Insurance SR 20

For those looking for new insurance policies for the SR 20, I have found Avemco to be as reasonable as it gets for new underwriting. Deductibles of up to $10,000 provide substantial discounts. In addition, EAA membership provides a 5% premium discount. Plus, an additional discount of 9% on the current policy after a specified number of hours in the Cirrus. We are both IFR rated with less than 400 hours and were as pleased as it gets. Remember, your broker does not obtain quotes for you from Avemco, it’s a direct writer.

What is EAA?

Please also remember that if you have the 1 Million limited to 100,000 that with AVEMCO that is a per PERSON sublimit (people outside the plane are also limited, so if someone outside the plane sues you for a million AVEMCO will only pay for the first 100,000) and it is further limited (to 25% of the sublimit) if the person injured is your family member.

The policies that an agent can get you all (at least all the ones I deal with and have heard of) use a per PASSENGER sublimit (someone hurt outside the plane that sues you for 1 million can get it.)

John “JT” Helms
Branch Manager

EAA = Experimental Aircraft Association. They’re the ones who, among other things, put on the Oshkosh show every year.

I had a different experience than Gary in that I found Avemco to be roughly twice as expensive as the underwriter I ended up going with (USAIG). But I think his point is valid – Avemco does it’s own underwriting. So if you are shopping for insurance with a broker, that broker will be able to check with a bunch of insurance companies, but not (usually) Avemco. I think the best thing to do is call Avemco directly, get a quote, and compare it to the best that a broker can provide.


I think insurance premiums have changed in the last few months for new business and not for the better. I also had substantially better rates quoted with USAIG, a year ago, but I didn’t have the airplane then. That was back when a Vice President of USAIG was on the Forum and actively solicited business with Cirrus owners and prospective owners. Now that I’m two months away from delivery, things don’t look quite as good from an insurance standpoint, at least for new underwriting.

Hi Gary, what kind of rate did you get with Avemco? I also live in Florida and wonder if it is at all location specific. Mine is due next Apr.

With all this said, the biggest risk is injuring or killing a passenger.

I still contend that unless you’re incredibly rich, very poor with no assets to protect, you never carry passengers, or you carry passengers with no earning capacity whatsoever, a $250 sublimit of any kind puts you and or your heirs in an incredibly precarious position.


We already sent you a form making you broker of record for us, so the ball will be in your court shortly. I’m looking for a small miracle.

I was wondering is anyone involved in a lease-back situation? What is your arrangement with thoes leasing?

As a physician in a high-risk specialty, I’ve been looking into asset protection from liability/malpractice. One of the methods used, not just for professionals, but anyone, is a family-limited partnership to segregate your “dangerous” assets from your “non-dangerous” assests. This would include things like autos, which obviously can injure other people. With this, if your auto causes injuries, your liability is limited to the auto itself, and your other assets are “protected” since they are segregated. I havn’t gone over the specifics with the attorney I’m meeting with shortly, but has anyone out there done any similar thing with their airplane?

Yes, I’ve put together a shell of LLCs (a general LLC for my business and a LLC that is a holding company for the plane) for protection, but it’s almost useless in the case of the Cirrus because it will only protect me if someone else is flying the aircraft and augers into the school yard. They’ll go after the pilot as well as the owner. In my case, I had another risky asset that I am typically not the operator of, so the LLC for the Cirrus was pretty much “free” cut and paste boilerplate and a couple hundred bucks filed with the state of Delaware.

Not yet. When you do this, be very careful of your choice of attorneys. Many estate-planning attorneys or general practitioners give out asset protection advice, without really knowing what they are talking about. If you are consulting an estate planning attorney or general practitioner, you should also find out who is the best bankruptcy attorney in your area and talk to him (her). Those are the people who deal with asset protection when the fertilizer hits the propeller. You’ll likely get a more realistic practical view of things that way.

If you are leasing the plane (same as automobile lease), you are responsible for the insurance as if you owned it. (should be spelled out and is probably required by the lessor).

If you mean a true lease-back (you own it, and lease it back to an FBO to rent out or train people in) then the Cirrus aircraft should be added to the policy that the FBO has (typically you pay the insurance for it). Their policy should cover the added risk (i.e. instruction and rental) but should also include pleasure and business use for you as the owner.

John “JT” Helms
Branch Manager