Insurance Last ... But Why?
By Bob Mackey
EAA Aircraft Insurance Plan
December 23, 2010 — You spend months reading every article you can get your hands on about a number of different airplanes you’re considering building. You check out aircraft kit manufacturers at EAA AirVenture and you take a few demo flights. You research builders groups, log onto online chat-rooms, and consult fellow EAA chapter members to determine which design and type of construction might be best for you. You also contact the EAA Flight Advisor in your chapter to see if they have suggestions to help you decide which airplane to build.
Finally you make your decision, pull the trigger and order your airplane kit. After many hours of hard work, your airplane is finished and signed off - and now you start to look into insurance.
Why is insurance last? You may live to regret making insurance one of your last considerations when deciding on your project. For example, to get insurance you might need five hours of dual instruction in another airplane like yours before you can do your first flight. If you built the tailwheel version of your airplane, you might find that the insurance costs more than you expected because you only have a couple hours of tailwheel experience.
You could have avoided this by working the insurance variable into the equation before committing to a particular kit. But people tend to be insurance-averse and I can understand why; insurance is an intangible product that can be complex and difficult to understand. Plus many feel it’s expensive for what you’re getting in return.
There’s also a perception that insurance agents simply work for faceless companies and pocket big commissions paid by the customer through their premiums. And what about the insurance companies themselves? If there’s a claim, will they pay it or look for every loophole and exclusion to avoid paying?
With the EAA Aircraft Insurance Plan, administered by Falcon Insurance Agency, your agent works for you, not the insurance company. It’s your insurance agent’s job to understand the type of flying you do and what insurance you need – or don’t need. It’s also your agent’s job to put together the pieces of the insurance policy puzzle for each airplane owner to ensure the right insurance at the best price.
Here are some of the things the EAA Aircraft Insurance Plan does to make it easy for you to get the right insurance at the best price:
- Agents educate insurance company underwriters to get reasonable requirements for:
- Transition training
- First flight coverage
- Special insurance coverage
- Aircraft insurance availability (research and information for insurance companies)
- Knowledge of the aviation insurance industry and staying on top of changes
- One-on-one assistance with aviation insurance experts
When you first think about building or buying an airplane, call the EAA Aircraft Insurance Plan. We’ll share our knowledge about the types of insurance you might need, including project insurance during the building process. We will go over available options among the different airplanes you might be considering, help you plan so you’ll have the pilot experience when you are ready to fly, and help you avoid spending too much money. In short, we do everything possible to help you get the right insurance at the best price.
If you would like to know more about the EAA Aircraft Insurance Plan or finding the right insurance for the type of flying you do, call 866-647-4EAA (4322), or complete the online quote request form. Remember, when you insure your airplane through the EAA Aircraft Insurance Plan, you’re helping support EAA member safety and youth education programs.