Author: John Melton
As 2025 winds down, many high-net-worth individuals and businesses are eyeing private aircraft purchases to take advantage of accelerated depreciation strategies — and for good reason. Under current tax law, qualifying buyers may be able to deduct up to 100% of the aircraft's purchase price in the first year using bonus depreciation (depending on aircraft use and structure of the deal). That's a powerful incentive, and it's driving a surge in year-end aircraft acquisitions.
But while the tax savings may be significant, there's a critical piece of the puzzle that's often overlooked until the last minute: aviation insurance.
Whether you're a first-time aircraft buyer or adding to a growing fleet, here are a few insurance-related considerations to keep in mind before signing on the dotted line.
Underwriting isn't instant — start early
Aircraft insurance underwriting takes time. Insurers evaluate pilot experience, intended use, aircraft type, storage and geographic location. Waiting until closing week to secure a policy can result in higher premiums, limited coverage options or delays in getting your aircraft off the ground.
Your pilot (or lack thereof) could affect your rate
If you're hiring a professional pilot, their qualifications — especially time-in-type — directly impact your premiums. If you plan to fly the aircraft yourself, make sure your experience meets insurer requirements for the make and model. Some carriers may require additional training or impose higher deductibles.
Liability limits matter — so does who you fly
With private aircraft, liability coverage isn't just about protecting the hull of the aircraft — it's about protecting your passengers, your business and your reputation. If you'll be transporting clients, employees or high-profile individuals, your insurance strategy should reflect those risks.
Hangar, maintenance and international travel all influence coverage
Where the aircraft is stored, how it's maintained and where you plan to fly all impact policy structure and cost. For example, trips to Mexico or the Caribbean may require proof of local liability coverage — don't get grounded due to paperwork.
Insuring for financial requirements
If you're financing the aircraft, your lender will likely require proof of hull and liability insurance before closing. Knowing these requirements in advance can keep your transaction on schedule.
Don't let insurance be an afterthought
The bottom line? If you're buying an aircraft to take advantage of year-end tax strategies, loop in an Aviation insurance specialist early in the process. A well-structured policy can not only protect your asset but also keep your acquisition timeline and tax goals on track.
If you're considering a year-end aircraft purchase, I'd love to help you get insured quickly and correctly. Let's make sure your jet — and your financial plan — are ready for takeoff.
