How to Lower Aircraft Insurance

Introduction to Insurance

 

The journey to owning a Vision Jet is a dream for many pilots and for those aspiring to fly the cutting-edge SF50, the thrill is even more palpable. However, alongside the anticipation of taking to the skies comes the practicalities of organizing your type rating training, SEO training, and securing insurance - a crucial component that is often left a mystery to new pilots. This article will be part 1 in a 3 part series on unpacking the items above. This first piece aims to unpack the world of insurance for new SF50 pilots and explore the costs and considerations involved. 

The information you'll find below was collected from numerous conversations with different underwriters, insurers, and SF50 owners. While we recognize that each policy is going to be different, this article aims to give new and future owners some insight into the process and some of the factors that are considered when determining the costs of a new policy.

Before diving into vision Jet specifics, it's important to understand the foundation of how Aircraft Insurance is generally structured.

Aircraft Insurance

No matter the type of aircraft being insured, the majority of costs can be broken down into two line items; liability and hull insurance.

Liability Insurance 

Whether you're insuring a single piston engine aircraft like a Cessna 172 or a private jet such as a Gulfstream...All pilots are legally required to be covered by liability insurance in order to fly. This type of coverage is generally capped at $100,000 per passenger and only applies in the event of an accident causing third party damages and injury. 

Hull Insurance

Hull insurance simply refers to the coverage that helps with any damage that occurs to the actual aircraft, for example a gear up landing. Gear up landing is one of the most common losses paid out on an annual basis by underwriters.

Now let's explore some of the factors the help determine the total cost of insuring your aircraft. For the purpose of this article, we're going to view each one of these factors through the lens of an SF50 owner. 

Cost Factors

Aircraft Value and Specifications

A bulk of the premium that is paid will be related to the hull value of the aircraft. sImply put, a more expensive aircraft will carry premium hull insurance with it. High-performance jets equipped with the latest technology usually command higher premiums due to their increased replacement costs. 

Pilot Experience and Training

In general, pilots with extensive flying hours and advanced ratings such as instrument, commercial, or multi-engine will tend to receive more favorable rates. This being said, owners can get insured in the SF50 with 400-500 hours total time and zero turbine or retractable gear time. While coming from an SR22 certainly helps due to underwriters knowing the transition process... it isn't necessarily required. In general, more time spent in an SR22, Turbine, complex, or instrument flight will only help your rates.  

Usage and Operations Areas

How and where the Vision Jet is flown also impacts insurance costs. Aircraft operated in challenging environments or for commercial purposes may face higher premiums. 

Insurance Market Conditions

The overall condition of the insurance market influences pricing. During times of increased claims or economic downturns, premiums can rise across the board. Currently, costs of insurance are steadily rising due to a couple of factors including increased plane value, pilot shortages, and increased losses being paid out. 

Real World Examples

We gathered a couple of real world quotes from current and past customers to help paint a better picture of how different companies quote. For clarity, these are quotes for two separate owners quotes from different insurance companies.

Quote $85,000

Experience

• 800 hrs TT, majority in SR22T
• Very young, age was a big factor as the Pilot was 21

Quote $45,000

Experience 

• 1,025 hrs with 925 in retractable gear
• Instrument rated, Commercial, Multi, and some turbine time

Numbers to Know

400

The total time spent in an SR22 or 22T that is "preferred" by Cirrus and insurers before transitioning into an SF50. More time in complex planes will only help lower costs. 

2%

While every situation will differ, A general ost aircraft owners will tell you you that you can take 2% of the hull value of your aircraft to get a good ballpark number on insurance costs. 

Lowering Your Rate

Maximize Instrument Time

This is a big one, underwriters tend to heavily weigh instrument time in actual IMC conditions. Single pilot operations in IFR conditions are viewed by many as the most task-saturated type of flying. It's no secret then, that underwriters tend to favor pilots with a significant amount of hours logged under IMC conditions.

Total & Cirrus SR22 Time

For pilots transitioning into a turbine aircraft for the first time, total flight time is the most critical factor. While the first year will inevitably present challenges, aspiring SF50 pilots should also aim to maximize their hours in a Cirrus SR22. This experience, in addition to total flight time, is incredibly valuable.

• BWI Insurance
• Sunset Aviation
• WINGS Insurance 
• Cirrus Insurance

Enhancing Pilot Qualifications

Investing in additional training and certifications can not only improve safety but also reduce insurance costs. For example participating in the Cirrus pilot training program or actively going to CPPP events can help chip away at insurance costs overtime.

Shop for Broker (Not Insurance)

This is crucial, don’t make the mistake of shopping for insurance... you shop for a broker. After interviewing a few brokers, find who knows the market, who can negotiate for you, who has a book of business sizable enough to negotiate. Shopping insurance and then switching around can potentially hurt you in the long run. If the first broker didn’t shop the policy correctly or negotiate it correctly all other brokers are now stuck with those poor quotes. Choosing the right broker is vitally important. 

Simulator Training

That's why we're here. To deliver affordable and effective training solutions for pilots around the world. There's a reason why professional pilots do all of their initial training in a sim environment. It gives you the ability to practice things you'd never try in a real plane, as well as rinse and repeat procedures until they're second nature. 

This is why we've introduced the SFx (SF50 Vision Jet) simulator system, both the SFx Pro and SFx Console version offer high fidelity training solutions right to your doorstep. Having a sim to train on is the perfect way to show underwriters how you're going to mitigate risks and prepare for any situation. 

Opting for Higher Deductibles 

Agreeing to pay a higher amount before insurance kicks in can significantly lower premiums.

Conclusion

Understanding the factors that influence Vision Jet insurance costs and how premiums are calculated are essential for every owner. By focusing on improving pilot qualifications, adhering to safety protocols and carefully selecting the right provider, any aircraft owner can navigate the complexities of aviation insurance. Remember, the goal is not just to find the cheapest coverage, but to secure a policy that offers comprehensive protection tailored to your specific needs. 

At the end of the day, we're to inform pilots from all backgrounds. We aim to make the aviation world a safer place. If you're interested in any of our training solutions or would like to talk to an expert about the world of simulation, simply follow this link here.