The Pay-As-You-Go Model Comes to Aviation

Aviation insurance company SkyWatch has launched their new usage-based insurance product for rented light aircraft, with insured durations of yearly, monthly, weekly, and even daily coverage.

Offered with Global Aerospace, another insurance and risk management company, SkyWatch will offer insurance directly to pilots via select partners, while Global provides their underwriting and claims handling. The service is expected to offer coverage for as little as $5 a day, with coverage available in less than 90 seconds. 

The majority of pilots in the United States are renters, often flying irregular and spontaneous schedules that ebb and flow with a number of variables. Expenses, aircraft availability, career milestones, and currency goals can all change the regularity and consistency of flight time, but up to now, they would be subjected to paying for airtime they didn’t use. Now, with SkyWatch, students, tourists, enthusiasts, and more can limit their insurance funding to the essential time in flight. With granularity down to insurance by the day, younger or lower-income pilots can reach their goals faster by spending their money exactly where it needs to be, instead of insuring someone else’s parked plane for months out of the year.

“Together with Global Aerospace, we’re providing pilots with flexibility and freedom through this usage-based insurance product,” said Tomer Kashi, CEO of SkyWatch. “SkyWatch is committed to providing the best value to all aviators and leveraging data is key to offering flexible and cost-effective insurance options. The difference we make for aviators inspires us to keep innovating on all fronts.”

“We are excited to partner with SkyWatch to provide an industry-first offering. The decision to build an easy-to-use, technology-based platform to provide pilots of rented or borrowed aircraft with flexible and affordable usage-based coverage options aligns with our commitment to drive innovation and simplify the process of buying insurance,” said Jeff Bruno, Chief Underwriting Officer of Global Aerospace.

FMI: www.skywatch.ai