You just found the perfect Cessna 172 for sale. The price looks great. Everything checks out. Then you notice the engine has 1,800 hours on it. Your heart sinks a little. Will your insurance company even cover a plane with that much engine time?

 Many of these planes are still flying today with engines well past their recommended overhaul time. And yes, they're still insured.

The truth about how engine time affects insurance on a Cessna 172 might surprise you. Most owners think high hours mean no coverage or sky-high rates. But the real story is different. Your engine hours do matter for insurance, just not in the way most people think.

This post clears up the confusion and shows you exactly what happens when those engine hours start adding up.

Key Takeaways

Engine time on your Cessna 172 affects your insurance mainly through your plane's value, not your ability to get coverage. A 172 with a high-time engine is worth less money, which usually means lower insurance premium costs. Most insurance companies will insure your plane even if the engine is past the recommended time between overhaul (TBO), as long as your airplane passes its annual inspection and stays airworthy. The bigger factors that control your rates are your flying experience, how you use the plane, and your maintenance records.

TopicWhat You Need to Know
Coverage EligibilityInsurance companies will cover engines past TBO if the aircraft is airworthy
Premium ImpactHigh engine hours lower plane value, which typically reduces insurance costs by $300-$750/year
What's Not CoveredNormal engine wear isn't covered, but accident damage from engine failure is covered
Biggest Cost FactorYour pilot experience matters more than engine time (low-time pilots pay 70% more)
Betterment RuleAfter accidents, insurance only pays for remaining engine life percentage
Overhaul CostsBudget $20,000-$40,000 for eventual engine work on high-time engines

What Is Engine Time and Why Does It Matter?

Think of your Cessna's engine like the motor in your car. Every time you fly, the engine logs hours. We track these hours very carefully in aviation because engines have parts that wear out over time.

The main number you'll hear about is called SMOH. That stands for "Since Major Overhaul." It tells you how many hours the engine has run since someone completely rebuilt it. When you see "500 SMOH" in a plane listing, that means the engine has 500 hours on it since its last major service.

Here's what the numbers mean:

Every engine has something called TBO, or Time Between Overhaul. This is the manufacturer's recommendation for when you should do major engine work. For most Cessna 172s, that's 2,000 hours for Lycoming engines or 1,800 hours for Continental engines.

But here's the thing. TBO is a recommendation, not a rule. It's like when your car manual says to change your oil every 5,000 miles. You should probably do it, but your car won't explode if you go a bit longer.

Why does any of this matter?

Engine hours affect three big things. First, they tell you how much life is left before expensive work is needed. An engine overhaul costs between $20,000 and $40,000. That's a lot of money. Second, engine hours directly change what your plane is worth. A Cessna with 200 hours on the engine is worth way more than the same plane with 1,800 hours. Third, and this is what we care about most, engine hours affect your insurance in ways that might surprise you.

Most single engine planes like the 172 can safely run well past their TBO if they're well maintained. Some training planes have logged 3,000+ hours before overhaul. The engine doesn't just quit when it hits 2,000 hours like a video game timer.

The Big Myth About Engine Time and Insurance

Let's talk about the biggest myth in the insurance business. People think insurance underwriters won't touch a plane once the engine passes TBO. They imagine calling their broker only to hear, "Sorry, can't help you. Your engine has too many hours."

That's not true.

Here's what really happens. Most insurance policy contracts don't even mention engine hours. Your insurer cares about one main thing: Is your airplane airworthy? That means, can it legally fly according to FAA rules?

If your plane passes its annual inspection, you're good. The mechanic signs off that everything meets safety standards. Your insurance stays in place. Simple as that.

The real requirements for coverage are:

Notice what's not on that list? Engine hours past TBO.

For private pilots flying under Part 91 rules (that's most of us), TBO is just a suggestion. You're not breaking any laws by flying past it. And since you're not breaking laws, your insurance doesn't go away.

Now, commercial operations are different. If you run a flight school or do charter flights, you might have stricter rules. But for personal flying, the FAA gives you flexibility. Your insurance company follows the same logic.

So why do people think insurance won't cover high-time engines?

Probably because it sounds logical. High hours mean more wear. More wear means more risk. More risk should mean no coverage, right? But underwriters look at the data. They know that well-maintained engines can run safely past TBO. They also know that pilot experience matters way more than engine hours for preventing accidents.

Think about it this way. A low-time pilot with only 50 total time flying a brand new plane with a fresh engine is way riskier than an experienced pilot with 1,000 hours flying a plane at TBO. The insurance underwriter knows this. They price accordingly.

