AOPA Pilot Magazine - March 2014 - 106

NEWS & NOTES

INSURANCE SERVICES

INSURANCE FILE
BY BILL SNEAD

Buying an aircraft-
and insurance
WHETHER YOU ARE BUYING your first aircraft or your tenth, you
are probably both excited and a bit nervous. As always it's best
to follow a checklist, and AOPA has an excellent free one online
(www.aopa.org/Pilot-Resources).
One of your first questions when buying an aircraft should be,
"Do I qualify for insurance in that airplane?" Most of the time, but
not always, the answer will be yes. Although a new private pilot
might be able to obtain insurance on a Beech 35 or Cessna 210,
that insurance will come at a steep price-and subject to coverage
limitations and quite a few training requirements. All insurance
companies prefer, and many require, that the pilot be instrument
rated before they will even "indicate" a rate for a new or lowtime pilot on complex aircraft. Your insurance broker is a great
resource for such matters, and can help guide you towards a costeffective decision.
If you are buying the aircraft with a partner, or perhaps forming a club, the insurance discussion and quotations will be more
complex. Your rates will be determined by the lesser-experienced
partners, and there likely will be additional charges for partnerships and clubs with more than three members. However, the
insurance markets have proven to be very accommodating over
the past few years, and it is likely you will find good coverage that
meets the needs of the group.

President,
AOPA Insurance Services

Your liability risk as the aircraft buyer is quite low during the
demo ride; however, there is significant confusion in the aircraft
sales brokerage community regarding insurance, with frequent
policy lapses and violations. The broker should always carry nonowner insurance and worker's compensation to protect himself
and his pilots, and he may insure the aircraft-but more frequently
the current aircraft owner maintains his own coverage.
When you decide to buy that airplane, call your insurance broker right away. The broker will discuss your insurance options,
including training requirements; have coverage bound; and send
you a confirmation. Many brokers can now provide a digital copy
of the binder, the application, and the actual policy for ease of
storage and retrieval. Keep a copy of the sales agreement and the
bill of sale for your records; ask your broker if your CFI and/or
mechanic meet the pilot requirements of the policy; and be absolutely certain to comply with all the requirements of the insurance
binder and policy.
Bill Snead is an aviation insurance professional with more than 35
years of experience.
AOPA INSURANCE SERVICES

ON THE

WEB

Call 800-622-2672. Get immediate
Insurance with a credit card online
(http://insurance.aopa.org/aviation).

CONTACT AOPA
AOPA FOUNDATION
ADDRESS CHANGE?

Send your new address and AOPA
membership number to AOPA:
421 Aviation Way
Frederick, Maryland 21701-4798
Fax: 301-695-2375
www.aopa.org
TOLL-FREE PILOT
INFORMATION CENTER

800-USA-AOPA (872-2672)
www.aopa.org

AOPA AIRCRAFT INSURANCE

AIR SAFETY INSTITUTE

AOPA AIRCRAFT PARTNERSHIP PROGRAM

AOPA CREDIT CARD PROGRAM

AOPA PILOT PROTECTION SERVICES

AOPA AIRCRAFT FINANCING

AOPA RENTAL CAR PROGRAM

800-955-9115
www.aopafoundation.org
800-638-3101
www.airsafetyinstitute.org
800-523-7666
www.aopa.org/creditcard
800-627-5263
www.aopafinance.com

800-622-AOPA (622-2672)
www.aopainsurance.org
800-622-AOPA (622-2672)
www.aopa.org/aircraftpartnership
800-USA-AOPA (872-2672)
www.aopa.org/pps
866-315-9155
www.aopa.org/cars

NEW EXTENDED PILOT INFORMATION CENTER HOURS

Now you can enjoy a whole new level of access to the team of aviation experts in our Pilot Information Center with our convenient
extended weekday hours. The Pilot Information Center is now available until 8 p.m. Eastern time every weekday. Call 800-USA-AOPA
(872-2672) Monday through Friday, 8:30 a.m. until 8 p.m. Eastern time, with your questions and our staff will be happy to assist you.
WEB Visit the website (www.aopa.org/aopaplus) to learn about upgrading to the AOPA Premier membership.

106 | AOPA PILOT March 2014

http://www.aopa.org/Pilot-Resources http://insurance.aopa.org/aviation http://www.aopafoundation.org http://www.aopainsurance.org http://www.airsafetyinstitute.org http://www.aopa.org/aircraftpartnership http://www.aopa.org http://www.aopa.org/creditcard http://www.aopa.org/pps http://www.aopa.org http://www.aopafinance.com http://www.aopa.org/cars http://www.aopa.org/aopaplus

AOPA Pilot Magazine - March 2014

Table of Contents for the Digital Edition of AOPA Pilot Magazine - March 2014