal costs associated with the incident are covered. The threat of lawsuit and the hefty cost of legal fees in a remarkably litigious society is worth the cost of renter’s insurance in its own right.
How Much Coverage is Offered with Airplane Renters Insurance?
Rental liability coverage is typically offered starting at $250,000 per occurrence and limited to $25,000 per passenger. Note though that the top-level amount is typically $1,000,000 per occurrence and limited to $200,000 per passenger. Meanwhile, you can add hull coverage for the non-owned aircraft that is typically offered in amounts ranging from $5,000 to $200,000.
It is important to note that hull coverage on a non-owned aircraft or aircraft renters insurance is secondary coverage. What this means is that the owner’s coverage will be the primary as a result of a loss. In addition, hull coverage will only be paid if you are the one legally liable for the damage.
However, the cost of airplane renters insurance makes it a no-brainer. Policies can start for around $70 bucks a year and go up from there depending on the need. Just know that you can for the top-tier liability coverage of $1,000,000 per occurrence and $200,000 per passenger and still be under $500 bucks for the entire year. Considering that $500 bucks is about 2 billable hours for your average attorney, having an annual aircraft renter’s insurance policy is a relatively inexpensive coverage option for what you get.
A Final Word About Airplane Renters Insurance
“I thought the owner’s policy would cover me,” is the heart wrenching words we’ve heard from pilots far too many times in our 40 years of operation. Here at BWI, we are a family owned and veteran owned business that is indeed a business trying to make money. However, we do so with a clear conscience because we’ve seen the polices we’ve sourced for pilots come through time after time. Renters insurance won’t come close to being the largest portion of our business just like its a pretty small part of the overall $1.32 trillion national industry. Yet for pilots who need it, that simple policy will save them big time.
If you are thinking about taking to the skies without renter’s insurance, please give us a call or someone else just like us before you do. It’s quick, easy, and we quote every policy knowing that our family name is on the line with each interaction. If that day comes, you’ll take to the free skies above with peace of mind and financial protection.
BWI | The Future Of Aviation Insurance
Family Owned Since 1977 | Nationwide | Forward Thinking
What makes us different? Our office is open 12 hours a day, our team is hand-picked, well-trained and every single customer has their own dedicated Aviation Insurance Professional.
Get a no-obligation, Aircraft Renters Insurance Quote or call 800.666.435