The myth probably also comes from confusion about what insurance actually covers. Your aviation policy doesn't cover normal wear and tear on any part. It never did. But it does cover damage from accidents, even if those accidents involve an old engine.

How Your Engine Hours Change Your Plane's Value

Here's where engine hours start to really matter. Your plane's value drops as engine hours climb. This happens in a pretty straightforward way.

Let's use real numbers. Say you have two identical Cessna 172s. Same year, same equipment, same paint, same everything. The only difference? One has 200 SMOH. The other has 1,600 SMOH.

That first plane might sell for $80,000. The second one? Probably around $60,000 to $65,000. That's a $15,000 to $20,000 difference just from engine hours.

Why such a big gap?

Because the buyer looks at that 1,600-hour engine and does quick math. They know an overhaul costs $30,000 on average. They figure they'll need to do that work in the next year or two. So they want that cost reflected in the purchase price.

It's like buying a car that needs new tires soon. You expect to pay less because you'll have that expense coming up.

The depreciation pattern works like this:

Here's something important to understand. The value doesn't keep dropping after TBO. Once an engine hits 2,000 hours, going to 2,200 or 2,500 hours doesn't lower the value much more. The market already treats it as needing overhaul.

Some buyers actually prefer high-time engines if the price reflects it. They plan to overhaul immediately. That way they control the process and know exactly what work was done. Fresh overhauls from unknown shops can be risky. You don't know if corners were cut.

This value change directly affects your insurance in a simple way. Your premium is calculated as a percentage of your plane's hull value. Hull value is just insurance talk for what your plane is worth. Lower value means lower premium. It's that straightforward.

Let's say insurance costs about 1.5% of hull value per year. On an $80,000 plane, that's $1,200 annually. On a $60,000 plane, that's $900 annually. You just saved $300 a year on insurance because of high engine hours.

But remember, you're also sitting on a $30,000 overhaul bill waiting to happen. The insurance savings don't come close to covering that future expense. You're not really saving money. You're just paying lower premiums because you own a less valuable asset.

Think of it like insuring an old car versus a new one. The old car costs less to insure because it's worth less. But that doesn't mean the old car is a better deal overall.

Aircraft types with better engines or more modern avionics hold their value better. A well-equipped 172 with a glass panel might depreciate slower than an old steam-gauge model. But engine hours still hit every plane's value the same basic way.

How Engine Hours Really Affect Your Cessna 172 Insurance

The Truth About Coverage and Engine Time

So what actually happens with your insurance policy when engine hours pile up? Your insurance agent isn't going to refuse you coverage just because you're at 1,900 hours on a 2,000-hour TBO engine. That's the first thing to understand.

Named pilots on your policy can still fly the plane. Your named insured status doesn't change. The coverage stays active as long as you meet the basic requirements. Those requirements are the same whether you have 100 hours on the engine or 2,100 hours.

What matters to the insurance company is your maintenance record. They want to see regular oil changes, compression checks, and annual inspections. If you can show that the engine is monitored and cared for, they're happy to continue coverage.

Some policies have an open pilot clause that lets qualified pilots fly your plane even if they're not specifically named. These clauses usually require certain minimums like 500 hours in make and model or specific ratings. Engine time doesn't change these requirements at all.

Here's what really determines your coverage:

Notice engine hours aren't on that list. Your broker will ask about engine time when quoting, but only because it affects the hull value calculation. They're not using it to decide yes or no on coverage.

Commercial operations face different rules. If you use your plane for flight instruction or charter work, you might need to comply with TBO more strictly. But for personal flying, you have flexibility.

What Happens to Your Insurance Premium

Now let's talk money. This is where engine hours create real, visible effects. Your insurance premium goes up or down based on what your plane is worth. High engine hours lower that value, which lowers your annual cost.

The typical range for insuring a Cessna is 1% to 2.5% of hull value per year. That percentage depends mostly on your experience level and how you use the plane. A pilot with 50 hours total time might pay 2.5%. An experienced pilot with 500 hours and an instrument rating might pay 1.2%.

Let's run through a real example:

You own a 172 that's worth $70,000 with 300 hours on the engine. Your annual premium comes to $1,050 (at 1.5% of hull value). Fast forward five years. You've flown 200 hours. Now the engine sits at 500 hours SMOH, and your plane's value is still around $68,000. Your premium stays close to the same.

Another five years pass. You fly a lot. The engine now shows 1,400 hours. Your plane's value drops to $58,000. Your premium falls to about $870 per year. You're saving $180 annually compared to before.

