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The 1%, 2%, 3% rule of Aircraft Insurance – April 2023
Posted By Benjamin Peterson
Published March 24, 2023
Here’s the 1%, 2%, 3% rule for piston aircraft insurance premiums. For me it’s easier to visualize the premium with a % vs. $ sign.
Cirrus SR22:
- Cirrus SR22 Hull Value $800,000 @ 1%, PRIV INST Pilot = $8,000
- Cirrus SR22 Hull Value $800,000 @ 2%, PRIV working on INST = $16,000
- Cirrus SR22 Hull Value $800,000 @ 3%, Student Pilot working on PRIV = $24,000
Bell Helicopters:
- Bell 429 Hull Value $8,000,000 @ 1.5%, Very Experienced Dual Pilots = $120,000
- Bell 505 Hull Value $2,000,000 @ 2%, Experienced Pro Pilot = $40,000
- Bell 505 Hull Value $2,000,000 @ 2.5%, Experienced Owner Pilot = $50,000
- Bell 505 Hull Value $2,000,000 @ 3%, Experienced but less than 500 Total Time = $60,000
- Bell 505 Hull Value $2,000,000 @ 4%, Brand new Owner PRIV with 100 Total Time = $80,000
- Bell 505 Hull Value $2,000,000 @ 5%, Student Pilot, $100,000
| Make | Model | Type of Pilot | Hull Value | Premium |
|---|---|---|---|---|
| Gulfstream | G550 | US Based | $45,000,000 | $89,000 |
| Pilatus | PC-24 | Pro Dual Pilots | $14,000,000 | $53,000 |
| Diamond | DA62 | Owner Pilot COMM INST | $1,400,000 | $18,000 |
| Diamond | DA42 | PRIV working on INST ME | 1,250,000 | $27,000 |
| Cirrus | SR22 | Experienced Pilots; Fractional | $750,000 | $7,500 |
| Cirrus | SR22 | Private Pilot working on INST | $785,000 | $14,000 |
| Cirrus | Vision Jet | Owner Pilot w/ 500TT transition from SR22 | $3,000,000 | $55,000 |
| Cessna | T206H | Owner Pilot Experienced | $900,000 | $10,000 |
| Daher | TBM 930 | Owner Pilot Experienced; Moving Insurance Company | $3,500,000 | $28,000 |
| Piper | M350 | Owner Pilot low time; transition from SR22 | $1,650,000 | $28,000 |
| Piper | M600 | Owner Pilot Experienced | $2,500,000 | $29,000 |
| Pilatus | PC-24 | Dual Pilot Pilots; one pilot didn’t pass type rating | $14,000,000 | $50,000 |
| Citation | CJ3 | Owner Pilots; One pilot is 73 | $4,000,000 | $43,000 |
| Bell | 505 | On 170’ Yacht in Mediterranean Sea | $1,250,000 | $100,000 |
| Bell | 505 | Owner Private Pilot with 250TT | $2,000,000 | $60,000 |
| Bell | 222 | Pro Pilots Experienced | $600,000 | $45,000 |
| Airbus | H130 | Pro Pilots but low time and new to H130 | $4,250,000 | $100,000 |
What We’ve Learned from Top Stories in 2023 Insurance:
- Although pre-owned inventory has risen slightly to 6% there’s still long lead times for new deliveries which will hold up values for the pre-owned market.
Good luck in 2023 and let’s do some deals!
Benjamin Peterson
Graduated from the University of North Dakota with a degree in Commercial Aviation as a Pilot and Flight Instructor. My first professional job was working for Cirrus Aircraft as an instructor.