Non-Owner (Rental) Aircraft Insurance

[bmather9]

So I'm a military rotor-wing aviator, but am working on my my ASEL private pilot. I'm just about to solo and have been looking into aircraft rental insurance. The flight school I'm with has documentation insuring me with a $1 million liability policy, but it explicitly does not cover physical damage to the aircraft I'm flying.

So I've looked into adding insurance through AOPA and a few others, but the cost seems outrageous. For example:

Limit Premium
$5,000 $99
$10,000 $175
$20,000 $250
$30,000 $350
$40,000 $450
$60,000 $600
$80,000 $775
$100,000 $975
$150,000 $1,425
$200,000 $1,900

So If I want to insure the C172R (built in 2000) that I rent, I'm going to need to spend roughly $975!? So how much aircraft damage insurance should I really be carrying? I believe the flight school also has hull insurance on their aircraft, but I'm not covered under it. Should I just get enough insurance to cover their $5000 deductible? Or do I really need the $100,000?

Any clarification or other more affordable policies is appreciated.

 

[James331]

Or rent a 172N and pay less all around

 

[BillTIZ]

Most schools stipulate enough renters insurance to cover the deductible. Check their policy that their insurance would not persue you if you have the renters insurance.

 

[jesse]

So I'm a military rotor-wing aviator, but am working on my my ASEL private pilot. I'm just about to solo and have been looking into aircraft rental insurance. The flight school I'm with has documentation insuring me with a $1 million liability policy, but it explicitly does not cover physical damage to the aircraft I'm flying.

So I've looked into adding insurance through AOPA and a few others, but the cost seems outrageous. For example:

Limit Premium
$5,000 $99
$10,000 $175
$20,000 $250
$30,000 $350
$40,000 $450
$60,000 $600
$80,000 $775
$100,000 $975
$150,000 $1,425
$200,000 $1,900

So If I want to insure the C172R (built in 2000) that I rent, I'm going to need to spend roughly $975!? So how much aircraft damage insurance should I really be carrying? I believe the flight school also has hull insurance on their aircraft, but I'm not covered under it. Should I just get enough insurance to cover their $5000 deductible? Or do I really need the $100,000?

Any clarification or other more affordable policies is appreciated.

Their insurance is designed to protect them. Depending on what happens it's possible the insurance company could come after you (although this is rare IMO). If you want to be protected you need your own insurance.

It's extremely rare for the rental companies insurance policy to have a clause saying they won't subrogate and go after you. Check with them.

Even if their policy does say that you should still use some caution because their insurance policy could change at any point in time and it's unlikely you'll be made aware of that.

 

[poadeleted20]

Get a copy of the school's policy and a copy of the school's rental agreement, and review them with an attorney. If you're an AOPA Legal Services Plan member, that review would probably be covered by the LSP. But if there's no waiver of subrogation, and the renter pilot is not an insured under the hull coverage, and there's nothing limiting your exposure to the deductible, you're probably going to need the whole $975 worth. In fact, unless you're an insured under the school's liability coverage, you're going to need your own liability coverage, too, unless you don't mind being exposed to third party liability.

 

[jesse]

Get a copy of the school's policy and a copy of the school's rental agreement, and review them with an attorney. If you're an AOPA Legal Services Plan member, that review would probably be covered by the LSP. But if there's no waiver of subrogation, and the renter pilot is not an insured under the hull coverage, and there's nothing limiting your exposure to the deductible, you're probably going to need the whole $975 worth. In fact, unless you're an insured under the school's liability coverage, you're going to need your own liability coverage, too, unless you don't mind being exposed to third party liability.

Couldn't your exposure exceed the deductible?

 

[poadeleted20]

Couldn't your exposure exceed the deductible?

Sure, if...

Get a copy of the school's policy and a copy of the school's rental agreement, and review them with an attorney. If you're an AOPA Legal Services Plan member, that review would probably be covered by the LSP. But if there's no waiver of subrogation, and the renter pilot is not an insured under the hull coverage, and there's nothing limiting your exposure to the deductible, you're probably going to need the whole $975 worth. In fact, unless you're an insured under the school's liability coverage, you're going to need your own liability coverage, too, unless you don't mind being exposed to third party liability.

But some (many?) flight schools/FBO's explicitly limit the renter's hull coverage exposure to the deductible in the rental contract. That's why I recommended getting a legal review of the renting outfit's insurance policy and rental contract.

 

[bmather9]

I've since found that the school does have a waiver of subrogation for damage to aircraft. And it also clearly states I'm covered under their liability. So it seems like I'm covered, other than a deductible if I were to be at fault for any damage. I certainly wouldn't enjoy paying a $5000 deductible, just as I wouldn't enjoy damaging an aircraft, but I could pay it if needed. I think this coverage stems from the fact that the flight school is actually through a state college, hence the better than normal coverage for students.

 

[DFH65]

This year I paid about $700 for max liability and 50K in hull. I mainly fly a 172M (180 conversion and 430). I plan to have a talk with the owner before I renew just to see if there is anyway to reduce this and to see if his insurance covers more than I think.

It is nice to know if I ever find someone who will let me fly their plane I am covered or just have the opportunity to fly something else I don't have to worry about it. Admittedly it does add quite a bit per hour with the hours I am flying.

 

[bmather9]

This year I paid about $700 for max liability and 50K in hull. I mainly fly a 172M (180 conversion and 430). I plan to have a talk with the owner before I renew just to see if there is anyway to reduce this and to see if his insurance covers more than I think.

It is nice to know if I ever find someone who will let me fly their plane I am covered or just have the opportunity to fly something else I don't have to worry about it. Admittedly it does add quite a bit per hour with the hours I am flying.

I think that is my problem with the insurance rates; there are some years where I have flown less than 5 hours, but to be properly covered those 5 hours would cost quite a bit.

 

[tfitch03]

I pay $250/ year for a renter policy. Not sure what my limits are. PM me if you want the details.

 

[BillTIZ]

I've since found that the school does have a waiver of subrogation for damage to aircraft. And it also clearly states I'm covered under their liability. So it seems like I'm covered, other than a deductible if I were to be at fault for any damage. I certainly wouldn't enjoy paying a $5000 deductible, just as I wouldn't enjoy damaging an aircraft, but I could pay it if needed. I think this coverage stems from the fact that the flight school is actually through a state college, hence the better than normal coverage for students.

Most schools will want proof of insurance for the deductible or a statement of self insurance, or the deductible on deposit. They don't want to be chasing you to get their deductible.

 

[jonnyjetprop]

Be sure to call to get the best rates. Avemco gives discounts for advanced ratings and recurrent training.

Check the FBO's policy very carefully. I like Ron's idea to have an attorney look at it. I'm a renter and I have chosen to carry 50k in hull. I'm fully covered in the older 172 and PA-28. I'm not fully covered for the C-172R and C-182S that I rent. It is sizable enough to cover most issues where I could easiably be found at fault like hangar rash and prop strike. Clearly, it won't cover a total loss. Remember, the best defense is not to f**k up in the first place.

 

[DFH65]

I ended up with Falcon through EAA. I looked at AOPA and Avemco. The price for all of them was pretty close. In the end Falcon has a per passenger limit not per person limit which if I understand it correctly does not limit the pay out to people on the ground to the 100K limit. They are under the 1 million limit.

I figure someone who climbs in a plane with you is accepting some risk. The person on the ground is not.

 

[mrkbbd]

I had this discussion yesterday actually - remember $1,000 in the grand scheme of things is like 5 flight hours with an instructor...