Do Private Pilots Have to Have Insurance? What the Law Requires and What You Need

What the Law Requires

Federal. The only federal insurance rules for aircraft accident liability are in 14 CFR Part 205, which sets the coverage needed by U.S. direct air carriers, meaning airlines and similar operators, to hold or use their operating authority. It does not apply to a private pilot flying a personal airplane. An attorney with AOPA's Legal Services Plan, Ian Arendt, wrote in 2022 that most states do not require aircraft owners to carry insurance, and that no federal rule requires it unless the operator is a direct air carrier.

State. The best published count is the Government Accountability Office's 2015 report on liability insurance for general aviation owners. It found that as of April 2015, 11 states had some variation of a liability insurance requirement or an aircraft financial-responsibility requirement, and that Minnesota was the only state requiring almost all general aviation owners to hold minimum liability coverage, at $100,000 per passenger seat. That is a snapshot from 2015. State laws change, so check the aviation office or statutes in the state where the aircraft is based. The GAO counted both outright insurance requirements and financial-responsibility requirements, so the 11 states are not all applying the same kind of rule.

Where the Requirement Really Comes From

For most pilots, insurance becomes mandatory through a contract rather than a statute:

• Airports. Some airports require insurance to use their facilities, according to Pilot Institute's 2024 owner's guide. Lease and hangar agreements often spell out minimum coverage.
• Lenders, flight schools and clubs. A loan agreement, a flight school's rental agreement or a flying club's bylaws can require specific coverage, such as a named loss payee or a liability limit. We found no single published standard, so the paperwork you sign is the rule that applies to you. Our guide to financing private pilot training covers the money side, and renting a Cessna 172 explains what a rental costs.
• Rentals and borrowed aircraft. AOPA warns that when you rent or borrow an aircraft you could be personally liable for tens of thousands of dollars in repair costs and legal defense fees, because FBO policies rarely provide adequate coverage for pilots.

The Main Types of Aircraft Insurance

What Aircraft Insurance Costs

Premiums vary widely with the pilot's experience, the aircraft's value and age, where it is based and how it is used. Pilot Institute's 2024 guide gives these rough yearly ranges for a Cessna 172, and says they are estimates based on what other owners have reported, so get quotes from an agent. They are not offers.

For what the airplane itself costs, see our Cessna 172 cost guide.

Can You Skip It? The Self-Insurance Question

AOPA describes two levels. In the first, an owner skips hull insurance, accepting the loss of the aircraft, but keeps third-party liability. In the second, the owner carries no insurance at all. AOPA's attorney warns against taking either lightly. The article describes a pilot who died in a crash in a wilderness area, where the uninsured family faced a wreckage and remains recovery bill estimated at about $50,000. Without liability insurance, a crash into a house could leave the pilot's estate responsible for repairs, environmental cleanup and the survivors' losses.

Life Insurance for Pilots

No law requires it, but it is the policy many pilots ask about. The central issue is the aviation exclusion.

• The exclusion. AVweb, republishing a 2021 Aviation Consumer feature by aviation lawyer Rick Durden, reports that many internet-sold policies carry an aviation exclusion. Under one, the insurer will not pay if the insured dies in a general aviation aircraft. Buying coverage without the exclusion typically costs more.
• The cost difference. The article's worked example, for a 50-year-old man buying $1 million of 20-year term coverage, found internet quotes for a healthy non-pilot averaging $2,700 a year. When the applicant disclosed being a pilot and declined the aviation exclusion, quotes rose nearly 25 percent to an average of $3,350. These are 2022 figures and will have moved.
• Flat extras. Underwriters can add a flat charge per $1,000 of coverage for an occupation or hobby. That is the usual alternative to an exclusion.
• What underwriters look at. A specialist broker quoted in the article said a pilot with a private certificate, at least 250 total hours, five or more years of experience, 50 to 300 hours flown a year and a clean record (no DWIs, accidents they caused or FAA violations) can usually get a Preferred rating, and that adding an instrument rating can improve it further.
• Applications. Applicants should expect to disclose flying activity. Durden has also noted that the hazardous-activity question on an application can lump flying yourself in an airplane in with activities such as rock climbing and scuba diving.

If you are applying for coverage at the same time as a medical certificate, our guide to FAA medical conditions and special issuance explains the FAA side of your health history.

A Short Checklist

1. Renting or borrowing: ask what the owner's policy covers for you personally, and consider a renter's policy.
2. Owning: get quotes for both hull and liability, and decide on a liability limit with an aviation insurance agent.
3. Signing a lease, loan or club agreement: find the insurance clause before you sign.
4. Check your state's aviation office for any liability or financial-responsibility law.
5. Buying life insurance: ask directly whether the policy has an aviation exclusion, and disclose your flying accurately.

Frequently Asked Questions

Do private pilots have to carry insurance?

Not under federal law. AOPA says there is no federal requirement for aircraft operators to maintain insurance unless they operate as a direct air carrier. A few states have liability or financial-responsibility rules, and airports, lenders, flight schools and clubs often require it by contract.

Which states require aircraft liability insurance?

A 2015 GAO survey found 11 states with some form of liability insurance or financial-responsibility requirement, and said Minnesota was the only state requiring almost all general aviation owners to carry minimum coverage, at $100,000 per passenger seat. That is a 2015 snapshot, so check your state's current law.

Do I need insurance to rent a plane?

The rental agreement decides. AOPA says FBO policies rarely provide adequate coverage for pilots, and that renters who damage an aircraft can be personally liable for tens of thousands of dollars in repairs and legal fees. A renter's policy covers legal liability and, separately, damage to the rented aircraft.

Is it hard for pilots to get life insurance?

It is available, but pricing and terms depend on flying experience and the type of flying. Many internet-sold policies carry an aviation exclusion, and avoiding it typically costs more. A specialist broker can show you quotes from underwriters that price pilot risk directly.

What is an aviation exclusion?

A clause in a life insurance policy under which the insurer does not pay a death benefit if the insured dies in a general aviation aircraft. A flat extra premium, a charge per $1,000 of coverage, is the usual alternative.

How much does aircraft insurance cost?

It depends on the aircraft, pilot and use. Pilot Institute's 2024 guide reports rough ranges for a Cessna 172 of about $500 to $1,500 a year for hull coverage, depending on aircraft age and pilot experience, with higher figures for newer pilots and for instruction or charter use. Get quotes from an aviation insurance agent.