REFLECTOR:Re: Insurance Woes

[Scott Derrick]

Chuck,

Nice dissertation on many of he ins and outs of aircraft insurance.

My $0.02

> 2.	Premiums:  There's little choice that the premiums start out high;
> in the 4%-5% range.  While high, this is competitive with most current
> commercial rates, if you can get them.  For those that are getting a low
> commercial rate presently, our hats off to you; and we'll see you next year
> when you come to the Coop hat in hand.  The final premium target would be
> 1%-2%.

No this is not competitive.  Avemco wanted to charge me 5% for hull 
which I found unacceptable.  It would pay anybody to self insure at that 
  cost.  Put the money in a CD and in 10 years you've bought yourself 
another Velocity.

Falcon would charge me 1.7% for a 85K hull value in-flight or 0.6% for 
non-flight.

Unless you can get close to competitive I don't think your going to get 
enough business to make it viable.

> 4.	Pilot Flight Checks:  Absolutely.  Not only for insurance's sake,
> but our own.  Perhaps we'd require the BFR be done with a Velocity approved
> CFI.  When BFRs were first implement, I was a little skeptical about more
> "big brother."  The reality is, its a very good program.  We all get a
> little complacent and form less than desirable habits.  Relearning once
> every two years is small price to pay to save on insurance and your life.

I don't see any real advantage and would consider this a big negative. 
I can see a factory approved checkout of the plane and pilot for the 
initial policy but after that its a waste.

> 5.	Plane Inspections:  Absolutely.  You and I know our workmanship is
> great but can we trust that other guy.  The Factory and Inspectors know
> every trick, tip and trap associated with the Velocity.  To have a factory
> approved inspection will save insurance claims and lives.

Are you talking a first time inspection or recurring?  Recurring is a 
waste as I said above. There are thousands and thousands of more complex 
aircraft than ours flying that don't require a "Factory" annual for 
insurance.  Neither should ours.


Scott