Track Day Insurance is sold and presented as coverage in case the unexpected happens while participating in a track event, which depending on the policy can include an HPDE (high performance driving education), “Track Day”, or even limited “Time Trial” events.
Unfortunately, many people buy track day insurance based on the name, rather than diving into what it covers. We we’ve covered a number of topics on track day insurance, including “Do I Need Track Day Insurance” to “Things Track Day Insurance May Not Cover“.
Every insurance blog post, including ours, always begins or ends with a disclaimer. Always read your policy carefully. Despite this warning, so many people fail to do this. Just like Software License Agreements and Terms of Service, people tend to breeze through these legal contracts with little regard for what’s included. It’s pretty typical, but the risk of doing so is more than just the possibility of disappointment, it could cost you money. Lots of money.
Of course, we have to say it – what is or what is not covered is defined by your policy, not by what you read on the internet, heard in the paddock or were told by a friend who tracks a lot. Our goal here isn’t to give you list of what is or isn’t excluded either, just to put these thoughts in your mind so you ask the question if you are unsure.
Not sure what track day insurance is? It’s a supplemental policy to cover certain on track activities. Your regular car insurance. Even if it’s from an enthusiast friendly company like Hagerty, its highly unlikely you have coverage on track with your regular on street insurance policy.
So let’s get to it, here are some tips or tricks with track day insurance.
Be Aware Of Cancelation Policies
Many people buy track day insurance at the same time they register for a track day. However, don’t assume that your track day insurance policy has the same refund or cancelation policy as your registration.
Most track day insurance can be rescheduled, generally up to 30 days with little to no penalty. However, if you have to truly cancel because rescheduling is not an option, be aware that some policies don’t allow cancelations. Others will allow you to cancel when rescheduling isn’t an option, but you generally will only be refunded a percentage, usually 90%, of the policy.
Also, you generally would not be able to cancel a multi-day policy where you used any portion of the policy, for example a weekend event where you drove on Saturday but Sunday was canceled.
Most annual track day insurance policies do not allow you to cancel early. Unlike your traditional on street insurance, where you generally can cancel or switch and be owed a pro-rated refund, annual track day insurance policies are generally fully earned at inception. This means canceling mid-term does not entitle you to a refund.
Of course, what the cancelation policy is varies by the company and policy type. Bottom line, check your cancelation policy before making a purchase. While this doesn’t necessarily mean you have to wait until the last minute, it will hopefully help you avoid buying a policy without considering avoidable issues, like weather or personal obligations.
Bring A Friend
While who specifically is covered while driving depends on which company you buy track day insurance through, a common feature of nearly every track day insurance policy is that they will cover a second driver. For most policies, this coverage is automatically extended to the instructor. However, in some track day insurance policies this second driver coverage can be extended to any second driver.
Of course, there are a few things to consider. First, be sure to read the next topic on who should be listed as the policy holder. It absolutely matters in most cases. Also, check with your specific carrier to ensure you can specify who the second driver is. Most let you specify during the purchase process, some don’t require you to name the second driver and others still will only allow you to extend the coverage to an instructor.
Get The Policy In The Name Of The Car Owner, No Matter Who Is Driving
There are a number of situations where the driver, and therefore the person interested in buying track day insurance, should not buy the policy. In fact we’ve run across a number of situations where you should be VERY careful about who buys the policy. This also plays on the bring a friend topic above.
Every insurance policy requires the policy holder to have an “insurable interest” in the policy. While insurable interest can be a bit of a complex topic, and even subject to different states rules and even the legal department of the insurance company, for the sake of our discussion it generally means you need to be the owner, lien holder, or spouse of the vehicle owner. As one carrier partner put it well, whoever is named on the policy has to have the legal authority to sign over the title if needed. While we all hope it never comes to that, it’s a simple way to think about why the insurable interest matters.
So what does it mean in a practical sense? Here are a number of scenarios we’ve come cross selling track day insurance where you may not have an insurable interest.
Driving Boyfriend/Girlfriends Car At The Track – in most cases if you are not legally married, any other relationship status does not qualify as an insurable interest. So if you are driving their car, they need to purchase the insurance and add you as a named driver. If your track day insurance company only allows the 2nd driver to be an instructor, get a different policy.
Friends Sharing A Car – we even recommend this as a tip above! Still, the insurance needs to be in the name of whoever owns the car, with the friends being named as an additional driver. Yes, you need the friends permission.
Driving A Car Owned By A Trust Or LLC – if the vehicle you are tracking is owned by an LLC or trust, even if you insured it personally, you should make sure you have an insurable interest. While just because it’s owned by an LLC or trust doesn’t automatically mean you don’t have an insurable interest, there are a number of scenarios where you may not, like vehicles owned by a family business where you don’t have a named or sufficient ownership stake in the vehicle. Also, it’s important to note if you are using the vehicle for a commercial purpose, such as being a professional coach or offering the car for rent, you’ll likely need a different type of track day insurance policy all together.
Insuring A Car With A Non-Standard VIN
This question comes up a lot, whether it’s for a kit or small manufactured vehicle like an Exocet or Ariel Atom, or a JDM, DTM or other import. Sometimes it’s a technical question on how to use a companies website.
First, most track day insurance companies will accept vehicles with chassis numbers, short VINs and other types of “identifiers” in lieu of a traditional VIN. However, it is absolutely critical that whatever number you put into your policy matches something physically and permanently marked on your car.
Second, depending on the track day insurance company you will need to either use the shortened digits or fill the VIN with 000s.
Taking Advantage Of Towing Or Storage Coverage
Nearly every track day insurance policy includes some kind of towing and/or storage coverage? This means in the event you have a covered loss, the cost of towing or local storage of your damaged vehicle could also be covered.
While this may seem insignificant these costs can add up pretty quickly, particularly if the incident occurs away from home. The cost of a low distance tow, or extended storage for an undriveable car can quickly add up to real money.
This type of coverage is important, we definitely recommend you check the details of your policy. Not every company offers the same coverage, even if most include something. For example, one policy we reviewed offered $1,000 in towing but no storage.
Shift Brokers Can Help You Navigate
Shift Brokers is insurance for car enthusiasts. We can help you understand the how different carriers will value your specialty car. In addition, we can help you select from insurance companies that will get you the kind of service and coverage you need. 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. There is never any obligation to work with us.
Informational Purposes Only
As with all of our blog posts with tips and suggestions about car insurance for enthusiasts, these are intended as general information. The specifics of your policy, state and carrier may differ. The information in this blog post is not intended to be formal insurance advice. However, if you’d like to talk to a licensed agent about your specific needs or questions, get a quote. Always read your policy carefully.
