October 18, 2013
By AOPA Staff
Flying club insurance rates are influenced by many factors—aircraft type and value, pilot proficiency, and coverage levels just to name a few. With the insurance premium often being the largest single expense item in a club’s annual budget, it’s worth taking some time to understand how premiums are calculated.
A good broker will do more than simply seek insurance quotes, help you assemble information, and bind coverage. If they take the time to know the club and its culture, they can act as an advisor on insurance matters.
To begin with, insurance may cost more than you think! In general, you can expect the premium for a flying club to be about three times the price of a single pilot owning the same airplane. Compared with single-owner aircraft, the average flying club airplane typically flies many more hours each year, by a larger number of pilots, who possess a wide range of age, experience, and currency.
All this increases risk, which leads to higher insurance pricing. However, this still represents a powerful cost advantage for the flying club, and the numbers will get even better as the club grows in size and establishes a track record of safe operations as the information below shows.
Single Owner: Flies 100 hours per year
Insurance premium: $1,250
Cost per person: $1,250
Cost per hour flown: $12.50
Flying Club with 10-15 members: Flies 600 hours per year
Insurance premium: $3,750
Cost per person: $250-$375
Cost per hour flown: $6.25
To aid your understanding of what drives the cost of insurance, we’ve arranged the top 10 factors in rough order of importance:
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