One of the most common questions we hear from experimental aircraft owners is:
“My friend owns an experimental aircraft just like mine. Why is his insurance premium lower than mine?”
It’s a fair question.
In many cases, two aircraft owners may operate similar aircraft, fly similar missions, and even be based at similar airports.
Yet their insurance premiums can differ by hundreds, thousands, or even tens of thousands of dollars per year.
The reason is simple.
Insurance companies are not insuring airplanes.
They’re insuring risk.
And every pilot, aircraft, and operation represents a different level of risk.
At BWI Aviation Insurance, we’ve helped thousands of experimental aircraft owners secure coverage and reviewed countless insurance renewals over the years.
One thing becomes very clear.
The airplane itself is only part of the equation.
Understanding what insurance companies actually evaluate can help explain why some owners pay more than others—and more importantly, what you can do to improve your own insurance profile.
The Aircraft Is Only One Piece Of The Puzzle
Many owners assume insurance companies start by evaluating the airplane.
That’s partially true.
But it’s not where most underwriting decisions are made.
Insurance companies usually begin with the pilot.
They want to know:
- Who is flying the aircraft?
- How much experience do they have?
- How much time do they have in this aircraft?
- Have they completed transition training?
- Have they had claims?
- How often do they fly?
Two identical RV-10s can receive dramatically different insurance pricing simply because the pilots are different.
Time In Type Matters More Than Most Pilots Realize
For experimental aircraft owners, time in make and model is often one of the most important underwriting factors.
Consider these two pilots.
Pilot A:
- 2,500 hours total time
- 500 hours in an RV-10
Pilot B:
- 5,000 hours total time
- 15 hours in an RV-10
Many underwriters will prefer Pilot A.
Why?
Because aircraft-specific experience matters.
Insurance companies know pilots become more proficient as they gain experience within a particular aircraft type.
This is especially true for experimental aircraft because designs vary dramatically.
Aircraft Design Influences Premiums
Not all experimental aircraft are viewed equally.
Insurance companies frequently divide aircraft into risk categories.
Generally Favorable Categories
- RV-6
- RV-7
- RV-9
- RV-10
- RV-14
- Kitfox
- Bearhawk
- Zenith
Higher Performance Categories
- Lancair IV
- Lancair Legacy
- Glasair III
- Evolution
The performance profile of the aircraft often influences underwriting decisions.
Higher speeds and more complex operations typically create additional scrutiny.
Transition Training Makes A Huge Difference
One of the easiest ways to improve your insurance profile is through transition training.
Insurance companies consistently reward pilots who complete:
- Factory-supported transition programs
- RV transition training
- Aircraft-specific instruction
- Recurrent training
Training creates confidence.
Confidence creates competition.
Competition often creates better pricing.
Get Your Experimental Aircraft Insurance Quote With BWI Today>>
Instrument Ratings Can Significantly Improve Insurability
Many experimental aircraft are used for:
- Cross-country transportation
- Business travel
- Family travel
- IFR operations
Insurance companies know this.
As a result, they place substantial value on instrument ratings.
An instrument-rated pilot demonstrates:
- Additional training
- Better weather decision making
- Greater proficiency
- Commitment to aviation safety
This often translates into stronger underwriting outcomes.
Builder Quality Can Affect Premiums
One of the most unique aspects of experimental aircraft insurance is builder quality.
Insurance companies often evaluate:
- Build documentation
- Aircraft history
- Maintenance records
- Modification history
- Condition inspections
Aircraft with extensive documentation often receive stronger underwriting consideration than aircraft with limited records.
Claims History Is One Of The Biggest Factors
Nothing influences insurance pricing more consistently than claims history.
Insurance companies pay close attention to:
- Previous claims
- Loss severity
- Claim frequency
- Recent losses
Pilots with clean records often receive:
- More carrier options
- Better pricing
- Greater underwriting flexibility
A single claim does not automatically create problems.
However, claims frequently trigger additional underwriting review.
Insurance companies view prior losses as one of the strongest indicators of future risk.
Recent Flight Activity Is Extremely Important
Many pilots focus on lifetime experience.
Insurance companies often focus on recent experience.
Why?
Because flying skills are perishable.
A pilot who flew:
- 100 hours last year
is often viewed differently than a pilot who flew:
- 10 hours last year
Even if the second pilot has substantially more total time.
Insurance companies want to see active pilots.
Pilots who fly consistently tend to maintain stronger proficiency and situational awareness.
Aircraft Value Has Become A Major Driver
Many experimental aircraft have increased significantly in value.
Consider the difference between:
- A Kitfox insured for $60,000
- An RV-10 insured for $250,000
- A Carbon Cub EX insured for $350,000
- A Lancair Evolution insured for $1,500,000+
The insurance company’s exposure changes dramatically.
As exposure increases, premiums often increase as well.
This is one reason two owners flying similar aircraft may receive very different premiums.
Modifications Can Affect Insurance
Many experimental aircraft include modifications such as:
- Engine upgrades
- Avionics upgrades
- Performance modifications
- STOL kits
- Custom fuel systems
- Custom airframe modifications
While these modifications often improve capability, they can also influence:
- Aircraft value
- Operational profile
- Insurance exposure
Insurance companies frequently evaluate modified aircraft differently than stock aircraft.
Why Some Owners Pay Thousands Less
When people compare premiums, they often compare airplanes.
Insurance companies compare risk.
The owner paying less typically has some combination of:
- More time in type
- Better training history
- Instrument rating
- More recent flight activity
- Cleaner claims record
- Better documentation
- Lower-risk operational profile
The aircraft may be similar.
The risk profile is not.
Why The Current Market Is Helping Experimental Aircraft Owners
The good news is that today’s aviation insurance market remains favorable.
Competition among aviation insurance companies has increased significantly compared to several years ago.
Insurance companies continue to show strong interest in qualified experimental aircraft operators.
For many pilots, that competition creates opportunities to improve coverage and reduce long-term insurance costs.
Why Thousands Of Aircraft Owners Trust BWI
BWI Aviation Insurance has helped thousands of aircraft owners insure their aircraft.
Whether you fly an RV, Kitfox, Bearhawk, Carbon Cub EX, Lancair, Glasair, or other experimental aircraft, our team understands the underwriting factors that influence pricing and carrier appetite.
We work with leading aviation insurance carriers and help aircraft owners compare options based on their specific aircraft, experience level, and mission profile.
Final Thoughts
If you’ve ever wondered why another experimental aircraft owner pays less for insurance, the answer is rarely the airplane.
The answer is usually the overall risk profile.
Insurance companies evaluate dozens of factors including:
- Time in type
- Training
- Claims history
- Aircraft value
- Recent flight activity
- Builder quality
- Operational exposure
The good news is that many of those factors are within your control.
By understanding how underwriters evaluate risk, you can improve your insurance profile, increase carrier interest, and potentially secure better coverage and pricing for years to come.
bwifly.com / 800-666-4359
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