Scared vs. Informed Decisions
By Bob Mackey, representative for the EAA Aircraft Insurance Plan, Administered by Falcon Insurance Agency
August 20, 2009 — There are many different marketing approaches companies use to persuade customers to make a purchase decision. One frequently used approach is the scare tactic - something bad will happen if you don’t buy, something bad will happen if you buy the wrong thing, or something bad will happen if you buy from the wrong seller.
Bottom-line something bad will happen if you don’t buy this from me… Are you scared yet?
I’ve always believed the number one objective is to make sure customers know what they are buying, and that what they are buying is the right thing to buy. Informed customers will be more satisfied and also have a higher level of comfort when they know they have optimized their purchase.
How do you maximize your aircraft insurance purchase satisfaction without the scare tactics? Get the facts, know your options, and use your common sense.
Get the facts - Have a good understanding about airplane insurance coverages so you can better understand what’s covered and what’s not. A good insurance agent should be able to explain the basics of airplane insurance in just a few minutes. It’s not rocket science. There’s also a lot of information about airplane insurance on the Internet. Google and read…and then ask questions about anything you don’t understand.
Know your options - Did you know you have options? I always tell airplane owners to consider the cost vs. risk exposure when they buy insurance. Sometimes you may not have any options, like when you take out a loan for your airplane. The bank will require you to carry full physical damage (hull) insurance. Other times you’ve got options.
For example, you have an airplane that is more expensive to insure for full physical damage insurance such as a plane on floats or a high-value homebuilt for which an insurance company might charge a higher premium. Let’s also say you have quite a bit of experience in this airplane, say 500 hours. In this situation you might find yourself comfortable with not carrying in-motion physical damage insurance and this might lower your overall insurance premium substantially.
The point it you need to know your options and apply some personal risk management and common sense based on your experience, insurance coverage, and cost.
Next time you see an advertisement trying to scare you into making a purchase decision, STOP! An informed, knowledgeable, and analytical airplane owner can’t be scared into to making a bad decision when it comes to airplane insurance. Chicken Little was only able to use the scare tactic for so long!
If you would like to know more about the EAA Aircraft Insurance Plan or how to find the right insurance for the type of flying you do, give us a call 866-647-4EAA (4322) or visit www.eaainsurance.org and complete the online quote request form. Read other insurance-related articles.
When you insure your airplane in the EAA Aircraft Insurance Plan you’re helping support EAA Member Safety Programs and EAA Youth Education Programs. Peace-of-mind insurance coverage plus support for the future of aviation…now that’s a WIN-WIN combination!
The EAA Aircraft Insurance Plan provides aviation insurance coverages for a wide range of aviation activities and is administrated by Falcon Insurance Agency, Inc. Bob Mackey is senior vice president of Falcon Insurance Agency, Inc. and you are welcome to send your suggestions for insurance-related topics that you would like to see addressed to Bob at email@example.com. Thanks for supporting EAA by participating in the EAA Aircraft Insurance Plan.