Cessna 406 Caravan II Insurance Cost

Cessna 406 Caravan II Overview:

Though the name Reims Aviation may not be well known in North America, it’s hard to argue they were not a major player in European aerospace for decades. Reims had started in 1950 making purpose-built aircraft to meet French Army requirements, but a 1962 partnership with the Cessna Aircraft Company led to a cooperative agreement where Reims would build Cessna aircraft for the European market. Over the next thirty years Reims would produce thousands of Cessnas, designated by an “F” in front of their model number, and was particularly known for its higher-powered Skyhawk derivative, the FR172 Reims Rocket.

The early 1980s had brought the heavy lifting Cessna 208 Caravan to market, and it was believed there would be a similar desire for an even larger twin engine unpressurized utility aircraft. To keep development costs low, Cessna took a Model 404 Titan and replaced the Continental piston engines with the Pratt & Whitney Canada PT6 turboprops used in the Model 425 Conquest. At only 500 horsepower each, the versions selected for the new model were the lowest power versions of the PT6 made, but their low power also resulted in relatively low fuel flows – particularly important at the low altitudes the aircraft was meant to operate at.

Despite being designated the Model 406 Caravan II, the aircraft shared nothing with the smaller single-engine Caravan. Most major aircraft systems were borrowed directly from the 404 with only slight modifications and the prototype took its first flight in September 1983. Following the completion of certification, the entire line was moved to Reims and production began of the F406. The aircraft was prized for its well-built and heavy hauling nature, but the high price and unique characteristics tempered demand and Reims averaged about three F406s produced per year.

The F406 did find acceptance in niche roles it particularly excelled at. Bush operators such as those in Africa, Canada, and Alaska took advantage of the carrying capacity and speed offered over the 208 Caravan, especially where widely separated towns and villages could only be supplied by air. The F406 also was popular in rescue and surveillance roles where the low altitude flying did not require pressurization, yet the large fuel capacity could offer extended loitering time with the engines at reduced power settings.

The F406 was produced until the collapse of Reims in 2014. The rights to the F406 design would then be sold to Continental Engines who announced plans to move the line to Alabama in the United States, though as of 2021 no aircraft have been produced. The F406 is used by several Coast Guards including Australia, Greece, and the United Kingdom as well as by numerous bush operators.

Cessna 406 Caravan II Insurance Cost:

Aviation insurance in general, is a very specialized industry and premiums vary depending on make and model of the aircraft, hull value, use of the aircraft, pilot history and qualifications and aircraft insurance rates even take into account the loss history of each specific make and model and the loss history of the aviation industry as a whole.

Cessna 406 Caravan II insurance, like all aviation insurance, is broken down into 2 specific coverages. The first is Liability Coverage, which is standard on every aircraft insurance policy and the second is optional hull coverage, which covers damage to the aircraft itself.

Cessna 406 Caravan II aviation liability insurance covers damage caused by the aircraft, outside of the aircraft, specifically property damage, bodily injury, and provides for legal defense in the event that the aircraft owner or policyholder is sued.

Aircraft liability insurance is typically offered for Cessna 406 Caravan II ’s at $1,000,000 per occurrence (per incident) and includes coverage for passengers, but typically limits that amount to between $100,000 and $1,000,000 per passenger. Passenger liability coverage is included within the total liability coverage amount.

A real-world example of how this aviation liability coverage would protect you: If, as a result of operating your Cessna 406 Caravan II you damaged property or caused bodily injury outside of the aircraft, you would have the full amount of total liability coverage to pay for damages that occurred, less the liability amount paid for passengers inside the aircraft. If the aircraft crashed and you had passengers inside the aircraft that were injured, your insurance policy would pay up to the policy passenger limit for each passenger.

This liability coverage also applies as a bubble that follows the aircraft around. If the aircraft is hangered, liability coverage extends throughout your hangar and it is this coverage that airports will typically require you to have. It’s not a separate insurance policy, it is actually coverage built into your standards airplane insurance policy.

Other liability options: Higher liability coverage on the Cessna 406 Caravan II may be available to qualified pilots with experience in the make and model and a minimum Private License/IFR rating.

The second coverage on a Cessna 406 Caravan II insurance policy is hull coverage and is an optional coverage. Aircraft hull insurance covers damage to the aircraft itself and is an agreed value, not subject to depreciation. Agreed value is decided during the initial insurance quoting process, the aircraft owner requests an insurance quote for his or her Cessna 406 Caravan II and requests a quote including hull coverage in the amount of say $500,000. Once an aviation insurance company provides a quote, they are agreeing with you that your aircraft is worth $500,000.
*Insurance companies may place additional stipulations on quotes to prove the value of your aircraft prior to binding, if your agreed value is higher than bluebook.

Most aviation insurance companies do not offer deductibles higher than $0 deductibles, which means in the event of a total loss, if your aircraft was insured for $500,000, you would get a straight check for $500,000.

Cessna 406 Caravan II Insurance Cost Breakdown:

As of January 2021, there are 6 carriers quoting Cessna 406 Caravan II insurance in the U.S. We consider qualified pilots to have at least a Private License and IFR Rating, with 1,000 total hours, 500 multi-engine hours and 100 hours in the make/model.

For an annual policy with $1,000,000 in liability only coverage.
 Premium range for qualified pilots: $650-$800 per year.
 Premium range for less than qualified pilots (low-time/etc): $875-1,150 per year.

For an annual policy with $1,000,000 in liability coverage and $500,000 in hull coverage
 Premium range for qualified pilots: $5,200-$9,800 per year.
 Premium range for less than qualified pilots (low-time/etc): $14,950-$25,700 per year.

BWI is a family-owned, nationwide insurance brokerage specializing in aviation insurance since 1977. Our dedicated Aviation Insurance Professionals are highly trained, hand-picked and experienced in helping Cessna 406 Caravan II owners and operators obtain the very best insurance coverage.

BWI offers comprehensive Cessna 406 Caravan II insurance policies for personal, business, charter, industrial aid, and commercial aviation uses.

For more information or to get an actual Cessna 406 Caravan II insurance quote, please fill out a quote request online here or call us at 800.666.4359