Insurance Evolving - drip, drip, drip

[Rich]

Background: I've been using Avemco for many years and have been totally satisfied. But:

Last year I had a bump in premium by about 9%. After calling them I was told because I had turned 76 and it would likely bump again when I turned 81. Not a big deal. The premium is still affordable.

This year comes a triple whammy. Upon receiving this year's quote (I'm now 77, BTW):

1. Premium bumped another 28%
2. Required to have flight reviews at 12 month intervals
3. Required to have a medical examination by an AME every 12 months

So I called them with information on Wings participation and the fact that I'm on Basic Med. So now:

1. Premium increase now a "mere" 12%
2. Still required to have flight reviews at 12 month intervals
3. Required to have a BasicMed med examination every 12 months

Obviously they "recognize" BasicMed but have negated most of the reason I switched to it. Furthermore, when does the next shoe drop? I can see requiring that I not act as PIC without a safety pilot for all flights.

So I'll check into alternatives, but I can foresee this kind of slow squeeze coming across the industry. T&Cs that are fine now may become even more onerous.

[nickname]

Have you asked how it would improve if liability only? Or is that out of the question?

[Rich]

Have you asked how it would improve if liability only? Or is that out of the question?

It'd lower the premium, but I doubt it'd change anything else. The premium is not the real issue. It's what happens next.

[dmloftus]

Hi RIch. I switched from Avemco to Old Republic a few years ago and my premiums are much more reasonable. You might want to run a quote with them. I'm 62, so not sure how they handle more experienced pilots like yourself.

[Rich]

Hi RIch. I switched from Avemco to Old Republic a few years ago and my premiums are much more reasonable. You might want to run a quote with them. I'm 62, so not sure how they handle more experienced pilots like yourself.

"Experienced", yeah, that's it - experienced

[ememic99]

It’s the same here in Europe - constant increasing even if you’re improving your record. I have commercial license, class 1 medical, fly professionally, no claims and yet they increased policy by 10%. I declined it and I’m changing the insurer.

[TimS]

I have read on multiple forums that the insurance companies have been getting squeezed by claims the last couple years; and a number of companies misjudged the market chasing revenue/customers and were bleeding as a result. The premium increases are largely viewed as a market correction.

I am guessing, the new restrictions on check outs, is trying to catch more pilots who should have aged out and did not. Anecdotally, I believe there have been a number of accidents and claims the past few years where a pilot should have stopped flying, and ended up causing an accident.

Tim

[ememic99]

Anecdotally, I believe there have been a number of accidents and claims the past few years where a pilot should have stopped flying, and ended up causing an accident.

Tim

You believe or you have some data confirming this?

[Rich]

I have read on multiple forums that the insurance companies have been getting squeezed by claims the last couple years; and a number of companies misjudged the market chasing revenue/customers and were bleeding as a result. The premium increases are largely viewed as a market correction.

I am guessing, the new restrictions on check outs, is trying to catch more pilots who should have aged out and did not. Anecdotally, I believe there have been a number of accidents and claims the past few years where a pilot should have stopped flying, and ended up causing an accident.

Tim

I get this. I actually don't have a problem with the 12-month flight review, though it not being 12 calendar months like everything else is annoying.

But essentially they have written off the validity of BasicMed. I've been planning to self-ground when I surpass 80 but I am starting to consider doing it sooner. I'm not concerned about failing a medical, but it's an extra bit of hassle and expense. And I'm finding I'm not flying for actual useful missions these days.

[blsewardjr]

Rich- AOPA had a news clip this morning on this very subject -- https://www.aopa.org/news-and-media/all ... dium=email