Renewing an aviation insurance policy is not a passive event but a critical annual task that requires a proactive and organized approach. Unlike many consumer policies that automatically renew, aviation insurance is underwritten each year, giving the insurer a fresh opportunity to assess the risk and the pilot an opportunity to secure the best possible terms. Approaching the renewal process strategically can lead to better coverage and potentially lower premiums.
The renewal process should begin well in advance of the policy’s expiration date, typically 60 to 90 days out. This gives you ample time to gather all the necessary documentation and, if desired, shop for alternative quotes. Your insurer or broker will send you a renewal application. This form is a critical document, and it is imperative that you fill it out completely and accurately. Any omissions or inaccuracies can void your coverage.
On the renewal application, you will be asked to provide updated information about both the pilot and the aircraft. For the pilot, the most important information is your updated flight time. You must provide your total flight hours as well as the number of hours you’ve flown in the last 12 months, particularly in the make and model of the aircraft you are insuring. Insurers often reward pilots for an increase in recent, relevant flight time. You should also report any new pilot ratings, certifications, or recurrent training you have completed. For the aircraft, you must detail any modifications or upgrades you have made, such as a new engine, avionics, or structural changes.
This is also the time to review your existing policy’s coverage. A simple renewal might mean accepting the same coverage limits, deductibles, and endorsements you had the previous year. However, your needs may have changed. Ask yourself:
Are my liability limits still adequate? The value of your assets may have increased, and you may need higher limits to protect yourself from a lawsuit.
Is my hull value correct? The market value of aircraft can fluctuate. Make sure the agreed value or actual cash value of your aircraft is accurate.
Do I still need all my endorsements? If your usage has changed, you may be able to drop an endorsement you no longer need, which could lower your premium.
Do I need new endorsements? If you plan on flying in a new geographic area or for a different purpose, you may need to add a new endorsement.
In addition to reviewing your current policy, you should consider shopping for quotes from other insurers. Even if you are happy with your current provider, the aviation insurance market can be competitive, and another company may offer a better rate or more favorable terms. A good aviation insurance broker can do this for you, presenting you with multiple options and a clear comparison of the coverage and price.
Finally, once you have reviewed all the options, you can bind the new policy by signing the renewal documents and submitting the payment. By taking a methodical and proactive approach to your annual renewal, you ensure that your aviation insurance policy remains a relevant and effective tool for protecting your financial interests in the air.