Motorsports come in all flavors from motocross to stock car racing, from on-track precision driving classes to races in vehicles that are so tricked out they’ve become ‘supermodified.’ What each has in common though, other than the fact that they all take place on some sort of track or course, is the need for insurance. Specifically, track insurance is advised.
Track insurance comes in two main types: insurance that is attached to a specific venue or insurance that is attached to a specific event. The former is generally purchased by racetrack owners, and the coverage is usually good for a specific period of time, like a season, or a year. The latter is generally purchased by event managers / coordinators or club administrators, and includes coverage for the span of a specific event even if that event is only one or two days long. Both types of coverage usually include:
- General liability insurance for both participants, spectators and staff, in case of injury or property damage.
- Accident insurance covers medical care for participants, volunteers, and staff.
- Officer/Director liability insurance covers lawsuits not within the scope of general liability, and usually in connection with claims of mismanagement or mishandling of funds.
In addition, other insurance coverage that may be purchased include:
- Contingency (in case you must change details very quickly, such as a change of venue)
- Event cancellation
- Prize insurance (to help secure prize monies)
While most racetracks and precision courses are covered with policies such as those outlined above, individual drivers will usually find it prudent to carry their own insurance. If you are attending a driving class in which you are using your own car, your standard insurance will usually cover you, as long as you are not racing.
If you are racing, or entering speed contests, even a basic specialty policy won’t cover you, but there are racecar policies that will give you liability and accident coverage when you’re on the track, and coverage for theft and accidents when you’re transporting your car to and from the track, as well as while it’s garaged on-site.
As with collector car policies, racecar insurance carries restrictions, including the allowable use of your car, that you must have a clean driving record and significant driving experience, and in some cases, that you provide proof of ownership of an insured street-legal car for every-day use.
Collision coverage is unheard of as an aspect of racecar or track insurance.
Because the regulations for precision driving and racing vary from state to state, it is essential that you talk to your insurance agent about where you live and where you plan to drive.