Not much puts the joy and freedom of flight into a nosedive faster than the headache of aviation insurance. Finding the right insurance can be difficult and finding the wrong insurance can ground you—financially and otherwise.

While aircraft owners need extensive coverage for their planes, non-owned aircraft insurance is fairly straightforward and relatively inexpensive for pilots renting aircraft from clubs, flight schools and other rental outfits. Learning when and what type of insurance is required will help you find the exact policy that meets your needs and keep you flying.

Who Needs Airplane Renters Insurance?

Aircraft owners maintain aviation policies that cover liability, in-flight damage and damage to the plane. However, the coverage provided by owners, especially rental facilities and flight schools, generally will not cover damage caused by you as a renter pilot. The owner’s insurance company may pay the claim but then sue you to recoup the cost of damages.

You should buy non-owned aviation insurance to cover yourself, the aircraft you rent, your passengers and anyone or anything else you might accidentally or inadvertently hurt or damage. These policies are easy to purchase, quick to set up and relatively affordable so pilots can take off without delay.

Here are scenarios in which you may need non-owned aircraft insurance:

  • You charter an aircraft and the pilot is furnished by the aircraft owner
  • Student pilot taking flying lessons in someone else’s aircraft
  • Flight instructor giving lessons in a customer’s aircraft
  • You borrow or rent someone’s plane
  • Mechanic who is test-flying a customer’s aircraft
  • Delivering an aircraft for someone else
  • Fixed Base Operator (FBO) providing flight instruction in a customer’s aircraft
  • Independent professional contract pilot operating an owner’s aircraft
  • Flying the aircraft, even if accompanied by the aircraft owner/pilot

What Does Non-Owned Aircraft Insurance Cover?

Here’s how aircraft renter’s insurance works to protect you:

  • Bodily injury liability covers injury to both bystanders of an aircraft accident and, depending on the policy, may include passengers as well. It also helps to pay for legal defense fees for any covered claims if pilots are sued.
  • Property damage liability covers damage to others’ property, excluding damage to the rented aircraft.
  • Aircraft damage liability (ADL, or, more casually: “hull coverage”) covers damage to the aircraft itself.

There are three types of aircraft damage liability:

  • Ground and flight covers any peril, including disappearance, that’s not excluded on the policy, regardless of the plane’s location.
  • Not in flight covers damage that happens when the plane is on the ground, whether in motion or parked.
  • Not in motion is damage coverage for aircraft on the ground that is not moving.

Liability insurance is required, but aircraft damage coverage is optional. Additionally, coverage for injuries to passengers is not automatically included, but you can add it to your coverage.

Aircraft damage liability has a deductible that is a percentage of the value of the policy. Most aircraft hull policies are “agreed value” policies. That means if the plane is totaled, the company will pay you the value stated in the policy that you and the insurer agreed upon, regardless of the aircraft’s market value.

Rental aircraft insurance is secondary, which means it pays out after the owner’s insurance.

All of these coverages are crucial, protecting you from the serious financial consequences of aviation accidents and covering you when an aircraft owner’s policies are not sufficient.

How Much Non-Owned Aircraft Insurance Do I Need?

Consider buying more than the minimum amount of insurance available. It’s recommended that you have bodily injury liability limits of $200,000 per passenger for injuries, up to $1 million for all injuries in an accident you cause. Buying bodily injury coverage for passengers is also prudent. At the very least, buy as much liability insurance as you can afford.

To get the most aircraft damage protection, it’s wise to opt for the ground and flight coverage when buying your non-owner policy. Buy enough aircraft damage liability to pay to replace the most expensive plane that you rent or borrow. Many flight schools require a minimum of $30,000 in aircraft damage liability to rent a standard training airplane, but some mandate much higher amounts of coverage.

Is Aviation Renter Insurance Required for FBO Services?

Fixed-base operators (FBOs) are companies that are given permission to conduct aeronautical services at airports and act as private jet terminals. Typical services include flight instruction, aircraft rental, aircraft maintenance, fueling and parking. FBOs normally require planes using the facility to be insured and for renters and student pilots to carry aviation renter insurance.

If an aircraft is uninsured it may be denied service by the FBO. Likewise, if you’re renting a plane and are uninsured, you likely won’t be allowed to fly without an FBO or flight school instructor on board.

