Insurance rate shocker

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FastEddieB
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Insurance rate shocker

Postby FastEddieB » Mon Sep 09, 2019 12:05 pm

I just got a renewal quote for my Sky Arrow’s insurance. After 12 years without a claim, I had hoped for, if anything, a small reduction in premium.

No such luck - it went from $961 last year to $1,218, a 26% increase. Along with the comment: “We are seeing steep premium increases due to the current market”.

Ouch!

Don’t know if this is industry-wide but just wanted to give everyone a heads up of what they might expect at next renewal.
Fast Eddie B.
Sky Arrow 600 E-LSA • N467SA
CFI, CFII, CFIME
FastEddieB@mac.com

Sling 2 Pilot
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Re: Insurance rate shocker

Postby Sling 2 Pilot » Mon Sep 09, 2019 4:05 pm

FastEddieB wrote:I just got a renewal quote for my Sky Arrow’s insurance. After 12 years without a claim, I had hoped for, if anything, a small reduction in premium.

No such luck - it went from $961 last year to $1,218, a 26% increase. Along with the comment: “We are seeing steep premium increases due to the current market”.

Ouch!

Don’t know if this is industry-wide but just wanted to give everyone a heads up of what they might expect at next renewal.


Insanity rules Eddie and it’s absolute. I quit Hallmark gotten thru AOPA after the first year. They gave me a quote for the second year with my Instructor. I added him in the middle of the first year for $100 increase. Renewal comes with a slight increase, less then $100. I decide to take the instructor off as a name insured,!as they had added hoops for him to jump thru, which weren’t required 6 months prior. I get a new quote for more and not because i took him off. Insanity!

I went back with AVEMCO, which I had on my Diamond and a renters policy before I bought again. I received a quote with better coverage and a few dollars less.

I know the market hardened, but I can’t put a finger as to why now? Insurance is a Ponzi scheme IMHO.

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drseti
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Re: Insurance rate shocker

Postby drseti » Mon Sep 09, 2019 4:20 pm

My premium also jumped when I renewed in Feb, Eddie. I think it's industry-wide.
The opinions posted are those of one CFI, and do not necessarily represent the FAA or its lawyers.
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Scooper
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Re: Insurance rate shocker

Postby Scooper » Mon Sep 09, 2019 5:18 pm

Piling on, my premium jumped when I renewed in May with an apology explaining that premiums were increasing industry wide.

$1,071 in May, 2018; $1,126 in May, 2019. Not as bad as it could have been.

Gee, thanks. :(
Last edited by Scooper on Mon Sep 09, 2019 5:27 pm, edited 1 time in total.
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Warmi
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Re: Insurance rate shocker

Postby Warmi » Mon Sep 09, 2019 5:27 pm

I actually got the same rate as last year just this June - in fact I got a quote for another insurance for a few bucks less but the broker ( Aviation Insurance Resources ) correctly suggested that it is not worth breaking the relationship with USIAG ( my current carrier ) over a few bucks.
Flying Sting S4 ( N184WA ) out of Illinois

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Scooper
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Re: Insurance rate shocker

Postby Scooper » Mon Sep 09, 2019 5:29 pm

Warmi wrote:I actually got the same rate as last year just this June - in fact I got a quote for another insurance for a few bucks less but the broker ( Aviation Insurance Resources ) correctly suggested that it is not worth breaking the relationship with USIAG ( my current carrier ) over a few bucks.

I'm also with Aviation Insurance Resources (Gregg Ellsworth) and AIG Aerospace.
Stan Cooper (K4DRD)
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Warmi
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Re: Insurance rate shocker

Postby Warmi » Mon Sep 09, 2019 5:38 pm

Now ...I am a newbie with 200 hours total and going on my third year with them so they are already making a lot of money with me at $1700 so perhaps that’s why the rate stayed the same :-)
Flying Sting S4 ( N184WA ) out of Illinois

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FastEddieB
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Re: Insurance rate shocker

Postby FastEddieB » Mon Sep 09, 2019 6:48 pm

Well, I just spoke with a friend in the Cirrus instructing world. He said that this year the insurance rate for his company tripled! He said that over $100 of each rental dollar goes to insurance.

He said his broker explained that it’s not like each class of aircraft has its own “pool”. All aircraft are lumped together. As such, the insurance industry has had huge losses recently, and that’s why rates are going up across the board. Caveat: this is at least third-hand information, so take it with a grain of salt.
Fast Eddie B.
Sky Arrow 600 E-LSA • N467SA
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Scooper
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Re: Insurance rate shocker

Postby Scooper » Mon Sep 09, 2019 6:56 pm

FastEddieB wrote:He said that over $100 of each rental dollar goes to insurance.

Eddie, I'm not sure that came out right. :?
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bitten192
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Re: Insurance rate shocker

Postby bitten192 » Mon Sep 09, 2019 6:59 pm

Same Insurance company as last 3 years. Went up 25%. 65k hull, went from $800 to $1000. I got a quote from AOPA and it was twice as much. My broker said it was not just Light Sports but across the board.
Ernie
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drseti
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Re: Insurance rate shocker

Postby drseti » Mon Sep 09, 2019 7:07 pm

Scooper wrote:Eddie, I'm not sure that came out right. :?


You think maybe he meant $100 of each rental hour?
The opinions posted are those of one CFI, and do not necessarily represent the FAA or its lawyers.
Prof H Paul Shuch
PhD CFII DPE LSRM-A/GL/WS/PPC iRMT
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Nomore767
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Re: Insurance rate shocker

Postby Nomore767 » Mon Sep 09, 2019 8:21 pm

I haven’t had the same experience.
Two years ago my premium was $1305 through
AOPA.
Last year I renewed for $815, same coverage through AOPA.
I just renewed with them again for $815
through AOPA till July 2020.

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FastEddieB
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Re: Insurance rate shocker

Postby FastEddieB » Mon Sep 09, 2019 8:32 pm

drseti wrote:
Scooper wrote:Eddie, I'm not sure that came out right. :?


You think maybe he meant $100 of each rental hour?


I had to read it a dozen times or so to get what was wrong with it!

Yes, rental hour.
Fast Eddie B.
Sky Arrow 600 E-LSA • N467SA
CFI, CFII, CFIME
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3Dreaming
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Re: Insurance rate shocker

Postby 3Dreaming » Mon Sep 09, 2019 10:02 pm

I don't have the numbers in front of me, but my commercial policy went up. The policy for me and my boys on the Taylorcraft went down.

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MrMorden
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Re: Insurance rate shocker

Postby MrMorden » Tue Sep 10, 2019 7:14 am

FastEddieB wrote:I just got a renewal quote for my Sky Arrow’s insurance. After 12 years without a claim, I had hoped for, if anything, a small reduction in premium.

No such luck - it went from $961 last year to $1,218, a 26% increase. Along with the comment: “We are seeing steep premium increases due to the current market”.

Ouch!

Don’t know if this is industry-wide but just wanted to give everyone a heads up of what they might expect at next renewal.


Mine went up as well, but more like 10%. My broker said it's an industry-wide trend this year.
Andy Walker
Athens, GA
Sport Pilot ASEL, LSRI
2007 Flight Design CTSW E-LSA


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