More news on aircraft insurance rates
 

Seems like it's going to get tougher and more expensive for bottom feeding charter operators to get coverage:

https://www.ainonline.com/aviation-n..._hsmi=81750030

INSURANCE TURBULENCE FOR OWNERS, OPERATORS, LESSORS, AND LENDERS

If you plan to buy or renew insurance coverage in 2020, buckle up. Plagued by years of huge payouts and financial losses, some insurers have exited the market, resulting in reduced liability insurance capacity for all aircraft and much higher premiums (anecdotally, 20 percent to up to 300 percent of 2019 rates).

The best operators should still be able to maintain or even improve coverage in 2020 at higher premiums provided their insurers agree that the customers have a stellar safety record, outstanding training programs, and experienced pilots with high hours in the type of aircraft insured by the carrier. The story is different for single-pilot, owner/operated aircraft or new pilots who might not be able to find insurance at any price or, if insurance is available, must accept reduced liability limits at higher premiums than in 2019.

Lenders and lessors might have a different predicament. From transactional activity in 2019, it seems financiers generally required and successfully obtained yesteryear’s high liability insurance limits. In 2020, lenders and lessors may have to ease back on their demands for such high liability insurance levels and concentrate more on property damage coverage.

In supporting this easing, lenders and lessors can point to a 2018 federal law amendment that might facilitate approving transactions with reduced liability insurance limits. Under 49 U.S. Code § 44112, Limitation of liability, Congress provided a preemptory shield of business aircraft lessors and lenders from personal injury and property damage liability if they do not have possession or control over the aircraft at the time of the accident.

Customers should contact specialized aviation insurance brokers well before signing a purchase agreement in 2020, to allow much more time than the week before closing to find insurance with the best terms and lowest cost. (For more, see AINsight: Limiting Risk as Liability Insurance Tightens.)

I’m about to submit my details. If it gets to crazy, I’ll ‘self insure’

I'm wondering if insurance problems will drive more users to the larger charter operators or fractional aviation. The article mentioned rate increases from 20% to 300%, if you could get insurance at all.

I wonder if there's any law for planes like with cars where you have to carry a minimum level of liability insurance? I'm sure if the plane is financed you'll have to keep insurance on it.

Some states have laws requiring it just like cars. Many don't.

Uninsured planes are most likely light ASEL. Folks who can afford heavier planes typically have a lot of assets to lose so will get insurance whether it's required or not.

I suspect the root cause of the insurance crisis is pilots flocking to the airlines. The lower tier of corporate aviation is going to get left with those who are too inexperienced or who have too many black marks for the regionals... you can see where that's headed

One can also pick & choose coverage, ‘not in motion’, etc.. I may look into options besides full coverage, all the time.