...Yes, gentlemen I DO NOT HAVE AN UNLIMITED INSURANCE BUDGET...


Guys,

Before going apoplectic about insurance for this class of airplanes, consider that the average driver pays over $700 per year on auto insurance in the U.S.  Suppose that this amount is for a $30,000 car.  Let's make the premium $600 to make the math simple.  The premium would then be 2% of the value of the car.  This probably understates the premium as a percentage of value, because the average car isn't woth $30K.

Now note that your airplane is worth roughly 10 times your car, at least as an order of magnitude.  Is it surprising that the premium is about 10 times the premium paid for your car?  If the probability of an accident when you step in your plane is 7 times higher than when you step in your car (I once heard a number in this range), but if you step in your car every day and your plane once a week, then these balance out.  Then if damage is roughly proportional to the value of the asseet, rates should differ in proportion to value.  They do, don't they?

This makes me think that the rates Lancair has negotiated is about as good as we can expect.  (I realize that this is a gross simplification, but the point is that it isn't hard to argue that the rates aren't far off from where we'd expect them to be :)