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Price vs. Value

LRingeisen

Well Known Member
We are aware that many brokerages like to tout price as their selling point to choose them. The truth of the matter is, if you provide the same information to each broker, they will all get the same prices. This is because the insurance companies base their rates on the pilot(s) and aircraft. The insurance company does give a percent of the premium quoted to the broker for their services but it is not added on to the premium quoted. So if a broker advertises having the ?Lowest rates in the country? or an ?Exclusive program for Vans,? it just isn?t true.

So if you aren?t choosing a broker based off of price, how do you decide who to trust to be your advocate? Your broker should:

? provide the highest level of customer service
? have extensive knowledge about your aircraft
? know which companies are best for you AND WHY
? have a good relationship with the underwriters who handle your type of aircraft
? have the ability and intentions to advocate for you
? market your risk accurately (if a company purposefully manipulates your hours/information for a lower price, it puts you at risk.)

We?ve supported Vans Aircraft since 1998 and because of our dedication to making positive changes to how insurance is underwritten for them; we have become a leader in the industry. Our light aircraft office consists of ten customer service managers that can help you with anything from non‐owned aircraft to owner flown turbine. Three of us are dedicated specifically to Vans Aircraft and have become specialist for insurance on them. We take the time to visit the factory annually and attend events such as Oshkosh, Vans Homecoming, and Sun N Fun. We stay up to date with changes with the aircraft and the market.

Don?t be fooled with the gimmicks of brokers that don?t have anything to offer but price. If you choose the right broker, you?ll not only get a great price but a great value.
 
There is one thing you missed from the list of things a brokerage needs to do for the client. Namely get the best price. Many but not all will think best = lowest.
 
And I don't know of any other insurance company that throws a party every year at Oshkosh for RV owners and sponsors the monday nite Beer shindig :D
I've been with them for over 14 years and wouldn't consider going anywhere else.
 
Not to rain on the parade, but the EAA insurance program has a number of side benefits to EAA members. Give them both a full reading, then make your best choice.

Ed
 
Not to rain on the parade, but the EAA insurance program has a number of side benefits to EAA members. Give them both a full reading, then make your best choice.

I did exactly that a year and a half ago, which resulted in me switching to Gallagher. Better price and slightly better coverage.

Erich
 
Not always so

I must loudly disagree with this thread statements that are not factual. Just this week I received a quote from a broker I had trusted, seemed very high priced, so my "other pilot" on the quote decided to do some shopping. I told him he was wasting his time, but he came back with a far better quote FROM THE SAME INSURANCE COMPANY!! The high quote was for $3690, the same company quoted $1652 with an additional pilot added, a student with less than 10 hours total time! The high quote had deductibles of $500 not in motion, $5000 in motion. The "cheap" quote had deductibles of $0 not in motion, $1000 in motion.
The point is that we saved $2038 and got far better coverage just by going to a different broker but got the same insurance company. The often repeated statement that it don't pay to shop around is just simply not true. I must assume that the high priced broker simply adds a couple thousand to the policy for their profit, the cheaper broker works on a far slimmer margin of profit..
 
Not a bad idea to search the threads and talk with other RV owners. If your quote isn?t in the ballpark of what others with similar coverage, type, and credential, something is amiss.
 
Not to rain on the parade, but the EAA insurance program has a number of side benefits to EAA members. Give them both a full reading, then make your best choice.

Ed

Hi Ed, You are correct about EAA members getting additional benefits, but it is not an exclusive program. We offer the same policy. The additional benefits are the same with all brokers.
 
I must loudly disagree with this thread statements that are not factual. Just this week I received a quote from a broker I had trusted, seemed very high priced, so my "other pilot" on the quote decided to do some shopping. I told him he was wasting his time, but he came back with a far better quote FROM THE SAME INSURANCE COMPANY!! The high quote was for $3690, the same company quoted $1652 with an additional pilot added, a student with less than 10 hours total time! The high quote had deductibles of $500 not in motion, $5000 in motion. The "cheap" quote had deductibles of $0 not in motion, $1000 in motion.
The point is that we saved $2038 and got far better coverage just by going to a different broker but got the same insurance company. The often repeated statement that it don't pay to shop around is just simply not true. I must assume that the high priced broker simply adds a couple thousand to the policy for their profit, the cheaper broker works on a far slimmer margin of profit..

Hi Don, The insurance companies are not able to give out different premiums to different brokers as long as ALL of the information given to them is the same. Please compare the two quotes and make sure all of the information is the same. If a claim is missing or the hours are incorrect, etc., this can void your insurance policy. We definitely want everyone, our clients or not, to have coverage when they need it most.

The brokers have no way of changing the premium. The insurance companies set the rate. The insurance company does give a percent of the premium quoted to the broker for their services but it is not added on to the premium quoted.
 
Your statements I believe you think are correct, but I just experienced a far different outcome. I have checked and double checked the data given, and what I stated is the way it is. I am not allowed to see information the broker gave the insurance company, would they alter the facts to get a larger amount in their percent of the premium?
I can understand the motive of brokers not wanting customers to shop around for a better deal, but I sure found out it pays to do so. I don't think this is the platform for me to submit copies of the quotes or name businesses involved.

