Maybe I just didn't know about it before, but I am finding more guys are flying without insurance. A good friend who is a real craftsman, built an RV-6 across from me (hanger across the taxiway). We've chatted over the years with him and he recently told me he would like to sell it and would like me to have it.
One thing led to another and I checked on insurance. The most coverage I could get through a company like AIG was $100,000 per seat and 1,000,000 total liability. Hull value is mid $80s. I asked about his current coverage and his passenger is not covered (two seater), $1,000,000 total liability and same hull. So, as one ages, the insurance doesn't seem to stop, but they start eliminating coverage.
I posed this to him and he said, oh yea, I had forgotten, I don't have passenger coverage and I'm worried about passing my next medical: that's why I'd like to sell the plane. (He would like to still fly it on an hourly rate if he keeps his medical.) He added, a lot of my friends have quit getting insurance coverage because they are denying coverage we want and it's getting so expensive!
So, the position I get into if I want to help him (and I do feel real close to him), is if he flies and hurts a passenger, no coverage and I'm the plane owner (really can't do that.)
Even if I purchase it and he doesn't fly it; if a passenger was hurt and needed long term medical treatment, the $100,000 coverage wouldn't go far. The insurance agent actually made a statement with words to the effect of: If you have substantial assets, you really shouldn't be flying a plane yourself!!
Best,
Dave