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  #1  
Old 04-20-2018, 07:57 AM
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DonFromTX DonFromTX is online now
 
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Default Aircraft Insurance (again)

I have only been a pilot and aircraft owner for 50 years, but have never understood the aircraft insurance industry, despite the information gained from this forum, now I am even more confused.
I just got a reputable broker suggested quote from a company, price seemed steep, for $3690, with a claim that it was the only company that would even insure the risk.
A friend, despite guidance to not do that, went to a different broker, same input, and got a quote for $1652 from that SAME COMPANY!
I am left with the impression that companies give the same quote amount, and the broker then adds in their profit requirement, which apparently varies drastically. Can anyone aid in my continuing education? Does this mean that one should go to every broker he can find for the best price?.
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  #2  
Old 04-20-2018, 08:13 AM
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Sam Buchanan Sam Buchanan is offline
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Don, aircraft insurance cost is very dependent on pilot age and recent experience in type. If you used a reputable broker it is unlikely you received a bogus quote.
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  #3  
Old 04-20-2018, 08:47 AM
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I was not suggesting there was a bogus quote, only that brokers apparently add their profits to the quotes, and that those vary considerably. Perhaps a nationally advertised broker with lots of advertising expense has to charge more than the guy operating out of his spare bedroom at home. Probably nothing illegal about that, but maybe one should look to various brokers?
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  #4  
Old 04-20-2018, 09:05 AM
RandyAB RandyAB is offline
 
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Why don't you contact that other broker and make sure that apples are being compared to apples? If so, count your blessings and run with it!
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  #5  
Old 04-20-2018, 09:35 AM
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I have always had a good experience using EAA or AOPA sponsored underwriters, as well as Avemco.
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  #6  
Old 04-20-2018, 09:41 AM
rv7charlie rv7charlie is offline
 
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Sam makes a valid point; you should be sure they were apples/apples quotes. Same pilot age, experience, accident record, same aircraft, etc. edit: Also time frame, meaning economic conditions. Rates from an underwriter will vary quite a bit depending on economic conditions. If they are making a lot of money by investing your premiums, rates are lower. Bad market conditions? Rates go up. For everybody.

Having said that...There's a very incestuous relationship between aviation insurance underwriters and brokers. It's the only field I'm aware of that you can't get a quote from more than one broker (retailer) selling the same product (underwriting company) without going through a bunch of paperwork monkeymotion. The brokers and underwriters can spin it all they want, but the bottom line is that it helps the broker to hide his markup.

Charlie

Last edited by rv7charlie : 04-20-2018 at 09:43 AM.
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  #7  
Old 04-20-2018, 10:07 AM
tfriendshuh tfriendshuh is offline
 
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You're retired US Army - go through USAA.

They don't directly underwrite aircraft, but they have relationships with brokers with advantageous rates for members
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  #8  
Old 04-20-2018, 12:30 PM
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DonFromTX DonFromTX is online now
 
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Most interesting, I think I may be experiencing some of that.I may be way off here, but two different brokers with the identical information getting two vastly different quotes, suggests to me that the broker commission may be the difference. Being a certified tightwad with a greenback endorsement, it seems to me that one should go to ALL the brokers to find a reasonable deal unless he is just stupid. What am I missing here?
Can it even be legal for a company to refuse to give a quote to a second broker because they gave a quote to another broker earlier? Some of my fellow aviators brag about how they negotiated with their broker for a far better price, can that be true - or true BS?

Quote:
Originally Posted by rv7charlie View Post
Sam makes a valid point; you should be sure they were apples/apples quotes. Same pilot age, experience, accident record, same aircraft, etc. edit: Also time frame, meaning economic conditions. Rates from an underwriter will vary quite a bit depending on economic conditions. If they are making a lot of money by investing your premiums, rates are lower. Bad market conditions? Rates go up. For everybody.

Having said that...There's a very incestuous relationship between aviation insurance underwriters and brokers. It's the only field I'm aware of that you can't get a quote from more than one broker (retailer) selling the same product (underwriting company) without going through a bunch of paperwork monkeymotion. The brokers and underwriters can spin it all they want, but the bottom line is that it helps the broker to hide his markup.

Charlie
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  #9  
Old 04-20-2018, 12:34 PM
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DonFromTX DonFromTX is online now
 
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I love USAA, have been with them for over 50 years around the globe for all my insurance and banking needs. Since all they do is go thru Falcon, I decided that just made another profit suckoff level to the process. I could certainly be wrong about that as well.

Quote:
Originally Posted by tfriendshuh View Post
You're retired US Army - go through USAA.

They don't directly underwrite aircraft, but they have relationships with brokers with advantageous rates for members
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