Aircraft Insurance: What is a deductible?

A deductible (sometimes called an excess) is the first amount of a claim which the policyholder has to pay. Its main purpose is to keep aircraft insurance premiums down by reducing the number of small claims which tend to have a high administrative cost relative to the value of the claim.

Deductibles do not apply to every type of claim (e.g. claims made only under the liability cover are not usually subject to a deductible).

Some aviation insurance covers have a set value deductible while others (e.g. Aircraft Loss or Damage) allow you to select the value. As a general rule, the higher the deductible the greater the discount, so deductibles can be an effective way of bringing down the cost of your policy.

Details of any deductibles applying will be displayed on screen in the cover and summary pages. They will also be shown on your Policy Schedule.