5 Factors to Consider When Reviewing Your Coverages and Premium
Here are some important things to keep in mind while reviewing your coverages and premium at renewal:
- The human touch. Typically, the higher the aircraft’s value and complexity, the more subjective are your renewal terms. These aircraft are usually underwritten by a human being rather than run through an underwriting portal that automates the quote. This means that there can be discussions on alternatives in coverage and, in some cases, in your premium. Single engine, lower-value aircraft are usually underwritten by software, which leaves no room to negotiate.
- IFR is A-OK. In most cases, getting your instrument rating will help lower your premium.
- Never stop learning. These days, for turbine aircraft, most insurers are requiring formal simulator training annually. This wasn’t always the case in the past, so if you haven’t run into this yet, you certainly will going forward. It is best to get in front of this issue and plan to attend annual training to eliminate any renewal issues.
- Age can be more than a number. Age is becoming a factor now more than ever. As 70 approaches, there may be some limitations on what coverage/policies may be available.
- Values fluctuate. Always take a look at your deductibles and hull values as these may be areas to adjust over time and as the market changes. It may be beneficial to adjust your hull to the current market value. We want to avoid over-insuring and under-insuring any aircraft because this will have a drastic effect if a claim occurs. In some cases, increasing deductibles can offset some of a premium increase.