Renters Insurance

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obxflygrl

Filing Flight Plan
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obxflygrl
Hey all,

Hoping some of you can give me some advice about rental insurance. I'm going to be all over the US for the next couple of years and want to rent an airplane about once a month to keep current. I plan to stick with 172's and will not be flying VFR. I'm currently in a club that is with Open Airplane but there don't seem to be that many planes in that system, so I think I will just have to find a school in the area and carry my own renter's insurance. (My current club insures its members).

Do I need to purchase the maximum liability plus coverage for aircraft's total value or is that overkill?
Do most rental agreements cover aircraft damage?
I'm ballparking that the average 172 on the rental market is worth about $70,000, so if I elect to buy my own coverage for the plane, does that seem like a safe number?
 
Definitely read the fine print about what the policy covers and what it doesn’t.

As for liability, you definitely don’t need to go full tilt. $250,000 liability (injury and property damage) and $20,000-$30,000 for aircraft liability is plenty for a 172.

Figure the worst case scenario (hopefully) would be a prop strike on landing or you ding up some metal. That amount of coverage would be plenty. For these options, you’d be looking at ~$350 a year with both AOPA and Avemco.
 
a) I think you meant WILL be flying VFR, right?
b) you don't need hull coverage, you need to cover the operators deductible. 20k is probably plenty. Ten years ago that was about $500/yr
c) how much moving around you doing? Every place you go is going to want their dual in their plane. Factor that into your actual needs.
 
Yes, I meant I will be flying VFR only. Sorry about that.
I plan to work my way along the coast from the mid-atlantic to key west then the gulf coast to South Padre over the next year. After that, I'm not sure, but Alaska, Washington and Montana are on the menu....
I'm good with doing a checkout at with each renter. I just never rented from anyone but my local club and have no idea what a typical rental agreement looks like.

Thanks for the info btw!
 
Ravioli said:
a) I think you meant WILL be flying VFR, right?
b) you don't need hull coverage, you need to cover the operators deductible. 20k is probably plenty. Ten years ago that was about $500/yr
c) how much moving around you doing? Every place you go is going to want their dual in their plane. Factor that into your actual needs.
Click to expand...

Well I respectfully disagree with coverage limit being the operators’ deductible. Their insurer has a right of subrogation and any payments they make can be sought from the renter. If you have no assets, then probably no biggie. However you’re better off simply having coverage close to the hill limits. My .02


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@Tommar98 - Their insurer MAY have the right to subrogation. The operator doesn't always share their policy, but they do say what their minimums are to rent from them. That's probably the best indicator, right?

I did not say not to have rental insurance, I said don't have too much.

Here's the worksheet from AOPA. OP can pick his level of need:
https://insurance.aopa.org/-/media/files/insurance/nonowned/singleenginelandaircraftrenters.pdf?CTE_Event=URLEvent&CTE_Category=Application&CTE_Action=Renters&CTE_Label=PDF - SEL
 
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Ravioli said:
@Tommar98 - Their insurer MAY have the right to subrogation. The operator doesn't always share their policy, but they do say what their minimums are to rent from them. That's probably the best indicator, right?

I did not say not to have rental insurance, I said don't have too much.

Here's the worksheet from AOPA. OP can pick his level of need:
https://insurance.aopa.org/-/media/files/insurance/nonowned/singleenginelandaircraftrenters.pdf?CTE_Event=URLEvent&CTE_Category=Application&CTE_Action=Renters&CTE_Label=PDF - SEL
Click to expand...


My bad. Didn’t mean to imply you were advocating against insurance. The renter has to check on operators policy - but do not rely on what they tell you - often times the people relating this information do not know what they are talking about. I feel the cost for the renters insurance to carry higher hull limits is worth the protection.


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Tommar98 said:
The renter has to check on operators policy - but do not rely on what they tell you - often times the people relating this information do not know what they are talking about.
Click to expand...

If you have insurance conforming to their stated minimums you should be fine under the concept of "deferential reliance." Meaning, you relied on the operator's information and therefore are harmless beyond that.

Bring on the lawyers! I know we've gotz a few.
 
My school requires that I get non-owners insurance before I solo’d in their 172. They required $40k in hull coverage. $450/yr for a srudent pilot with 50 hours.
 
If you were to total an airplane the owners insurance company and your renters insurance company will negotiate a settlement. Typically the salvage is worth 20%-33% of the planes value. So I would insure the hull for 70%-80%.

Insurance companies will insure stuff for a lot of money, where they a stingy is insuring death and injury. That is where I would put my insurance $$.
 
Thanks everyone for all the advice. Looks like I will be doing my research on each FBO I plan to work with and insure accordingly.
 
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