1. Aircraft insurance business is very risky
According to underwriters and brokers in the industry, the aircraft insurance business is very risky. Unlike with a standard motor vehicle ownership, insuring your plane is not a legal requirement. Accidents and crashes happen in both industries, but unlike with a car insurance company with airplane insurance there are far fewer companies insuring everyone. There is very little money to be made on insuring aircraft and every single time an event occurs, whether the event is simple or catastrophic the insurance company is liable for something. They will be estimating the costs of your airplane parts and repair and it will reflect on your premium prices. Put yourself in the shoes of your insurance company and see that they are taking a risk on you.
