Factors Impacting Light Aircraft Insurance Premiums

Some factors are fairly obvious, and most pilots/operators are aware of some of the considerations when it comes to their insurance premiums, such as location of the aircraft (severe weather exposure), whether the aircraft is tied down or hangered protecting it from outside risks, and pilot credentials and experience specifically in the subject make and model.

The majority of light aircraft is between 40-70 years old. These aircraft can be difficult to and expensive to maintain and repair. Even with newer aircraft, the design of some modern innovations can mean that a damaged part can be part of a more extensive component that will require repair or replacement of a larger system.

The good news: History has shown that aviation insurance premiums are cyclical. When the market is in its current condition, it can be concerning and, in some cases, require adjustments to be made, if history repeats itself, the insurance market will turn to more favorable terms in the future.

As we’ve mentioned in the past, pilots and operators can have a direct impact on their insurance premiums by increasing proficiency, specifically in the aircraft that you are insuring. Additional hours, higher ratings, and additional training are all crucial elements that have a direct impact on your premiums.