Road Racing - Insurance?




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MadIceV8
10-20-2009, 12:03 PM
Just a question I've been wondering for a while. For people that auto-x or go on road racing courses, what is the deal with insurance if something were to happen to your car? Either by a accident caused by you, another driver, or error and you hit a wall?


wytry
10-20-2009, 12:05 PM
Well I questioned State Farm once about drag racing, which is NOT covered by them, or most other insurers. So I kinda imagine any other racing would be excluded too.

tCTech
10-20-2009, 12:16 PM
It depends on state, the type of insurance, and the insurer.

I'm in WI, and depending on the coverage and insurance agency, you can be covered so long as it isn't an accident that was caused while exceeding speeds of 100 mph. They would do an entire investigation and everything.

There is also the fact that our club has insurance as well, but it's only so long as you are member of the club.

We recently had a guy with a '09 Lotus Exige total his car. There was easily 20k worth of damage. His insurance; Progressive total coverage, is going cover it up to a certain amount, and then he has to cover the rest. Because it happened on a track, no contact was made between other cars, and there was video and pictoral footage/coverage of the accident, is the only reason they are covering it up to a certain amount. The damage he did to the track, he has to pay for, the damage the fences did to his car, he has to pay for, everything else is being covered by Progressive.

There's alot of other factors I'm sure, but I just don't know.


mitchntx
10-20-2009, 06:07 PM
My race car is insured by Heacock for agreed upon value. It's covered for ANYTHING as long as the car is not moving uder its own power.

subtlez28
10-20-2009, 09:08 PM
So if you blow the motor, before hitting the wall, it is covered then, right?

will62085
10-20-2009, 10:07 PM
Some insurance companies will cover HPDE events. Most all event organizers are pretty clear about it being a non-competitive, school environment.

mitchntx
10-21-2009, 08:35 AM
So if you blow the motor, before hitting the wall, it is covered then, right?

Probably not, because the motor did propell me there. However, if I'm being towed after blowing the motor and then hit the wall ... covered!

:D

tCTech
10-21-2009, 03:06 PM
Some insurance companies will cover HPDE events. Most all event organizers are pretty clear about it being a non-competitive, school environment.

This too!

Feffman
10-21-2009, 05:00 PM
What we've (www.MVPTrackTime.com) seen is most insurers are adding an amendment to existing policies upon renewal or new policies prohibiting coverage on a "racing surface".

We insure our track car with WSIB Insurance (www.WSIBInsurance.com) for on-track coverage only.

Feff

1QWIKBIRD
10-21-2009, 10:51 PM
I don't think there is an insurance company out there that would write a policy to cover a car that is being driven in a competitive nature on a track or at an autox event and be reasonably affordable. The best you could hope for is a policy like mitchntx mentioned, which covers the car, trailer, equipment etc. under any circumstances, except while racing on track. A friend of mine has this for his drag car. Everything is covered, except while the car is actually going down the track.

There have been discussions on other autox boards where people had policy's cancelled for taking part in an autox. So be careful in talking to your carrier and how you approach the topic.

On a side note, this is also a reason to join whatever organizing body you race with or intend to race with. By joining the SCCA or NASA or whatever, you are offered some protection under that governing body's umbrella policy, not for your car, but more for you the person and anyone else who might be injured in event something goes horribly wrong. At least that's how I understand the SCCA membership, it gets you a cheaper per event fee, but also gets you some coverage. Would it hold up? Would the lawyers rip right through it? But it can't hurt.

I've had difficult experiences with getting insurance for a car with any sort of roll bar/cage. The second that question gets asked you are pretty much screwed (unless maybe if you had a drop top).

will62085
10-22-2009, 07:03 AM
I don't think there is an insurance company out there that would write a policy to cover a car that is being driven in a competitive nature on a track or at an autox event and be reasonably affordable. The best you could hope for is a policy like mitchntx mentioned, which covers the car, trailer, equipment etc. under any circumstances, except while racing on track. A friend of mine has this for his drag car. Everything is covered, except while the car is actually going down the track.

There have been discussions on other autox boards where people had policy's cancelled for taking part in an autox. So be careful in talking to your carrier and how you approach the topic.

On a side note, this is also a reason to join whatever organizing body you race with or intend to race with. By joining the SCCA or NASA or whatever, you are offered some protection under that governing body's umbrella policy, not for your car, but more for you the person and anyone else who might be injured in event something goes horribly wrong. At least that's how I understand the SCCA membership, it gets you a cheaper per event fee, but also gets you some coverage. Would it hold up? Would the lawyers rip right through it? But it can't hurt.

I've had difficult experiences with getting insurance for a car with any sort of roll bar/cage. The second that question gets asked you are pretty much screwed (unless maybe if you had a drop top).

Auto X is competitive by nature.

HPDE's are covered by some. I know of a few people who have had cars repaired/replaced by insurance after wrecking them at a DE. It does not always happen that way, but sometimes...

MadIceV8
10-22-2009, 09:50 AM
Some good info guys. Doubt I'll be hitting a ring anytime soon with this car then. I eventually planned to pick up a cheap 6spd car in the future to toy with on the track; that I wouldn't necessarily care about if something were to happen.

Now it has me wondering how a lot of guys take out their exotics with this kind of risk? Worst case scenario you get into some sort of accident and you have to eat the cost of your $150,00+ car and damages :eek2:

mitchntx
10-22-2009, 12:22 PM
Like had been said ... don't confuse "racing" with HPDE.

In HPDE, everyone is just like you ... nice cars, looking for a place to get out and stretch the car's legs a bit. But at the end of the day, they want to drive them home or to work the next day.

So the risk is not as great as it might look like on the surface.

Rarely ... almost never ... I've never seen it in 10 years of road course ventures, have I seen car to car contact in HPDE sessions. Carnage I've seen is all self-induced.

MadIceV8
10-22-2009, 07:52 PM
mitchntx - Actually I was getting them a bit confused. Thanks.

mitchntx
10-23-2009, 02:48 AM
Well then, get out there.

10 years ago I hit my first road course in my 98 Trans AM. It changed my life.

I haven't been to a drag strip or entered a car show since ... and having 100x the fun.

Jeff Smith
10-23-2009, 07:19 AM
Interesting to me..Thanks for sharing....

MadIceV8
01-12-2010, 09:51 PM
Just a little updated I wanted to share about this question as I recently received a update to my policy from State Farm... which I'm sure applies to some in here as well.

Exclusions from coverage:

Being prepared for, used in practice for, or operated in any prearranged or organized racing, speed, hill-climbing, jumping, or other similar contest; or

On a track designed primarily for racing or high-speed driving. This does not apply if the vehicle is being used in connection with an activity other than racing, high-speed driving, or any type of competitive driving.

Thoughts? My understanding from these changes would make even HPDE off limits. Drag racing tracks defiantly seem like they are not covered.

NJSPDER
01-12-2010, 11:18 PM
From what I have seen in the past, most of the decision boils down to how the event is billed and run. I know solo racng has been allowed under a lot of insurance policies for years because it is booked as a "car control" training class.

For those concerned, no they can not void your policy all together for going to a track day. They just will not cover any damages incurred during the event.

There are companies that offer "race car" specialty insurance that cover you all the way up to staging lanes, just not out n the track. As far as I know, no one will cover you there.

The best policy is to be straight with your insurance company when you are setting up your policy and very specifically spell out what will and won't be covered. You will find that if you have a clean driving record and a history of owning performance vehicles without incident, they are happy to work with you.

-Tim