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Premium Increases

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Premium Increases, still?

If you have been following the aviation insurance market (or received your recent aircraft insurance renewal) you probably noticed premium increases. We have been telling people 30 to 300 percent. That might sound steep, but we have seen some very big increases.

But don’t take it personal. It is an “across the board” increase.  Even the Cessna 172’s and Cherokees are going up, just not as much as the experimental or retractable gear aircraft.

Premium Increases

Reasons? I have heard everything from, repair parts availability, losses, hurricanes, fires, tornados, Boeing, age of pilots, the cost of automation, reinsurance and more.  The list can go on depending on who you talk to.  But the result is the same: premiums are going up; limits are going down and underwriting is becoming more stringent.

We have seen a large number of companies decline to quote new business based on; pilot age over 69 years, type of aircraft, age of the aircraft and more. Plus, there is one company out there that has been cancelling policies they don’t want anymore.  Many are old pilots in higher performance aircraft which is putting those people in a spot. Now they are at an age and in an aircraft that the other companies will not quote.

It seems bad, but I have seen rates like this before. I’ve been in the business long enough to see the ups and downs in rates.  There was a time when most companies had minimum premiums over $1,000.  And yes rates are up, but today you can still get liability only for some aircraft for around $300.

Anyway, rates are still going up. But compared to most automotive policies the rates are low. If you compare the hull values (and they are agreed values not actual cost settlements) and the limit of liability (usually a $1 million limit) aviation is very competitive to automotive.

What can you do? Keep flying. Hours help. Fly a simple, fixed, tri-gear certified aircraft. They still have the best rates. If not expect to pay more.  You can always lower the hull value, change to ground not in motion or eliminate the hull coverage all together and have liability only. There are a few options to discuss. Don’t let you current insurance expire, especially if you are over 69 years old or have an unusual or old complex aircraft. Once you expire, you become “new business” and they do not have to take you back.

And you can not compare your rates to anyone else. Depending when your friend bought their insurance, even with the increases they might pay less than you. And they would have to be identical to you with the same location, same age, same hours, same ratings etc…

One good thing is aviation underwriting does not use credit ratings to calculate rates like auto and homeowners. And they don’t check motor vehicle driver reports and use that as a factor in aviation insurance.  At least not yet.

What to buy, a Cessna 150 or 172?

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What to buy, a Cessna 150 or 172?

150 or 172 150 or 172

Interesting question I was asked.  Should I buy a Cessna 150 or 172?   A four place aircraft would be nice, but what about the extra cost?  Is it worth it?  And the question isn’t just about Cessna aircraft.  It can also be about the Piper Tomahawk (or even the Cherokee 140) and the Cherokee 180 and a number of other aircraft.  Actually, it can be about any number of aircraft. Do you want a two seat or a four seat.

Both aircraft are very similar when it comes to maintenance costs and fixed costs.  Just because the 150 are smaller aircraft doesn’t mean they are substantially cheaper to own.  If you think about the difference between these two aircraft…there aren’t many, except for size.  The four place aircraft will have a bigger airframe and engine.  But the basic components (and construction) are about the same.  The same is true with the maintenance.

The initial purchase price can be lower for a 150, but many of the older 172’s are in the same price range.  When you buy lower priced four-place aircraft, you are buying an older age, which could increase the maintenance costs.

The biggest difference will probably be in the fuel burn and the insurance cost.  The fuel burn is about double in a four-place compared to a two-place aircraft.  The insurance premium increases because of the extra liability with the two additional seats and the increase in hull value.

But really, do you really need the extra room and higher useful load?  Don’t get your wants and needs confused.  A Cessna 150 will do almost every thing a Cessna 172 will, but on less fuel and at a slower speed. I flew a Cessna 152 from Iowa to New Orleans. It was along trip, fun and kind of cramped, but it still did the job. I also know a couple that took their Cessna 150 and flew from Iowa to Mexico. They toured the country of Mexico for a couple of weeks. Never had any problems getting in or out of airports or worried about the fuel they could obtain.

And think about how many people fly with you on a regular basis.  If its just you and your dog, the 150 will be all you need.

The final decision will depend on you personal situation, but don’t give up on a good two seat aircraft if that’s all you need.

EAA’S SPIRIT OF AVIATION WEEK

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HUNDREDS OF THOUSANDS OF AVIATION ENTHUSIASTS JOIN IN FUN AT EAA’S SPIRIT OF AVIATION WEEK

Virtual event draws fans from around the world

EAA AVIATION CENTER, OSHKOSH, Wisconsin — (August 6, 2020) — An unprecedented effort to bring the EAA community at Oshkosh to aviation fans around the world was a grand success on July 21-25, as EAA’s inaugural Spirit of Aviation Week drew enthusiasts from throughout the country and around the world for five days of flying engagement and fun.

Created in the aftermath of this year’s cancellation of the EAA AirVenture Oshkosh fly-in convention, the virtual event included streaming and on-demand content, plus a virtual mall for exhibitors normally found at Oshkosh.

“Tremendous credit goes to more than 50 EAA staffers who combined to make this work, along with the hundreds of EAA members, aviation community members, and business partners who quickly stepped forward to contribute their time and knowledge to make this happen in little more than three months,” said Jack J. Pelton, EAA’s CEO and chairman of the board. “While Spirit of Aviation Week certainly was not a replacement for the in-person experience that is AirVenture each year, it was very successful in bringing together the flying community in a way that had never before been attempted.”

Among the highlights of EAA’s Spirit of Aviation Week, which spanned five days, eight hours per day, over three live streams with 262 pieces of content developed for the event:

  • More than 266,000 people connected via EAA.org and EAAtogether.org for the streaming and on-demand content, with nearly 800,000 page views and almost 1.6 million minutes of video viewing
  • Social media outreach totaled 4.5 million, with 827,000 video views throughout the week. Leading the way was a 2.2 million total reach on EAA’s Facebook page with 536,000 video views
  • More than 15,000 people attended 51 forums, with 20 of those forums issuing 6,300 FAA WINGS credits
  • More than 10,000 people attended the online workshops in sheet metal, fabric covering, aviation woodworking, and welding
  • The Pilot Proficiency Center hosted 25 Tech Talk sessions that welcomed more than 8,200 participants and accounted for an additional 4,500 FAA WINGS credits issued
  • Nearly 1,100 pilots “flew” the Oshkosh approach via SimVenture, thanks to a partnership with Pilot Edge and assistance from the National Association of Air Traffic Controllers (NATCA)
  • AirVenture’s 800 exhibitors welcomed shoppers from around the world through the virtual expo, with more than 200 special events from exhibitors and more than 80 show specials for attendees

“We are grateful for the large amount of positive feedback we received regarding Spirit of Aviation Week and we learned many things we’ll incorporate in the future,” Pelton said. “Most important, however, as we kept alive the sense of community and laid the foundation for an unforgettable aviation reunion at Oshkosh in 2021.”

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