Insurance post accident

M

MikeLima

Pre-Flight
Joined
Dec 7, 2015
Messages
92
Location
Missouri
Display Name
Display name:
MikeLima
I tried to do a search but couldn't find any info.....

Does anybody have information regarding whether or not insurance rates increase after a pilot has had an accident or incident ?

ML
 
MikeLima said:
I tried to do a search but couldn't find any info.....

Does anybody have information regarding whether or not insurance rates increase after a pilot has had an accident or incident ?

ML
Click to expand...
Generally speaking your 'rates' won't necessarily increase, but you will lose any 'accident free' discount you may have had which naturally results in a price increase at renewal.

The other issue you will find is that with past claim history, your broker will have trouble shopping around for the best rate. Typically other underwriters will not even quote you in the first year or two after a claim, basically limiting you to your existing underwriter.
 
Fearless Tower said:
snip....... Typically other underwriters will not even quote you in the first year or two after a claim, basically limiting you to your existing underwriter.
Click to expand...

Then what do you do if the existing underwriter declines to re-insure?
 
Cruiser said:
Then what do you do if the existing underwriter declines to re-insure?
Click to expand...
I suppose you'd be f'd.

Personally, I haven't heard of that happening. I've been told by brokers that the reason others won't quote after a recent claim is to give the original underwriter a chance to recoup some of their money by continuing to collect premiums.
 
Always wondered if fault finding mattered. If the plane was totaled due to an emergency of airport landing and you wanted to insure the new plane, is that a problem?
 
Fearless Tower said:
I suppose you'd be f'd.

Personally, I haven't heard of that happening. I've been told by brokers that the reason others won't quote after a recent claim is to give the original underwriter a chance to recoup some of their money by continuing to collect premiums.
Click to expand...

Something about that sounds less than legal...
 
I'm guess I'm and even bigger idiot than I thought because now I see there are pics attached.

Oh well.

ML
 
Morgan3820 said:
Always wondered if fault finding mattered. If the plane was totaled due to an emergency of airport landing and you wanted to insure the new plane, is that a problem?
Click to expand...
A good friend of my dad had an engine failure in his Stearman a while back. Airplane was destroyed. His insurance company cut him a check and he immediately went and bought another airplane.

The second airplane he bought was a 180 or a 185. On the day he closed (payment made and the airplane was officially his) the seller asked if he could have one last flight. The dude locked up the brakes on landing and nose all the way over onto its back. I think that airplane was totaled as well.

He got another check and finally got a good airplane that I believe he still has.
 
My personal experience... first renewal after the claim was double the premium from before the incident. Mine was damage to my plane only, no medical bills, no ground damage. (so if you're going to have an incident, do it on a RUNWAY)

Next renewal isn't till March so I do not know how long it takes to get back down to pre-incident rates.
 
Ravioli said:
My personal experience... first renewal after the claim was double the premium from before the incident.
Click to expand...
Ouch! I was with Avemco when I had my claim. Like I said above. The only change for me was losing the accident free discount. My increase was no more than 10%.
 
mscard88 said:
Definitely looks like the plane came from together. Sorry. :(
Click to expand...

Thank you. Definitely not the most graceful of landings. However, no injuries and the insurance company has only been slightly ridiculous in handling the claim so, no worries. (other than the pesky 709 ride that shall be forthcoming)

And, on the bright side, we were already looking into trading up.

ML
 
MikeLima said:
I tried to do a search but couldn't find any info.....

Does anybody have information regarding whether or not insurance rates increase after a pilot has had an accident or incident ?

ML
Click to expand...
Paging @texasag93
 
vkhosid said:
Something about that sounds less than legal...
Click to expand...
That never stopped any insurance company from increasing premiums or refusing coverage in the past. We pay their lawyers are paid well enough to dismiss any concerns with legality of their practices. It's a catch 22.
 
I was insured with Avemco when I was in a crash. They paid the claim and the next year my insurance went up with them by about $200. I decided not to renew and moved to Travers where my rate was lower than my original Avemco rate. I had always been loyal to Avemco and liked them a lot. Their response when I didn't renew was to call me and tell me that Travers wasn't offering me as much coverage as they were and I should come back. I laughed and asked the lady how she thought she knew what my coverage was? She just said there was no way they could offer it at that rate.
 
Lowflynjack said:
I was insured with Avemco when I was in a crash. They paid the claim and the next year my insurance went up with them by about $200. I decided not to renew and moved to Travers where my rate was lower than my original Avemco rate. I had always been loyal to Avemco and liked them a lot. Their response when I didn't renew was to call me and tell me that Travers wasn't offering me as much coverage as they were and I should come back. I laughed and asked the lady how she thought she knew what my coverage was? She just said there was no way they could offer it at that rate.
Click to expand...
My experience was similar, only I think my increase was a little less than $200.

Shortly after that I bought the Baron and used a broker for insurance. He was able to do better than Avemco, but was only able to get two underwriters to quote due to the recent claim.
 
You must log in or register to reply here.
Back
Top