Scenario: I pay X amount of dollars per month for car insurance. I have all 4 tires stolen from my vehicle overnight. I submit a claim with my insurance company to repair any damages. I now pay a **hefty** X amount of dollars for the event that has occurred.
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As an insurance underwriter (aircraft and aviation businesses) I require deductibles so the insured feels the pain of a claim and so is more likely to try to prevent it. Your premium is a sunk cost so there could be a lack of caution to prevent damage to your aircraft since you’ve already paid for it (premium). Unlike a lot of other lines of insurance the deductible generally doesn’t do much to the actual premium since aircraft losses are often 5 digit for owner-flown stuff and 6 digit for everything else. EVERYTHING in aviation costs an arm and a leg….and a rib….sometimes a kidney…couple ounces of blood…you get the idea.
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