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Thread: Insurance shock.

  1. #1
    Senior Member
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    Default Insurance shock.

    I just got a call from my insurance lady. She's great. Every year she shops around for the best price but this year prices have gone through the roof. Liability only was $452 last year. That was up around $100 from the year before. This year her cheapest quote so far is $975. Some other quotes were in the $1500 range. She said she asked why the prices were so high. She was told these type planes are now considered high risk. My airport requires coverage. If not I'd think about dropping it all together. I'm sure we all have a pretty good idea why these rates are going up. Are y'all seeing these ate increases?

  2. #2
    Senior Member
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    Default Re: Insurance shock.

    Update: My insurance girl called me back today. She said she called my current provider and asked why they were nearly doubling my rates. She said they couldn't really give a logical reason and agreed to provide my same coverage for $585. Not great but still much better than their 1st quote.

  3. #3

    Join Date
    Dec 2014
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    Las Vegas, NV
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    Default Re: Insurance shock.

    The insurance market is driven by what the market will bear. As long as consumers are willing to pay that price, that is where the price point will be set. Your age is also a factor in setting the rate. As you get older the risk of insuring you increases, and the price increases accordingly. Obviously the type of plane you fly and your experience in that model is taken into consideration also. Im not an insurance guy, but that is how it was explained to me, by an insurance guy acquaintance.
    Last edited by Kitfox Guy; 09-10-2021 at 02:14 PM. Reason: Grammatical Error
    Michael Meyers
    KF IV
    Las Vegas, NV

  4. #4
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    Feb 2020
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    Tacoma, WA
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    Default Re: Insurance shock.

    I'm still waiting for someone to provide actuarial evidence that age is a factor. The sharpest pilots I know are in their 80s.

    Based on quotes, the sky should be raining old geezers. It's not.
    Kitfox 5 (under construction)
    Citabria (sold)
    Commercial SE/ME, CFII

  5. #5
    N14ND's Avatar
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    Oct 2008
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    Graham, WA
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    Default Re: Insurance shock.

    One of the issues with insurance is that there are fewer carriers now. Some will just not quote specific types of aircraft, which reduces the carrier pool. Insurance is driven by perception. We have coverage for our King Air 300 and this year there were only 3 carriers that quoted, of 6. There used to be 12 carriers. Since 2017 our insurance has tripled. This year it went up 11%. As for age of pilots, it is a perception issue. We have a 75 yr old, retired NWA 747 driver with 35,000 hours, 20+ type ratings. Sharp as a tack, great physical health, but the insurance would not give him a letter of subrogation. Which means that he can be sued if something happens while his is pilot. Last year no problem. I get the same mumbo-jumbo about losses and stuff, but in reality, statistically it hasn't been worse than other years. They just can. So they do.
    I wish I knew now as much as I thought I knew when I was 18

    Building Kitfox 5 (25 yrs and counting)
    0-200
    A&P, ATP

  6. #6
    Senior Member
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    Mar 2009
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    Pittsboro,NC
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    Default Re: Insurance shock.

    Thanks to all for your input. I completed my model 4 in late 2015. I was under the impression that as I got more time under my belt that my rates would come down. Instead my rates have steadily increased. The last 2 years the rate increase has been around the 25% range. I've never made a claim so that's not it. I agree with the statement "they can so they do." I guess I had better get used to it. Everything's going up. At this rate the cost of insurance will become prohibitive at some point.

  7. #7
    Senior Member Eric Page's Avatar
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    Jun 2020
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    Toledo, WA
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    Default Re: Insurance shock.

    Quote Originally Posted by jrthomas View Post
    At this rate the cost of insurance will become prohibitive at some point.
    Thats the point the insurance underwriters are looking for. If they can find that sweet spot and stay just below it, their shareholders rejoice!
    Eric Page
    Building Kitfox 5 Safari
    Member: EAA, AOPA, ALPA
    ATP: MEL / Comm: SEL, Glider / ATCS: CTO
    Map of Landings

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