Cessna 500 Citation I Insurance Cost

Cessna 500 Citation I Overview:

The 1960s saw the rapid growth of the business aviation market. Formerly occupied by everything from single-engine piston aircraft to massive converted war surplus bombers, the fleet had gradually moved toward large twin-piston cabin class aircraft and turboprops.

In the late 1950s, Cessna had pitched the Model 407 as a civilian version of its jet powered T-37 “Tweet” Air Force trainer. Seating four passengers in an automotive-style configuration, reception for the new design was lukewarm and Cessna abandoned the project before a flying prototype was produced. But by 1962 the new Learjet corporation had introduced their Model 23, similarly based on a military aircraft (the Swiss P-16 ground attack fighter) but incorporating a cabin for more passenger comfort. The 23 had sold over a hundred aircraft by 1966 and Cessna saw the market for a competing design.

Rather than go for Learjet’s goal of maximum speed, Cessna intended to focus on having their new jet be able to use as many smaller airfields as practical. A thick wing profile provided the low-speed handling necessary but also limited top speed. In a major move toward efficiency, Cessna chose Pratt & Whitney’s JT15 turbofans, greatly reducing fuel consumption over Learjet’s straight turbojets. A larger cabin was built to accommodate up to five passengers and included an area of cabinetry for refreshments and a small toilet that could include an optional seat belt in the cover to accommodate an extra passenger.

The first “Fanjet 500” flew in September of 1969. Flight testing would last almost two years with a number of substantial structural changes and by the time deliveries began the type had been renamed as the model 500 Citation. Sales were strong as the Citation opened thousands of smaller airports to corporate aviation. 1976 would bring changes to the cabin, the addition of engine thrust reversers to shorten landing distance, and a longer wingspan allowing better climb rates with more fuel and thus range. The upgraded version was named the Citation I, and would be the first in a long line of new Citations.

A major change in 1977 was the introduction of a derivative with a reorganized cockpit that became the first single pilot certified corporate jet. The 501SP and standard two pilot Model 500 would remain in production side by side until 1985 when both models were phased out in favor of their larger cousins the 551 and 550 Citation II, respectively.

The 500 and 501 would finish with nearly 700 produced, but would serve as Cessna’s springboard for the entire Citation line. Larger, faster, and more capable Citations would come and go over the next several decades and distant relatives of the original models remain in production today, with over 7,500 Citations of all models produced.

Cessna 500 Citation I 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 500 Citation I 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 500 Citation I 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 500 Citation I’s in amounts between $1,000,000 and $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 500 Citation I 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 500 Citation I is available to qualified pilots with experience in the make and model and a minimum Commercial/MEL/IFR license/ratings.

The second coverage on a Cessna 500 Citation I 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 500 Citation I and requests a quote including hull coverage in the amount of say $1,000,000. Once an aviation insurance company provides a quote, they are agreeing with you that your aircraft is worth $1,000,000.
*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 $1,000,000, you would get a straight check for $1,000,000.

Cessna 500 Citation I Insurance Cost Breakdown:

As of January 2021, there are 8 carriers quoting Cessna 500 Citation I insurance in the U.S. We consider qualified pilots to have at least a Commercial License and IFR/MEL ratings, with 3,000 total hours, 1,000 MEL hours and 50 hours in the make/model.

For an annual policy with $1,000,000 in liability only coverage.
 Premium range for qualified pilots: $1,250-$1,600 per year.

For an annual policy with $1,000,000 in liability coverage and $1,000,000 in hull coverage
 Premium range for qualified pilots: $8,800-$12,600 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 500 Citation I owners and operators obtain the very best insurance coverage.

BWI offers comprehensive Cessna 500 Citation I insurance policies for personal, business, charter, industrial aid, and commercial aviation uses.

For more information or to get an actual Cessna 500 Citation I insurance quote, please fill out a quote request online here or call us at 800.666.4359