Pretty much all traditional insurance companies have exclusions on their policies for racing. Track days, drag racing, circuit racing, hill climb, rally, even auto cross are likely excluded from most policies.
We as enthusiasts know that many of these events, like track days are not competitive or timed. You are not going wheel to wheel with other cars. Even still, track days are usually referred to as a high performance driving event, or HPDE for short.
Through beginners generally have a trained instructor riding along with them to keep them in check and a strict point-by for passing is used to keep people on the track safe, most insurance companies are not going to cover any losses that occurred on the track. In fact, most insurance companies have specific provisions to their policies to exclude any and all HPDE’s. Even with the watchful eye of a trained instructor accidents still happen. These losses can be very costly since speed is usually a large factor in the accident. The higher the speed, the greater the damage will likely incur. Drivers are also responsible for any damage their car causes to the race track and those walls can be surprisingly expensive.
The good news is there are options for a supplemental insurance policies to cover a track day. Many of the companies that offer these supplemental policies operate a little differently from a normal insurance carrier. You buy a policy to cover you for the day(s) during a specific event. You get to insure your car, all the modifications made to it, and the estimated value you wish to insure it for. This is a great option if you own an expensive car or still have a lien on the title.
One downside to most of these supplemental policies can be that they generally have a deductible and they can often be 10% of the cars value. That means if you value your car at $50,000, if you were to have an incident you would be responsible for $5,000 to cover my deductible. It is not a cheap option but losing $5k is better than losing $50k – especially in this situation where my everyday insurer would likely deny your claim completely.
Shift Brokers Can Help You Navigate
Shift Brokers is car insurance for car enthusiasts. We can help you not only navigate insurance rules and policies. And because we are car enthusiasts and specialize in policies for car enthusiasts, we can help you navigate the unique needs and situations only car enthusiasts find themselves in. The best part is, because we are brokers, we represent you, not the insurance companies.
Request a quote and lets start talking cars.