Where's the free market re: insurance

[JimG]

I'm re-doing the insurance on my 340 and asked my agent who writes my house, cars, boat if her company (Farm Bureau) can obtain aircraft insurance also.

So...she emails her head office to ask the question and gets this back from them:

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"....There are about 9 markets for this type of coverage in the entire US. AOPA is a broker, like our markets, and has most likely blocked all these markets, which is what they usually do when they write a policy. We are going to have a very limited market for obtaining a quote. If the client would still like to pursue, please advise on the questions asked above. If the policy is okay to look at, then I have a few more questions."
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I ran into this years ago on my Bonanza and backed off b/c in those days, aircraft insurance was going through major changes and getting coverage was difficult, so if you had a broker who'd insure you....you were stuck with whatever quote they gave you and were thankful for it.

Those days are over I thought....

 

[midlifeflyer]

Small markets lead to small numbers of insurers lead to limited competition.

I'm sure the same is true for companies that insure paddleboats.

Besides, despite the larger market for auto insurance I haven't seen that much difference in rates between companies, have you?

 

[BRIGADEAVIATOR]

yeah i got a quote from AOPA and my jaw hit the floor when they told me who much it would be per year. The guy actually told me to talk with Avemco (who happens to be an underwriter, not a broker like aopa who goes through AIG). Well Avemco ended up quoting me a fraction of what AOPA wanted. After that i ended upgrading my policy with Avemco!!

 

[agpilot77]

Oh just wait, it gets better!

I just love the insurance companies. I fly some for a firm that uses a Baron as their second aircraft. Just a plain old 55, I got 25 hours in type that the insurance wanted for open pilot policy, took 1 flight in it after that then they said they wanted 250 total multi to name me as a pilot instead of taking my 200 hours. :angryfire

 

[NoPax]

A friend of mine bought an Aztec to build multi time in. After buying it he tried to get insurance in it - needs 250 Total multi, and 25 in type.

He had 1700 and an ATP, but less than 50 multi.

I recently tried getting insurance for SIC on a CJ1 - with FSI training. The agent said it would be difficult to insure me, as I had no pressurized airplane PIC time. He advised that I go and fly a 421 for a few months, then try again! No logic in that - FSI school & fly with a type rated pilot, vs flying a 421 single-pilot.

The owner of the Jet - a private pilot (not the guy I'd be flying with) ended up insuring himself with a few million dollar bond - seems the only way around the insurance companies. Now another PIC is on the scene, and is having trouble getting the type at FSI - needs more 'experience' - knowledge, skill etc., is fine...just needs more experience. WTF!

Maybe when I have 5000 hours, and 1500 turbine PIC, maybe, just maybe, I'll be insurable!

 

[JimG]

I guess I shouldn't feel so bad that I can't get a competitive quote.

I didn't have the hassle getting insured in it, but they required I have 50 hours multi time in type and a week at FSI before they'd insure me.

When I just re-insured it (at the same rate) this week, the only requirement was a refresher course at FSI by next November.

After the FSI week, I understood that one, but the 50 hours of having an instructor ride shotgun to visit with me as we droned through the sky was a little long.

 

[NW_Pilot]

A friend of mine bought an Aztec to build multi time in. After buying it he tried to get insurance in it - needs 250 Total multi, and 25 in type.

He had 1700 and an ATP, but less than 50 multi.

I recently tried getting insurance for SIC on a CJ1 - with FSI training. The agent said it would be difficult to insure me, as I had no pressurized airplane PIC time. He advised that I go and fly a 421 for a few months, then try again! No logic in that - FSI school & fly with a type rated pilot, vs flying a 421 single-pilot.

The owner of the Jet - a private pilot (not the guy I'd be flying with) ended up insuring himself with a few million dollar bond - seems the only way around the insurance companies. Now another PIC is on the scene, and is having trouble getting the type at FSI - needs more 'experience' - knowledge, skill etc., is fine...just needs more experience. WTF!

Maybe when I have 5000 hours, and 1500 turbine PIC, maybe, just maybe, I'll be insurable!

Bond's are good & reasonable priced for us low time pilots.

And how dose one “a non wealthy person” gain the experience if no one is willing to offer them the opportunity to obtain the experience?