Insurance and age

[Paul_Havelka]

It's no secret that the insurance market has hardened. I am writing to advise of the strategy I would take when Mooney pilots approach various age levels as we are starting to see certain pilots uninsurable due to age.

For Single Engine, Retractable Gear Aircraft:
Before the policy renewal date which occurs before your 64th birthday:

My advice is to talk to your insurance agent about which carriers are not non-renewing pilots strictly based on age.

Then find out which of these carriers have been around for 15+ years and have shown a commitment to general aviation risks.

If you intend to keep flying under BasicMed, ask your agent which of the above carriers are accepting BasicMed regardless of the pilot age.
Pick the most reputable carrier and stick with them.

At age 65:

Some carriers are not accepting new business for SERG aircraft with pilots age 65 and older
Before each policy renewal date before your 69th birthday:

Check in with your agent regarding the steps at Age 64 (above) to see if the good carrier you selected is still staying the course.

At age 70-72:

Some carriers are not renewing pilots age 70-72 or older in SERG Aircraft

At age 75:

Some carriers are no longer allowing BasicMed.


In other words, if you're 63+ years old, insured with a flexible carrier (per above notes), and your agent offers you a reduction in premium to switch to another carrier, don't just switch to save a few (or a few hundred) dollars. Be judicious.


It's precedented if we look at it from a $ perspective, not %.

An owner might be getting a $400 increase on $1000 (40%). But that same $400 increase on a policy that already cost $1500 in 2002 is only 27%.

An underwriter will spit it back to us as "40% of nothing is nothing".

These are pilots trying to run insurance companies. I can assure you they aren't trying to kill GA as we know it.

Blue skies!

 

[frfly172]

Av web has a nice video out about hardening insurance requirements. They have some good recommendations for us older pilots.

 

[Todd82]

Insurance, the only industry where discrimination is not just legal it's condoned.

 

[Paul_Havelka]

I work in the aviation insurance industry and just figured I’d put this out there in the hopes that some of y’all don’t have to hang up the headsets before you want to

 

[pigpenracing]

My buddy just turned 90 and is still insured on his V35B. He flew it this morning.

 

[PaulS]

I work in the aviation insurance industry and just figured I’d put this out there in the hopes that some of y’all don’t have to hang up the headsets before you want to

Paul, good stuff, but honestly I had to read this sentence 3 times before I understood what you were saying, maybe reword it???

"My advice is to talk to your insurance agent about which carriers are not non-renewing pilots strictly on a numerical basis."

 

[Paul_Havelka]

@pigpenracing that’s what I like to hear

 

[Shepherd]

Get old, cancel your insurance, leave a note blaming the insurance companies for their greed and avarice. If the need ever arises, make sure the note makes it to social media and the 6 o'clock news.
Just spitballing ideas.
I doubled my hull insurance and my rate did not increase dramatically. It certainly didn't double. In fact it's a few bucks less this year. Maybe it was all the Wings courses? I'm at a complete loss.

 

[Paul_Havelka]

@Shepherd a lot of the companies have breaks at certain hull values. One has a break at $50k which means your hull coverage at $45k has a higher premium than when at $50k. Another has a considerable break at $75k when carrying $1mm smooth liability almost to the point that I’ve seen premiums reduced by almost 50% when going from $70k to $75k

 

[schmookeeg]

Why is this advice mooney specific?

 

[Paul_Havelka]

It was originally written for and posted on Mooneyspace. We just copied and pasted over to here.

 

[idahoflier]

@Shepherd a lot of the companies have breaks at certain hull values. One has a break at $50k which means your hull coverage at $45k has a higher premium than when at $50k. Another has a considerable break at $75k when carrying $1mm smooth liability almost to the point that I’ve seen premiums reduced by almost 50% when going from $70k to $75k

This was more or less my experience renewing my insurance. My hull went up about 45% due to an engine overhaul and my premium went down. Why do they have these "breaks"? Pay less for more coverage, that doesn't make sense???

 

[Geosync]

Insurance, the only industry where discrimination is not just legal it's condoned.

It's a business like any other. If you drove an Uber and a good number of old guys ****ed on your car seat, you'd stop picking up old guys. If you owned an apartment and college kids tear up the place, you'd stop renting to college kids. It's they way it is, unless you want government run insurance.