Parker_Woodruff

This is true. Most noticeably in flight schools where claims are up significantly as fleet utilization has increased.

Engine oil and an air compressor for filling tires.

The biggest payout on this whole thing will be the grounding liability for the air carriers that can't fly their MAXs.

I'll be driving out to Florida early on Thursday with about 180 quarts of oil (one for each Mooney Summit attendee). I look forward to meeting many of you in person for the first time! Be sure to stop by on Friday and pick yours up - 3 options to choose from: Aeroshell 15W-50 Aeroshell 100W Plus Phillips XC 20/50 Parker Airspeed Insurance Agency 214-295-5055 Parker@airspeedinsurance.com

Most of you are aware (by word or by experience at this point) of widespread aviation insurance rate increases across almost all lines of business. I've compiled a list of trends I'm noticing in the market: Light Personal Aircraft: Rates on retractable gear aircraft have gone up. Look for increases in the 5%-15% range if you are renewing with the same carrier. If you are renewing with a different carrier due to one leaving the aviation market, expect a 20-25% increase. Rates on Fixed Gear, 4-place aircraft have lagged on rate increases. I'm seeing 5% or so most of the time. Commercially operated piston aircraft (flight schools, charter operations, etc.) Most policyholders with good loss experience are experiencing rate increases in the 10-25% range. Operators with high loss ratios are experiencing increases greater than 25% if renewing with the same carrier. Operations renewing with a different carrier due to their expiring company leaving the aviation market are sometimes seeing rates double. One carrier has elected to non-renew all flight schools. Pro-flown turbine aircraft 10% rate increase for underwriter-deemed "desirable" risks. More than 10% for older turbine aircraft. Workers' Compensation Insurance Rates for businesses with favorable loss experience are going down. There is greater competition in this segment and some state work comp funds have decreased their rates. Repair and Service Operations Large increases in insurance rates (10-25% or more) Avionics shops Small increases in rates (about 10%) The insurance payout related to Boeing 737 MAX losses will far exceed global aviation insurance premium written. This is hitting the reinsurance companies. Most aviation insurance companies will be seeing premium increases for their reinsurance in 2020. Look for a sustained "hard market" through 2020 and then some level-off in 2021. The standard Property and Casualty markets are also seeing widespread increases and have been for quite some time. As always, please reach out if you'd like a quote for your aircraft or aviation business. Airspeed Insurance has some great developments coming in 2020. As part of a major agency management system upgrade, we'll be introducing a mobile app that will contain all your policy documents and include other great functionality. Parker Woodruff Airspeed Insurance Agency 214-295-5055 Parker@airspeedinsurance.com

There have been many court cases about this. The policyholder has can claim what is contractually allowed from the insurance policy. A state-licensed adjuster will handle any local ins-and-outs as necessary. Keep in mind that your deductible and max out of pocket is a self-insured portion for which you are allowed to pursue recovery. Therefore, the health insurance company does not have first right to every medical payments claim. The insurance company certainly has a right to any amount above your actual expenses.

If you have health insurance, look at the max out of pocket you can incur. Then determine how much you want to self-insure for your flying-related risk. As mentioned, it goes a long way toward the good-will of those onboard your aircraft. Just be sure to have plenty of liability coverage for bodily injury and property damage.

Hello MooneySpace - in today's sponsored post, I'll explain the coverage afforded by the Medical coverage on aircraft insurance policies. -What is Medical Coverage? Medical Coverage, also known as "Medical Expense" and "Medical Payments", is provided regardless of who is at fault in an occurrence. On most piston aircraft insurance policies, the coverage limit is between $3,000 and $10,000 per person, but can be as high as $100,000 per person on a pro-flown turbine aircraft insurance policy. This coverage is normally provided for no charge or a small charge, depending on the insurance carrier. Medical coverage is different from Bodily Injury Liability coverage in that no judgement or settlement must be reached for reasonable medical expenses to be paid to the injured party. The policy holder also does not have to admit fault or liability for the coverage to apply. Medical Coverage is also provided to the aircraft owner and any crew member flying the aircraft. What kinds of expenses does Medical Coverage pay for? Fees for doctors, surgeons, and dentists; Costs for ambulance, x-ray and hospital services; Fees for professional nurses; Costs for prosthetic devices. Funeral expenses if the passenger dies within a predetermined time from the occurrence. Keep in mind that this can be used toward the deductible on your health insurance policy. What are other benefits of Medical Coverage? - The biggest benefit of Medical Coverage is that it is money that can be used in good faith which can help avoid an injured party deciding to sue for bodily injury. It helps the policyholder meet the passenger's immediate needs in the event of an occurrence. Think about the goodwill that is formed when the policyholder can volunteer several thousand dollars to meet an injured person's immediate needs. - The coverage includes You, the owner pilot. Can I buy increased limits of Medical Coverage? Yes, most policies these days will have $5,000 per person as the standard limit. Most companies will offer a limit of $10,000 per person for a modest charge (About $40-80). Stay tuned for my next article on Passenger Voluntary Settlement coverage. Please feel free to reach out with any questions. Parker Woodruff Airspeed Insurance Agency 214-295-5055 Parker@airspeedinsurance.com

