Aircraft Insurance in 2026: Soft Market Now, Higher Premiums Next?

For a couple of years now, checking aircraft insurance rates at renewal time has been one of the few pleasant surprises in aircraft ownership. Right up there with finding a twenty in your flight bag. After a long, painful hard market, general aviation insurance softened, and plenty of owners actually saw their premiums go down. Some of us had to sit down.

Enjoy it while it lasts, because the folks who set those rates are starting to clear their throats. Here’s where the market stands, why it may be turning, and what to do before your next renewal lands in the mailbox.

Where Aircraft Insurance Rates Stand

Broker reports through the first half of 2026 describe a buyer-friendly market for general aviation:

• Gallagher reported that GA hull and liability rates continued to soften through late 2025 and into the first quarter of 2026, with capacity broadly available and insurers competing for quality business (Gallagher).
• Marsh described high competition and attractive conditions for many GA buyers in the first half of 2026, while noting that insurers are questioning whether current pricing is sustainable (Marsh).
• For one popular model, the Cirrus SR22, BWI data showed median renewal reductions of roughly 25% in early 2026 (Jettly).

Why Aircraft Insurance Rates May Turn Higher

Large losses are building up

The CEO of Mach 2 Underwriters called 2025 the worst big-loss year for aviation in more than a decade and predicted that rate decreases would stop and modest increases would begin in 2026 (AIN). Gallagher also noted a significant GA loss and a steady stream of total losses early in 2026 (Gallagher).

Repairs cost more every year

If you’ve had a “simple” squawk fixed lately, you already know this one. McLarens Aviation, a firm insurers use to assess damaged aircraft, published a claims cost index in June 2026 showing every category rising between 6% and 10.8% in a single year. Propeller strikes and repair labor were among the fastest-rising costs (GlobalAir).

Mechanics are scarce

The maintenance trade group ARSA counts about 17,000 unfilled mechanic jobs in North America this year (GlobalAir). Fewer mechanics mean higher labor rates and longer repairs, which raises the cost of every claim.

The bottom line from brokers

Gallagher is telling clients who renew late in 2026 to budget for possible increases of 10% to 20% if the market turns (GlobalAir). That isn’t a certainty, but it’s a reasonable planning range. Insurance companies are many things, but they are not in the business of losing money for long, and they have excellent memories.

How Aircraft Insurance Is Priced

Aircraft insurance is split into two parts: hull coverage for damage to the airplane, and liability coverage for injury or damage to others. Insurers price both around three factors: the pilot, the aircraft, and how it is flown (BlackJet). In other words, they’re sizing up you, your airplane, and your habits. It’s a little like meeting your future in-laws.

• Hull value drives most of the premium. For an SR22, hull value makes up 70% to 85% of the total premium, and typical annual premiums range from $2,500 to $8,000 (Jettly).
• Pilot experience and ratings matter. Pilots without an instrument rating generally pay more (Jettly). That rating you keep meaning to finish? It pays you back a little every year.
• Storage matters. Insurers prefer aircraft in hangars over tie-downs (BlackJet).

For reference, one estimate puts annual insurance for a Cessna 172 flown by an experienced pilot at about $1,900 to $2,300 (HangarMath).

The Agreed-Value Trap

Aircraft hull policies pay an agreed value: a number you and the insurer set when you buy the policy. Most policies also have a total-loss rule. If repairs would cost more than roughly 75% to 90% of the agreed value, the insurer totals the airplane instead of fixing it (GlobalAir).

Rising repair costs make this a real risk for owners of older airplanes, which is to say most of us. The average piston single on the ramp is older than some of the pilots flying it. Consider a hypothetical airplane insured for $80,000. If the total-loss threshold is 80%, any repair estimate above $64,000 means the insurer writes a check instead of fixing it. A prop strike that requires an engine teardown, plus labor at today’s rates, can approach that number. You then receive the agreed value, minus your deductible, and a lovely view of an empty hangar. Replacing that airplane may cost a good deal more than the check.

Ask yourself two questions at every renewal:

1. Does my agreed value reflect what it would cost to replace this airplane with a similar one today?
2. Would I rather have this airplane repaired, or receive the agreed value?

Raising the agreed value increases the premium, so this is a trade-off. But setting it too low to save a few hundred dollars can cost far more after an accident.

Liability Limits and Your Net Worth

Liability coverage protects your assets if you injure someone or damage property. Many owners carry limits they picked years ago, back when their net worth was smaller and their hair was darker. Neither has stayed the same. Review whether your liability limits, and any per-passenger sublimits, are adequate for the assets you are trying to protect. Also check whether your personal umbrella policy excludes aviation, as many do. This is an area where your insurance broker and financial advisor should talk to each other.

Six Steps to Take Before Your Next Renewal

1. Start early. Contact your broker 60 to 90 days before renewal so there is time to shop the market.
2. Budget for an increase. Plan for 10% to 20% more than you paid last year. If the increase is smaller, congratulations, you just found money. Spend it on fuel.
3. Update your pilot résumé. Give your broker current total time, time in type, ratings, and recent training.
4. Invest in training. Recurrent training and type-specific programs can lower premiums over time (BlackJet).
5. Revisit agreed value and liability limits. Use the questions above.
6. Use an aviation specialist. An experienced aviation insurance broker can compare several underwriters at once.

Insurance is one of the largest fixed costs of ownership. To see how it fits with hangar, maintenance, and fuel, read The True Annual Cost of Owning an Airplane in 2026.

Frequently Asked Questions

Are aircraft insurance rates going up in 2026?

General aviation rates softened through early 2026, but brokers now warn the market could turn. Gallagher advises clients renewing late in 2026 to budget for possible 10% to 20% increases.

What is agreed value in aircraft insurance?

Agreed value is the hull amount you and the insurer set when you buy the policy. If the aircraft is totaled, the insurer pays that amount, minus any deductible.

When will an insurer total my airplane?

Many policies total the aircraft when repairs would exceed roughly 75% to 90% of the agreed value. Rising repair costs make this more likely for older aircraft.

How can I lower my aircraft insurance premium?

Adding an instrument rating, completing recurrent or type-specific training, keeping the airplane in a hangar, and using an experienced aviation broker can all help.

Sources

1. Gallagher, “General Aviation insurance market update Q1 2026,” April 10, 2026.
2. Marsh, “Aviation insurance market overview H1 2026.”
3. AIN, “Aviation insurer: Expect rates to begin climb in 2026,” December 12, 2025.
4. GlobalAir, “Why a scraped propeller now costs more than a new car.”
5. Jettly, “Cirrus SR22 insurance costs.”
6. BlackJet, “Cessna 172 insurance cost,” August 4, 2026.
7. HangarMath, “Cessna 172 ownership cost report,” March 14, 2026.

Disclaimer: This article is for educational purposes only and is not financial, tax, legal, or insurance advice. Coverage terms vary by policy and insurer. Consult a licensed aviation insurance broker, a qualified tax advisor, and a financial advisor about your specific situation.

Want a second look at how your coverage protects your net worth? Schedule a free initial consultation.