Aviation Insurance: Negotiate Insurance Renewal?
We all love a good deal, and for many, we don’t mind doing a little bartering. There is a saying by William Lowndes, a former secretary of the Treasury of Great Britain “Watch the pennies, and the dollars will take care of themselves.” While often attributed to Benjamin Franklin, the actual quote in old English is “Take care of the pence, and the pounds will take care of themselves.
Regardless of our lot in life, every wise man/woman likes to save money where possible.
So, is it possible to actually negotiate your aircraft insurance? Yes! It is.
First, the process should start with the current underwriter. Why start with your current insurance underwriter rather than shopping around? In short, because loyalty matters when assessing an insurance premium. Here you can learn more about Shopping The Aviation Market (http://aviationinsurance.com/shopping-aviation-insurance.html).
Next, we need to know what the insurance underwriter needs to quote the best rate possible. Do a thorough job of providing information to the underwriter for consideration. This one-step helps to build your insurance file. Any additional flight training or ratings that you receive during your aviation policy period can significantly enhance your underwriting image at renewal time.
By working on enhancing your knowledge and skills and providing underwriting with proof of such, this will give them the information they need to determine the best premium possible.
Markets are cyclical. Sometimes in a hard market, there is less flexibility, but in a soft market, an underwriter may offer premium reductions in an effort to retain the policy. Some underwriters will accept requests for reasonable policy enhancements, especially when things like additional skill training would warrant such a review.
As the market bottoms and becomes flat, most underwriters will renew “as expiring”. This is aviation insurance terminology for renewing at the same price and with the same coverages as your expiring policy.
As the market turns hard, the underwriting community will push for premium increases but will usually not reduce coverages or limits.
When trying to negotiate a better premium, it is also wise to review your policy to see if it really matches your needs. As the insured, you can negotiate to give up high limits of liability or expansion coverages. While this at first seems like a reduction in coverage, it may actually be just what you need at the right price.
The key when shopping for insurance for your aircraft is to have what is “just right”. Too much and you then overpay and too little you put yourself at risk.
So it is true negotiating your insurance is possible, especially when you have taken actions to reduce your risk to the insuring company.
To speak with someone who can help with insurance coverage for your airplane, helicopter, commercial drone, or other aviation asset feel free to contact us. Our qualified agents can help you shop the best rate while at the same time, making sure you get the best coverage possible for your insurance needs.