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#18
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Paul Tomblin wrote:
The other flying club on our field has just been told by Avemco that they won't insure Piper Lances and other large complex planes for flying clubs any more. Since we've got a Lance as well, we're trying to get a confirmation from Avemco. If true, this is a big blow. I wonder if they'd insure a Cherokee 6? A true shame. Avemco was once the most respected name in aviation insurance. I heard wonderful stories about how claims were processed practically before they were filed, and in "borderline" scenarios, they still took care of their customers. They also insured higher risks at what I'll call a "reasonable" rate. That kind of service was once worth the premimum they charged. However, I lost faith in Avemco when they dropped out of the experimental market several years ago (and yes, this was WELL before 9/11 so don't believe the hype). Then I heard they started dropping lots of safely operated light twins. And then most tailwheels. Now it's Lance's or whatever else their actuaries feel will cost them a few pennies more to insure. If this keeps up, they'll only be insuring Cessna 150's with 5000 hour ATP-rated pilots. While insurance companies make a business out of covering acceptable risk, and spreading out the costs such that slightly higher risks get affordable coverage, Avemco seems to be in the business of covering only extremely low risk parties and charging double the market rate for that coverage. That's opposed to the way I was told it's supposed to work from an underwriting perspective. Lowest risk should (more or less) equal lowest cost. Do yourself and the industry a favor and tell Avemco to screw the pooch. There are plenty of good insurance brokers and underwriters to deal with. Our local broker just renewed us at about 7% lower than last year with the same underwriter. We now pay $950 / yr for the 172 insured to $60K hull (slightly below market value -- our choice, not theirs) and $1M smooth. Of course, we SHOULD pay less, what with two 1000 hr+ commercial pilots and a CFI on the policy. When we left Avemco many years ago, they were charging $1200/yr - same pilots, far less coverage. I hope market forces teach Avemco a lesson and force them out of business - assuming they don't decline to renew coverage on their remaining customers and do it themselves. -Doug -- -------------------- Doug Vetter, CFIMEIA http://www.dvcfi.com -------------------- |
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