Insurance for Shared Aircraft

[Murdoughnut]

I've been talking with a guy about going in together on a C150 - I'm trying to estimate the costs at the moment. I'm wondering if anyone knows how the insurance works on a partnership. Is there simply one insurance account that everyone shares the costs of, or does each individual pilot have their own insurance for when they fly the aircraft?

Thanks in advance for the help!

 

[midlifeflyer]

The companies will insure the entity that owns the aircraft. If a partnership, it will insure the partnership and partners. If an LLC or corporation it will insure the LLC or corporation and "its members" or "its officer and directors" as appropriate. One policy for the group.

How you choose to share that costs among the group is entirely up to you. For example, depending on the aircraft, a pilot may, due to low time or age, "spike" the premium. You may want to have the person who causes the spike pay for the spike.

Not directly related to the question of insurance, but you should sit down with an aviation and business entity savvy lawyer to choose the specific form the group ownership will take and put together the agreement among you. That up-front cost will almost always pay dividends later on.

 

[sstearns2]

AOPA has some good info on partnerships. Remeber that if your partner crashes into a schoolhouse or something, they'll come after you as an owner. It probably makes sense to incorporate the airplane in some way.

Scott

 

[Murdoughnut]

Thanks for the advice guys - hopefully it'll all work out. I'll definitely be in touch with AOPA.