Aircraft Insurance in Maryland
Mandatory InsuranceState requirements, lender rules, and airport policies for Maryland aircraft owners.
State Liability Insurance
Required by Law
Minimum: $50,000 per person
State Hull Insurance
Not Required
Lenders always require hull coverage
Federal Requirements (FAA)
The FAA does not require liability or hull insurance for privately owned general aviation aircraft. Only commercial air carriers must carry insurance under 14 CFR Part 205 ($300,000 per passenger minimum). This means Maryland's state mandate is stricter than federal law.
Maryland State Law
Maryland requires liability insurance for all aircraft based or hangared at a Maryland airport under Md. Transportation Code 5-1002. Minimums: $50,000 per individual bodily injury / $100,000 per accident bodily injury / $50,000 property damage. The owner may not operate or allow operation of the aircraft without a policy in force covering both the owner and pilot.
View StatuteLender Requirements
Most aircraft lenders require hull insurance with the lender named as loss payee, plus liability coverage of at least $1M.
Airport & FBO Requirements
Maryland airports and FBOs typically require proof of liability insurance ($1M minimum) for based aircraft. State law already requires coverage for aircraft based or hangared in the state.
Recommended Coverage
Regardless of state law, most aviation professionals recommend at minimum:
- ✓$1M combined single limit liability with $100K per-passenger sublimit — the most common GA coverage level
- ✓Hull coverage equal to current market value (stated value, not actual cash value)
- ✓In-motion and not-in-motion coverage (ground and flight)
Source: AOPA Insurance Services. An estimated 10-20% of GA aircraft fly uninsured (GAO Report GAO-15-740, 2015).
How to Lower Your Aircraft Insurance Premium in Maryland
Aircraft insurance premiums are based on risk. The more you can reduce your risk profile, the lower your annual cost. Here are proven ways to bring your premium down:
- ✓Get your instrument rating. An IFR ticket can reduce premiums by 15-30% — it signals lower risk in adverse weather.
- ✓Build hours in type. Insurers reward experience in your specific make and model. The first 100 hours in type often trigger a rate reduction.
- ✓Complete safety courses. FAA Wings program participation, recurrent training, and type-specific transition courses all demonstrate commitment to safety.
- ✓Increase your deductible. Moving from a $0 deductible to a "not in motion" deductible or higher in-motion deductible can meaningfully lower your annual premium.
- ✓Join a type club. Some insurers offer group discounts for members of recognized aircraft owner associations.
- ✓Maintain a clean claims history. Even one hull claim can increase premiums for 3-5 years. Avoid filing small claims when possible.
- ✓Consider liability-only on low-value aircraft. If your aircraft is worth less than $30,000, hull coverage premiums may exceed the expected payout — liability-only can cut your premium in half.