10. Insurance is another issue
While tax is mandatory, insurance is another thing. Without it, you may end up losing a lot. But with it, you already end up paying a lot. Especially when it comes to luxury things like a private jet. The insurance premium is even higher.
Insuring your private jet is more important than other vehicle. You may think that flying has less risk than driving your fancy fast car since Air Traffic Control is more strict in assuring safe flights. But damage is lurking just around the corner.
Like any other vehicles, jet’s parts can break. Insurance will cover unexpected damage you may not be responsible with. Also like any other vehicles, jet is prone to accident. And aircraft accidents are more risky than others, not just in passengers’ safety, but also physical damage.
How much does this insurance cost? The average rate insurance companies charge for a private jet is around 14% of its hull value. So, for a $10 million jet, it is around $30,000 per annum. Expensive, isn’t it? You can buy a nice car with that amount of money.
