Private Jet Rental: Daily Insurance Options For Flyers

If you're considering renting a private plane, you may be wondering if you need insurance for the day. The answer is yes, and it's important to understand the different options available to you. Most aircraft insurance policies are designed to protect the owner of the plane, and flight schools usually have insurance to protect themselves. This means that, as a renter, you may not be covered if something goes wrong. To ensure you're protected, you can purchase non-owned aircraft insurance, which is designed to cover you when flying a plane that you don't own. This type of insurance can provide liability coverage for bodily injury and property damage, as well as optional coverage for any damage to the rented aircraft itself. It's worth noting that some companies offer daily, weekly, or even monthly insurance plans, so you don't have to commit to a year-long policy if you're only renting for a short period.

What does non-owned aircraft insurance cover?

Non-owned aircraft insurance, also known as aircraft renters insurance, is a type of insurance that covers you when operating a non-owned aircraft. This insurance is designed to be secondary coverage, meaning it acts as a supplement to the aircraft owner's insurance policy. It covers the costs of any damage or injury caused by the aircraft you are operating, including bodily injury liability, property damage liability, and aircraft damage liability.

Bodily injury liability covers injury to bystanders and, depending on the policy, may also include passengers. It also helps cover legal defence fees if pilots are sued. Property damage liability covers damage to others' property, excluding the rented aircraft. Aircraft damage liability (ADL) covers damage to the aircraft itself, and there are three types: ground and flight, not in flight, and not in motion.

Liability insurance is mandatory, but aircraft damage coverage is optional. Additionally, coverage for passenger injuries is not automatically included but can be added. The deductible for aircraft damage liability is a percentage of the policy's value. Most aircraft hull policies are "agreed value," meaning that if the plane is totalled, the insurance company will pay the agreed-upon value stated in the policy, regardless of the aircraft's market value.

Non-owned aircraft insurance policies typically last for one year, with premiums paid annually or monthly. These policies are relatively affordable, with basic coverage starting at $72 per year and comprehensive coverage costing around $470 per year. Physical damage and hull coverage are usually additional costs. For example, $5,000 in physical damage coverage typically costs around $86 per year, while a policy with $200,000 in hull coverage costs approximately $1,663 per year.

When purchasing non-owned aircraft insurance, it is important to consider factors such as the number of hours you operate a non-owned aircraft, the type and value of the aircraft, and the insurance coverage of the aircraft owner. Additionally, it is recommended to purchase more than the minimum amount of insurance available to ensure adequate protection.

How much does it cost?

The cost of insurance for renting a private plane will depend on the type and amount of coverage you require. Basic liability insurance, which covers third-party bodily injury and property damage, can be purchased for as little as $72 per year, with coverage of up to $250,000 per occurrence and $25,000 per passenger. This type of insurance is typically required for renting or borrowing an aircraft and will protect you in case you cause harm to someone or their property.

However, if you want more comprehensive coverage, including aircraft damage liability (also known as "hull coverage"), you will need to pay more. Hull coverage can range from $5,000 to $200,000, with an additional cost of $86 for $5,000 in physical damage coverage to around $1,663 for $200,000 in hull coverage. This type of insurance is optional but provides coverage for damage to the aircraft you are operating.

It's important to note that these prices may vary depending on factors such as the type of aircraft, the number of passengers, and your flight experience. For example, student pilots or those with less experience can expect to pay higher premiums, ranging from $300 to $500, as they are considered higher-risk.

Additionally, some insurance companies offer short-term coverage options, such as daily, weekly, or monthly plans, which can be more cost-effective if you only need insurance for a limited time. These plans can be ideal for those who are renting or borrowing an aircraft for a short period.

When deciding on the amount of coverage you need, it is generally recommended to carry at least $1,000,000 in liability coverage and enough aircraft damage liability to cover the cost of replacing the most expensive plane you rent or borrow. This will ensure that you are adequately protected in the event of an accident or incident.

What are the benefits of having insurance?

While it may be an additional cost, insurance provides peace of mind and financial protection in the event of an accident or incident. When it comes to renting a private plane, insurance is a crucial consideration. Here are some key benefits of having insurance for renting a private airplane:

Protection from Liability

One of the main benefits of insurance is the protection it offers against liability. When renting a private plane, you become responsible for any incidents or accidents that may occur. Insurance provides coverage for bodily injury and property damage claims. This means that if someone is injured or their property is damaged as a result of your actions while renting the plane, your insurance policy will help cover the costs associated with these claims. This can include medical expenses and legal fees, protecting your financial stability.

