----[Please read http://ercoupers.com/disclaimer.htm before following any
advice in this forum.]----

A very well written article. I would just like to add one thing. I
remember
the days when you could buy a Coupe for $2,500. Today a really nice one
will
cost about $20,000. When you insure your hull, you are really asking for
the
insurance company to give you $20,000, if the airplane gets trashed out
for
any reason. Your preimum for hull insurance is directly related to the
value
of the airplane.
Thank you Percy for taking the time to submit your article. Like you, I
only
carry Comp. insurance. The cost of hull insurance is a bit more than I am
willing to cough up.
George Frebert


On Sat, 14 Apr 2001 11:29:11 -0700, [EMAIL PROTECTED] wrote:

>  ----[Please read http://ercoupers.com/disclaimer.htm before following
any
advice in this forum.]----
>
>  Dear List,
>     There was a general moaning this week `bout the high costs of
>  insurance.  It was stated that the costs for a Taylorcraft of the same
>  vintage as most Ercoupes was less.  I'd like to pontificate on these
>  matters for your weekend reading pleasure.
>     First off, what is insurance?  It is nothing more than spreading
>  financial risk.  All the premiums have to pay for all the claims, plus
a
>  little something for the insurance company.  Premiums can never go
below
>  claims for very long, and claims can come in great gobs.  Given market
>  pressures, premiums can't really raise to the levels that an insurance
>  company would like because the obscean profits would bring more
companies
>  into the market - always at lower rates.
>     Now, aircraft insurance has a cycle.  When there are no substantial
>  wrecks, profits are fat and competition keeps prices down.  If their is
a
>  Big Crash (i.e., 747 w/all aboard) the claim pool is decimated, profits
are
>  down for the year, and many underwriters leave for better return on
>  investment.  That allows the remainder to raise rates, which is what is
>  probably happening now.
>     Eventually, the profits return, balance sheets fatten and the
>  underwriters are back.  The price lowers and we shout hurray.
>     The second thing is the dual nature of the insurance we buy for our
>  planes.  Usually, there are two parts = Liability and Hull.  The first
pays
>  people not to sue us when there is damage from our planes.  The second
is
>  what we get paid when we damage our poor birdies.  Each is evaluated
>  separately by the insurance companies, and are subject to the same
dynamic
>  as above.
>     All insurance is rated by experience insuring the risk.  Combined
with
>  Liability vs. Hull. your total bill is rendered.  So what would cause
the
>  Ercoupe to be more than a T-crate?  Probably not the relative piloting
>  skills of those on this list.
>     When I look at my `coupe, I see precious metal.  Not the alum.
sheet;
>  all them snazzy, specialized castings and extrusions.  Start with the
nose
>  wheel and look at it.  The sensuous shape of the single-fork nose would
be
>  hard/expensive to reproduce, but it is not the main problem.  Look at
the
>  center section and wing spars.  Observe the curves of the rudders.  Not
>  Cheap - any of it.  I might note that I am envious of the Luscombe
>  people.  Their bird is actually back in production.  The people that
did
it
>  actually looked at the Ercoupe.  Why not the `coupe?  Luscombe's are
mostly
>  bent sheet - that can be easily built in Checko, or Slovakia, or where
>  ever.  Bottom line = curves cost, but that's why my wife likes the
Ercoupe.
>     I received a quote for insurance the other day.  Liability was not
too
>  bad, really.  $450; `bout what I paid last year.  Total bill?  Over a
>  grand.  Hull was a bit rich for my blood (so are alot of other things,
>  Ed...).  So I'll pass on the Hull, like I did last year.  I can do
this,
>  for there are no secondary owners = banks, partners, etc., that would
have
>  to be endemnified if I rolled 29H up into a ball.
>     Back to the T-crate.  This fine classic airplane is of the so-called
>  'tube and rag' construction.  Look in Trade-A-Plane, the back of Sport
>  Aviation, or in Kit Planes Magazine.  There are hot and cold running
tube
>  dealers.  Cloth covering usually has a plethora of suppliers as
>  well.  Where do Ercoupe parts come from?  Univair, and that's it.
Dispite
>  what the FAA says, the M in PMA stands for Monopoly, and parts cost
>  accordingly.  Hince the high hull insurance prices on Ercoupes.
>     Sure want to thank all of those that stayed to the end of my
>  diatribe.  I wasn't able to strike while the iron (postings) were hot,
but
>  had to get this off anyway.  Fly with good practices, and allow the
>  insurance companies a reasonable profit so we don't fly buck nakkid.
>                 Percy in Portland
>
>
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>
>





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