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Instrument Rating and Insurance Rates Instrument Rating and Insurance Rates

Ask Jim

Jim answers this and more in January's Ask Jim edition.

Question: What is the average drop in insurance rates after getting an instrument rating?

Jim: Victor – thank you for writing…there are a couple scenarios in regard to insurance rates after an instrument rating. In its simplest form, we see about a 2 ½% to 5% decrease as a result of someone obtaining their instrument rating. Now, there are some major caveats…the first being is that aircraft insurance rates fluctuate, and they fluctuate often. These fluctuations can either mask or magnify any change you might have been expecting. For example, in a year with decreasing rates, it might appear as though all this was attributed to your instrument rating. On the other hand, if rates are going up, you might very well experience some cushion against the increase as a result of your new rating. Another point to think about – is that more hours in your make and model also help rates. And generally the only way to get an IFR rating is to build time – helping twofold.  
There is another important aspect to briefly mention, in that some aircraft can only be insured with an instrument rating – so no discounts will be offered in these instances (think turbine, cabin class, etc.) 

If you haven’t already, I would greatly recommend an IFR rating – not for the insurance discounts…but because it will make you a better pilot…I know it did for me. 

Question: I am a Canadian member of AOPA does this disqualify me from getting AOPA renters insurance?

Jim: Chris – great question - being a Canadian member does not disqualify you from our renters insurance. We sell many renters policies to individuals from numerous countries, some with and some without an AOPA membership (just remember, an AOPA membership gets you a discount).  Our renters policies are for FAA regulated, “N numbered” aircraft – for which many individuals come to the United States to train. 

You can call or bind online – it’s a very easy process. Safe flying!

Jim is always ready to assist and answer your questions* about aviation insurance. Submit your question here, and it may just be highlighted in an upcoming Ask Jim Edition and you will receive a complimentary umbrella.

*The answer provided to your questions are for informational purposes only and do not constitute legal advice. For questions concerning your specific circumstances, consult a local attorney.

Jim Pinegar

Jim Pinegar

Vice President & Director of Operations of AOPA Insurance Services

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