Coverage for Damage to the Aircraft

Insurance can also provide coverage for damage to the rented aircraft. Accidents can happen, and repairs or replacements can be costly. With insurance, you can have peace of mind knowing that you are protected financially if you accidentally damage the plane during your rental period. This type of coverage is known as Aircraft Damage Liability (ADL) or hull coverage, and it helps pay for the necessary repairs or replacements to the aircraft.

Protection for Passengers

Insurance policies often offer coverage for your passengers as well. This means that if your passengers are injured during the flight or while boarding or disembarking, their medical expenses and legal fees can be covered. This type of coverage is crucial, especially if you plan on carrying passengers while renting the private plane.

Flexibility and Customization

Another benefit of insurance is the flexibility and customization it offers. You can choose the level of coverage that suits your needs and budget. For example, you can opt for daily, weekly, or annual coverage plans, depending on your rental duration. Additionally, you can select the amount of hull coverage based on the value of the aircraft and the level of protection you desire. This flexibility ensures that you only pay for the coverage you need, making it a cost-effective solution.

Peace of Mind

Having insurance provides peace of mind while renting a private airplane. Knowing that you are protected financially in the event of an accident or incident can reduce stress and worry. You can focus on enjoying your flight experience without constantly worrying about potential risks and liabilities. This peace of mind is invaluable, especially when dealing with the complexities of aircraft rental and the associated risks.

In summary, having insurance when renting a private airplane offers crucial financial protection and peace of mind. It safeguards you from liability claims, covers damage to the aircraft, protects your passengers, and provides flexibility to suit your specific needs. By investing in insurance, you can ensure that you are prepared for any unforeseen events and protect yourself from potential financial losses.

What are the risks of not having insurance?

Renting a private plane without insurance can be a risky endeavour. While it may seem like an unnecessary expense, the financial consequences of an aviation accident can be dire.

Firstly, without insurance, you are exposing yourself to the full cost of damage to the rented aircraft. Even if you have coverage from the owner's insurance, you may still be held responsible for the cost of repairs, as the owner's insurer can recover their payout through a process called "subrogation". This can leave you facing a hefty bill, as you will be liable not only for the owner's deductible but also for any loss of use during the repair process.

Secondly, and potentially much more serious, are the risks of bodily injury to yourself, your passengers, and people outside the aircraft. If an accident occurs and you are uninsured, you will be personally responsible for any medical or funeral expenses incurred. This can quickly become extremely costly, especially if multiple people are injured.

Thirdly, there is the risk of damage to the property of others, including other aircraft, hangars, cars, houses, and more. If you accidentally damage someone else's property while operating an uninsured rented plane, you will be held fully responsible for the repair or replacement costs.

Finally, there is the cost of defending yourself in the event of litigation arising from an accident. Aviation accidents can result in complex and expensive legal battles, and without insurance, you will need to fund your own aviation-savvy attorney.

In summary, not having insurance when renting a private plane can leave you vulnerable to significant financial risks. It is always advisable to obtain adequate coverage to protect yourself, your passengers, and your finances in the event of an accident.

How do I get an insurance quote?

There are a few options for getting an insurance quote for renting a private plane. Forbes has a detailed article on aviation insurance for aircraft renters, which includes information on what non-owned aircraft insurance covers, who needs it, and how much you may need. Forbes also lists several notable carriers that offer aircraft renters insurance, including Avemco, Aircraft Owners & Pilots Association (AOPA), SkyWatch, Starr Gate, and BWI Aviation Insurance. You can get a quote from these providers by visiting their websites or calling them directly.

• Avemco offers affordable aircraft renters insurance policies in all U.S. states for pilots in both single and multi-engine aircraft. Annual premiums start at $95 a year, while rates for aircraft damage liability start as low as $60 per year.
• AOPA partners with Assured Partners Aerospace to offer aviation insurance to pilots, with special deals for AOPA members. Annual premiums start at $81, with comprehensive and airplane damage liability rates starting at $175 a year. AOPA members get a 5% discount on their policy.
• SkyWatch provides flexible aircraft renter's insurance with affordable plans that can be purchased daily, weekly, monthly, or annually. They offer an online process and mid-term changes to your policy.
• Starr Gate offers flexible policies that can be purchased monthly or yearly, with access to CloudAhoy, a cloud-based flight analytics and pilot debriefing tool.
• BWI Aviation Insurance offers comprehensive 1-year, annual aircraft renters insurance policies, backed by A+ rated aviation insurance companies. They offer liability coverage and optional hull or physical damage coverage for the aircraft.

It is recommended that you compare quotes from multiple providers to find the best option for your needs.

Frequently asked questions