I was speaking to someone the other day and we got on the topic of Maule insurance being notoriously higher. He told me that Maule insurance is higher not because people wreck them a lot but because the company doesn’t carry a blanket liability policy that insurance companies can subrogate against. So there's a penalty levied against the aircraft owner in the premium.

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No idea if this is true or not, but Maule is still a small, family owned and operated business. As such, they probably eliminate all costs not absolutely necessary to actually producing airplanes and parts. They appear successful in this regard because a new Maule and Maule parts are quite a bit less expensive than comparable products from their competitors. Check out the price of a C-180 door handle compared to one for a Maule for an idea of the cost differences across the board. If not carrying a blanket liability policy pencils out in their business model, then I wouldn't be surprised if this rumor were true.

Flyhound wrote:No idea if this is true or not, but Maule is still a small, family owned and operated business. As such, they probably eliminate all costs not absolutely necessary to actually producing airplanes and parts. They appear successful in this regard because a new Maule and Maule parts are quite a bit less expensive than comparable products from their competitors. Check out the price of a C-180 door handle compared to one for a Maule for an idea of the cost differences across the board. If not carrying a blanket liability policy pencils out in their business model, then I wouldn't be surprised if this rumor were true.

Sure, and I wouldn't blame them for that. I guess my question is more along the lines of “is this how the insurance underwriters think when it comes to actuarially quoting for types”?

Zane, insurance is rated on risk and hull value. So if your Maule is easier ground looped than say a Cessna 182 and your hull value is the same the carrier is going to charge you more because of the risk.

Glidergeek wrote:Zane, insurance is rated on risk and hull value. So if your Maule is easier ground looped than say a Cessna 182 and your hull value is the same the carrier is going to charge you more because of the risk.

Russ, I realize that. Been around the block a little myself. What I’m saying is that this guy told me there’s even more to the story of that premium than accident rates and the fleet. If the manufacturer isn’t carrying a healthy liability policy which insurance companies can subrogate against, the end user’s premium reflects that lack of potential milk tit.

Zzz wrote:I was speaking to someone the other day and we got on the topic of Maule insurance being notoriously higher. He told me that Maule insurance is higher not because people wreck them a lot but because the company doesn’t carry a blanket liability policy that insurance companies can subrogate against. So there's a penalty levied against the aircraft owner.

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That doesn't make sense. So you ground loop your Maule. How is Maule even involved in the process? Also I always break this down to the basics. If every(or even most) claim was then subrogated against the manufacturer you would hear about this.

Zane,

I seriously doubt that, frankly. It's not like the underwriter is likely to go after the manufacturer.....not worth the legal fees and the looooonnngg wait for the thing to settle.

As to manufacturer's liability insurance, a fellow who owned a small aircraft manufacturer told me once, when I asked if he carried liability insurance.... "If some dipshit sues me, he's going to wind up the owner of a very small aircraft manufacturing company. I wish him luck with that."

And, as to door handles, the difference between Cessna handles and Maule handles is Maule gets their handles from Ace Hardware......

Bonanza Man wrote:

Zzz wrote:I was speaking to someone the other day and we got on the topic of Maule insurance being notoriously higher. He told me that Maule insurance is higher not because people wreck them a lot but because the company doesn’t carry a blanket liability policy that insurance companies can subrogate against. So there's a penalty levied against the aircraft owner.

?

That doesn't make sense. So you ground loop your Maule. How is Maule even involved in the process? Also I always break this down to the basics. If every(or even most) claim was then subrogated against the manufacturer you would hear about this.

I think the underwriters are considering the most expensive scenario: one of the widows has a lawyer. But maybe you are right. Big lawsuits against mfrs often make our news circles in GA.

Zane, have you found a plane that you are actually seeking insurance quotes on yet? We are all ready for an update

We can all speculate as to why Maule insurance is so expensive.
Why not pose that question to an aviation insurance specialist?
I'd suggest Matt White at BWI.