How do my hours effect my insurance rates?
Posted: Tue Jan 17, 2017 3:43 pm
I have about 500 hours in about 5 years (how long I've had my license), and my LSA coowner has about half that.
Last year I flew only 44 hours, he only about 20.
Since the number of hours we fly per year IS one thing we have some direct control of, I've always been interested in if and how number of hours per year, and total hours, effects our rates and if (as with auto insurance) there are some cut-off points).
For example, might my quoted rate go up if I exceeded 100 hours in the last 12 months when I get a re-quote in August?
I can see how low hours or high hours could by underwriting be considered increasing the risk.
For example if someone's only flying 4 hours a year they're getting rusty or maybe even getting too old to be flying safely.
And it's pretty obvious that if I fly 2000 hours a year the probability of getting into an incident that will cost the insurer money is greater than if I fly only 50.
And how about TOTAL hours? How does that effect my rates?
I've never been able to get a straight, or ANY answers really, to those questions from my agent or anywhere else.
This is practical info, not just curiosity, because, as I say, if I discovered that hitting a total of, say, 800 hours would reduce my rates that gives me some incentive to fly more.
On the other hand, if crossing the line to more than, say, 100 hours per year increases my rate, and it's near my policy renewal and I'm up to 95 hours I would make a point of not crossing the line before applying for renewal.
Last year I flew only 44 hours, he only about 20.
Since the number of hours we fly per year IS one thing we have some direct control of, I've always been interested in if and how number of hours per year, and total hours, effects our rates and if (as with auto insurance) there are some cut-off points).
For example, might my quoted rate go up if I exceeded 100 hours in the last 12 months when I get a re-quote in August?
I can see how low hours or high hours could by underwriting be considered increasing the risk.
For example if someone's only flying 4 hours a year they're getting rusty or maybe even getting too old to be flying safely.
And it's pretty obvious that if I fly 2000 hours a year the probability of getting into an incident that will cost the insurer money is greater than if I fly only 50.
And how about TOTAL hours? How does that effect my rates?
I've never been able to get a straight, or ANY answers really, to those questions from my agent or anywhere else.
This is practical info, not just curiosity, because, as I say, if I discovered that hitting a total of, say, 800 hours would reduce my rates that gives me some incentive to fly more.
On the other hand, if crossing the line to more than, say, 100 hours per year increases my rate, and it's near my policy renewal and I'm up to 95 hours I would make a point of not crossing the line before applying for renewal.