Insurance for cessna 150

dpgtime

dpgtime

Well-Known Member
Looking to buy a nice 150 and rent it out to a flight school for training and rental. What is the insurance price of doing so?? If anyone knows.
 
In a leaseback situation the flight school usually pays the insurance on the airplane.

Personal insurance should be well less than 1,000 a year for a 150. Commercial insurance might run 3,000 or so.
 
My Alaska insurance (which is typically outrageous) for the 150 I was going to buy last summer was $1500/year. For commercial insurance count on $5000 at least in the state of AK. More if you're 135 (like $10,000).
 
Personal insurance on a 152 for me was only like $600/year. It depends on how much you insure the hull for as well, I did like 40,000.
 
$535.00 on my personal insurance, advanced ratings and TT make a difference as well. Location also matters as ppragman pointed out

Last time I did a leaseback the school paid the insurance for their part of the flying.
 
Anyone got a ballpark figure regarding annual expenses associated with owning a C-150?

I always see them for sale, $15 or 20K or so, and can't help but wonder if I'm fooling myself thinking I could own a plane some day.
 
Holocene said:
Anyone got a ballpark figure regarding annual expenses associated with owning a C-150?

I always see them for sale, $15 or 20K or so, and can't help but wonder if I'm fooling myself thinking I could own a plane some day.
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I did some research on this a while back...I came up with similar (although slightly higher) numbers for insurance on a 152...but I'm a very low-time pilot.

Other expenses:

fuel
storage - hangars run around $200 per month (in TX that I've seen) and tiedowns anywhere from $40-$50 a month.
maintenance - this would be a toughie - how good a condition is the plane in?

You're going to deal with per-hour costs. AOPA has a number of good articles on how this would be done.

The cost of the note on the plane is usually do-able - that's less than a decent new car for some of these things. But the maintenance cost can be killer when things like vacuum pumps run $1200...y'know?

I'd seriously suggest you find a few owners and ask them.

JCers you ought to ask:

GalaxyIFE - new Piper owner.
DE727UPS - has owned a lot of airplanes and can tell you about the costs. He had a sweet aerobat that I wish I could have bought. :)
NihonNi - I believe he is/was a Grumman owner and had a lot of good advice for me about ownership as well.

There are others, but these are the ones who jump out at me as being helpful when I had questions about owning...
 
Outside of the insurance, my costs are not a good measure, I live in an airpark have a hanger(my 2000 sq ft Mancave as my wife calls it) in my backyard, my partner is an A&P and an IA lives a few hangers down.:nana2:

You might go the the 150-152 yahoo group and check in with them, they are a friendly bunch by-in-large.
 
Not sure about a cessna 150 but we have a Cherokee 140 that we insure the haul at 30,000 and its $550 a year. Hangar here at 3G4 is $110 a month for a t-hanger. Annual done by our local A&P runs around $600 before any repairs are done if needed (We assist in the annual by tearing the plane apart and putting it back together to save labor cost.) We usually budget around $1000 for this. Highest annual we had was around $2200 due to a few minor problems. On average between annual, insurance and hangar we budget around $3000 a year fix cost. (550(insurance)+1320(hangar)+1130(annual). Fuel is actually a minor cost since we burn auto fuel and the engine has been tinkered with alittle bit so it only burns around 7-7.5 gallons a hour during cruise. So you figure with gas right now around $15 a hour for fuel. Back in summer it was around $30 dollars a hour for fuel. So say back at summers gas prices we flew 100 hous the total bill for the year would be $6000. Or roughly $60 bucks a hour. Now people are going to point out that this doesn't include a reserve for the engine overhaul but we intend to sell the airplane to upgrade to a bigger one here before the engine ever comes close to even its half life. But we do budget around $10 dollars a hour for maintance so that brings the total up to around $70 bucks a hour for our cherokee 140. We keep all left over maintance money not used up in the year in a account that adds up incase of any future major repairs needed to be done. One thing we are looking into for when we upgrade is to find one or two other partners at the airport to go in on it. You figure your fix costs are your biggest expense so if you can divide that by 2 or 3 people you cut the cost of flying way down. We hoping to go in on a cherokee six with a A&P at the field who is looking to upgrade to a bigger airplane also.
 
For me I think it will eventually come down to building a kit. Just want something to play around with in VFR. There are a lot of successful auto engine conversions, too. Some may scoff, claiming reliability issues...but planes do glide.
 
Holocene said:
For me I think it will eventually come down to building a kit. Just want something to play around with in VFR. There are a lot of successful auto engine conversions, too. Some may scoff, claiming reliability issues...but planes do glide.
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I am going to have one of these someday, a Pietnepol with a Model A Ford engine. One of the first really popular homebuilts.

piet626_10oc.jpg
 
dpgtime said:
Looking to buy a nice 150 and rent it out to a flight school for training and rental. What is the insurance price of doing so?? If anyone knows.
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I'm a CFI and Aviation Insurance Agent and do these kinds of policies all the time. For a commercial policy that covers Instruction and Rental you're looking at $3-5K for a used 150. As previously mentioned, a it's substantial step up in premium versus a personal use policy which would typically be less than $1,000.

Also, many times the flight school will have their own fleet policy and want you to add the plane to their policy, with some exceptions. Ask the school how they're set up.

Let me know if you have any other questions and I'll be glad to help.

-Clint
 
For me the cost of owning has been cheaper than renting. This is still accounting for some maintenance issues that I have dealt with. I am also fortunate to have an A&P/IA friend and I will get my A&P later this year (it's on the to-do list) so the "night time trolls" won't have to work on the airplane. I could also run mo-gas, but I have been hesitant with the high temps of S. Texas (vapor lock). And really, avgas is about $3/gal, so it's not too bad. I figure about $30/hour for fuel. I also do not figure into an engine fund as I plan on selling the airplane after a couple hundred hours and there is 1300 hours to go before TBO. I also do not have a "maintenance fund" as I have enough "discretionary savings" for the maintenance pop ups (so far, unscheuled MX has cost about a grand). The insurance is about $800 a year, but I got it while I still a student, so I am sure the cost will come down when I renew. I pay $75/mo for a community hangar, so that is nice and about as cheap as it comes. My break-point for rent vs. own is about 12 hours a month. If I fly less than that, it's cheaper to rent.

On another note, if I was in a locale where I *knew* I would be at for an extended time, I would get into a partnership. I have had a handful of people ask me if I would be interested in selling shares, but I have decided against it because I never know when I may have to move. I saw an awesome deal up in Kansas for a Cherokee 6...$1500 into the partnership, $250 a month for the note and split of the fix costs for a total of 4 people. The plane had low hours TT and TSMOH, new paint and new interior. A very sweet deal...but of course I am no where near Kansas :drool:

Lease backs are a whole 'nother subject that I don't know a bunch about but if I came across a good deal and my lawyer peeps reviewed the contract, it is something I would consider...maybe.
 
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