On Mon, 17 Apr 2006 13:03:18 UTC, "News f2s"
wrote:

: 2. I'm now quite clear why insurance rates for general aviation
: are so high, and why boat insurance is similar to car insurance
: rates.

In the first case it's not just, or so much, the frequency of the
accidents, but the possible claims involved. Hit a 747 on the ground
in your Cessna and the bill can easily be tens of millions.

Ian

--

"Ian Johnston" wrote in message
news:cCUlhtvFIYkV-pn2-h1QXuVTzjBkd@localhost...
On Mon, 17 Apr 2006 13:03:18 UTC, "News f2s"
wrote:

: 2. I'm now quite clear why insurance rates for general
aviation
: are so high, and why boat insurance is similar to car
insurance
: rates.

In the first case it's not just, or so much, the frequency of
the
accidents, but the possible claims involved. Hit a 747 on the
ground
in your Cessna and the bill can easily be tens of millions.

Hmm. These actuaries are pretty bright at their numbers. How many
Cessnas have hit 747s? But I take your general point that
aviation accident costs are much higher per incident. To a degree
that's covered (in insurance terms) if your insurance rates are
charged as a percent of vehicle value.

Quite simply, if any individual GA aircraft has 40 times the
probability of killing someone per annum, I'd expect the premium
to be 40 times higher. Crude. So load by the average value damage
done (compared to a boat) which would be quite a lot higher, x10?
So I wouldn't be surprised to hear that boat insurance runs around
1% to 2% of craft value, while airplane insurance runs around 10%
of value. Roger Long would know if that's the right order - he's
instigated several threads suggesting that aviation insurance
rates may come to boats! Someone here would know.
--
JimB
http://www.jimbaerselman.f2s.com/
Describing some Greek and Spanish cruising areas