Paul Sebastian
In the world of aviation, safety is always a hot topic. Fortunately, accidents continue to decrease due to improved technology and other factors, but they still happen.
An important way to ensure safety for passengers and the plane itself is aviation insurance. Knowing you have adequate coverage in an accident brings great peace of mind. However, nothing puts a damper on being an operator or pilot like finding out an incident was not covered, or only partially covered, by your aviation insurance.
Choosing the right aviation insurance coverage for your aircraft can be difficult, especially with the variety of available options. The following points give insight and provide more clarity for your decision.
What Coverage Do You Need?
Certain factors determine the type of coverage you will need for your aircraft. Consider the type of aircraft you need to insure, the number of passengers you typically carry, and any risks specific to your operations. Aircraft, unlike automobiles, have insurance based on an “agreed value” on which you and the insurer have agreed. The policy premiums are set at a percentage of this agreed value.
You should provide a higher or lower value to cut the premiums or provide more funds if you need to file a claim. In either scenario, your plane could be declared a total loss if the cost to repair after an accident exceeds the agreed value, or you could wait months for extensive repairs to bring the plane back up to your inflated agreed value. Your best bet is to agree on a value number that fairly represents your aircraft’s cost to repair.
Review Multiple Options
Each insurance uses its secret algorithm to calculate insurance rates based on tons of statistical data and the particulars of your aviation needs. One insurer may offer a lower deductible but charges more for specific policy components, or another will qualify you for a discounted rate.
Stratos Jet Charters and other aviation companies know that it’s worth shopping around to find the best price on a policy that includes the coverage you need at a price that satisfies you. You can also use a knowledgeable aviation insurance broker to help you compare quotes and policy coverage between multiple companies.
Review the Finer Details
While you compare different aviation insurance company offerings, check the policy details and, more specifically, the policy exclusions. You might find that certain types of accidents or damage do not fall under the policy’s standard coverage.
Companies may offer what you need as an add-on, but that will cost more. Be sure to find out the insurer didn’t include something in your aviation policy’s coverage before you file a claim.
Check the Insurer’s Reputation
It would be awful to file a claim for insurance payment after an accident only to discover that the aviation insurance company went bankrupt. Fortunately, this event is not very common, but it does happen. Check an aviation insurance company’s financial rating, stability, and longevity before deciding.
Review the Policy limits
While reviewing different policies, verify the coverage limits. Each policy quote should include the maximum amount of money it will pay for various claims.
If you have financed your aircraft, your lender may require you to have specific minimum coverage amounts to ensure that the insurance provides enough money to pay off the plane if it becomes a total loss in an accident.
Find out the Policy’s Deductible
One of the ways to decrease your aviation insurance premium is to agree to pay a higher deductible if you need to file a claim. This might work fine, although when comparing quotes on different policies, you might find one premium more attractive and miss that the deductible is twice as high as the other.
Check the Customer Service
Unhelpful customer service staff is the last thing you want or need if you file a claim. Check the reputation of the insurance companies you are considering and look for ones with a history of offering excellent customer service. You can research online sources with customer reviews and company feedback.
By following these considerations, you can find a policy that provides you with the amount of coverage you need and peace of mind.
Richard
