I self-insure because I have a very inexpensive aircraft, and I don't have many large personal assets to speak of. I can fix my own airplane about 3/4 of the time, and I actually DO take personal responsibility for my actions.

With no malice and no disrespect, I still think it is a little off-balance for some folks to think that insurance should be considered just about mandatory but flying is a "privilege" not a right. Not that he meant it this way, but hat's the kind of thing that a spin doctor in big business or big government would say to keep the average folk thinking a little less of themselves.

Insurance is a financial product, sold at a profit (the insurance industry makes one hell of a profit), which is a useful tool for risk management. Many times it's a great option, but other times it's not such a great value. Insurance companies have routinely priced themselves out of a market, or gouged customers, and then other times they have been incredibly valuable assets and saved someone's bacon. Point being there are a hundred shades of gray on the risk/reward/peace of mind/value/rip off spectrum.

A privilege is something someone gives me out of the goodness of their heart. Growing up in a nice house as a child, without having to pay rent, or buy food, or milk the cows, and a lot of other spoiled brat luxuries I had that most people didn't have... that was a privilege. Thanks Mom and Dad.

A right is something I have bought, or contracted for, or earned, or am otherwise entitled to for some reason of my own doing. Like land, or possessions, or access the internet, etc. A military veteran has a right to VA health care and other stuff, because he/she has paid for it with their service and sacrifices in the military. As another example, my tax dollars have purchased my right to access to the federal airspace system. Because not all people have the skills to fly an airplane, the government has to exercise the power to license me as a safe pilot, and so the government has positioned themselves as being able to take away a "privilege" if I can't pass my BFR. I look at this as a very slippery slope from a big brother standpoint. But make no mistake, flying is a right that I have purchased... I'll be glad to show you the receipt.

Sorry for the rant, I know that Lowflybye was not intending to ruffle any feathers or offend anyone

Well said, EZ.

Best,
O-2

I think that liability insurance is a good idea for anyone who is even reasonably comfortable financially, not just those who are well off. If you ever run into anything expensive with your airplane, or god forbid hurt anybody, what with all the petty-foggin' lawyers you're liable to get sued within an inch of your life and lose your house, retirement accounts, etc. I don't necesarily have all that much, but I don't want to lose what I do have. If something bad does happen, it might still have a personal impact but at least the insurance carrier is there to take the brunt of the blow.
I pay a bit less than $800 a year for full coverage on my little airplane with $36K hull value. It adds quite a bit to my flying overhead every year but I'd rather pay that $800 every year than have to come up with 30 or 40 grand to buy myself a new airplane if and when I screw up & damage/destroy mine. I knw several people who've balled up there airplanes in the past year or two. Those who were insured came out just fine-- the others, not so much.
I think it's a poor idea to under-insure, either out of ignorance or in an attempt to save money. Just gives the insurance company a good reason to total your airplane out (and pay you off with that low declared hull value) instead of fixing it.

I couldn't get insurance on my old twin, so flew it uninsured for half a year. Numerous agents tried to place it, but they all bit the dust. Finally I contacted AOPA and they found one company that was willing to insure it. No point in having hull on such an old low value airframe, so I have liability only. Costs me $2100/year, which I thought was rather reasonable considering I'm a low time pilot in twins. But I can only carry 4 persons in total - the 5th seat will cost me another $500/year. Might add that next year if I see the need.

But generally I think that IF they want to mandate/demand obligatory liability insurance, then some sort of law has to be passed that says that the insurers must insure all aircraft. It can't be like today, where they reject you no matter how much training, hours, or money you're willing to pay because they don't like the look of it. That's unacceptable. In my case, no one was willing to quote on it, no matter how much money I wanted to pay. What's up with that?

What Hotrod and other's have said.

Ya gotta go loose for a bit to build a little time to get there, fine. But I'd watch it with pax on board 'specially if you've got something to lose. Then when you get good in the ins. co's eye's get it. I umbrella insure the individual policies where liability is concerned. My wife works in the medical field, I know how fast you can blow through $100k and I don't want to lose everything I have worked for so far. On top of all that I have multiple layers of LLC's / INC's etc. to help further buffer me.

Hull; I over insure for the facts of;

1. I don't want to be totaled out short of perfect replacement.

2. Deductible

3. My state will be charging me another 6% as I paid the first time to replace the equipment barring having everything lined up and putting the proceeds as my trade.

4. All of the other B.S. associated with a purchase; Pre-buy fees, airline tickets, ferry fuel, hotel rooms, and misc. small tweaking when it gets home for the first 25 hours.

It takes a lot more to be made whole in the end than just the purchase price of the replacement equipment. I reevaluate my policies every year based on current market for type, component times, any upgrades in accessories.

There is no way that I would want to have that helpless feeling even with the "little" ones, let alone the work equipment.
I used my policy last year for the first time, TWICE! Due to radial engine failures. Through my attitude of insuring I have upgraded to a second turbine to hopefully prevent those activities again.
I can tell you that with $70 an hour shop rates and parts costs that you can run up a big bill reeeeal quick?

So lets say I'm a broke old retired guy that has no assets for the lawyers to grab. Future earnings are not a consideration-not like on a young person where they can be 'attached' for life-my earning days are over.
I have a tired old tube n' fabric plane that hasn't had an annual inspection in a decade. No medical since those cost money. I can afford gas and oil on my SS income because I scrimp and save everywhere else. I figure if I kill myself-no real harm done. Am I OK? Good to go....?
Sounds to me like some of you think flying 'necked' (no liability ins) is just fine. Well, maybe I would agree with you if you/I lived 'in the middle of nowhere' with no one/nothing to hurt anywhere near your flight path. But, the way I see it, if I am flying anywhere around other people/structures/property/forests to burn/whatever-I do NOT want my final act on this dysfunctional little planet to HURT/KILL/DAMAGE someone else and them to have absolutely NO chance to be made 'whole'-or as close as money can get someone to 'whole'-by ME.
You say the plane can be steered away from people/valuables. NOT if you have a medical problem that incapacitates the pilot.
I guess you could say I see liability insurance as a moral issue. If you are not daddy Warbucks (exceedingly wealthy) and cannot make someone/something 'whole' directly-you should have it (opinion).

Maybe just some of us feel this way.
lc

Edited for an additional attempt at 'clarity'......