> Annual Premium: $2,735
> Does this seem a bit much?
Yes, if you believe it's a "racket." Consider obtaining only "hull not in
motion"
coverage. It's instructional to peruse the financial statements ("SEC
filings")
of these companies to see how P&C insurance really works. Most of your
premium goes to expenses to sell you a policy, and contrary to what they like
to say, the stagnancy in the stock market wherein loss reserves may be invested
is hogwash as reason for rising premiums.
What can happen in an accident where the damage is something you can
repair is that the insurance co may still total it, taking the airframe from you
to
be parted out. Self-insuring for in-motion damage simply means going only
partially bare on an investment involving discretionary dollars in the first
place, and risk is minimized with safe flying and airworthiness practices. A
friend of mine has 4 banner tow planes--perfectly safe flying only a goal, and
if he could even get in-motion hull, he still wouldn't. Even with 2 accidents
in
10 years, he figures he's about even, by beating them at their own game.
One parted out nicely ($$) and the other he fixed himself, but would have
been totaled and thus confiscated by the insurer. His favorite one, too.
Reg,
Fred F.
N3EU
|