How Are Insurance Rates Measured for Aviation Insurance?
When it comes to buying aviation insurance, determining the best insurance policy is not always easy. Not all aviation insurance policies are made equal. Some policies are very general, and some are very restricted. Depending on who you are, you will want a specific policy that has a certain amount of coverage. There are several factors that go into determining your different insurance rates and premiums as well.
How Are Aviation Insurance Rates Determined?
There are several external factors that will help properly determine what your insurance rates will be for your premiums. Some of these factors include:
- Pilot experience. In general, the more training and flying experience that a pilot has, the lower his or her insurance quotes and rates will be. Now that annual training certificates are required by most aviation insurance companies, safety has improved dramatically. This means lower losses, fewer insurance claims and very low insurance rates if you have the experience to prove it.
- Market capacity. When market capacity increases, the aviation insurance companies have to lower premiums and be more accommodating to retain business. If market capacity decreases, insurance rates and premiums will increase. As a pilot, it’s important to pay attention to the aviation insurance market cycle every year. Where rates are in the cycle will determine how much your premiums will be for that year.
- Pilot’s age. In recent years, older pilots are staying in the flying business and retiring much later. This means that insurance companies will want to keep their long-standing senior customers and will offer lower quote deals to pilots who have kept the same insurance policy over a certain time.
There might be many other factors that go into how your insurance rates will be measured, such as the make and model of your aircraft, where you live and the conditions of the market. With so many determinants, it could be helpful to speak with an experienced aviation attorney who can give you more information on how aviation insurance operates and how you can file a claim. Contact Anderson & Riddle today to get answers you deserve.