Financing and other questions

I have finally gotten to the point where my CFO has asked me to put together some numbers to take to the Board for purchasing and maintaning an SR22. Any of you that have real world numbers and sources for financing, insurance, maintance, please post or e-mail me. I have the hanger worked out already. I will be the sole pilot with a private rating and about 400 hours. I plan on getting my IFR in the new plane. I have been asked if my VP/sales manager can use the plane to train in for his private but I don’t know if insurance will allow it.

Any and all comments welcome.

Casey: A very good question. Please copy me on any e-mail replies.

Very recent insurance cost for a new SR22 for 500 hour pilot with Instrument Rating, effective end November was as follows:

Hull premium $3,900, $1 million liability (per occurrence) $500, additional $2million liability (per occurrence) $1,917 for a total of $6,317.

Deductible for the hull insurance is $100 not in motion and $300 in motion. Any other pilot requires 750 hours total and 25 hours in SR22. From past experience, covering a student pilot would add substantially to the premium.

The insurance company is U.S. Specialty Insurance Co.

Note that liability coverage per occurrence gives a lot more protection than coverage per person or per passenger.

Hope this is helpful.


Click to view a PDF of a good cost estimator form. You’ll still need to get numbers to fill in, but it is a good place to consolidate the numbers. (To download the form right-click on the link and select Save Target As…)

As a retired CPA, I say “Honor thy CFO”. He is a wise man indeed.

Now, how’d you get such a deal as to get your employer to foot the bill for the “obviously much needed” SR22 (that is assuming you are not the majority holder of voting interests of said company)?

SR22 Operating Cost Estimates

Operating Cost:

A. Fuel - 15 GPH average cruise burn X $2.50/gallon = $37.50
B. Oil 1/6 QPH X 3.50/quart .58
C. Oil Change 100 average cost per change divided by change Interval of 50 hours 2.00

Routine Maintenance:

As a rule of thumb for initially setting rates, the hourly cost for routine engine (spark plugs and accessories) and airframe (batteries, instruments, tires and brakes) maintenance can be roughly estimated as one half the hourly cost of fuel and oil. Also remember that in a new airplane, these costs will be greatly reduced initially, then will climb up to normal averages after 300-500 hours of use.

D. Engine and Airframe:

Add fuel cost per hour (“A” above) $37.5

  • oil cost per hour (“B” above) $ .58 = 38.08
    multiply by one-half for routine maintenance cost per hour $19.04

E. Total Direct Operating Cost/ Hour (total A-D) $59.12


This creates a “reserve” fund or savings account to prepare the owner for an upcoming major expense- namely an engine and propeller overhaul. Since engine overhauls can be financed separately, or the entire airplane re-financed, many pilots would not consider this savings method a true out of pocket expense. Thus we leave reserves as your option.
F. Estimated Engine Overhaul- full overhaul or factory remanufactured.
$25,000… Divided by engine TBO (time
before overhaul) of 1700 hours. Engine
reserve cost per hour $14.71

G. Estimated Propeller Overhaul- Average three blade overhaul cost of
2,000. Divided by Prop TBO of 2000 hours Prop reserve cost per hour 1.00

H. Total “reserve” fund allocation per hour $15.71

Fixed Costs (Averages based upon current experience- these can vary widely):

I. Yearly insurance costs $3,500.00

J. Yearly hanger or tie down $3,600.00

K. Annual Inspection Cost $500.00

L. Total Fixed Cost per flight hour:

Total of I-K divided by estimated number of flight hours per year:

1. $7,600.00/ 100 hours/year $76.00/hour

2. $7,600.00/ 250 hours/year $30.40/hour


100 hours/year

Direct Cost $59.12
Reserve $15.71
Fixed Cost $76.00

			Total $150.83

250 hours/year

Direct Cost $59.12
Reserve $15.71
Fixed Cost $30.40

			Total $105.23

Great responses so far. I still would like some financing info, ie. local, national, through Cirrus etc.


Lou: Can you give a phone number or url for U. S.
Specialty Insurance Co. My search for them through Google didn’t bring up anything.

US Specialty is an insurance company that deals with agents. AVEMCO is the only insurance company right now that does aviation insurance directly with the public. These two companies happen to be owned by the same corporation.

So I would recommend finding an agent to get quotes for you from all the companies except AVEMCO about 3 months prior to picking up your airplane (not more because the quotes are only good for 60 or 90 days and you may be disappointed if the quotes go up after you initially check), and then check AVEMCO yourself if you wish. (Their liability coverages are different… beware)

The rates that were mentioned are not the rates that US Specialty is using now. They increased there rates about 3 months ago following the rash of losses.

John “JT” Helms
NationAir Insurance

The address for U.S. Specialty Insurance Co. is PO Box 201116, Dallas, TX. I do not have a phone number for their office, only a claims number. All of my contacts have been through a broker, Halton Hall and Associates, phone 817-293-3530. I have been dealing with him for four years. Note that the excess liability insurance is through a different company, Clarendon National Insurance Company, also placed by Halton Hall.

Excellent job! One small correction: according to Continental, the TBO for the IO-550N, the engine in the SR22, is 2000 hours, NOT 1700 hours. Cirrus has erroneously given the lower figure in the past.


I do not know what the rates would be today, but the rates given in my earlier post were quoted after September 11. At least that is when I received them.

Lou, those numbers if they are that recent sound more like the kind of numbers that London Aviation Underwriters would be quoting. They are only available (basically) in the western United States with a few exceptions. They have been very competitive lately, and US Specialty has not.


The numbers are definitely from US Specialty and I got them after Sept 11. I do not know when the broker got them from US Specialty. As I recall, we started talking about this around Labor Day.