There are no bones about it: A private airplane can be one of the most expensive machines you can insure, second only to space shuttles and certain long-distance satellites.
For some small airplanes, like the Beechcraft Bonanza G36, you might get away with paying $1,000 annually for liability and "hull coverage" -- the policy to cover the physical plane. But for larger private aircraft, you could pay anywhere from $10,000 to hundreds of thousands of dollars per year in airplane insurance.
That said, the price of airplane insurance is circ*mstantial and will vary based on what plane you're flying, how many hours you've flown as a pilot, and where you park it. You might also pay less if you've never filed an insurance claim -- or more if you plan to teach aviation students how to fly with your plane.
How much does it cost to insure a private plane?
To give you a rough idea of how much it would cost to insure a private plane, here are the average insurance premiums for five popular planes.
| Aircraft name | Average cost | Annual estimate for $1M in liability | Annual estimate for liability + coverage for the airplane (hull) |
|---|---|---|---|
| Cessna TTX | $715,000 | $567 to $740 | $4,050 to $6,530 |
| Cirrus Vision | $1.9 to $2 million | $1,500 to $1,750 | $13,000 to $16,700 |
| Eclipse 500 | $700,000 to $1 million | $1,250 to $2,600 | $16,200 to $20,600 |
| Beechcraft King Air 350 | $2 to $4 million | $2,180 to $3,500 | $8,870 to $21,200 |
| Embraer Phenom 100 | $2.4 to $2.9 million | $1,500 to $1,750 | $18,000 to $22,700 |
Data source: evoJets and BWI.
What airplane coverage can you buy?
Insurance companies typically break airplane insurance into two policies: liability and hull coverage.
Liability covers the costs related to bodily injury of pilots, crews, and passengers. Usually, companies will offer a minimum liability of $100,000, with a maximum in the multi millions.
Hull coverage helps you pay for physical damages to your aircraft, whether from accidents, vandalism, or weather. Because planes are expensive to repair or replace, hull coverage tends to take up the bulk of your insurance premiums.
Of course, insurance companies are in the business of making money and, as such, they have numerous policies you can add for an extra cost. Some of the most common include:
- International liability. This is extra insurance to cover you, your crew, and your passengers if you're traveling outside the U.S. Some countries, in fact, require you to have international liability to fly within their airspace.
- Public liability: This covers any damages or bodily injury to civilians and their property if you have an accident.
What factors affect airplane insurance premiums?
Much like car insurance and homeowners insurance, the price of plane insurance can be difficult to pin down. Insurance companies typically look at numerous variables to calculate your premiums, such as:
- Model of your aircraft. More expensive planes will cost more for hull coverage.
- Flying experience. Insurance companies will look at how many total hours you've flown. Typically, if you've flown over 5,000 hours, you're considered an experienced pilot.
- Your insurance history. More accidents or insurance claims will make your premiums more expensive.
- Plane parking. Sheltering your aircraft in a hanger can lower insurance costs.
- Frequency of airplane use. The more miles you fly on your plane per year, the higher your premiums will likely be.
Who sells airplane insurance?
You can buy airplane insurance for most private planes from BWI Fly, Wings, and USAA. Like other types of insurance, you can also enlist an independent insurance agent to help you find the best overall coverage at the lowest price.
Do you need airplane insurance?
Yes. If you're going to fly an aircraft, you should have airplane insurance.
Unlike car insurance, the federal government does not require pilots to have airplane insurance. But 12 states do require you to have a certain amount of liability coverage to fly legally. Currently, those states are California, Connecticut, Hawaii, Indiana, Maryland, Massachusetts, Minnesota, North Dakota, Oregon, Rhode Island, Virginia, and Utah.
Even if your state doesn't require liability coverage, it's wise to have this policy before you fly with other people. If you get in an accident without insurance, you'd be on the hook for paying out-of-pocket for the medical bills of your passengers, not to mention your own.