That sounds great until you remember you're now staring at an upcoming $30,000 overhaul. The insurance savings are tiny compared to that looming expense.

Factors that affect your premium more than engine hours:

Your engine hours matter, but they matter in fourth or fifth place, not first. The guy with 5,000 total time, an ATP certificate, and regular training will pay less on a high-time engine than a low-time pilot with 100 hours will pay on a fresh engine.

The Catch: What Insurance Won't Cover

Here's the part that trips people up. Your insurance policy covers accidents. It doesn't cover maintenance. That distinction becomes super important with old engines.

If your engine quits in flight due to normal wear, and you glide to a safe landing in a field, your insurance covers the damage to the plane from landing in rough terrain. They'll pay to fix bent metal, replace damaged avionics, repair the prop, and get everything airworthy again.

What they won't pay for? The engine itself. If it failed because it was worn out, that's considered maintenance. You were going to need an overhaul anyway. The insurer isn't going to give you a free engine just because it quit mid-flight.

This same logic applies to any mechanical failure. If your alternator dies, insurance doesn't buy you a new one. If your fuel pump quits, that's on you. Insurance covers crash damage, not parts that wear out.

The timeline of a typical claim looks like this:

  1. Engine fails in flight due to worn components
  2. You make an emergency landing (hopefully safe)
  3. Plane sustains damage during the off-airport landing
  4. You file a claim for the landing damage
  5. Insurance company inspects everything
  6. They pay for airframe repairs, prop damage, wing damage, etc.
  7. They don't pay for the failed engine components
  8. You still owe for the engine overhaul you needed anyway

Some pilots think insurance will cover an engine failure and give them a fresh motor. That's not how it works. The insurance business treats engines like they treat tires or brakes on your car. Wear items aren't covered.

This matters more as your engine hours climb because the risk of mechanical failure goes up. You're more likely to need an emergency landing with a 2,000-hour engine than a 500-hour one. And when that happens, you're paying to fix the engine yourself.

The "Betterment" Rule You Should Know

This rule catches a lot of owners by surprise. It's called betterment, and it can significantly reduce what you get paid after a claim. Here's how it works.

Let's say you're flying along and you have a prop strike. Maybe you hit something during landing, or maybe there was an incident on the ground. The FAA requires a full engine teardown after any prop strike. Your engine has to be opened up and inspected completely.

You file a claim. The insurance underwriter reviews everything. They agree to cover the teardown and inspection. But here's the catch. If your engine had 1,500 hours on it when the prop strike happened, they only pay for 25% of the remaining engine life.

The math works like this:

So if the teardown reveals you need $20,000 in new parts and labor, they might only pay $5,000. You pay the other $15,000 because those new parts give you more than you had before the accident. That's betterment.

The insurance company's job is to put you back where you were before the claim. Not to improve your situation. If you had a worn-out engine before, they don't owe you a fresh one after.

This becomes a bigger issue with:

Some insurance companies offer betterment coverage as an add-on. This costs extra but it removes the depreciation calculation. If you have a high-time engine, this coverage might be worth the additional cost. Ask your insurance agent about it.

The betterment rule is why buying insurance on a run-out engine doesn't protect you as much as you think. Yes, you're insured. But if something happens, you're paying a big chunk of the repair yourself anyway.

What Actually Affects Your Insurance Cost More

Let's put this in perspective. Engine hours matter for insurance, but they're not the main driver of your costs. Your flying experience matters way more. The data proves this clearly.

A qualified pilot is defined as someone with a private certificate, 300+ hours total time, and 25+ hours in make and model. These pilots pay the lowest rates. Someone with these qualifications might pay $150-$250 per year for liability only, or $450-$900 for full coverage on a $50,000 hull value.

Now compare that to a student pilot or someone with only 50 hours. That person pays about 70% more in their first year. We're talking $800-$1,500 for the same coverage. That's a difference of $300-$600 per year just from experience.

Here are the factors that really move your rate:

Your Experience Level:

Your Training Background:

How You Use the Plane:

Where and How You Keep It:

The Aircraft Itself:

Engine hours affect your rate through the hull value calculation. But pilot experience, aircraft use, and storage location create much bigger swings in cost. Focus on building your flight time and getting good training. Those investments lower your insurance costs far more than worrying about engine hours.

Time requirements set by underwriters usually focus on your experience, not the engine. They want to see 25 hours in make and model before they give you good rates. They want to see recent flight time. They want to see consistent flying. Your engine hours? They just use those to value the plane.

