2 Facts Unique to Airplane Insurance

Airplane insurance is a type of vehicle insurance that is designed to cover the expenses that result from an accident that involved your airplane. It has many similarities to other types of vehicle insurance, but it also has many features that are designed to suit the needs unique to the airplane owners.

Extensive Customization

All vehicle insurance will offer you options, but those options are usually designed to fit certain broad categories. Airplane insurance, by contrast, tends to be very specific. Policies are customized based on factors such as the aircraft model, the age of the aircraft, the way in which you use it and your skill and experience as a pilot (or the skills of whoever is piloting it for you). The last part is especially important to insurance companies, since most accidents are caused by pilot error.

The Importance of Value

Airplanes are fairly complex and fairly expensive machines. Before you buy an airplane insurance policy, you and the insurance seller negotiate the "agreed value" - the maximum value of coverage they will provide. It is usually equal to the value of the aircraft itself. It is important to get it right the first time. If the agreed value is too low, you may be stuck paying thousands of dollars out of your own pocket. If the value is too high, the insurance company will try to milk it for it's worth, agreeing to repairs that your aircraft may not necessarily need.