JD Casteel at Southwest Texas Aviation isn't too far away (84R)

I'm interested to know which carriers quoted those premiums. There may be one or two options out there yet to be considered.

My M20K ran far better LOP with tempest fine wires. Worth every penny

The market has spoken that a paint job from Hawk is worth $14,500 right now. A lot of forces are at play... - Hawk's increased overhead - Strong economy - pilot training boom has created a thin market for older planes. Flight schools buy and then paint. - paint shop capacity is low right now...charge accordingly. Good for them. The paint job on N252BH was $8800 back in 2012 and I'm sure it still looks as good as new. Keep in mind you won't have to pay sales tax on the paint job in Florida.

Depending on your age, airport, and if any loss history, I'd expect to pay about 2-3% on the hull plus $600-$1000 for $1MM/$100K liability. All those figures somewhat lower if instrument rated.

Late to this topic... The worst part of Mooney’s situation is the swing and miss on the M10...during the one of the biggest pilot training booms in history. The money was/is in the training market and they, sadly, missed. There is still time if they’d pick up the pieces and put a substantial effort into the M10T. Maybe this time with some talent on this board like @KSMooniac heading up that project somewhere other than Chino. You need something more robust than an LSA and cheaper to purchase and operate than a Piper Archer. M10T fit the bill. Total shame it never made it to production. And now the economics make sense for the powerhouse training schools with Piper’s cheaper Pilot 100.

Sending you a PM

There was one carrier that offered an intentional discount on this several years ago, but they've since gone out of business. When you get to corporate aircraft fleets, you'll see some manual discounting of rates to try to win the business. In light GA you won't see this except in very rare cases. Especially with how cheap rates have been the past several years.

Rarely will the rate be different in the light GA world. But in the corporate & commercial world it can and often does make a difference. A poorly presented and marketed risk can be detrimental.

The airlines will take the biggest hit. Expect some marginal effect for light GA.

It does, however, give you some money to use in good faith that can go a long way towards mitigating ill-will towards a party that may otherwise consider legal action.

Most medical insurance does. Some medical insurance policies do not.

If he is the owner of the aircraft, he'd have to sue himself to get to the passenger liability limit. It does not cover first party Bodily Injury. Medical Payments covers that...and of course to much lower amounts.

responses in bold, above.

Keep in mind that Avemco's "per person" liability coverage is different than most other carriers' "per passenger" liability coverage. Third parties outside the aircraft are limited to Avemco's sublimit where other carriers would not sublimit bodily injury to people outside the plane.

Hi Rick, This looks like a $2000-$3000 situation annually. I'd need more details to confirm. Feel free to reach out with any questions. Parker Airspeed Insurance Agency

Just for this post I ran a hypothetical quote from one carrier with pilot information similar to what the Original Post contained. 1984 Mooney M20J (201) $100,000 Hull Value Hangared at an airport with decently long runway. ATP, Age 50, 11,000 total time with no losses, DUI, etc. last 5 years $1179 Annually With liability limits at $1 Million limited to $100,000 Each Passenger bodily injury $1319 Annually With liability limits at $1 Million limited to $200,000 Each Passenger bodily injury $1571 Annually with liability limits at $1 Million "Smooth" (no passenger bodily injury sublimit) Yes, rates are going up. Not only was there a bit of economic hardening of the insurance market, but this Boeing deal is going to add to that (Grounding Liability loss will be huge on insurers and reinsurers).