Why Aviation Insurance Prices Vary Between Companies

Variances in aircraft insurance arise for several reasons. Every insurance contract is different, as each airplane owner’s plane and situation can be different, thus their coverages will be different. Be sure that you read your insurance contract over to be certain that you are getting all the coverage that you need. In the event of a claim, the amount of your premium will be the least of your worries, but what will be important to you is whether or not you were properly covered.

Another factor may be that competitive pressures in the market place are producing rate swings. Any company wanting to build market share can do so by under-pricing the risk for the first year. If you get multiple quotes for your aircraft insurance and one premium amount is substantially lower than the others, there is usually a reason for this. The cheaper company may not insure substantially safer pilots than the others, your airplane insurance rate in subsequent years may increase just like the credit card companies jack up your rates after the promo time is up. Also, what will happen to the marketplace if insurance companies are unable to sell their policies at the prices necessary to pay the claims? When researching and buying aviation insurance be sure you read the quotes and keep in mind that sometimes it can be too good to be true if the insurance has a large discrepancy from the other insurance companies.