Comparing S-LSA to E-LSA insurance rates

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drseti
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Comparing S-LSA to E-LSA insurance rates

Postby drseti » Tue Aug 23, 2011 9:56 am

There has been considerable discussion in another thread about converting S-LSAs to E-LSAs, and the issue of insurance implications has come up (most recently at http://sportpilottalk.com/viewtopic.php?p=14506#14506). The operative question is: does it cost more to insure an E-LSA than it does an S-LSA? Would insurance issues enter into a decision to convert from one category to the other?

I recognize that my knowledge of insurance rates for experimentals is limited to the E-AB category, and that E-LSA may be too new, the industry too immature, to draw conclusions. But, what are people's experiences?

A related question is suitable physical damage coverage. Obviously, one likely can't insure a homebuilt (of any stripe) for what it's actually "worth" (in terms of the builder's sweat equity). So, a $120,000 S-LSA may be insured for that amount, while the E-LSA kit version of the same aircraft should be insured for -- what? The actual cost of the kit? Some perceived market value? Some other figure?

When we compare insurance costs between factory-built and experimental, we need to normalize the price as a function of insured value. Bob Mackey, if you're lurking here, your wisdom and experience will be useful to us all.
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Jack Tyler
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Postby Jack Tyler » Tue Aug 23, 2011 2:39 pm

Good idea to start this thread, Paul - thanks!

For those who want to sample what the only existing group of E-LSA owners have experienced re: insurance rates, I'll post links below to a few threads from RV-12 owners over at the Vans Airforce forum that should provide some interesting reading.

Keep in mind that we have two factors working in combination for the RV-12 crowd: the additional cost of flying an 'experimental' (even tho' built to a standardized form) AND the lousy accident record of not just experimentals as a group but also of LSA a/c (almost all of them S-LSA a/c). I've heard that premiums do come down as an owner builds time in an LSA and gets beyond the initial 'transition' issues and losses.

FYI here are a couple of rate examples:
"Check with the EAA. Mine was about $1800 for $60K [hull value]. With zero hours in the RV-12, 10 hours total the previous 25 years. Had 200 hours from 1970-1985."
"Like Marty, I insured for $60k. I have over 2,000 hours logged. I am at $1500 for that much."

The most recent thread, which dips into related issues as well, is:

http://www.vansairforce.com/community/s ... =insurance

Also:

http://www.vansairforce.com/community/s ... =insurance

http://www.vansairforce.com/community/s ... =insurance

FWIW here's an interesting, recent note about relative rates for different kinds of coverage as well as USING one's LSA insurance:
"Rick McBride (RV-8) and I (RV-4) both built Rans S-7S Couriers and had them displayed at the Rans commercial booth at Sun n Fun this year when the tornado decided to deposit them on top of and under a couple of new Pipers displayed at the booth next door. Both planes were totaled by the insurance company. I had $70K flight and ground coverage. My premium was $1391 for the full coverage. The premium would have been $817 for ground only damage coverage, and $307 for liability alone. We both bought our salvage back from the insurance company and are in the process of having Rans rebuild our planes at their factory in Hays, KS."

Thanks again, Paul.
Jack
Flying in/out KBZN, Bozeman MT in a Grumman Tiger
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