Hi Don, The insurance companies are not able to give out different premiums to different brokers as long as ALL of the information given to them is the same. Please compare the two quotes and make sure all of the information is the same. If a claim is missing or the hours are incorrect, etc., this can void your insurance policy. We definitely want everyone, our clients or not, to have coverage when they need it most.

The brokers have no way of changing the premium. The insurance companies set the rate. The insurance company does give a percent of the premium quoted to the broker for their services but it is not added on to the premium quoted.
 
Your statements I believe you think are correct, but I just experienced a far different outcome. I have checked and double checked the data given, and what I stated is the way it is. I am not allowed to see information the broker gave the insurance company, would they alter the facts to get a larger amount in their percent of the premium?
I can understand the motive of brokers not wanting customers to shop around for a better deal, but I sure found out it pays to do so. I don't think this is the platform for me to submit copies of the quotes or name businesses involved.

We would rather not get into a public argument about this but feel the need to at least defend our reputation/ethics. We take it very seriously when claims such as these are made and so we looked into the matter. Per the underwriter at the insurance company, the reason for the extreme premium difference is that that our quote had accurate information about the risk and the other quote specifically excluded a pilot that was on ours. Don, we would be happy to go over this with you if you want to call us at 877-475-5860. We don't feel it is appropriate to discuss your personal information on a public forum without your consent.

So our statement remains true; If you give us the same information as another broker, you will get the same quote.

Through a computer it?s easy to view us as some faceless corporation but the truth of the matter is we are 3 women who love what we do and we always want what?s best for our customers.
 
well said....

And I don't know of any other insurance company that throws a party every year at Oshkosh for RV owners and sponsors the monday nite Beer shindig :D
I've been with them for over 14 years and wouldn't consider going anywhere else.
 
Through a computer it?s easy to view us as some faceless corporation but the truth of the matter is we are 3 women who love what we do and we always want what?s best for our customers.

I can vouch for that statement.

I primarily deal with Shanna.
She has always been great with providing clear understandable info regarding all of the different choices they can offer me. Do you know that you can now get coverage that is equivalent to AAA for your airplane? I didn't, but she made sure I knew it is available.

Gallagher Aviation and the people that work there is top notch. Sponsoring the events at OSH every year proves that serving their customers the best they can is a high priority in their business.
 
You sure got that right Scott, I just finished a lengthy conversation with Shanna at Gallagher Aviation, and I will vouch for a person that knows her field and will treat you right. My biggest failure was not contacting her earlier about this.

I can vouch for that statement.

I primarily deal with Shanna.
She has always been great with providing clear understandable info regarding all of the different choices they can offer me. Do you know that you can now get coverage that is equivalent to AAA for your airplane? I didn't, but she made sure I knew it is available.

Gallagher Aviation and the people that work there is top notch. Sponsoring the events at OSH every year proves that serving their customers the best they can is a high priority in their business.
 
I took Walt's advice just this week and started my first RV policy with Galligher. I was also very happy with the service. I had many questions about future ideas of LODA / instructing and all my questions got answered.
 
I checked a bunch of places guys in my field and surrounding fields said would be cheaper. None were at least not enough to matter. I started with Gallagher and have been pretty happy with them though I?ve never had a claim with them yet..

That?s when you really know.
 
I am of the belief that the various ratings brokers and insurance companies receive pretty well reflects how well they pay claims, Gallagher seems to have top ratings there and I believe they would not give you a quote from a company that won't pay claims..

I checked a bunch of places guys in my field and surrounding fields said would be cheaper. None were at least not enough to matter. I started with Gallagher and have been pretty happy with them though I?ve never had a claim with them yet..

That?s when you really know.
 
So Don, you made some pretty strong claims about the insurance industry not being ethical. It seems you have a different opinion now, could you enlighten us as to why your position has changed? A post from Gallagher appears to indicate the reasons if we read between the lines but in fairness to insurance brokers it would be nice if you could set the record straight.
 
I certainly wil do that when we resolve some last issues, the person that apparently made some mistakes was not available until Monday to get
her side of the story.

So Don, you made some pretty strong claims about the insurance industry not being ethical. It seems you have a different opinion now, could you enlighten us as to why your position has changed? A post from Gallagher appears to indicate the reasons if we read between the lines but in fairness to insurance brokers it would be nice if you could set the record straight.
 
I also want to give a big shout out to Leah and Gallagher. I have now had my
RV6A for 2+ years and they by far provided the most information and the best
service. I did shop around and got virtually the same quote from all the
brokers. Why I went with Gallagher was because of Leah's knowledge and
the care she took to make sure I had the right coverage. I will continue to
use Leah and Gallagher as my go to for as long as I continue to fly.

Thanks Leah and Gallagher!!
 
