Insurance defined: The business of insuring against loss.

Insurance is something we are all familiar with. Love it or hate it (depending on whether your are the buyer or the seller) it is a necessary fact of life.

I, like you, have many different insurance policies; life insurance, house insurance, auto insurance, health and dental insurance and as I own an airplane, yes that too is insured. 

And that is what has my hair on fire tonight. It is renewal time again, something that seems to happen more often but the paper work says no. It is only once a year. I have owned and insured this particular plane for 30 years, all of which have been accident/claim free and yet my rates keep going up. 

This year it is an astounding 23% increase. Is there no reward for flying safely, paying exorbitant rates for fuel, $1.60 per litre, buying the latest safety equipment and maintaining the beast to ever increasing standards at ever increasing costs?

At what point does it become uneconomical? During the last 12 months, I flew just 17 hours. This due to COVID restrictions as we were not permitted to fly south to the US and were discouraged from travelling within the province as well. That pretty much restricted us to the circuit and a nearby practice area in order to maintain some semblance of competency. Yes, that is important in order to be safe and continue the claim free status. Using those numbers, each hour flown cost $100 just for insurance. With a fuel burn of 12 US gallons (45 litres) an hour, that is another $72.00 for fuel. Then you need to set some aside for maintenance and of course there is the hangar cost as well. It is getting a little pricey, eh what?