DYLIN
21st November 2003, 03:38
Hi all,
I've got an important question for those of you who know about aircraft rental insurance. Do you think it's worth it? I'm going to be renting a 1975 C172N next week and I currently have no aircraft insurance. I'm looking into it and plan to have some type of coverage before I fly. I might subscribe to AOPA's insurance, or maybe another. I'm just looking for advice if anyone has any. This seems like an area that not many people know a lot about, although they probably should. Thanks,
Nick
The Jetlag Kid
22nd November 2003, 22:25
I guess that I'll post my $0.02 here for you to consider...
First of all, your question is an excellent one and as a long-time CFI, one that isn't asked often enough. Yes, I believe that rental insurance is something that you ought to consider. Of course, there are some pros and cons; but if you are flying a rented, borrowed, or flying club aircraft you absolutely need to understand your insurance and liability status.
It's not enough to simply ask the FBO if there is insurance on the airplane - there most likely is. What you need to verify that YOU, PERSONALLY, are covered while you are flying their aircraft. In the event of an accident, if you are not personally covered, you may find yourself in a position where the insurance company covers the aircraft and aircraft owner (FBO) but not the pilot (you). In these cases, the insurance company will pay the owner for his covered losses according to the limits and terms of his policy and then goes after the pilot (you) to recover the money that they had to pay out to the owner. This is called subrogation and it doesn't matter if you pay the insured's deductable or not - they're the ones covered, not you.
Do insurance companies really go after rental pilots? I have a good friend who is an aviation attorney, part-time FlightSafety Instructor, and an FAA Designated Examiner. I asked him about the frequency of subrogation claims and his opinion of non-owner insurance. His comments were along the line of he sees it all of the time and, personally, he would never fly a rental airplane without some type of personal coverage. He compared flying with out the insurance to driving a $100,000 automobile without insurance. Just because you get away with it a few times means nothing. You've got to ask yourself if you could afford to pay for any damage or the loss of the aircraft while it was in your possesion. This in addition to the legal expenses that you would incur in defending yourself. Chances are you'll never need it, but if you do it will be the best money you ever spent.
Needless to say, this could be financially devastating. Personally, I would never dare provide instruction in someone elses aircraft unless my name is added to thier policy as an additional insured. As far as you're concerned, there are very reasonably priced “non-owner” aircraft insurance policies.
Can you get by without it? Who knows? Does it matter? Could you afford to buy the airplane that you're renting? It's really no different that driving without insurance. Just my personal opinion.
The Jetlag Kid