How Much for Insurance?

Having narrowed my decision to a Cirrus SR22 non-turbo, next up was to price insurance.  I called up Cirrus Insurance, and when I heard the estimated rates for my insurance (I’m a new pilot and had 0-time in the Cirrus), I thought the person giving me the rates was insane. So what was the range?  $12,000-$18,000 per year.  She couldn’t tell me where on that range I’d fall until I provided full details and asked for a formal quote.

Checking with other insurance agents, rates were very similar and some insurance companies will not offer insurance for pilots with fewer than 500 hours.  So I had to feel lucky that I could even get insurance in the first place.  The rates for aviation insurance are insane.  If you do the math, it must be a very lucrative business:

  • The range based on experience and certifications is between $6,000 (for an IFR certified pilot with > 1,000 hrs and 100+ hrs time in Cirrus) to $18,000. 
  • There’s generally a $5,000 deductible making the insurance really only for severe incidents
  • If an insurance company could insure 1,000 Cirrus planes at an average of $10K each, that’s $10 million per year in revenue.  It’s unimaginable that 1000 cirrus planes would have more than $1-2 million in claims in any given year or about 10-20% of the premiums.  Even on the high range of that claim estimate, and assuming a 10% commission for the agent, I expect that the insurance companies are netting at least 70%.  Not a bad margin at all!  How does one get into this business?

I ended up with insurance through Cirrus’ agent from London Aviation.  With 70 hrs and a private pilot certificate, my rate came in at over $13K per year (about $1100/month).

158 responses to “How Much for Insurance?

  1. Wow, I knew there was a reason why I never became a pilot! Couldn’t afford that. But glad all went well!

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