Shopping for insurance?

jd21476

jd21476

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jd21476
So I just got my renewal quote from my broker an just like the last 3 years my policy has gone up in price. Somebody had said that if you go through a broker then they get all the quotes from the Companies (since there are so few) and that competitively shopping doesnt really exist like it does with cars. Is this true?
 
They can choose how hard to argue your case and in some circumstances can lower your rate, but that's in somewhat rare circumstances.
 
The only company the broker cant shop is Avemco. Unless you have unusual circumstances, that doesn't matter as they tend to be more expensive than the market. If you have one of those situations (new complex pilot, recent claim, age >70) then you may want to get a quote directly from Avemco. There are some unique limitations to their coverage that may be worth accepting if you can't get insurance otherwise.
 
jd21476 said:
So I just got my renewal quote from my broker an just like the last 3 years my policy has gone up in price. Somebody had said that if you go through a broker then they get all the quotes from the Companies (since there are so few) and that competitively shopping doesnt really exist like it does with cars. Is this true?
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My agency shopped my policy around and found the company that insured me last year to be the best deal.

My cost went down about 50 bucks from last year.

I also increased my hull value.

I added a instrument rating and flew 265 hrs last year putting me over a 1000hrs total.

Actually I added the instrument rating the year before, but it was not reflected on last years policy. They missed and so did I.
Good luck.
 
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While the broker has potential access to all the companies (other than Avemco's direct sell), that doesn't mean that they will check them all. I dumped USAA as an aviation broker because after they sold their soul to USAIG (which promptly dropped anybody with an older aircraft), they wouldn't exert any effort to find insurance for me. Other brokers (I used Travers, I think at that time ) came up with more options.
 
A good broker will shop pretty much every company that is interested in your situation, I think my folks went to 7 or 8 companies. I’ve been with the same broker for a long time and the same insurance company for 10-12 years. Every company has guidelines of what business they want and it’s a waste of time to send applications that don’t conform to them. Insurance is definitely getting more expensive, I doubled the hull coverage on my 182 this year.
 
I found out that my broker was a bit lazy. For this last renewal, he indicated he "shopped it around" but according to another broker, out of eight companies shopped, only the one that had been locked in my N-number was the one I was previously with, and being offered renewal to.

I contacted Angelo Manuele, a local broker and PA-32 pilot out of DVT and he shopped more for me, saving me some money.

http://aviationinsurancecompany.com/

Tell him Rusty said HI.
 
Rgbeard said:
I found out that my broker was a bit lazy. For this last renewal, he indicated he "shopped it around" but according to another broker, out of eight companies shopped, only the one that had been locked in my N-number was the one I was previously with, and being offered renewal to.

I contacted Angelo Manuele, a local broker and PA-32 pilot out of DVT and he shopped more for me, saving me some money.

http://aviationinsurancecompany.com/

Tell him Rusty said HI.
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thats the important point, if your broker shops all the underwriters, you will not be able to get quotes through another broker. once your n number has been submitted to them by a broker they will not quote that airframe to another broker.
 
There are roughly 18 companies (give or take) in the US that provide insurance for general aviation. For any given aircraft + pilot combination you might have only one or two companies willing to quote or you could have 7 to 10 companies quoting. With the exception of Avemco, all of these insurance companies only provide coverage through independent agents (brokers that don't work FOR the insurance company). Each of these insurance companies will give you only one quote - though in some cases they will give multiple brokers the same quote. In many cases each company will give the quote to only one broker at a time. You can change brokers with a Broker Of Record (aka Agent of Record) letter if you don't like the broker. Going to multiple brokers isn't really the best way to get lower rates - the best rates are usually obtained by going through a broker who has access to ALL of the possible insurance companies and who will put a little effort into selling your risk to the underwriter. If your risk is presented with minimal information the underwriter can't give you any discounts or consideration for factors that make your risk better than others. On the other hand, if your risk is sub-par (lack of training, lack of currency, lack of medical, lack of BFR, etc) then it might be to your advantage if the broker presents your risk with the minimum information and you get an average rate.

You can ask your current broker for ALL the quotes they received and find out which companies quoted and which declined - and why.

Please note that in most cases insurance rates are going up - but there are exceptions. Your broker should be able to explain to you the shape of the market for your particular risk. They should be able to tell you WHY your insurance premium went up - and if they don't know they should ask the underwriter(s). If you still aren't happy with your broker you can sign a Broker of Record letter to another broker, but odds are it won't help much at this point if ALL the markets have already quoted.
 
Not sure on your question but try kimmel aviation insurance in Mississippi. My bonanza insurance has gone down the last 3 years and I just renewed first of the month. Yep went down again.
 
weilke said:
The only company the broker cant shop is Avemco. Unless you have unusual circumstances, that doesn't matter as they tend to be more expensive than the market. If you have one of those situations (new complex pilot, recent claim, age >70) then you may want to get a quote directly from Avemco. There are some unique limitations to their coverage that may be worth accepting if you can't get insurance otherwise.
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I received a quote through AOPA, then called Avemco. Avemco was significantly cheaper, almost half the price with the same limits. I read the policy thoroughly and saw no “unique limitations” to the coverage. Everyone’s situation is different, but it’s definitely worth a call to Avemco.
 
Motor6 said:
I received a quote through AOPA, then called Avemco. Avemco was significantly cheaper, almost half the price with the same limits. I read the policy thoroughly and saw no “unique limitations” to the coverage. Everyone’s situation is different, but it’s definitely worth a call to Avemco.
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The unique limitation is that the sublimit is not 'per passenger' but rather 'per person'. 100k is a broken leg and 3 days in the hospital. If one is comfortable with having very limited coverage for claims by a non passenger damaged party, then yes Avemcos limits may suffice.
 
Good to know. I wonder what percentage of GA crashes result in injuries to people on the ground?
 
Received my insurance quote today and my policy cost has gone down (~5%) using my current carrier. I've mentioned it before but again suggest that those looking for insurance take time to contact AIR:

Victoria Neuville
Agent, Commercial Pilot, CFI
Aviation Insurance Resources (AIR)
P.O. BOX 32 | Frederick, MD 21705
Ph 301-682-6200 | Fax 301-682-9793

vneuville@air-pros.com | www.AIR-PROS.com or have them call me at 301-682-6200
 
Daleandee said:
Received my insurance quote today and my policy cost has gone down (~5%) using my current carrier. I've mentioned it before but again suggest that those looking for insurance take time to contact AIR:

Victoria Neuville
Agent, Commercial Pilot, CFI
Aviation Insurance Resources (AIR)
P.O. BOX 32 | Frederick, MD 21705
Ph 301-682-6200 | Fax 301-682-9793

vneuville@air-pros.com | www.AIR-PROS.com or have them call me at 301-682-6200
Click to expand...
Thanks for the recommendation. Just got a really good policy on my new 182! Very happy with the service and price.
 
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