Aviation Insurance, also known as “Owned Aircraft Insurance”, is necessary for anyone who owns a jet or any other kind of aircraft. Insuring an aircraft is similar to other types of vehicle insurance but aircraft owners should be prepared before they go to buy the policy. Here are three of the most important considerations when purchasing aviation insurance.
Carry Proper Liability Limits: Liability insurance is required for all types of vehicles but the limits will vary based on each individual circumstance. When it comes to aviation insurance, the liability limits should generally be higher than if insuring an automobile, motorcycle, or even a watercraft. The reason is because although aviation accidents are less common than with other types of vehicles, when they do occur, they can inflict greater damage.
Not only are airplanes more destructive to other property during a crash, they can also leave passengers severely injured or killed. For this reason, it is important to carry enough liability insurance for these worse case scenarios. You may even want to consider an umbrella policy if you have more assets to protect than the limits on your aviation policy will allow.
Insure with a Carrier that Specializes in Aviation: Aviation litigation is a specialized field that many general personal injury attorneys and insurance companies have little experience. If the time ever comes that you need to be defended for an aircraft-related accident, you will want an insurance company on your side that has some experience defending these types of cases. This could very well mean using a different insurer for your aircraft than the one you use for your auto, home, life, and other insurance needs. It is best to go through an independent insurance agent with access to multiple carriers. This way, you can have the same agent shopping around for the best insurance carriers for each policy you need.
Ways to Lower Your Premium: When you take out aviation insurance, consider the options to reduce the cost of the policy. For example, if you use your aircraft to fly freight and do not carry passengers, you may be able to eliminate occupant liability coverage. You may also be eligible for discounts by simply completing some safety courses that are approved by the insurer. As with other types of insurance, choosing a higher deductible can always bring down your premium.