Understanding Rates

OK, this is confusing but first of all I wanted to make it clear that Gallagher and especially Shanna are not guilty of any wrongdoing, the confusion existed because of two different insurance companies using vastly different criteria. Company 1 loved old pilots (me) but would not even consider a student, too risky, or four pilots. Company nr 2 had a policy that a student pilot on there would make no difference, on the policy premium, but they hated old pilots, me at 80 years old added over $2000 to their premium over the company 1. Thru some miscommunication apparently on my part, I had understood that they would not reduce the premium if I were removed from the policy.
I think the moral of this story is that one MUST communicate clearly with the broker, and to choose a good one like Gallagher, and to realize that the companies have in fact vastly different criteria, almost senseless criteria, for quoting a price. Also, if you are old some companies do not like you at all, and some hate students! You cannot find one that likes students and old guys both!
 
Don, thank you for your followup. After buying insurance for an RV for nearly twenty years I strongly suspected your first posts calling into question the business ethics of the companies we use were not based on fact but due to miscommunication of some sort. Your followup stated this to be the case and I hope your earlier posts will not cast a negative light on honest brokers.

<opinion mode on>
Guess the lesson here (and one we see appearing on VAF from time to time) is to not slam a business unless we are positive all avenues have been used to settle a dispute or question. Maybe as a former business owner I am a bit too sensitive about this subject, but I have seen the damage that can be done to a small business when false information is stated. Social media just exacerbates this problem.
<opinion mode off>
 
Plus One for Gallagher

We are aware that many brokerages like to tout price as their selling point to choose them. The truth of the matter is, if you provide the same information to each broker, they will all get the same prices. This is because the insurance companies base their rates on the pilot(s) and aircraft. The insurance company does give a percent of the premium quoted to the broker for their services but it is not added on to the premium quoted. So if a broker advertises having the ?Lowest rates in the country? or an ?Exclusive program for Vans,? it just isn?t true.

So if you aren?t choosing a broker based off of price, how do you decide who to trust to be your advocate? Your broker should:

? provide the highest level of customer service
? have extensive knowledge about your aircraft
? know which companies are best for you AND WHY
? have a good relationship with the underwriters who handle your type of aircraft
? have the ability and intentions to advocate for you
? market your risk accurately (if a company purposefully manipulates your hours/information for a lower price, it puts you at risk.)

We?ve supported Vans Aircraft since 1998 and because of our dedication to making positive changes to how insurance is underwritten for them; we have become a leader in the industry. Our light aircraft office consists of ten customer service managers that can help you with anything from non‐owned aircraft to owner flown turbine. Three of us are dedicated specifically to Vans Aircraft and have become specialist for insurance on them. We take the time to visit the factory annually and attend events such as Oshkosh, Vans Homecoming, and Sun N Fun. We stay up to date with changes with the aircraft and the market.

Don?t be fooled with the gimmicks of brokers that don?t have anything to offer but price. If you choose the right broker, you?ll not only get a great price but a great value.

So it's renewal time for my policy and I let my current broker, Falcon Insurance (EAA), know that I'm moving my airplane to a private grass strip. I had specifically asked the rep if there were ANY restrictions on flying in or out of a grass strip. "No restrictions" was his original answer after waiting for a week on him to respond. Then it came time to renew the policy and it turns out that Global Aerospace, the underwriter of the policy, will NOT insure the aircraft at said field. It's OK to fly in and out but not to have the aircraft "BASED" at said field. Apparently it's all about semantics. So I ask Falcon the question again, since grass runway operations were originally approved, and after an inordinate amount of time waiting for an answer, I contacted Gallagher Insurance. Katie at Gallagher had answers for me by the end of the day on how to obtain additional quotes from other underwriters. So I sign a Broker Letter of Authorization to transfer my policy to Gallagher since Falcon doesn't seem to want my business anymore. Falcon of course finds out and I get a scathing email from the rep telling me how upset he is that I'm taking my business elsewhere. I reply that if he can't take the time to answer simple questions in a timely manner then this is what happens. So I ask again if indeed my aircraft is covered at the new grass field until the policy term expires. His reply is "thanks for your business for the last 10 years" but if you have questions ask your new broker. Wow!! Well good news, Katie at Gallagher comes through once again and confirms that I'm covered until the end of the policy term and she has a new policy for me that covers my airplane at the grass field with better liability coverage at a comparable price come renewal time in a few weeks.

I honestly cannot believe the level of arrogance at Falcon and that the EAA endorses them for insurance coverage. So far I'm thrilled to be dealing with Gallagher and they don't even have any of my money yet. I am in no way associated with Gallagher but so far I find their level of service as exceptional.
 
I also want to give a big shout out to Leah and Gallagher. I have now had my
RV6A for 2+ years and they by far provided the most information and the best
service. I did shop around and got virtually the same quote from all the
brokers. Why I went with Gallagher was because of Leah's knowledge and
the care she took to make sure I had the right coverage. I will continue to
use Leah and Gallagher as my go to for as long as I continue to fly.

Thanks Leah and Gallagher!!

+1

She has done a great job for me as well.
 
I did AOPA for 2 years and before switching to Gallagher. 3yrs and no thoughts of another change.

I recommend them to anyone looking for coverage here and on other GA forums.
 
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