A Short Guide To Aircraft Insurance

Choosing the right aircraft insurance is essential, not just to make sure you’re properly protected, but also to avoid paying for cover you don’t need. This guide explains the main types of aviation insurance, typical exclusions, how insurers assess risk, and what you can do to keep your premiums as low as possible.

What Are the Types of Aircraft Insurance?

1. Aircraft Loss or Damage

Aircraft loss or damage cover aims to meet the cost of repairing or replacing your aircraft after events such as accidents, theft, fire, or storm damage.

Be aware that malicious damage such as vandalism, is often not included as standard and may only be available if you add War & Allied Perils cover.

2. Third Party & Passenger Liability

Aircraft owners and operators are legally required to hold liability cover to protect against claims for injury, property damage, or third-party loss resulting from the operation of the aircraft.

Minimum legal limits vary depending on aircraft weight, usage, and number of seats, but many owners choose higher voluntary limits for added protection.

3. Other Aircraft Insurance Covers

There are a range of other aircraft insurance covers, further details of which can be found by clicking the links below:

• Betterment  
• War and Allied Perils (e.g. Vandalism)
• Road Transportation    
• Courtesy Aircraft 
• Crown Indemnity 
• Passenger Voluntary Settlement
• Airside Vehicle Liability 
• Spare Parts and Equipment 
• Flying Clothing and Effects 
• Trip Interruption 
• Personal Accident cover 
• Finance / Lease Contract  
• No Claims Discount Protection

Some insurers bundle such covers into a single package but this can result in paying for extras you may not need. Choosing a provider that lets you customise your cover can help you stay fully protected without overspending.

What Are Common Exclusions or Restrictions on Aircraft Insurance?

Every policy is different, but most aviation insurance plans include general exclusions such as:

• Using the aircraft illegally or for a non-permitted purpose
• Flying outside the policy’s agreed geographical limits
• Allowing a pilot who is not included under the policy to fly
• Reckless or unsafe operation
• Wear, tear, mechanical breakdown, or gradual deterioration
• Failure to keep the aircraft properly maintained or manned

Most insurers will also require you to:

• Take reasonable steps to protect the aircraft
• Ensure you and all pilots comply with aviation laws and safety regulations
• Report any loss or potential claim promptly
• Avoid admitting fault without the insurer’s consent
• Provide accurate, up-to-date information
• Always be honest in your dealings with them

Always check the policy wording carefully, as exclusions and requirements vary between insurers.

What are the Geographical Limits of Your Cover?

The Geographical limits define where your aircraft is insured to fly. You will generally be offered a range of ‘geographical area’ options, with the wider the area, the higher the premium.

If you need coverage outside Europe or need to fly in higher-risk regions, insurers may assess the request individually before approving it.    

What Can You Use Your Aircraft For?

Many policies restrict aircraft use to private and pleasure flying which may exclude:

• Racing
• Aerobatics
• Air displays
• Student training
• Commercial operations

If you need cover for such use options, you can usually add it for an additional premium. Ensuring your policy accurately reflects how the aircraft will be used helps prevent gaps in cover while avoiding paying for cover you don’t require.

Who Will Pilot Your Aircraft?

There are two main ways in which you can arrange for pilots to be covered under your Aircraft Insurance policy:

1. Named Pilots

Under the named pilot option you list specific individuals, including their experience, history and licence details, who are authorised to fly the aircraft.

This is usually the lower cost option and ideal where there are few pilots, all of whom are known to the policyholder.

2. Open Pilots Warranty

With the open pilot option, instead of listing specific pilots, you define criteria (minimum hours, licence type, maximum age, etc.) that a pilot must meet.

This is the more flexible option and is ideal for large syndicates, flying schools or if the aircraft is rented out.

Both options can be combined, for example using an open pilot warranty to cover most flyers while naming any pilots who are outside the open pilot criteria.

How Can You Reduce the Cost of Your Aircraft Insurance?

The cost of your aircraft insurance will be determined by a wide variety of factors, not least of which being who you buy your cover off and how much flexibility they offer. Action you should consider include:

• Regularly update all pilot's flying hours, at least annually
• Restrict flying to experienced pilots only
• If possible, opt for Named Pilot cover instead of the Open Pilot
• Select a higher excess on aircraft loss or damage  
• Only choose cover options you genuinely need
• Add extra uses (training, displays, etc.) only when required
• Only select the geographical areas you will fly in
• Update your policy immediately when your needs change rather than wait until renewal
• Watch out for ‘hidden’ charges such as administration fees to increase your cover

Taking the time to review your cover and providing detailed, accurate information can significantly reduce your premium.

How Can Visicover Help Reduce Your Aircraft Insurance Premium?

Visicover offers several features designed to help you reduce your insurance costs:

• Customisable cover so you can tailor your insurance to your needs
• Extensive discounts, including for experienced pilots or higher excesses
• Flexible payment over nine months at no extra cost
• Online policy management, allowing you to update cover any time as your needs change, usually with no admin fee

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