So what's the deal with insurance?

[idahoflier]

No this isn't a rant about the cost going up, although I do have a recent head scratcher with a quote I received...

I started flying in 1992 and back then the club I belonged to had a $1MM non-subrogating policy. At the time, being 24, that more than covered me multiple times over, but I do remember $1MM seemed to be the magic number for aviation liability. Here we are in 2024 and it would seem most carriers will still only offer $1MM in liability even though if you adjust for inflation (if you believe the government numbers) it should be a little north of $2.25MM. Seems like a great business model, charge more and provide less...

 

[Warlock]

I would argue that it’s not that simple…The liability policy also includes legal defense in addition to the Million award coverage. In my experience those costs have more than kept up with inflation. I do agree current max limits are inadequate for most policy’s.

 

[idahoflier]

I would argue that it’s not that simple…The liability policy also includes legal defense in addition to the Million award coverage. In my experience those costs have more than kept up with inflation. I do agree current max limits are inadequate for most policy’s.

Ah, very true, I had not considered that aspect. Thanks!

 

[Clip4]

Sure, if you were the only insured sitting in court, $1000,000 isn’t enough. The way it works is everybody and anybody who can be included in a law suit is and there are lots of other insured sitting there with you.

Run out of gas and crash into a school bus of kids, that sump drain you put on the plane 13 years ago was probably responsible.

 

[Warlock]

Sure, if you were the only insured sitting in court, $1000,000 isn’t enough. The way it works is everybody and anybody who can be included in a law suit is and there are lots of other insured sitting there with you.

Run out of gas and crash into a school bus of kids, that sump drain you put on the plane 13 years ago was probably responsible.

I have been that guy…

 

[Jim K]

It is possible to get more. My broker quoted 2mm for me a couple years ago. 1mm was $4400, 2mm was $7900. Only one company was willing to quote it. I decided to roll the dice with the "standard" limits.

 

[AV8R_87]

Yet clearly reckless operation of a two ton vehicle while texting (and maybe intoxicated) doesn't attract this level of ambulance chasers (except in Florida). Another thing that AOPA should be fixing (yeah, right).