More on High Performance Insurance

Don't forget that a large part of the insurance is for the hull, and that
the rate for liability is relatively constant. You can decrease your premium
by minimizing the amount of hull insurance to the level that you can afford
to lose in case of a mishap.

On Sat, 13 Dec 2003 01:54:15 GMT, "Viperdoc"
wrote:

Don't forget that a large part of the insurance is for the hull, and that
the rate for liability is relatively constant. You can decrease your premium
by minimizing the amount of hull insurance to the level that you can afford
to lose in case of a mishap.


I was under the impression that if your insured value is too low, it
is in the interest of the insurance company to declare a fixable plane
a total lose, give you the insured value, fix it up and sell it for
market value. The excess liability went from $2500 to $5000, so
everything doubled, not just the hull, and some pilots were unable to
get smooth. Recently a new company entered the Cirrus market which
seems to be lowering the rates.

Viperdoc wrote:

Don't forget that a large part of the insurance is for the hull, and that
the rate for liability is relatively constant. You can decrease your premium
by minimizing the amount of hull insurance to the level that you can afford
to lose in case of a mishap.

So, you insure the plane for half what it's worth. Then some clown runs into
the aileron with the lawnmower and does $1,000 damage. The insurance company
totals the aircraft, puts $1,000 into repairs, and resells it for a nice profit.

Enjoy your settlement.

George Patterson
Great discoveries are not announced with "Eureka!". What's usually said is
"Hummmmm... That's interesting...."

On Fri, 12 Dec 2003 21:45:26 -0500, "G.R. Patterson III"
wrote:


So, you insure the plane for half what it's worth. Then some clown runs into
the aileron with the lawnmower and does $1,000 damage. The insurance company
totals the aircraft, puts $1,000 into repairs, and resells it for a nice profit.

Enjoy your settlement.

Although under insuring the plane gives you a built in deductible. If
you only insure the plane for 1/2 of its value you wouldn't file a
claim until the cost of repair exceeded 1/2 the value of the plane so
your example would not happen.

On Sat, 13 Dec 2003 02:49:39 GMT, ArtP
wrote:

On Fri, 12 Dec 2003 21:45:26 -0500, "G.R. Patterson III"
wrote:


So, you insure the plane for half what it's worth. Then some clown runs into
the aileron with the lawnmower and does $1,000 damage. The insurance company
totals the aircraft, puts $1,000 into repairs, and resells it for a nice profit.

Enjoy your settlement.

Although under insuring the plane gives you a built in deductible. If
you only insure the plane for 1/2 of its value you wouldn't file a
claim until the cost of repair exceeded 1/2 the value of the plane so
your example would not happen.

I think George was being a bit facetious with the lawn mower and
$1000, but it wouldn't take a lot of structural damage to reach half
the value of the hull. That means if your plane is worth 300,000,
you insure it for $150,000 and the damage is close to that, they can
total the plane, give you a check for $150,000, repair the plane and
sell it for $300,000. Pretty good profit for them and loss for you.

As to your example of not filing a claim until the cost exceeded half
the value, it would only guarantee the insurance company would total
it out and you'd be out half the value of the plane.

Never be under insured. It's as bad, or even worst than over insured
which is just wasted money. Under insured can be downright expensive.

Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair?)
www.rogerhalstead.com
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