4 Factors That Determine Aviation Insurance Premium

4 Factors That Determine Aviation Insurance Premium

There’s nothing more appealing to a sky-gazing dreamer than the idea of flying off into the blue in an owned airplane. While many people choose this adventure as a hobby or even a profession, they may not be aware of the intricacies of owning and maintaining an aircraft, including purchasing aviation liability insurance coverage. It’s important to realize that four factors impact the premium of aviation policies.


As with all insurance, a higher deductible will translate to a lower premium. However, it’s important to weigh the potential financial risk in the event of an accident against the overall premium saved.

Passenger Limit

The cost of insurance will also depend on the number of passengers who will fly in the aircraft. Since the pilot would be liable for their death or injuries, higher-capacity planes mean higher insurance premiums.

Flying Experience

Pilots are rated based on how experienced they are, making insurance costly for new pilots. The only way to combat high rates for an inexperienced pilot is to get out there and fly.

Aircraft Type

Premium is also based on the relative risk associated with the type of aircraft that will be flown. The safer and more stable the aircraft is, the lower the premiums often are.

Flight is a modern marvel and a wonderful pastime for those lucky enough to get the opportunity to do it. However, it also comes at a steep cost when certain factors impact insurance premiums.

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