Aircraft Renters Insurance Options Are Diversifying And That May Be A Good Thing
Aircraft renters insurance is a product offered by various aviation insurance carriers and it is designed to protect you when flying aircraft that you do not own. Aircraft renters insurance is a secondary coverage, meaning the aircraft owners insurance policy is always primary in the event of a loss. If there are coverage gaps or no coverage, an aircraft renters insurance policy will step in.
Aircraft renters insurance policies offer liability coverage starting at $250,000, all the way up to $1,000,000. This coverage protects you, in the event that you cause bodily injury, property damage or are legally liable arising from your personal use of a non-owned aircraft.
Aircraft renters insurance policies can also offer physical damage for non-owned aircraft. This insurance covers damage to the aircraft itself, while it is in your care, custody or control.
For years, aircraft renters insurance policies were offered and sold as annual insurance policies through aviation insurance brokers, backed by solid aviation insurance companies such as Global Aerospace. These annual policies offered peace of mind for the entire year and were relatively inexpensive, typically starting at around $75 a year for $250,000 in coverage.
In May of 2020, Starr launched Starr Gate, an iPad based program that allows pilots to buy insurance on a month-to-month basis as well as annually. This is the first attempt at offering options other than annual insurance policies for the aircraft renters and non-owned aviation insurance market.
Our initial review of both options offered some surprising results:
Companies:
Founded in the 1920's, Global Aerospace is one of the largest Aviation Insurance providers in the world with a solid claims reputation and diverse product offering.
Founded in 1919 in Shanghai, China, Starr opened an aviation insurance product line in June of 2006. Starr is one of the top aviation insures in the world and also has a diverse product offering and good claims reputation.
Summary:
Both Starr and Global Aerospace are well-known, A+ Rated Aviation Insurance carriers.
Cost:
Global Aerospace:
1/YR Annual policy including $250,000 in Liability Coverage: $72*
Starr:
1/YR Annual policy including $250,000 in liability coverage, $1,000 medical expense and $1,000 physical damage coverage: $147.
1/MO policy including the above coverages, $12, or if carried annually, $144.
Summary:
Both companies are offering great insurance options at competitive prices. If you are looking for aircraft renters coverage for more than a few months, Global Aerospace is our recommendation. If you are in need of aircraft renters insurance for only a month or two. Starr Gate looks to be a good choice.
Our take:
If you regularly rent or fly aircraft that you don't own, we highly recommend obtaining an Aircraft Renters Insurance Policy. Piloting aircraft always carries an increased risk and liability exposure and having a solid liability insurance policy gives you peace of mind and protection in the event of an accident.
-Matt White - Owner of BWI Aviation Insurance
*Prices may vary based on pilot experience and other risk information.
