Insurance for GA

Philbennett

Junior Member
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Aug 17, 2014
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347
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London
Can someone tell me what this means in practice. I.e who administers that system and how is it recorded?

California, Connecticut, Indiana, Massachusetts, and Virginia general aviation aircraft owners and operators are required to demonstrate aircraft financial responsibility by showing differing combinations of liability insurance, a bond, deposits of money or securities, or a letter of credit.
 

WaspAir

Supreme Allied Gyro CFI
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Oct 21, 2006
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4,804
Location
Colorado front range
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Bell 47G-3B-1 / A&S 18A / Phoebus C, etc.
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stopped caring at 1000
I don't know your source but I have reason to doubt it. I owned several aircraft in California over a 28 year period and never demonstrated financial responsibility for any of them. I filed a tax statement every year with the county for each aircraft and they charged me personal property tax based upon an assessment of value but they didn't care about insurance.

For automobiles, your insurance company reports coverage to the Department of Motor Vehicles and that agency only issues the required annual license plate renewal stickers if they have a report for your car.
 
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schmoe90

Magni M-16 Sport Pilot
Joined
Feb 8, 2018
Messages
40
Location
Roseville, CA
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Magni M-16
Our (California) city owned airport asks their hangar tenants for proof of liability insurance every year or so, and they have to be listed on your policy. So, when asked, I send our hangar boss a printout of my policy, and he sends them all on to the city with the new lease. No idea if anybody ever looks at it.
 

Philbennett

Junior Member
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Aug 17, 2014
Messages
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Location
London
.

I saw this but it looks it was created in 1968? I’m just not sure if it means you need to have proof you have something formal in place or if you could pay 50k you don’t care / it doesn’t apply.
 

WaspAir

Supreme Allied Gyro CFI
Joined
Oct 21, 2006
Messages
4,804
Location
Colorado front range
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Bell 47G-3B-1 / A&S 18A / Phoebus C, etc.
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stopped caring at 1000
I'll dig into it in detail later.
At first blush, it seems to limit liability to $50k in many situations (judgments satisfied once 50K is used). The Chapter 3 title also suggests that this applies after an accident. I'll have to read lots of the preceeding sections to figure it all out, but I'll do so in due course and post my thoughts.
 

schmoe90

Magni M-16 Sport Pilot
Joined
Feb 8, 2018
Messages
40
Location
Roseville, CA
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Magni M-16
I think our city just don't want people coming after them if you hurt somebody and don't have insurance, just because you're hangared there. I don't think it's a particularly California thing as much as a lot of litigious people thing :)
 

WaspAir

Supreme Allied Gyro CFI
Joined
Oct 21, 2006
Messages
4,804
Location
Colorado front range
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Bell 47G-3B-1 / A&S 18A / Phoebus C, etc.
Total Flight Time
stopped caring at 1000
On further review, this seems to be the California version of the Uniform Aircraft Financial Responsibility Act, and the cited sections apply after an accident has been reported to the state. If you hurt somebody or damage another's property more than $400, you can be required to post a bond or offer an insurance policy toward any possible judgment. If you never bend anything or bruise anybody, those post-accident provisions don't apply.

As schmoe90 has observed, many municipal and county airports want you to have insurance if you are based there, and to name the city/county as additional insureds, so that they have some protection under your personal policy (paid for by you) if a scatter-gun lawsuit names them as well after you suffer a prang. Base your aircraft anywhere else, and they have no leverage over you to impose any such requirements.
 

Martin W.

Active Member
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May 10, 2020
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95
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Winnipeg
Can someone tell me what this means in practice. I.e who administers that system and how is it recorded?

California, Connecticut, Indiana, Massachusetts, and Virginia general aviation aircraft owners and operators are required to demonstrate aircraft financial responsibility by showing differing combinations of liability insurance, a bond, deposits of money or securities, or a letter of credit.
.

The rule-makers (governments) come up with those requirements for good reasons based on citizen demands
There are a lot more "citizen voters" than there are aviators.
None of those folks are anti-aviation but once in a while a private small aircraft will crash , lets say into a house. And not have insurance. Or kill a passenger in a rural crash. Somebody has to pay for that

~~Smash and burn somebodies house you better have at least $1 Million of liability insurance
~~Kill someone in the house you better have at least $10 Million of liability insurance
~~Fly into the path of a 747 and kill 300 people you better have over $100 Million of liability insurance
~~ you are dead too but nobody cares about that

Just because your aircraft is only worth a small amount and you fly only in rural areas you may decide not to insure. Fine , just make sure you never crash into a cow pasture and kill a prize bull .... or a thoroughbred horse , or take out power-lines that shut down the adjacent town and its hospital and people die.
 

WaspAir

Supreme Allied Gyro CFI
Joined
Oct 21, 2006
Messages
4,804
Location
Colorado front range
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Bell 47G-3B-1 / A&S 18A / Phoebus C, etc.
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stopped caring at 1000
I have always carried insurance and will continue to do so, and would never argue against it. There is, however, no general requirement for it in the U.S., with specific requirements arising from local airport hangar landlords, aircraft financing companies, and the like.
 

chrisk

Gyroplane CFI
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Jun 5, 2015
Messages
300
Location
Round Rock TX
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Magni M24, Turbo Mooney 231
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1000
.
The rule-makers (governments) come up with those requirements for good reasons based on citizen demands
There are a lot more "citizen voters" than there are aviators.
I'd argue the insurance lobby has more to do with it than good reason.

I personally carry aviation liability insurance, but I know more than a few folks who don't.
 
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