Smart Strategies for Owners with High-Time Engines

If You're Buying a Cessna 172 Near TBO

Shopping for a plane with a high-time engine can actually be smart if you play it right. The key is making sure the price reflects that upcoming overhaul. You're essentially buying a plane with a known expense in its near future. That should save you serious money upfront.

Here's how to evaluate the deal:

Let's say you find two similar 172s. Plane A has 500 hours SMOH and costs $75,000. Plane B has 1,700 hours SMOH and costs $58,000. That's a $17,000 difference. An overhaul costs about $30,000. So if you buy Plane B and immediately overhaul it, you spend $88,000 total. You're still better off buying the low-time plane.

But what if you can get another 300 hours out of that engine before overhaul? Now you flew 300 hours for "free" in a sense. You saved $17,000 on purchase price. Even after the eventual overhaul, you come out ahead.

Things to check before buying a high-time engine plane:

A plane that flies 200 hours per year and sits in a hangar is way better than one that flies 20 hours per year and sits outside. The first one has higher hours but healthier components. The second one likely has corrosion issues even with low time.

Talk to your insurance agent before making an offer. Get a quote on the plane so you know exactly what insurance will cost. You might find that your rates are actually lower on the high-time engine because of the reduced hull value. Factor that ongoing savings into your math.

Questions to ask the seller:

Some buyers specifically look for run-out engines because they want to control the overhaul process. They find a plane they love, buy it cheap, and immediately send it for a full engine rebuild. Now they have the exact plane they want with a fresh, zero time engine. And they know exactly what work was done because they supervised it.

This strategy works great if you have $30,000-$40,000 sitting around for the overhaul. If you need to finance that work, the numbers get trickier. Most banks won't lend on an engine overhaul. You'll need personal funds or a personal loan.

If You Own a Plane Past TBO

Maybe you already own a Cessna with high engine time. You're wondering if you should overhaul now or keep flying. This decision involves weighing several factors, with insurance being just one piece.

Your insurance policy doesn't require overhaul at TBO. As long as your plane passes annual inspection, you're legal to keep flying. Many owners push well past TBO with good results. Some go 500 or even 1,000 hours beyond with proper monitoring.

The key is enhanced monitoring:

These checks cost extra money. Oil analysis runs about $30 per test. A thorough borescope inspection costs $200-$400. But these small expenses can warn you of problems before they become emergencies. They also give you documentation that you're maintaining the engine properly.

Your insurer doesn't require these specific checks. But if you ever have a claim, detailed maintenance records work in your favor. They show you were monitoring the engine and acting responsibly. That matters when the adjuster is reviewing your claim.

Financial planning for operating past TBO:

Set aside money every month into an engine overhaul fund. Treat it like a required expense. If your engine has a 2,000-hour TBO, and overhaul costs $30,000, that's $15 per hour you should be saving. If you're at 2,200 hours and still flying, you better have that $30,000 ready to go.

Some owners look at their lower insurance costs as their overhaul savings. Remember our example from earlier? You're saving maybe $300 per year on insurance with a high-time engine. That's $25 per month. Not nearly enough to cover an overhaul.

Advantages of flying past TBO:

Disadvantages of flying past TBO:

Here's a smart approach. Fly past TBO only if you fly frequently (100+ hours per year) and you keep the plane in a hangar. Regular use keeps things moving and prevents corrosion. Protected storage prevents weather damage. If you fly 30 hours per year and tie down outside, don't push past TBO. That engine is at high risk.

Also consider your mission. If you fly over mountains, over water, or at night, a run-out engine adds risk you don't want. If you fly locally in good weather with plenty of landing options below, the risk is more manageable.

When to Update Your Insurance Coverage

Your hull value needs to match reality. This matters whether you have a high-time engine or not. Many owners forget to update their coverage after major work or as their plane ages. This creates problems.

If you overhaul your engine, your plane instantly becomes worth $25,000-$30,000 more. Tell your insurance company immediately. Get your hull value increased. Yes, your insurance premium will go up. But now you're properly protected.

Here's what happens if you don't update:

You bought your plane for $60,000 with a run-out engine. You kept it insured at $60,000. Then you spent $30,000 on an overhaul. Now your plane is worth $85,000 easily. But your insurance still says $60,000.

You have an accident. Total loss. The insurer cuts you a check for $60,000. You just lost $25,000 because you forgot to update your coverage. That's expensive mistake.

The opposite problem also exists:

You bought your plane years ago for $80,000. You insured it for that amount. The engine now has 1,600 hours on it. The avionics are outdated. The market value is really $55,000. But you're paying premiums on $80,000 of coverage.

