We get it. Until two years ago, aviation insurance rates were at historic lows due to overcapacity in the market. A few insurers bailed out because, as we understand, they couldn’t afford to keep losing money. Now supply and demand has swung the pendulum the other way and the price of insurance premiums has shot upward.
Owner-flown turbines and high-performance piston airplanes have taken the biggest hit—as much as 50 percent rate increases over 18 months. The rate hikes for piston singles haven’t been as dramatic, but insurance price sticker shock has hit all of general aviation.