“ASK EINSTEIN”
LSA Insurance Realities
With all the attention that the Light Sport Aircraft are attracting, it is natural to consider their cost of operation and ownership. A key element in cost of operation for any aircraft is insurance, and that is a subject few are expert in. Once again I called upon my insurance expert to answer those questions. Dennis Einstein, of Einstein Insurance in New Castle Delaware, has been my insurance agent for many years. This is what he has to say about insuring an LSA;
Leighton: Tell me, what are the most frequently asked questions you hear about insuring an LSA?
Einstein: That’s easy. They are all the same questions that apply to certified aircraft. How do I get my rates down, how do I get higher limits of liability? The answers are the same for a Sport Pilot as they are for a private pilot. The underwriters want to know the total number of flight hours the pilot has, followed by the number of hours in make and model. Though every underwriter is different, if they will write a policy for an LSA there is no price premium over a certified aircraft or a private pilot.
Leighton: Since the category is so new, what if you have no time in type?
Einstein: I would have to say that if you are a high time pilot there will not be any requirement for any additional training of any kind. If you are a low time pilot the underwriters typically ask for a check out from a CFI. If you have very low time, as in just got your license, they may require a specified number of flight hours in type before you can fly it solo or with a passenger.
Leighton: Anything else that is special or unusual for LSA’s?
Einstein: We’ll not specifically for LSA’s but most underwriters are now requiring specific training if the aircraft is equipped with a glass panel. So for example, the new Cessna LSA, the Sky Catcher, is equipped with a Garmin 300 glass panel display, and you would expect to be required to receive training specific to that system and have that logged in your log book. It will be specified on the policy.
Leighton: Can you give me an example of the cost for insurance for a typical LSA? Let’s say it is a $100,000 aircraft, and the pilot is a newly minted 50 hour Sport Pilot. The aircraft would be kept at a public use airport with a paved runway and stored in a hangar. What would it cost to insure that hypothetical LSA?
Einstein: Well, in that hypothetical scenario, with a threshold of liability of 1 million dollars and a one hundred thousand dollar sub limit per seat, with a one hundred thousand dollar hull value and minimal deductible ($100.00) the liability portion would be approximately $643.00 and the hull would be approximately $2,448.00 for a total of $3091.00. Remember this is a hypothetical aircraft and pilot and keep in mind that the rate will go down with more flight time in the pilots log book.
Leighton: What is your best advice to aircraft owners regarding LSA insurance?
Einstein: Like I tell everyone, read your policy! Know whether you have sub limits, and if they are per person or per passenger. Know if your defense costs are inclusive of the limit or above it. But most of all, understand your open pilot warrantee and abide by it before you let anyone else fly your plane!
You can reach Dennis Einstein at 1-800-555-4225 or by e-mail at einstein@cavtel.net.
Michael Leighton is a 4,400+ CFIIMEI-ATP, as well as an A&P mechanic and former F.A.A. Accident Prevention Counselor. He operates an aircraft management, maintenance and crew services company located in South Florida. You can reach him via e-mail at av8tor0414@aol.com, or find him on the web at http://web.mac.com/mkleightion