Aircraft Insurance Requirements by State
The FAA does not require insurance for private GA aircraft. Only 3 states mandate liability insurance. Click a state for details on laws, lender rules, and airport policies.
Do I Need Aircraft Insurance?
While only Minnesota, Virginia, and Maryland require liability insurance by state law, the practical reality is that most GA aircraft owners carry insurance. Airports and FBOs typically require $1M liability minimum to lease hangar space. Lenders always require hull and liability coverage on financed aircraft. And a single ramp incident can cause six-figure property damage — flying uninsured is a significant financial risk.
The GAO estimates 10-20% of GA aircraft fly uninsured (Report GAO-15-740, 2015).
Understanding Post-Accident Financial Responsibility
Five states (California, Connecticut, Indiana, Massachusetts, and South Carolina) adopted the Uniform Aircraft Financial Responsibility Act. This does not require insurance before flying. Instead, after an accident, the state may require you to post a security deposit — failure to do so results in suspension of your aircraft registration. Insurance is one way to satisfy this requirement, along with surety bonds or cash deposits. The dollar minimums in these laws are extremely low (as low as $5,000/person in Massachusetts) because they were set in the 1950s and never updated.