Cessna Caravan Insurance Cost Examples
Cessna Grand Caravan - Pro Pilot
|Caravan Physical Damage||$3,000,000 Agreed Value||$35,000|
|Aircraft Liability||$5,000,000 Per Occurrence||$13,000|
|Total Annual Premium||$48,000|
Cessna Caravan Amphibian - Owner Pilot with 1,600 Total Time
|208 Physical Damage||$3,300,000 Agreed Value||$45,500|
|Aircraft Liability||$5,000,000 Per Occurrence||$15,000|
|Total Annual Premium||$60,500|
Cessna Caravan 208 - Pro Pilot Alaska Charter Part 135
|208 Physical Damage||$2,500,000 Agreed Value||$40,000|
|Aircraft Liability||$10,000,000 Per Occurrence||$20,000|
|Total Annual Premium||$60,000|
The Cessna 208 Caravan was produced in 1985 as a utility aircraft for operations that require a high payload and the ability to land on short runways in remote areas. Today it is most commonly used for short range cargo by companies like FedeX. It’s also used by the military, commuter airlines, corporate VIP, humanitarian missions, and Charter operations with fixed landing gear and amphibian floats.
The insurance premium for a Cessna Caravan is based on the hull and liability. The hull value is typically 70% of the overall premium. A brand new Caravan with all the upgrades and modifications can cost over $4,000,000. The remaining 30% is the liability premium. Liability premium is based on the number of seats, use of the aircraft operations, and liability limit. A Caravan can have up to 14 seats. Aviation insurance underwriters will pay very close attention to aircraft with this many seats, especially if it’s single pilot.
There’s only a small handful of aviation insurance companies that are quoting the Caravan. Depending on market conditions this number will vary between 2 – 4, depending on liability limits requested.
An easy way to estimate or visualize the premium for a Cessna Caravan Aircraft is: 1.5%, 2%, and 3%
- 1.5% of the hull value for for experienced pilots, clean operation, lower seating capacity, and hull value at $4,000,000
- 2% of the hull value for experienced pilots, but older aircraft and riskier operations with a lot of dry leases or fractional ownership and hull value at $2,000,000
- 3% of the hull value for less experience pilots and riskier operations, Alaska operations, high seating capacity, and floats or amphibious landing gear
Annual training will be required of all pilots. Insurance companies have started incorporating deductibles on riskier flight operations like $25,000.
Models We Cover
Caravans hold their value well due to a lower entry cost, being single engine and single pilot. Most people who buy a Caravan are using it for a particular purpose. Anytime there are more than 10 Caravans for sale on the market it is considered a buyers market. Much of the value is dependent on the overall supply and demand of the aircraft market. All of the Cessna products are on backorder through 2023.
The hardest Caravans to insure are pilots over 70 years old looking to fly single pilot with a high seating capacity. The avionics are the Garmin G1000 NXi systems which helps improve situational awareness.
The Caravan has a good claims history because underwriters will always pay very close attention to all aspects of the flight operation before offering a competitive quote due to the inherent nature of riskier flight operations and high seating capacity for a single engine turboprop that is capable of being operated by a single pilot.
The Caravan is not a fast plane and it does have great stability and low airspeeds to allow it to be flown into backcountry runways in areas like Alaska and Canada. It’s especially useful with high payloads of cargo or passengers. The engine is a Pratt & Whitney PT6 engine which is one of the most reliable engines ever built. The Caravan basically operates like a large Cessna 182 or 206.
Aircraft Insurance Cost Guide
Learn more about the cost of insurance for private pilots based on your aircraft type and the various factors that affect premium rates. Whether you’re seeking owner aircraft insurance or commercial aircraft insurance, this valuable information will help to make an informed decision about the best coverage for you. If you have any additional questions, please don’t hesitate to reach out!