You're overpaying every year for insurance you don't need. Plus, if you have a claim, the insurance underwriter will discover the overinsurance during their investigation. That creates awkward conversations and potential issues with your claim.

When to review and update your hull value:

Your broker should be helping with this. A good insurance agent tracks your engine hours and alerts you when adjustments make sense. They want you properly covered. Under-insurance and over-insurance both create problems for everyone.

To find your plane's real value, check online marketplaces. Look at Controller, Trade-A-Plane, and Barnstormers. Search for planes exactly like yours. Same year, same equipment, similar total airframe time, similar engine time. See what they're actually selling for, not just asking prices.

You can also get a formal appraisal. This costs $300-$600 but gives you an official document stating your plane's value. Some insurance companies require this for higher hull value policies or for unusual aircraft types.

Most importantly, review your coverage annually. Your situation changes. Your plane's value changes. The insurance market changes. A quick conversation with your insurance agent each year keeps everything aligned properly. That conversation takes 10 minutes and can save you thousands.

Conclusion

The relationship between engine time and insurance on your Cessna 172 is simpler than most people think. Your high-time engine won't get you denied coverage. Your insurance company will keep insuring you as long as your airplane stays airworthy. The real effect happens through your plane's value. More hours mean lower value, which means lower premiums.

But don't get too excited about those savings. You're trading lower insurance costs for a massive overhaul bill lurking in your near future. The math works out if you can squeeze extra hours from that engine. Every flight past TBO is essentially free if you maintain things properly. Just keep a close eye on compressions, oil consumption, and any unusual behavior.

Your pilot experience matters far more than your engine hours when it comes to insurance rates. Focus on building your skills, flying regularly, and staying current. Those factors drop your premium way more than worrying about engine time ever will. A well-trained pilot in a high-time aircraft is less risky than a low-time pilot in a brand new plane.

Ready to learn more about getting the best insurance rates and finding the perfect Cessna for your mission? Visit Flying411 for expert guides on aircraft ownership, detailed reviews of popular models, and insider tips on everything from pre-purchase inspections to ongoing maintenance. We help pilots make smart decisions about buying, insuring, and flying their dream planes.

Frequently Asked Questions

Does my insurance company require me to overhaul at TBO if I'm flying for personal use?

No, your insurance company typically doesn't require you to overhaul at TBO for personal Part 91 flying. Insurance policies generally only require that your aircraft remains airworthy according to FAA standards. As long as your plane passes its annual inspection and meets all regulatory requirements, you can legally fly past TBO. However, commercial operations like flight training or charter work may face stricter requirements depending on their operations specifications and insurance contract terms.

Will flying past TBO void my warranty on a factory-rebuilt engine?

Most factory warranties on rebuilt engines expire well before TBO anyway, typically covering 12 months or a few hundred hours. Flying past the manufacturer's recommended TBO doesn't technically void a warranty that's already expired. However, if you're still within a warranty period and experience engine problems, the manufacturer may scrutinize your maintenance practices more carefully. They want to ensure you followed recommended service intervals and operating procedures. Always document your maintenance meticulously if you plan to operate past TBO.

Can I reduce my insurance premium by doing an early engine overhaul?

Actually, overhauling your engine early will increase your insurance premium, not reduce it. When you install a fresh or overhauled engine, your aircraft's market value increases significantly (often by $25,000-$35,000). Since insurance premiums are calculated as a percentage of your hull value, your annual cost goes up proportionally. However, you're now properly protected for what your aircraft is actually worth. The higher premium reflects your more valuable asset and ensures adequate coverage if something happens to your plane.

What happens if I have an engine failure and land safely without any damage?

If your engine fails but you successfully land without damaging the aircraft, your insurance typically won't cover anything. Insurance policies cover accident damage, not mechanical failures or routine maintenance issues. Even if the engine quit in flight, if you land safely in a field without bending metal or breaking anything, there's no claim to file. You'll pay for the engine diagnosis, repair, or overhaul out of pocket. This is why having an emergency fund for unexpected engine work is crucial, especially with high-time engines.

Should I buy betterment coverage if my engine is approaching TBO?

Betterment coverage can be valuable if you have a high-time engine and want full protection after an accident. This optional coverage eliminates the depreciation calculation that standard policies apply to worn components. Without betterment coverage, you might only receive 20-30% of repair costs if your near-TBO engine needs work after an incident. With betterment coverage, you receive full replacement value. The additional cost is usually modest (perhaps $50-$150 per year) but provides significant protection. Ask your broker to quote this coverage and compare the cost versus your engine's remaining value.