Membership Services
Why do I need my own renter's policy?
Why do I need my own renter’s policy?
Glad you asked. This has always been a somewhat confusing issue. Many pilots assume their FBO’s insurance policy fully protects them from liability and loss in the event of an accident. Actually, it does not. The only sure way of knowing what insurance coverage you have is to carry your own renter’s policy. Unfortunately, many renter pilots don’t discover this important fact until it’s too late. Even if an accident wasn’t your fault, proving your innocence in court can cost you tens of thousands of dollars.
Your FBO’s policy is designed to cover your FBO—not you. Under many FBO policies, you may be flying with zero liability coverage. That means you can be held responsible for bodily injury and property damage to passengers and/or third parties on the ground. If the aircraft is damaged, you can also be held responsible for the FBO’s deductible on damage to the aircraft. (This can amount to $2,500, $5,000, or even higher!) What’s more, your FBO’s insurance carrier can also seek recovery from you for the full amount of the loss. You may even be liable for “loss of use” damages from the loss of rental revenue to the FBO. Given the many potential risks, it just makes good sense to obtain your own insurance policy before renting an aircraft.
FBO rental coverage is not enough to protect you. Even if your FBO carries some form of renter’s coverage, it usually only affords very low liability limits—limits that fail to adequately protect you and your assets. In addition, such a provision doesn’t necessarily protect you from damage to the aircraft itself. If your FBO does have a written rental agreement, examine it closely to see what it says regarding total renter pilot liability. If the rental agreement is silent on the subject of insurance, don’t assume you’re covered. You probably aren’t. Fortunately, obtaining your own renter’s insurance is easier and more affordable than ever before.
Choose an agency with a history of advocating for renter pilots. As the largest light aircraft agency in the country, the AOPA Insurance Agency has negotiated significant renter’s discounts with major “A” rated underwriters. The result? Renter’s rates have been reduced sharply in the last year—by 22 to 28 percent! These discounted rates apply to both new and renewing policyholders. Plus, if you take out a renter’s policy with the AOPA Insurance Agency today and stay claim- and accident-free for the term of the policy, you’ll be awarded an additional 10-percent discount upon renewal with us. Don’t leave yourself at risk. Call us at 800/622-2672 to find out how you can cost-effectively take control of your aircraft coverage, or get a free quote online.
February 5, 2008
February 5, 2008
