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DID YOU KNOW its important to continue staying informed of insurance changes?

LRingeisen

Well Known Member
Wow, 2020 has been a crazy year so far! With everything going on over the past couple of months, we wanted to give a little overview of insurance changes that have happened.

We are still seeing significant rate changes mainly with the RV-8, RV-10 and RV-12. Some of these renewals have come in with a 30% increase. Unfortunately older pilots are seeing the majority of these increases. Over the past several years in fear of age limits lowering, we have been trying to move all of our older pilots to companies that would be more suitable for them. With that being said, and due to underwriting guidelines changing, we have a limited number of companies willing to take on a new risk with a pilot who is 70 or older.

Speaking of underwriting guidelines changing, we have mentioned before that insurance companies are getting more strict about who they will insure. For example, prior to this year a few hours tailwheel could be enough to get a quote for a tailwheel model Vans. Now most companies want to see that you have at least 25 hours tailwheel before they will even take a look at the risk. This is certainly so for the RV-8. In fact, prior to binding coverage, the more hours you have in the specific make and model, the better off you will be when you go to request quotes.

Your broker should be there to help you especially in times like this. They should always be willing to shop out your renewal to make sure you are still getting the best option for your situation. If you have any questions about your renewal, call and talk to them, but please remember that the rates come from the insurance companies not the broker themselves. We’re not always happy with the changes that we see either. Hopefully we have reached the top of the hill on the roller coaster and we will start seeing a slide back down the other side. Either way, we will continue keeping you informed as best as we can.
 
How many times have we seen on VAF over the years suggestions to change agents when this aspect of the industry isn't understood....

And yet, how many times has going to a different agent resulted in a better rate? Either not every agent has access to every insurer, or their markups differ, or ???
 
And yet, how many times has going to a different agent resulted in a better rate? Either not every agent has access to every insurer, or their markups differ, or ???

As I understand it, different rates from the same carriers are the result of us being presented by agents in different ways to the carriers. Most likely some of the presentations don't reflect reality which might be a problem if there is a claim. :)
 
As I understand it, different rates from the same carriers are the result of us being presented by agents in different ways to the carriers. Most likely some of the presentations don't reflect reality which might be a problem if there is a claim. :)

Yes Sam, you are correct. All brokers are supposed to get the same quotes from the insurance company. If you get two different quotes from the same company, something has to be different. That could be anything from pilot hours, a missing claim, hull value, medical payments, liability coverage, airport information, you name it. If this happens, reach out to the brokers and let them know. We can always get with the insurance company for them to compare the two quotes. It might be an honest mistake put in the system by a broker (it happens, we're all human), but it's important to get it fixed up front instead of waiting for a claim to occur.

Another thing to keep in mind is that some companies will block all other brokers from quotes after they have released one. That means its possible that your current broker has quotes available to them that others don't since they are the holding company.
 
Canadian VAFrs

I just renewed my insurance with COPA/Magnes (Canadian). It went down slightly mainly because I took my son off as a "Named Pilot". His hours were low this year and apparently their underwriter goes by the pilot with the lowest hours.

Also, this is the third year I have asked EAA/C-Plan for a quote and for the third time they have not delivered. Really bad service. I won't bother contacting them again.
 
I just renewed my insurance with COPA/Magnes (Canadian). It went down slightly mainly because I took my son off as a "Named Pilot". His hours were low this year and apparently their underwriter goes by the pilot with the lowest hours.

Next year get a quote from Marsh as well. Marsh used to be COPA's insurer but backed out of that arrangement when COPA's previous management was playing silly buggers with them. Great service and rates every year i've quoted with them.
 
A broker at an EAA chapter meeting said much of this is because of the shakeout in the insurance business with hurricanes, wildfires and all manners of loss and companies just getting out of the aviation market.

He suggests that these sorts of things run in cycles but in the short term, absent any real competition, the rates are skyrocketing. Bottom line: we're screwed for now.

These are the situations that imperil general aviation more than just about anything else.

I wish AOPA and EAA would be more involved in trying to help the situation but I don't know what they could do, especially AOPA which has its own insurance relationship and has a little conflict of interest.

I'm 66 now. Haven't flown since I delivered the RV-7A to its new owner in December 2016. I'm building an LSA (RV-12iS) and the closer I get to finishing it, the more I'm realizing that when it's done, it's going to have to get sold.
 
Just got a refund from my auto insurance company for the lack of activity during COVID. I’m sure the aviation industry is right behind....oh wait
 
Rob,
Thanks for the tip on Marsh. I’ll give them a try next year. Also - I have been with Air1 in the past. Still have my Champ with them.
 
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