On Your Mark, Get Set, Go!
Most major cities usually have a site where the average Joe can race on a track just for the thrill of it. However, when getting ready to race, drivers usually do not give a second thought to car insurance. These every now and again race track drivers do not bother to look at their policies to see if they are covered in the event of a crash. They do not even realize that the vast majority of them are not insured in case of an accident on the track.
by tonylanciabeta
What Do You Mean I’m Not Covered?
For the longest time, the typical car insurance policy would not cover any damage that occurred when the vehicle was being driven at a timed event. This created a loophole allowing drivers to be insured if they could claim that the accident occurred while they were taking driver’s education courses, even if these courses took place on a race track.
Coverage existed if the driver could prove that the event was not timed, there was an instructor present in the car, the vehicle was not enhanced so that it could be raced, and the event was not marketed as a competition. However, times they are changing. Insurance companies have now begun to change policies to protect themselves from the once in a while racer. Most car insurance policies now state that there is no coverage if any damage occurs at a location that could accommodate racing.
And Then There Was Track Day Insurance
This left many thrill seekers scrambling for a solution. One answer was to race with a cheap car. If an accident occurred in a car with a low value not much would be lost. Another solution was High Performance Driver’s Education (HPDE) insurance. This type of coverage allowed the driver to be insured while on race track premises.
Depending on the policy, either the car only is covered or there is a liability clause. Polices can be written to cover a single event, can be annual, or a variation of the two. However, all policies are usually based on an agreed value and consider the vehicle to be a total loss if there is approximately 70% damage to the car. This can be a problem for racers who under insure their high end vehicles because the driver only receives the agreed to value of the car in the case of an accident. The insurance company then retains title to the car. Even though there can be a down side to HPDE insurance, it was a welcome sight for drivers who race their cars occasionally and wanted the peace of mind that insurance can bring.