Better Risk, Better Premium
Would you like to become a better risk for your insurance company? AOPAIA has some tips for you.
Underwriters consider several factors when determining whether to accept a risk and what the premium will be for the next year. The most important factor is pilot experience.
In addition to pilot experience there are other things you can do to make yourself a better risk.
- Keep track of all flights so there is an accurate basis for the premium.
- Keep your aircraft in a hangar and you could see approximately five percent off the hull premium from most companies.
- Fly frequently and be up-to-date on the FAA medical and Biannual Flight Review.
If you are looking to insure a high-horsepower six-seat retractable gear aircraft, but you have trouble finding a favorable premium quotation, focus on building hours in anything that has retractable gear, even if it has lower horsepower.
There are other factors underwriters take into consideration like age of the pilot, loss history and FAA violations, but these do not always result in a higher premium. This type of information is required for the underwriting file.
The Accident Forgiveness Program is used by several of our companies. If you can show that you’ve taken two online Air Safety Institute courses in the six-month period before a loss, those companies won’t increase your renewal premium due to the loss. See http://www.aopa.org/asf/. Some losses are excluded, such as those involving fuel mismanagement or flying without being current.
Follow these tips and you could make yourself a better risk for your insurance company.
May 3, 2011