FBOs also require student pilots to have their own insurance before doing any solo training in the FBO’s aircraft. If you cause damage to a plane during your training as a student pilot, you are usually responsible for the aircraft owner’s deductible. Most flight schools and rental operations are set up this way, and your non-owner aircraft coverage will kick in to cover you should this happen. For example, AssuredPartners Aerospace’s renter aircraft insurance policies pay up to $5,000 of the aircraft owner’s or rental facility’s deductible. However, you must have aircraft physical damage coverage on your renter policy.

Even private flight instructors with personally owned planes are extremely likely to require students to have insurance with aircraft liability damage or hull coverage.

Flying Clubs and Non-Owned Aircraft Insurance

A flying club is a member-run organization that splits the high cost of aircraft ownership by giving a group of pilots affordable access to the skies. Many insurers provide custom aviation insurance designed for the club’s needs. If you’re joining a flying club, be sure to ask what types of insurance coverage the club already has and whether it’s recommended or required that you purchase any additional coverage. Many clubs require each individual member to have insurance, but some charge an insurance fee or wrap the cost of the club’s group insurance into the membership fees or cost of the airplane rentals.

Who Sells Aircraft Renters Insurance?

Here are details of what some notable carriers offer.

Avemco

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. Avemco’s website has both an online quote system and agents available by phone. Note that for student pilots just getting started, insurance costs are likely to be much higher because of their inexperience. Students and new pilots can expect to pay $300 to $500 once they’ve added the coverages necessary to rent training airplanes.

AOPA

The Aircraft Owners & Pilots Association (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 and Assured Partners also offers a 10% renewal discount each year for a claim-free flying record to reward their safe pilots.

SkyWatch

Short-term coverage periods like those offered by SkyWatch have been popular with sUAS remote operators and those looking for drone insurance, but the company also provides insurance to light aircraft renters and owners on a daily or weekly basis. SkyWatch doesn’t have the history Avemco or the AOPA have, but its coverage partner Global Aerospace Inc. has been around since 1924.

Annual premiums for student pilots with no experience can be as low as $71 for minimum liability coverage. Add $20,000 in hull coverage and the rate jumps to $286. Daily coverage for the same starts at $13.19 per day. With greater experience and additional ratings the cost of coverage can decrease.

Starr Gate

Starr Gate offers flexible policies that can be purchased either by the month or by the year and allows you to manage your level of coverage needed through an iPad app.

Starr Gate also gives you access to CloudAhoy, a cloud-based flight analytics and pilot debriefing tool. CloudAhoy scores each flight and safe pilots can save up to 35% on their renter’s insurance policy.

Tips for Buying Non-Owner Aviation Insurance

You should take advantage of the many online quote calculators offered by insurance companies, including Avemco, AOPA/Assured Partners and BWI Aviation Insurance. Compare quotes from multiple companies for the same amount of coverage and check for perks and discounts. For instance, some companies offer accident forgiveness.

Also, keep in mind that coverage will change significantly based on the type and size of aircraft, number of passengers as well as hours of flight experience.

Life Insurance for Pilots

What you pay for life insurance depends on the company’s underwriting process, your health, age, amount of flight experience and other factors. Pilots who don’t earn a living by flying are typically charged more for life insurance than commercial pilots, and inexperienced pilots generally pay the most. In general, recreational pilots with less than 300 total hours of experience and no instrument rating will likely have to pay an extra fee in addition to their premium.

Most life insurance providers will require you to fill out a supplemental aviation form that asks questions about your level of training, how frequently you fly, instruments you are licensed for and the types of aircraft you fly.

AOPA provides life insurance with no exclusions for general aviation activities. You and your spouse are eligible if under the age of 66. You can buy a 10- or 20-year term policy for up to $1 million in benefits.

Consider finding an insurance broker with aviation experience to help you through the process of finding the best life insurance for your needs.

Bottom Line: Aircraft Renters Insurance Is a Must-Have

For cash-conscious pilots and students especially, renting aircraft can be an affordable way to get to the skies. Non-owned aircraft insurance is affordable and protects your financial stability if you experience a nasty crosswind-landing-gone-wrong, a hard landing, a ground-loop or even a minor taxi collision.